(a) For purposes of
this section:
"Diesel oil" means diesel oil for which tax rates are provided
in paragraph (1) of section
243-4(a),
HRS, and paragraphs (1) through (4) of section
243-4(b),
HRS.
"Liquefied petroleum gas" means liquefied petroleum gas for
which tax rates are provided in paragraphs (1) and (2) of section
243-4(c),
HRS.
"Non-highway use" or "off the highway use" means use of diesel
oil or liquefied petroleum gas for operating motor vehicles in areas other than
upon the public highways of the State.
(b) The furnishing of exemption certificates
under this section is subject to the following:
(1) For any user of diesel oil or liquefied
petroleum gas who furnished an exemption certificate to the distributor, or the
distributor who uses diesel oil or liquefied petroleum gas signs such
certificate, certifying that diesel oil or liquefied petroleum gas is for use
in operating motor vehicles off the public highways, the taxes imposed under
paragraphs (1) through (4) of section
243-4(b),
HRS, and paragraph (2) of section
243-4(c),
HRS, shall not be applicable.
(2)
In the event an exemption certificate is not or cannot be furnished to the
distributor, the tax shall be imposed upon all sales for operating motor
vehicles and collected as if the diesel oil or liquefied petroleum gas is to be
used for operating motor vehicles upon the public highways of the
State.
(3) An exemption certificate
shall not be required if:
(A) Diesel oil is
used as a fuel for operating a stationary engine, watercraft, or for heating
purposes; or
(B) Liquified
petroleum gas is used exclusively for fuel and heating purposes in a home,
restaurant, or an industrial plant and not used for operating an internal
combustion engine in such areas.
Notwithstanding this paragraph, the imposition of the 1 cent
tax with respect to diesel oil used for purposes stated therein shall not be
exempted.
(c) 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 gallons of:
(A) Diesel oil used for operating motor
vehicles off the highways by the tax rates as provided under sections
243-4(b)(1) through
(4), HRS, and
243-5, HRS,
and
(B) Liquefied petroleum gas
used for operating motor vehicles off the highways by the tax rates as provided
under sections
243-4(c)(2)
and
243-5,
HRS.
(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.
(d) 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
diesel oil or liquefied petroleum gas may obtain refund of all taxes imposed
under paragraphs (1) through (4) of section
243-4(b),
HRS, and paragraph (2) of section
243-4(c),
HRS, by filing a claim form quarterly or annually with the department in a
situation where:
(A) An exemption certificate
was not or could not be furnished to the distributor and the tax was imposed
and collected as provided under paragraph (b)(2); or
(B) The diesel oil or liquefied petroleum gas
was initially purchased and intended for use upon the highways but was
subsequently used off the highways.
(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 in excess of
$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 is entitled to refund of the following amounts of diesel oil and
liquefied petroleum gas taxes imposed and paid as provided under paragraphs (1)
through (4) of section
243-4(b),
HRS, and paragraph (2) of section
243-4(c),
HRS, 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 quarters 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.
(e) Diesel oil and liquefied petroleum gas
used for operating motor vehicles 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.
(f) An itemized list showing the various
motor vehicles utilized and the corresponding gallons of diesel oil and
liquefied petroleum gas used on such motor vehicles need not be submitted with
the claim. A claim for refund shall be supported by furnishing the following
information:
(1) Total gallons on hand at
beginning of the period.
(2) Total
gallons purchased during the period.
(3) Total gallons used for off the public
highway purposes.
(4) Total gallons
used for purposes other than in paragraph (3).
(5) Total gallons on hand at end of the
period.
(6) Name of the county in
which the diesel oil or liquefied petroleum gas was used. (Separate claim to be
filed for each county).
(7) Name of
the seller or sellers.
(g) 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 gallons of diesel oil or liquefied petroleum gas used for the
purpose that will qualify for refund.
