Fillable Form Scc-5 - Spill Compensation And Control Tax

SCC-5A

State of New Jersey

11-07, R-28

DIVISION OF TAXATION

SPILL COMPENSATION AND CONTROL TAX

N.J.S.A. 58:10-23.11h

TAX RETURN INSTRUCTIONS

GENERAL INFORMATION

H. TRANSFER DEFINED - “Transfer” means onloading or

A. DUE DATE - The SCC-5 return must be filed by the 20th day

offloading between major facilities and vessels or vessels

of the month following the close of the taxable period.

and major facilities, and from vessel to vessel or major facility

B. TAXABLE PERIOD DEFINED - Taxable period means that

to major facility, but not including fueling or refueling

period commencing with the first day of the calendar month

operations.

In the case of non-petroleum hazardous

and ending with the last day of said month.

substances, “transfer” also includes any onloading of or

offloading from a major facility.

C. FILING - An SCC-5 tax return must be filed on a monthly

basis by all registered operators of major facilities regardless

I. SECONDARY TRANSFERS - Form SCC-2 - The Act

of whether tax liability has been incurred for a given month.

provides that “the same barrel, including any products

A late filing penalty may be imposed on registrants who fail to

derived therefrom, subject to multiple transfers from or

file timely returns. Registrants no longer subject to the tax

between major facilities shall be taxed only once at the point

are required to submit a written request for termination of

of the first transfer.” Each subsequent transfer is regarded as

their registration prior to ceasing return filing.

a secondary transfer and as such, is exempt from further

taxation. Secondary transferees, however, bear the burden

D. FORM SCC-8 - Reconciliation form only to be used by those

of proof that transfers received were previously subjected to

taxpayers who qualify under one of the “cap” provisions

the tax. The only acceptable documentation of a secondary

provided for in Section b. of N.J.S.A. 58:10-23.11h. This form

transfer is a valid Secondary Transfer Certificate

(Form

must be filed along with the tax return on which the limitation

SCC-2).

is met. Refer to the note on page 4 for additional information.

J. HAZARDOUS SUBSTANCES - “Hazardous Substances”

E. TAXPAYERS - All owners and operators of major facilities

means such elements and compounds, including petroleum

including pipelines and vessels who are transferees are

products as defined in N.J.S.A. 58:10-23.11b.

Effective

considered to be taxpayers for purposes of the Spill

October 7, 1996, metals in either their pure elemental form or

Compensation and Control Tax. If a major facility operates

alloyed, in solid pieces with at least one dimensional

as a public storage terminal, then the owner of the hazardous

measurement equal to or exceeding 100 micrometers (0.004

substance transferred to such terminal is considered to be

inches) or chemically bonded to an inert substrate shall not

the transferee and taxpayer for the purposes of the tax.

be considered hazardous substances.

Also, hazardous

F. MAJOR FACILITY DEFINED - “Major Facility” includes but is

substances determined by the Department of Environmental

not limited to any refinery, storage or transfer terminal,

Protection not to be subject to regulation under the Act shall

pipeline, deep water port, vessel, drilling platform or any

not be subject to taxation. The list of hazardous substances

appurtenance related to any of the preceding that is primarily

may be obtained by writing to:

New Jersey Division of

used or intended to be used to refine, produce, store, handle,

Taxation, Audit Services Branch, PO Box 189, Trenton, NJ

transfer, process or transport hazardous substances or

08695-0189 or online at:

petroleum products. Facilities with total combined above-

ground or buried storage capacity, primarily used or intended

K. PETROLEUM AND PETROLEUM PRODUCTS DEFINED -

to be used, for storage of petroleum or petroleum products of

“Petroleum” or “Petroleum products” means oil or petroleum

more than 200,000 gallons, or the non-fluid equivalent

of any kind and in any form, including, but not limited to, oil,

thereof, are major facilities. Facilities storing non-petroleum

petroleum, gasoline, kerosene, fuel oil, oil sludge, oil refuse,

hazardous substances are considered to be major facilities if

oil mixed with other wastes, crude oils, and substances or

their storage capacity is over 20,000 gallons, or the non-fluid

additives to be utilized in the refining or blending of crude

equivalent thereof. When a facility meeting such standards

petroleum or petroleum stock in this State; however, any

is located within the confines of a larger premises, the terms

compound designated by specific chemical name on the list

“use” and “intended use” refer to the facility itself and not the

of hazardous substances shall not be considered petroleum

character of the entire complex. Storage capacity means

or a petroleum product for the purposes of this act, unless

only that capacity which is dedicated to, used for or intended

such compound is to be utilized in the refining or blending of

to be used for storage of hazardous substances of all kinds.

crude petroleum or petroleum stock in this State.

Where appropriate to the nature of the facility, storage

capacity may be determined by the intended or actual use of

L. PRECIOUS METALS DEFINED - Precious metals include

open land or unenclosed space as well as by the capacities

gold, silver, osmium, platinum, palladium, iridium, rhodium,

of tanks or other enclosed storage spaces.

ruthenium and copper.

G. PUBLIC STORAGE TERMINAL - A public storage terminal

M. ELECTRONIC FUNDS TRANSFERS - The Division of

means a public or privately owned major facility which is

Revenue has established procedures to allow the remittance

engaged in the business of providing storage space to the

of tax payments through Electronic Funds Transfer (EFT).

general public and for the exclusive storage of hazardous

Taxpayers with a prior year’s liability of $10,000 or more in

substances owned by others. When a hazardous substance

any one tax are required to remit all tax payments using EFT.

is transferred to a major facility which qualifies as a public

If you have any questions concerning the EFT program, call

storage terminal on or after January 18, 1979, the owner of

(609) 984-9830 or write to N.J. Division of Revenue, EFT

the hazardous substance is considered the transferee and

Section, PO Box 191, Trenton, NJ 08646-0191.

the taxpayer for purposes of the tax.

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Form Scc-5 - Spill Compensation And Control Tax - 2008 Page 2

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