§818.14. Exemptions from tax

A. Sales of gasoline to the following, or as otherwise stated in this Section, are exempt from the tax levied by this Subpart and shall not be paid at the rack:

(1) Bulk sales of six thousand gallons or more of gasoline per transaction to the United States government for specific and exclusive use by the United States government and not for resale at retail.

(2) Gasoline sold to the armed forces of the United States for propelling ships of the United States Navy or Coast Guard, or for aviation purposes.

(3) Aviation fuel used for propelling aircraft, including aircraft operated in interstate or foreign commerce under a certificate or permit issued by the Civil Aeronautics Board of the United States or any successor or federal governmental board or agency having similar authority.

(4)(a) Until June 30, 2012, gasoline sold to a manufacturer which will use the gasoline in the manufacture of a premixed two-cycle engine fuel containing gasoline and oil sold in containers of one gallon or less. Such fuel shall be produced for off-road use.

(b) The manufacturer shall obtain a tax exemption certificate from the Department of Revenue in order to qualify for the exemption provided for in this Paragraph. Any merchant who in good faith, and after examination of the applicability of the certificate to that purchase with due care, neglects or fails to collect the tax herein provided due to the presentation by the manufacturer of a tax exemption certificate issued by the Department of Revenue shall not be liable for the payment of the tax.

B. Dyed diesel fuel is exempt from the tax levied by this Subpart and shall not be paid at the rack.

C. Gasoline or undyed diesel fuel exported from this state to any other state is exempt from the tax only when the tax of the destination state is remitted to the supplier. The supplier shall collect and remit to the destination state the appropriate amount of motor fuel tax due on the gasoline or undyed diesel fuel transported to that state. This exemption shall not apply to any gasoline or undyed diesel fuel that is transported and delivered outside this state in the fuel supply tank of a highway vehicle.

D. Gasoline or undyed diesel fuel exported to a foreign country is exempt from the tax if the bill of lading indicates the foreign destination.

E. Gasoline blend stocks or undyed kerosene as feedstock received by a licensed supplier or permissive supplier is exempt from the tax under the following conditions:

(1) A bulk transfer in which both parties are a licensed supplier or permissive supplier.

(2) A non-bulk removal from an Internal Revenue Service-approved terminal or refinery to another approved terminal or refinery in which both parties are a licensed supplier or permissive supplier.

(3) A non-bulk removal from an Internal Revenue Service-approved terminal or refinery, not in connection with a sale, for purposes other than the production of motor fuel.

(4) The importation from a foreign country or another state, not in connection with a sale, for purposes other than the production of motor fuel.

F. Gasoline blend stock or undyed kerosene as feedstock received by a qualified purchaser from a licensed supplier or permissive supplier if the gasoline blend stock will be used for purposes other than producing gasoline or the undyed kerosene will be used as a feedstock for purposes other than as a motor fuel is exempt from the tax. To be a qualified purchaser, the purchaser must meet the following requirements:

(1) The purchaser must have a certificate evidencing a federal 637 "K" Registration or 637 "S" Registration as an industrial user of gasoline on file with the licensed supplier or permissive supplier at the time of purchase or the purchaser must issue to the supplier or permissive supplier at the time of purchase the federal "Certificate of Person Buying Blendstocks For Use Other Than in the Production of Finished Gasoline" or the federal "Certificate of Registered Feedstock User"; and

(2) The purchaser, when applicable, has provided a state sales tax resale certificate (LGST-9 or LGST-DP) attesting that the product will be used in further processing.

Acts 2005, No. 252, §1, eff. July 1, 2006; Acts 2007, No. 181, §1; Acts 2007, No. 303, §1, eff. July 9, 2007.