(a) For purposes of
this section:
"Agricultural equipment" means any vehicle or mechanical
apparatus powered by its own motor or engine using liquid fuel and:
(1) Used in carrying on a trade or business
in the State involving agriculture; or
(2) Used in connection with cultivating soil;
raising or harvesting any agricultural or horticultural commodity, including
the raising, shearing, feeding, caring for, training, and management of
livestock, bees, poultry, fur-bearing animals and wildlife; handling, drying,
packing, grading, or storing any agricultural or horticultural commodity in its
unmanufactured state; planting, cultivating, caring for, or cutting of trees or
in connection with the preparation (other than milling) of trees for market;
but only if such operations are incidental to the farming operations;
operating, managing, conserving, improving, or maintaining a farm and its tools
and equipment.
"Liquid fuel" means liquids usable in internal combustion
engines for the generation of power and refers to paragraphs (3) through (6) of
section
243-4(a),
HRS; provided however that for purposes of this section the term shall not
include:
(1) Diesel oil;
(2) Gasoline or other aviation fuel used for
airplanes; and
(3) Liquefied
petroleum gas, benzol, benzene, toluol or xylos.
"Non-highway or off the highway use" means use of liquid fuel
for operating agricultural equipment in areas other than upon the public
highways of the State.
"Public highways" means the same as the term is defined in
section
264-1,
HRS.
(b)
The amount of refund is subject to the following:
(1) The amount of state and county fuel taxes
subject to refund shall be determined by multiplying the number of gallons of
liquid fuel used by the tax rates as provided under:
(A) Paragraphs (3) through (6) of section
243-4(a),
HRS, in excess of 1 cent per gallon; and
(B) Section
243-5, HRS,
respectively.
(2) Any
interest accruing on a claim for refund shall be made as provided under
sections
231-23(c)(1)
and
231-23(d)(1) and
(2), HRS.
(3) Fuel taxes paid on liquid fuel used for
highway purposes or on non-agricultural equipment and liquid fuel exempt from
tax as provided under sections
243-7
and
243-4(d),
HRS, shall not be subject to refund.
(c) All claims for refund under this section
shall be filed within three years of April 20 of the year following the year in
which the fuel subject to the refund is used. With respect to when and how to
file a claim:
(1) The ultimate user of the
liquid fuel may obtain a refund by filing a claim quarterly or annually with
the department.
(2) A claim may be
filed quarterly if the amount of refund is in excess of $1,000 within any
calendar quarter. Where the amount of refund within a calendar quarter is not
in excess of $1,000 but the cumulative amounts for two or more calendar
quarters exceed $1,000, a claim for refund covering such calendar quarters may
be filed. Any claim not exceeding $1,000 quarterly or cumulative quarterly
shall be filed on a calendar year basis regardless of the basis used for
record-keeping purposes or for filing other tax returns.
Example: "A" Corporation is a calendar year
taxpayer. It computed the following amounts of allowable liquid fuel taxes paid
at the end of each quarter:
|
January 1 through March 31
|
$2,500
|
|
April 1 through June 30
|
500
|
|
July 1 through September 30
|
600
|
|
October 1 through December 1
|
1,500
|
"A" Corporation may elect to file quarterly claims for the
quarters ending March 31 and December 31. It may not file quarterly claims for
the quarter ending June 30 and September 30 since the amounts within those
quarters were less than $1,000. However, the refund for such quarters may be
combined and the cumulative amount of $1,100 ($500+$600) may be claimed for the
quarter ending September 30.
(d) Liquid fuel used on agricultural
equipment operated both off and on the highways of the State may be allocated
on actual gallons used, percentage of total gallons used or other basis
acceptable by the director. Such allocation must be based, however, upon
operating experiences and supported by taxpayer's records.
(e) An itemized list showing the various
agricultural equipment utilized and the corresponding number of gallons of
liquid fuel used on such agricultural equipment need not be submitted with the
claim. Generally, a claim for refund shall be supported by the furnishing of
the following information:
(1) Total gallons
on hand at beginning of period.
(2)
Total number of gallons of liquid fuel purchased during the period.
(3) Total number of gallons of liquid fuel
used on non-agricultural equipment or for highway purposes.
(4) Total number of gallons of liquid fuel
used on agricultural equipment for non-highway purposes.
(5) Total number of gallons of liquid fuel on
hand at end of the period.
(6) Name
of the county in which the liquid fuel was used. (Separate claim to be filed
for each county).
(7) Name of the
seller or sellers.
(f)
Taxpayers are expected to keep at their principal place of business in the
state such records as will enable the director to verify the accuracy of the
refund claimed. The records must show separately the number of gallons of
liquid fuel used for the purpose that will qualify for refund.
