2005 Regular Session
To: Ways and Means
By: Representative Franks
AN ACT TO AMEND SECTIONS 27-55-13 AND 27-55-19, MISSISSIPPI CODE OF 1972, TO ELIMINATE THE EVAPORATION, SHRINKAGE AND OTHER NORMAL LOSS DEDUCTION ALLOWED DISTRIBUTORS OF GASOLINE ON THEIR GASOLINE EXCISE TAX LIABILITY; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-55-13, Mississippi Code of 1972, is amended as follows:
27-55-13. For the purpose of determining the amount of his liability for the tax imposed by this article, each bonded distributor of gasoline shall, not later than the twentieth day of the month next following the month in which this article becomes effective, and not later than the twentieth day of each month thereafter, file with the commission a monthly report which shall include a statement of the number of gallons of gasoline or blend stock received by such distributor within this state during the preceding calendar month, and such other information as may be reasonably necessary for the proper administration of this article.
At the time of filing each monthly report with the commission, a distributor may take a credit for the number of gallons of gasoline that he purchased during the preceding calendar month from a distributor who pays the excise tax imposed by this article on such gasoline.
At the time of filing each monthly report with the commission, each distributor of gasoline shall pay to the commission the full amount of the gasoline tax due from such distributor for the preceding calendar month * * *.
Reports and payments sent to the commission by mail must be postmarked by the due date in order to be considered timely filed, except when the due date falls on a weekend or holiday, in which case such reports and payments must be postmarked by the first working day following the due date in order to be considered timely filed.
The monthly report of the distributor of gasoline shall be prepared and filed with the commission on forms prescribed by the commission, or the distributor of gasoline may, with the approval of the commission, furnish the required information on machine-prepared schedules. Such monthly reports or schedules shall be signed by the distributor or his duly authorized agent and shall contain a declaration that the statements contained therein are true and correct and are made under the penalty of perjury.
SECTION 2. Section 27-55-19, Mississippi Code of 1972, is amended as follows:
27-55-19. There shall not be included in the measure of the tax levied hereunder any gasoline:
(a) Sold or delivered by a bonded distributor of gasoline to a second bonded distributor of gasoline within this state, but nothing in this exclusion shall exempt the second bonded distributor of gasoline from paying the tax, unless the second bonded distributor of gasoline sells or delivers said gasoline to a third bonded distributor of gasoline in which event the third bonded distributor of gasoline shall be liable for the tax.
(b) Sold to the United States government for use of the Armed Forces only, and delivered in quantities of not less than four thousand (4,000) gallons. Any exemption provided in this paragraph (b) may be deducted without the prior approval of the commission, provided that satisfactory proof of such exemption shall be furnished to the commission. However, such exemption may be disallowed by the commission if the distributor fails to furnish satisfactory proof of such exemption to the commission.
(c) Exported to a destination beyond the borders of this state by a bonded distributor of gasoline when the tax on such gasoline has been paid or on which the tax liability imposed by this article has accrued against such bonded distributor. Any exemption provided in this paragraph (c) may be deducted without the prior approval of the commission, provided that satisfactory proof of such exemption shall be furnished to the commission; however, such exemption may be disallowed by the commission if the distributor fails to furnish satisfactory proof of such exemption to the commission within ninety (90) days from the sale or delivery of the gasoline.
(d) Exported by any person to a destination beyond the borders of this state in quantities of not less than three thousand (3,000) gallons by ship, vessel, barge, railroad tank car, or pipeline, or by tank truck if such tank truck is operated by a common or contract carrier.
(e) Imported by, or sold to, any refiner or processor in this state for the purpose of being refined or further processed.
(f) Sold to any manufacturer for blending or compounding to the end that it becomes a component part of any manufactured product, or where used as a processing agent in the treatment of raw material in manufacturing a product which does not fall within the meaning of the term "gasoline" as defined in this article.
(g) Sold or delivered to be used for test purposes at any regularly established testing laboratory in this state.
