North Dakota § 57-43.2-21 Inventory gains - Losses

North Dakota Statutes

§ 57-43.2-21 — Inventory gains - Losses

North Dakota § 57-43.2-21

Title 57Taxation

Ch. 57-43.2Special Fuels and Importer for Use Taxes

This text of North Dakota § 57-43.2-21 (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 § 57-43.2-21 (2026).

Text

1.A supplier or distributor shall take a physical inventory reading of all special 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 special fuel at retail locations and special fuel stored in a barrel, drum, or other receptacle.

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

3.A supplier or distributor who experiences an actual physical inventory loss due to shrinkage or evapo

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1. A supplier or distributor shall take a physical inventory reading of all special 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 special fuel at retail locations and special fuel
stored in a barrel, drum, or other receptacle.
2. When sold or used by a supplier or distributor, a gain in special fuel inventories is
subject to the tax imposed by this chapter in the same manner as special 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 loss
in excess of two percent of liquefied petroleum gases and one-half of one percent of
all other special fuel received during the period covered by the inventory reconciliation.
4. For the purposes of this chapter, it is presumed that all special fuel received above
these allowances, except that gallonage shown as actual 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 special fuel tax on
each gallon [3.79 liters] of special fuel not accounted for. For purposes of this chapter,
special fuel refined at a refinery in this state and placed in storage at the refinery, and
special 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 casualty loss subject to the discretion of the commissioner and based on
proof of the loss as required by the commissioner.