RELATES TO:
KRS
138.210,
138.220
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
131.130(1) authorizes the
Department of Revenue to promulgate administrative regulations for the
administration and enforcement of Kentucky tax laws. This administrative
regulation, under authority of
KRS
138.226, interprets the statute dealing with
accountable losses and excludes non licensed dealers.
Section 1. No allowance for losses of
gasoline or special fuels on which the Kentucky tax has been paid can be made
on gasoline or special fuels held in retail filling stations or in tanks other
than bulk plant or distribution tanks by licensed dealers and gasoline or
special fuels held in any tanks by parties other than licensed dealers. Such
gasoline or special fuels having passed the statutory process of "receiving,"
the act of use, sale, distribution or delivery, on which the tax is levied, has
already occurred.
Section 2. An
allowance may be made by the department for a loss of "received" gasoline or
special fuels held in bulk and distribution tanks by licensed dealers from
which sale or delivery is made, provided an affidavit signed by the licensed
gasoline or special fuels dealer is furnished the department.
Section 3. If, after investigation, the
losses are proved to the satisfaction of the department to have occurred the
dealer will be advised to make a deduction from subsequent monthly reports
equal to the amount of such approved losses.
