Fillable Form Scc-5 - Spill Compensation And Control Tax

SPECIFIC INSTRUCTIONS - Continued

Line 3 - Taxable Hazardous Substance Transfers -

Line 1 minus Line 2.

Line 4 - Hazardous Substances Received on Which Tax Previously Paid -

Enter the total quantity of previously taxed hazardous substances, as documented by Secondary Transfer Certificates, on Line

4. Both the transferee and transferor of previously taxed petroleum or any other hazardous substance must retain a copy or

duplicate of all Secondary Transfer Certificates (Form SCC-2) unless a single certificate has been used to cover multiple

transfers to the same transferee of the same general type of product. Taxpayers must comply with all instructions and

regulations pertaining to the use of Secondary Transfer Certificates.

Line 5 - Hazardous Substance Transfers Subject to Tax -

Line 3 minus Line 4.

Line 6 - Conversion to Barrels -

All transfers subject to tax must be measured in barrels.

Liquids - A barrel is 42 United States gallons. Liquid barrels are to be measured at 60 degrees Fahrenheit. Divide all

liquid gallons of Hazardous Substance Transfers Subject to Tax (Line 5) by 42.

Solids - The solid equivalent of one barrel of fluid at 60 degrees Fahrenheit is 350.79 pounds. Divide all non-liquid

pounds of Hazardous Substance Transfers Subject to Tax (Line 5) net of packaging and containers by 350.79.

Gases - Gases measured in cubic feet at 60 degrees Fahrenheit are to be converted from volume to the equivalent weight

of one barrel of liquid. The taxpayer must determine and indicate the measure of conversion employed on the tax return

form. N.J.A.C. 7:1E-1.7(b), effective October 7, 1996, states that any flammable or inert gas on the List of Hazardous

Substances designated by an asterisk shall not be considered a hazardous substance.

Line 7 - Barrels of Hazardous Substances Subject to Tax -

Add Line 6 Column (A)-1 to Line 6 Column (A)-2 for barrels of petroleum and petroleum products subject to tax.

Add Line 6 Column (B)-1 to Line 6 Column (B)-2 for barrels of other hazardous substances subject to tax.

Add Line 6 Column (C)-1 to Line 6 Column (C)-2 for barrels of hazardous substances which are or contain precious metals,

elemental phosphorus, elemental antimony or antimony trioxide, subject to tax.

Line 8 - Fair Market Value of Barrels Subject to Tax -

Applicable only to Column (B) Other Hazardous Substances. Fair Market Value of Barrels Subject to Tax is the total of all

invoice prices, including transportation charges, of all non-petroleum hazardous substance transfers for the taxable period that

are subject to tax. Where no invoice price is so fixed, fair market value is the market price as of the nearest day to the transfer

paid for similar non-petroleum hazardous substances.

Line 9 - Tax Rate per Barrel -

Petroleum and Petroleum Products (Column A) - The tax rate is currently set at $0.023 for each taxable barrel transferred.

Other Hazardous Substances (Column B) - The tax shall be 1.53% of the fair market value of the product.

Precious Metals, Elemental Phosphorus, Elemental Antimony or Antimony Trioxide (Column C) - The tax rate is currently set

at $0.023 for each taxable barrel of the Hazardous Substance transferred.

Note:

Under certain circumstances provided for by the statute, the tax rate for petroleum and petroleum products may be

raised at the discretion of the Administrator of the New Jersey Spill Compensation Fund.

Line 10 - Tax Due -

Petroleum and Petroleum Products (Column A) - Multiply Line 7 by Line 9. Enter amount on Line 10(A).

Other Hazardous Substance (Column B) - Multiply Line 8 by Line 9. Enter amount on Line 10(B).

Precious Metals, Elemental Phosphorus, Elemental Antimony or Antimony Trioxide (Column C) - Multiply Line 7 by Line 9.

Enter amount on Line 10(C). Note: ONLY that portion of the precious metal substance that is listed as hazardous is subject

to tax.

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Form Scc-5 - Spill Compensation And Control Tax - 2008 Page 4

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