Except as provided in paragraphs (b) and (c) above, evidence of exempt transactions provided in this section and subsections thereof, satisfactory to the commission, shall be submitted by the distributor desiring an allowance of said exemptions to the commission with the payment of the excise tax on the gasoline on which the exemption is claimed. If the commission decides that the distributor is entitled to the exemption and allowance claimed, it shall notify said distributor in writing of such allowance. The distributor shall then be allowed to deduct from the payments made in his next monthly report, after said allowance, the amount of tax which he paid on this exempted gasoline which amount shall be arrived at by multiplying the amount of exempted gasoline * * * by the amount of excise tax per gallon. In cases where the amount of such tax cannot be absorbed on the estimated tax liability of the person making such payments during the next six (6) months, the amount shall be refunded to the taxpayer. Such amount shall be certified to the State Auditor of Public Accounts by the commission. The said Auditor is hereby authorized to make such investigation and audit of the claim as he finds necessary. If he finds that the commission is correct in its determination, the Auditor may issue his warrant to the State Treasurer in favor of the taxpayer for the amount of tax erroneously paid, such refunds to be made from current gasoline, or special fuel tax collections.
Except as otherwise provided in this section, in order to claim exemptions provided for under this article, the distributor of gasoline must file claims therefor within three (3) years from the date of sale or delivery; otherwise, claims for such exemptions shall be disallowed.
In case gasoline and special fuel on which the tax has been previously paid are accidentally mixed, the distributor of gasoline or other person owning such mixture may ship the mixture out of the State of Mississippi, or to a Mississippi refinery, and may claim credit for the gasoline and/or special fuel tax on the gasoline and special fuel so mixed. The distributor of gasoline or other person may also ship the mixture to a barge or pipeline storage terminal within the State of Mississippi to be brought up to gasoline specifications, or lowered to special fuel specifications, as the case might be, under the supervision of a representative of the commission. It shall be the duty of the distributor of gasoline or other person to whom the mixed product belongs to notify the commission immediately after knowledge that the mixture has occurred.
In case the distributor of gasoline or other person elects to ship the mixture to a barge or pipeline terminal for storage within this state, the commission shall supervise the unloading of the mixture.
In order to perfect a claim for credit for the tax on the gasoline and special fuel constituting any such mixture, the distributor of gasoline or other person making the claim shall do so in writing and shall furnish proof satisfactory to the commission that the mixture was either shipped out of this state or to a refinery or other approved place of storage within this state. The commission shall notify the claimant, in writing, whether or not his claim is approved, and, if approved, the claimant may deduct the amount of the claim from his next tax report. No such claim shall be allowed unless filed within three (3) years after the date of such accidental mixture. Bonded distributors of gasoline having no gasoline tax liability with the commission may assign such tax credit to a bonded distributor of gasoline having such tax liability.
No tax liability shall accrue against the operator of a refinery when shipments of gasoline are made from such refinery, either by common carrier or by tank trucks owned and operated by the operator of said refinery, to a tax-exempt account within this state or to another refinery within this state.
Provided, however, that when gasoline is withdrawn from the storage tank of a refiner or processor on which the tax is paid on such gasoline and it or any part thereof cannot be delivered to a purchaser, said refiner or processor may deduct the tax on all or that portion of such gasoline not delivered to a purchaser from its next gasoline distributor's tax report; provided that such refiner or processor submits with such tax report: (1) a written report setting forth the reasons why such delivery could not be made, and (2) proof or evidence satisfactory to the commission that the tax in question had theretofore been paid to the commission, and (3) proof or evidence satisfactory to the commission that the nondelivered gasoline was actually returned to the refinery or processor from which it was taken for the purpose of delivering it to a purchaser; and provided further, that immediately upon ascertainment by the refiner or processor that said gasoline cannot be delivered, he or it shall immediately notify the commission of this fact and before moving his or its truck or other means of transporting said gasoline from the intended point of delivery; and should the commission desire to inspect said truck, or other means of conveyance, such refiner or processor shall arrange for such inspection at the point or at such other point that may be designated by the commission.
The United States government, the State of Mississippi, counties, municipalities, school districts and all other political subdivisions of the state shall be exempt from Five and Four-tenths Cents (5.4¢) of the portion of the gasoline excise tax rate which exceeds Nine Cents (9¢) per gallon. Any exemption provided in this paragraph may be deducted without the prior approval of the commission.
SECTION 3. This act shall take effect and be in force from and after July 1, 2005.