Fuel Supplier Tax Return (In-State And Out-Of-State) Form (Page 2 of 6) in pdf

Certain penalties may be assessed on any licensed Supplier that authorizes sales of motor

fuel or special fuel for export from a South Dakota terminal to a person who does not have

a valid South Dakota Exporter’s license.

Diversion Tickets

Instead of preparing diverted load tickets as required by law, some licensees have been

informing Suppliers of changes in destination thus forcing the Supplier to amend their tax

returns, seek refunds and reimburse the purchaser for taxes and tank inspection fees that

might have been collected for the fuel.

South Dakota relies on the information that is printed on the bill of lading to determine

taxability of fuel products. The Supplier must bill the customer in accordance with the

destination information that is presented on the bill of lading, and their involvement with

the transaction is to end there.

If a shipment of motor fuel or special fuel needs to be legitimately diverted from the

represented destination state after the bill of lading has been issued by the terminal

operator, bulk plant operator or transporter, or where the issuer failed to cause proper

information to be printed on the document, the Transporter shall issue a diversion ticket for

the shipment, or partial shipment, and the Consignee is to report the diversion, pay any

additional taxes due or file for any refunds or credits due on their tax return.

Prior Period Adjustments

All fuel transactions must be reported, taxes paid to South Dakota or refunds claimed

during the period in which they occur, prior period adjustments are not allowed. For

example: if a sale of fuel takes place on July 31st the Supplier is not allowed to delay the

reporting of that transaction until the August or September reporting period. The

transaction must be reported on the July tax return. If a transaction occurs at the end of the

month and is not reported on that month’s tax return, the Supplier is to amend the tax

return, report the additional transaction on it and fill out the Summary for Amending Tax

Returns form (see appendix) for that reporting period.

Ethyl Alcohol and Methyl Alcohol

All Suppliers selling 100% ethyl alcohol (ethanol) and/or 100% methyl alcohol (methanol)

are required to collect and remit .08 cents per gallon fuel excise tax, plus .02 cents per

gallon tank inspection fee on all sales of these products on forms provided by the

Department.

Record Keeping/Acceptable Records

To ensure that the correct amount of fuel tax is collected on all fuel used on South Dakota

roads and highways, the law requires Suppliers to keep detailed records of all fuel

transactions and deliveries. Suppliers will need these records to accurately complete tax

returns and must present them to Department personnel if they are audited or have their

licenses reviewed. Records are to be maintained for a period of at least 30 days at the

delivery location or a location approved by the Secretary. All records must be preserved

for the current year and the three preceding calendar years.

Fuel Supplier Tax Return (In-State And Out-Of-State) Form Page 2