Dor/dmv Form 592 - Ethanol Producer Return - 2009

ADVERTISEMENT

ETHANOL PRODUCER
An Ethanol Producer is any person who engages in the business of producing ethyl alcohol
for sale, use, or distribution. Ethyl alcohol is a motor fuel typically derived from
agricultural products that has been denatured.
All Ethanol Producers that sell, use, or distribute ethyl alcohol in South Dakota must be
licensed. They are required to collect taxes and TI Fees for ethyl alcohol that they sell
unless the ethyl alcohol is sold to a licensed Supplier for resale at a terminal or to a licensed
Exporter for export.
Ethanol blend is defined as a blended motor fuel containing ethyl alcohol of at least ninety-
nine percent purity, typically derived from agricultural products which are blended
exclusively with a product commonly or commercially know or sold as gasoline.
The blending of casinghead is not permitted in an ethanol blend fuel product in quantities
larger than required to denature the alcohol.
100% Ethyl Alcohol and 100% Methyl Alcohol
All persons selling 100% ethyl alcohol (ethanol) and/or 100% methyl alcohol (methanol)
are required to collect and remit $.08 per gallon fuel excise tax, plus $.02 per gallon Tank
Inspection Fee on all sales of these products on forms provided by the Department. Sales
made to licensed Suppliers for resale at the terminal or to licensed Exporters for export are
tax exempt.
Marketing Companies
The majority of Ethanol Producers in South Dakota have a company that also markets the
ethyl alcohol. The marketing company purchases the ethyl alcohol from the Ethanol
Producer and resells it. Any ethyl alcohol purchased by the marketing company is subject
to the $.08 per gallon fuel excise tax plus the $.02 per gallon Tank Inspection Fee.
If the marketing company is licensed as a South Dakota Supplier and transports the ethyl
alcohol directly to a terminal for resale, there would be no fuel excise tax or Tank
Inspection Fee applied. The marketing company may also be licensed as an Exporter. If
the company is licensed as an Exporter and exports the ethyl alcohol to another state, there
would be no fuel excise tax or Tank Inspection Fee applied.
When the marketing company sells the ethyl alcohol, the $.08 per gallon fuel excise tax
and the $.02 per gallon Tank Inspection Fee will be passed on to their customer regardless
of the type of license their customer holds.
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 Ethanol Producers to keep detailed records of all fuel
transactions and deliveries. Ethanol Producers will need these records to accurately
complete tax returns and must present them to Department personnel if they are audited or
30

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial
Go
Page of 5