(a) Definitions.
For purposes of section18-243-4-02:
"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) Furnishing of exemption certificate;
exception.
(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) Exception. An exemption
certificate shall not be required if (i) diesel oil is used as a fuel for
operating a stationary engine, watercraft, or for heating purposes, or (ii)
liquefied 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 the foregoing exception, the
imposition of the 1 cent tax with respect to diesel oil used for purposes
stated therein shall not be exempted.
(c) Amount of refund; interest thereon.
(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) Claiming of refund; when and how.
(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 Tax Collector in the
ultimate user's taxation district 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)
Allocation of use. 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) Information to be furnished on claim. 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. If, however, separate records are maintained for diesel oil and
liquefied petroleum gas on each motor vehicle, information pertinent to items
in paragraphs (1), (2), (4) and (5) of the foregoing need not be
furnished.
(g) Records.
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.
