North Dakota § 57-43.1-26 Inventory gains - Losses

North Dakota Statutes

§ 57-43.1-26 — Inventory gains - Losses

North Dakota § 57-43.1-26

Title 57Taxation

Ch. 57-43.1Motor Vehicle Fuels and Importer for Use Taxes

This text of North Dakota § 57-43.1-26 (Inventory gains - Losses) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 57-43.1-26 (2026).

Text

1.A supplier or distributor shall take a physical inventory reading of all motor vehicle fuel located in a terminal, underground tank, aboveground tank, railcar, storage tank of a truck, and the storage tank of a bulk delivery truck on a monthly basis and shall report the physical readings, inventory gains, and inventory losses to the commissioner. The inventory reconciliation must include motor vehicle fuel at retail locations and motor vehicle fuel stored in a barrel, drum, or other receptacle.

2.When sold or used by a supplier or distributor, a gain in motor vehicle fuel inventories is subject to the tax imposed by this chapter in the same manner as motor vehicle fuel purchased, imported, or otherwise acquired.

3.A supplier or distributor who experiences an actual physical inventory

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1. A supplier or distributor shall take a physical inventory reading of all motor vehicle fuel
located in a terminal, underground tank, aboveground tank, railcar, storage tank of a
truck, and the storage tank of a bulk delivery truck on a monthly basis and shall report
the physical readings, inventory gains, and inventory losses to the commissioner. The
inventory reconciliation must include motor vehicle fuel at retail locations and motor
vehicle fuel stored in a barrel, drum, or other receptacle.
2. When sold or used by a supplier or distributor, a gain in motor vehicle fuel inventories
is subject to the tax imposed by this chapter in the same manner as motor vehicle fuel
purchased, imported, or otherwise acquired.
3. A supplier or distributor who experiences an actual physical inventory loss due to
shrinkage or evaporation is responsible for the tax imposed by this chapter on any
such loss that is in excess of one-half of one percent of the motor vehicle fuel received
during the period covered by the inventory reconciliation.
4. For purposes of this chapter, it is presumed that all motor vehicle fuel received above
the one-half of one percent allowance, except that gallonage shown as inventory
based on physical inventory readings at the end of the time period covered by the
inventory reconciliation, and other allowances provided in this chapter, has been sold,
delivered, or used, and the supplier or distributor is liable for the amount of the motor
vehicle fuel tax on each gallon [liter] of motor vehicle fuel not accounted for. For
purposes of this chapter, motor vehicle fuel refined at a refinery in this state and
placed in storage at the refinery, and motor vehicle fuel brought into the state by
pipeline and placed in storage at a pipeline terminal, is not deemed received until it is
withdrawn from the refinery or terminal storage for sale or use in this state, or for
shipment or delivery to destinations in this state.
5. The commissioner may allow a tax credit to a supplier or distributor for actual inventory
losses due to a casualty loss, based on proof of the loss as required by the
commissioner.