Publication 510 - Excise Taxes For 2005 - Department Of Treasury (Page 11 of 47) in pdf

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ment of subsequent seller is shown in Appendix

Removal from terminal. All removals of gas-

The same person operates the refinery

A as Model Certificate A. The statement must

oline at a terminal rack are taxable. The position

and the facility at which the gasoline is

contain all information necessary to complete

holder for that gasoline is liable for the tax.

received.

the model.

Two-party exchanges. In a two-party ex-

If the first taxpayer’s report relates to fuel

change, the receiving person, not the delivering

Entry into the United States. The entry of

sold to more than one buyer, copies of that

person, is liable for the tax imposed on the

gasoline into the United States is taxable if the

report must be made when the fuel is divided.

removal of taxable fuel from the terminal at the

entry meets either of the following conditions.

Each buyer must be given a copy of the report.

terminal rack. A two-party exchange means a

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It is made by bulk transfer and the enterer

transaction (other than a sale) where the deliver-

or the operator of the pipeline or vessel is

Refund claim. You must have filed Form 720

ing person and receiving person are both tax-

not a registrant.

and paid the second tax before you file for a

able fuel registrants and all of the following

refund of that tax. You must make your claim for

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apply.

It is not made by bulk transfer.

refund on Form 8849. Complete Schedule 5

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The transaction includes a transfer from

The enterer is liable for the tax.

(Form 8849) and attach it to your Form 8849. Do

the delivering person, who holds the in-

not include this claim with a claim under another

Removal from a terminal by unregistered po-

tax provision. You must not have included the

ventory position for the taxable fuel in the

sition holder or unregistered pipeline or ves-

second tax in the price of the fuel and must not

terminal as reflected in the records of the

sel operator. The removal by bulk transfer of

have collected it from the purchaser. You must

terminal operator.

gasoline from a terminal is taxable if the position

submit the following information with your claim.

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The exchange transaction occurs before

holder for the gasoline or the operator of the

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or at the same time as completion of re-

A copy of the first taxpayer’s report (dis-

pipeline or vessel is not a registrant. The posi-

moval across the rack by the receiving

cussed earlier).

tion holder is liable for the tax. The terminal

person.

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operator is jointly and severally liable for the tax

A copy of the statement of subsequent

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The terminal operator in its records treats

if the position holder is a person other than the

seller if the fuel was bought from someone

the receiving person as the person that

terminal operator. However, see Terminal

other than the first taxpayer.

removes the product across the terminal

operator’s liability under Removal from terminal,

rack for purposes of reporting the transac-

earlier, for an exception.

Gasoline

tion on Form 720-TO.

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Bulk transfers not received at approved ter-

The transaction is subject to a written con-

minal or refinery. The removal by bulk trans-

The definition of gasoline has been re-

tract.

fer of gasoline from a terminal or refinery, or the

vised. The reduced rates of tax that

entry of gasoline by bulk transfer into the United

applied to gasohol and gasoline sold

CAUTION

Terminal operator’s liability. The terminal

States, is taxable if the following conditions ap-

for the production of gasohol have been re-

operator is jointly and severally liable for the tax

ply.

pealed.

if the position holder (including the receiving

person in a two-party exchange) is a person

1. No tax was previously imposed (as dis-

other than the terminal operator and is not a

Gasoline. Gasoline means all products com-

cussed earlier) on any of the following

registrant.

monly or commercially known or sold as gaso-

events.

line with an octane rating of 75 or more that are

However, a terminal operator meeting all the

suitable for use as a motor fuel. Gasoline in-

following conditions at the time of the removal

a. The removal from the refinery.

cludes any gasoline blend other than:

will not be liable for the tax.

b. The entry into the United States.

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Qualified ethanol and methanol fuel (at

The terminal operator is a registrant.

c. The removal from a terminal by an un-

least 85 percent of the blend consists of

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The terminal operator has an unexpired

registered position holder.

alcohol produced from coal, including

notification certificate (discussed later)

peat),

2. Upon removal from the pipeline or vessel,

from the position holder.

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Partially exempt ethanol and methanol fuel

the gasoline is not received at an approved

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The terminal operator has no reason to

(at least 85 percent of the blend consists

terminal or refinery (or at another pipeline

believe any information on the certificate is

of alcohol produced from natural gas), or

or vessel).

false.

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Denatured alcohol.

The owner of the gasoline when it is removed

from the pipeline or vessel is liable for the tax.

Gasoline also includes gasoline blendstocks,

Removal from refinery. The removal of gaso-

However, an owner meeting all the following

discussed in later, and any product commonly

line from a refinery is taxable if the removal

conditions at the time of the removal will not be

used as an additive in gasoline (other than alco-

meets either of the following conditions.

liable for the tax.

hol).

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It is made by bulk transfer and the refiner,

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The owner is a registrant.

the owner of the gasoline immediately

Aviation gasoline. This means all special

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before the removal, or the operator of the

The owner has an unexpired notification

grades of gasoline suitable for use in aviation

pipeline or vessel is not a registrant.

certificate (discussed later) from the oper-

reciprocating engines and covered by ASTM

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ator of the terminal or refinery where the

specification D 910 or military specification

It is made at the refinery rack.

gasoline is received.

MIL-G-5572.

The refiner is liable for the tax.

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The owner has no reason to believe any

Exception. The tax does not apply to a re-

information on the certificate is false.

Taxable Events

moval of gasoline at the refinery rack if all the

The operator of the facility where the gasoline is

following requirements are met.

The tax on gasoline is $.184 per gallon. The tax

received is liable for the tax if the owner meets

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on aviation gasoline is $.194 per gallon. Tax is

these conditions. The operator is jointly and sev-

The gasoline is removed from an ap-

imposed on the removal, entry, or sale of gaso-

erally liable if the owner does not meet these

proved refinery not served by pipeline

line. Each of these events is discussed later.

(other than for receiving crude oil) or ves-

conditions.

However, see the special rules that apply to

sel.

gasoline blendstocks, later.

Sales to unregistered person. The sale of

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The gasoline is received at a facility oper-

gasoline located within the bulk transfer/terminal

If the tax is paid on the gasoline in more than

ated by a registrant and located within the

system to a person that is not a registrant is

one event, a refund may be allowed for the

bulk transfer/terminal system.

taxable if tax was not previously imposed under

“second” tax paid. See Refunds of Second Tax,

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earlier.

The removal from the refinery is by railcar.

any of the events discussed earlier.

Page 11

Publication 510 - Excise Taxes For 2005 - Department Of Treasury Page 11

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