Motor Fuel Tax Schedules And Reports Instruction (Page 6 of 43) in pdf

An “importer” takes legal possession of fuel in another state, Canadian province, or other foreign

jurisdiction, and brings it into ND. “Legal possession” for purposes of these transactions, means

“ownership” of the fuel.

► If the out-of-state supplier or distributor from whom the fuel was purchased owns the fuel when it

crosses the border into ND, that person is the importer.

► If you, as the purchaser, own the fuel when it crosses the border into ND, you are the importer.

Whose carrier is the transporter does not of itself determine legal ownership of the fuel.

► Fuel delivered into ND by the purchaser’s own carrier, a common carrier hired by the purchaser,

or a contract carrier hired by the purchaser, is most likely owned by the purchaser when it crosses

the border into ND.

► Pursuant to a written contractual agreement between the parties, fuel delivered into ND by a

carrier furnished by the seller may also be owned by the purchaser when it crosses the border.

● MN/ND Exception: A MN supplier or ﬁ rst distributor, licensed in ND, may act as the “importer”

when selling fuel in MN for export to ND, but only if the purchaser is not licensed in ND. The acting

“importer” must charge the applicable ND per gallon tax and report the transaction on this schedule.

These transactions must also be reported on a Schedule of Gallons Disbursed, schedule type 5 or 5A,

as a ND sale.

EXAMPLE – The seller acts as the “importer”:

The fuel is sold over-the-rack at a Minnesota pipeline terminal:

► The purchaser/consignee takes legal possession of the fuel in Minnesota;

► The destination for the fuel is North Dakota; and

► The purchaser/consignee is not licensed in North Dakota.

The MN seller reports the transaction as an import into ND and as a tax-paid sale in ND.

Do not report the following transactions on this schedule type:

○ Gallons shipped into a ND pipeline terminal.

○ Gallons acquired in another state, Canadian province, or other foreign jurisdiction, that do not come

to rest in ND. These gallons should not be reported as an import into ND even though your business

may have a presence in or a billing address in ND.

○ Gallons destined for ND but sold by your business (in other words, your business relinquished legal

possession) in another state, Canadian province, or other foreign jurisdiction.

► The MN/ND exception noted in the instructions on what to report may, however, apply.

Details Required

Schedules of Gallons Received

All transactions for a speciﬁ c tax type may be listed on one document, or a separate document may be

completed for each schedule type.

Each transaction must be detailed, except where summaries are speciﬁ cally allowed. Do no use a

symbol to designate “repeat” data, and do not enter “same” for repeat data. An entry is required in each

“mandatory” ﬁ eld. Only an “optional” ﬁ eld may be left blank. Schedules (and the tax reports supported

by those schedules) without the mandatory detail, may be rejected.

Gallonage subtotals, by product type, per schedule type, are needed to complete the tax reports.

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Motor Fuel Tax Schedules And Reports Instruction Page 6