Form 592 - South Dakota Ethanol Producer Return printable pdf download

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 Ethanol Broker 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.

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. This company will need to obtain an Ethanol Broker license.

Selling Ethanol Blends and Methanol Blends

With the 2009 South Dakota Legislative Session, it was decided to tax all Ethyl Alcohol

and Methyl Alcohol at the rate of $.08 per gallon plus the $.02 per gallon Tank Inspection

Fee. This was done because of various levels of ethanol blends now seen in the industry.

If an Ethanol Producer sells an ethanol blend or methanol blend, the bill of lading

and the invoice must list the alcohol gallons and gasoline gallons separately.

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

have their licenses reviewed. Records are to be maintained for a period of at least 30 days

at the delivery location or a location approved by the Secretary. All records must be

preserved for the current year and the three preceding calendar years.

Fuel Sales, Purchase and Shipping Records

Licensed Ethanol Producers must keep all sales and purchase invoices in either their

original format, through film retrieval or electronic media. They must also maintain

shipping records that indicate the destination state for all products sold. The Consignee

Form 592 - South Dakota Ethanol Producer Return