Motor Fuel Tax Schedules And Reports Instruction (Page 42 of 43) in pdf

Sales of dyed diesel fuel to the state or local governments:

Dyed diesel fuel sold to the state, counties, cities, or local governments for use in licensed vehicles, used

exclusively for construction, reconstruction, or maintenance of streets, roads, or highways, must be low

sulfur fuel in accordance with EPA standards.

Fuel transactions with entities not licensed in North Dakota:

North Dakota law requires suppliers, distributors, importers, and exporters to be licensed with the State

Tax Commissioner PRIOR TO doing business in the state. This means that no licensed entity should

enter into any type of fuel transaction in North Dakota with a business not licensed in this state.

This applies to all fuel types; i.e. motor vehicle fuel, special fuels, liqueﬁ ed petroleum gas, and

aviation fuels.

In the event that fuel is sold in North Dakota to a nonlicensed entity in error, the applicable per gallon tax

rate for the speciﬁ c product must be charged and remitted. The 2% special fuel excise tax does not apply

to these transactions because the fuel is being sold directly to a reseller rather than directly to an end

user. That means, the per-gallon tax must be charged on all special fuel tax otherwise subject to the 2%

excise tax. The nonlicensed entity will not be able to obtain a tax refund or create a tax credit for

future use on any taxes incurred prior to obtaining a license in North Dakota.

The only exception will be a nonlicensed entity from another state making an occasional purchase in

North Dakota, for export only, due to unavailability of the fuel in that entity’s state. The selling supplier

or distributor must charge and remit the applicable North Dakota per gallon tax unless prior arrangements

have been made with the Tax Commissioner for the seller to act as the exporter, as in situations involving

exports into Minnesota. In situations where the seller was not approved to act as the exporter of the fuel,

the purchaser will be granted a refund of the North Dakota tax based upon proof that the exported fuel

was reported to the state of import.

Documentation requirements for consumer refunds:

Suppliers and distributors should be aware of the documentation requirements established by law for

individuals or businesses seeking refunds of fuel taxes. Retailers not licensed by the Tax Commissioner

may not be aware of these requirements and are not always providing the refund applicants with invoices

or sales tickets that can be accepted as valid documentation. That being the case, we are asking licensed

suppliers and distributors for their assistance in passing on this information to their own retail outlets

and to independent retailers with whom you do business. The invoices or sales tickets must include the

following:

● The seller’s name and address (machine printed or rubber-stamped thereon).

● The date the fuel was purchased (month, day, year).

● The type of product (clearly identiﬁ ed).

● The number of gallons purchased.

● The state tax as a separate item, or a statement that the state tax is included in the price.

● The name of the person or business purchasing the fuel and claiming a refund.

None of the above items are negotiable. Histories of the transactions, in lieu of invoices or sales tickets,

may be provided. The histories must be prepared and certiﬁ ed by the sellers of the fuel and must include

all of the information required on an invoice or sales ticket.

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Motor Fuel Tax Schedules And Reports Instruction Page 42