§818.113. Presumption of use; backup tax

A. All compressed natural gas, liquefied natural gas, and liquefied petroleum gas sold by a special fuels dealer and delivered into the fuel supply tank of a motor vehicle is presumed to be subject to taxation, and the dealer is liable for the tax unless the dealer maintains adequate records to establish that the fuel was exempt from the tax.

B. All compressed natural gas, liquefied natural gas, and liquefied petroleum gas delivered into the fuel supply tank of a motor vehicle by a special fuel fleet dealer or other special fuels dealer not in connection with a sale is presumed to be subject to taxation, and the special fuel fleet dealer or other dealer is liable for the tax unless the special fuel fleet dealer or other dealer maintains adequate records to establish that the fuel was exempt from the tax.

C. The tax levied pursuant to the provisions of this Subpart shall be due in all of the following circumstances:

(1) If a person obtains a refund of tax on compressed natural gas, liquefied natural gas, or liquefied petroleum gas by claiming the fuel was used for an exempt purpose but actually used the fuel for a taxable purpose.

(2) If a person operates a motor vehicle on a highway using compressed natural gas, liquefied natural gas, or liquefied petroleum gas and the tax has not been paid on the special fuel. If the person operating the motor vehicle is not the owner or lessee of the motor vehicle, both the owner or lessee and the operator are liable for the tax.

(3) If a person sells or delivers compressed natural gas, liquefied natural gas, or liquefied petroleum gas that is delivered into the fuel supply tank of a motor vehicle, on which tax was not paid, and the person knew or had reason to know that the fuel would be used for a taxable purpose. The tax due pursuant to the provisions of this Paragraph shall also be imposed on the ultimate consumer.

D. The tax liability imposed by this Section shall be in addition to any other penalty imposed under this Subpart.

Acts 2015, No. 147, §1, eff. July 1, 2015.