Publication 510 - Excise Taxes - 2004 (Page 10 of 48) in pdf

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operator is jointly and severally liable for the tax

The seller is a registrant and the exporter

Mixed xylene (not including any separated

if the position holder is a person other than the

of record.

isomer of xylene).

terminal operator. However, see Terminal

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The fuel was exported.

Natural gasoline.

operator’s liability under Removal from terminal,

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Pentane.

earlier, for an exception.

Removal or sale of blended gasoline. The

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Pentane mixture.

removal or sale of blended gasoline by the

Bulk transfers not received at approved ter-

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blender is taxable. See Blended taxable fuel

Polymer gasoline.

minal or refinery. The removal by bulk trans-

under Definitions, earlier.

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fer of gasoline from a terminal or refinery, or the

Raffinate.

The blender is liable for the tax. The tax is

entry of gasoline by bulk transfer into the United

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figured on the number of gallons not previously

Reformate.

States, is taxable if the following conditions ap-

subject to the tax on gasoline.

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ply.

Straight-run gasoline.

However, if an untaxed liquid is sold as taxed

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taxable fuel and that untaxed liquid is used to

Straight-run naphtha.

1) No tax was previously imposed (as dis-

produce blended taxable fuel, the person that

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cussed earlier) on any of the following

Tertiary amyl methyl ether (TAME).

sold the untaxed liquid is jointly and severally

events.

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liable for the tax imposed on the blender’s sale

Tertiary butyl alcohol (gasoline grade)

a) The removal from the refinery.

or removal of the blended taxable fuel.

(TBA).

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b) The entry into the United States.

Thermally cracked gasoline.

Notification certificate. The notification cer-

tificate is used to notify a person of the registra-

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c) The removal from a terminal by an un-

Toluene.

tion status of the registrant. A copy of the

registered position holder.

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registrant’s letter of registration cannot be used

Transmix containing gasoline.

as a notification certificate. A model notification

2) Upon removal from the pipeline or vessel,

However, gasoline blendstocks do not include

certificate is shown in Appendix B as Model

the gasoline is not received at an ap-

Certificate C. A notification certificate must con-

any product that cannot be used without further

proved terminal or refinery (or at another

tain all information necessary to complete the

processing in the production of finished gaso-

pipeline or vessel).

model.

line.

The owner of the gasoline when it is removed

The certificate may be included as part of

from the pipeline or vessel is liable for the tax.

any business records normally used for a sale. A

Not used to produce finished gasoline.

However, an owner meeting all the following

certificate expires on the earlier of the date the

Gasoline blendstocks not used to produce fin-

conditions at the time of the removal will not be

registrant provides a new certificate, or the date

ished gasoline are not taxable if the following

liable for the tax.

the recipient of the certificate is notified that the

conditions are met.

registrant’s registration has been revoked or

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The owner is a registrant.

Removals and entries not connected to

suspended. The registrant must provide a new

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sale. Nonbulk removals and entries are not

certificate if any information on a certificate has

The owner has an unexpired notification

taxable if the person otherwise liable for the tax

changed.

certificate (discussed later) from the oper-

(position holder, refiner, or enterer) is a regis-

ator of the terminal or refinery where the

Additional persons liable. When the person

trant.

gasoline is received.

liable for the tax willfully fails to pay the tax, joint

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Removals and entries connected to sale.

and several liability for the tax is imposed on:

The owner has no reason to believe any

Nonbulk removals and entries are not taxable if

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information on the certificate is false.

Any officer, employee, or agent of the per-

the person otherwise liable for the tax (position

son who is under a duty to ensure the

The operator of the facility where the gasoline is

holder, refiner, or enterer) is a registrant, and at

payment of the tax and who willfully fails to

received is liable for the tax if the owner meets

the time of the sale, meets the following require-

perform that duty, or

these conditions. The operator is jointly and sev-

ments.

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erally liable if the owner does not meet these

Anyone who willfully causes the person to

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conditions.

The person has an unexpired certificate

fail to pay the tax.

(discussed later) from the buyer.

Sales to unregistered person. The sale of

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The person has no reason to believe any

Gasoline Blendstocks

gasoline located within the bulk transfer/terminal

information in the certificate is false.

system to a person that is not a registrant is

Gasoline includes gasoline blendstocks. The

taxable if tax was not previously imposed under

previous discussions apply to these blend-

Sales after removal or entry. The sale of a

any of the events discussed earlier.

stocks. However, if certain conditions are met,

gasoline blendstock that was not subject to tax

The seller is liable for the tax. However, a

the removal, entry, or sale of gasoline blend-

on its nonbulk removal or entry, as discussed

seller meeting all the following conditions at the

stocks is not taxable. Generally, this applies if

earlier, is taxable. The seller is liable for the tax.

time of the sale will not be liable for the tax.

the gasoline blendstock is not used to produce

However, the sale is not taxable if, at the time of

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finished gasoline or is received at an approved

The seller is a registrant.

the sale, the seller meets the following require-

terminal or refinery.

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ments.

The seller has an unexpired notification

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Blendstocks. The following are gasoline

certificate (discussed later) from the buyer.

The seller has an unexpired certificate

blendstocks.

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(discussed next) from the buyer.

The seller has no reason to believe any

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Alkylate.

information on the certificate is false.

The seller has no reason to believe any

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Butane.

information in the certificate is false.

The buyer of the gasoline is liable for the tax if

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the seller meets these conditions. The buyer is

Butene.

jointly and severally liable if the seller does not

Certificate of buyer. The certificate from the

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Catalytically cracked gasoline.

meet these conditions.

buyer certifies the gasoline blendstocks will not

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Coker gasoline.

be used to produce finished gasoline. The certif-

Exception. The tax does not apply to a sale

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icate may be included as part of any business

if all of the following apply.

Ethyl tertiary butyl ether (ETBE).

records normally used for a sale. A model certifi-

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The buyer’s principal place of business is

Hexane.

cate is shown in Appendix B as Model Certificate

not in the United States.

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D. Your certificate must contain all information

Hydrocrackate.

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necessary to complete the model.

The sale occurs as the fuel is delivered

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Isomerate.

into a transport vessel with a capacity of at

A certificate expires on the earliest of the

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least 20,000 barrels of fuel.

Methyl tertiary butyl ether (MTBE).

following dates.

Page 10

Publication 510 - Excise Taxes - 2004 Page 10

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