Arizona Laws 28-5636. Supplier blanket election
A. A licensed supplier may and a licensed permissive supplier shall make a blanket election with the department to treat all removals from all of its out-of-state terminals with a destination in this state as shown on the terminal-issued shipping paper or bill of lading as if the removals were removed across the rack by the supplier from a terminal in this state for all purposes.
Terms Used In Arizona Laws 28-5636
- Aviation fuel: means all flammable liquids composed of a mixture of selected hydrocarbons expressly manufactured and blended for the purpose of effectively and efficiently operating an internal combustion engine for use in an aircraft but does not include fuel for jet or turbine powered aircraft. See Arizona Laws 28-101
- Department: means the department of transportation acting directly or through its duly authorized officers and agents. See Arizona Laws 28-101
- In this state: means any way or place within the exterior limits of the state of Arizona that is maintained by public monies, including any such way or place that is owned by or ceded to the United States of America. See Arizona Laws 28-5601
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Motor vehicle: means a self-propelled vehicle required to be licensed or subject to licensing for operation on a highway. See Arizona Laws 28-5601
- Permissive supplier: means an out-of-state supplier that elects, but is not required, to have a supplier's license pursuant to this article. See Arizona Laws 28-5601
- Person: means an individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver or syndicate, this state, any county, city, town, district or other subdivision of this state, an Indian tribe, or any other group or combination acting as a unit. See Arizona Laws 28-5601
- Qualified terminal: means a terminal that is designated as a qualified terminal pursuant to the United States internal revenue code, regulation and practices and that has been assigned a terminal control number by the United States internal revenue service. See Arizona Laws 28-5601
- Rack: means a mechanism for delivering motor fuel from a refinery, a terminal or a bulk plant into a railroad tank car, a transport truck or other means of transfer that is outside the bulk transfer terminal system. See Arizona Laws 28-5601
- State: means a state of the United States and the District of Columbia. See Arizona Laws 28-101
- Terminal: means a storage and distribution facility for motor fuel, which is supplied by pipeline or marine vessel, that is registered as a qualified terminal by the United States internal revenue service and from which motor fuel may be removed at a rack. See Arizona Laws 28-5601
- Two party exchange: means a transaction:
(a) In which motor fuel is transferred from one licensed supplier or licensed permissive supplier to another licensed supplier or licensed permissive supplier. See Arizona Laws 28-5601
B. The election provided by this section shall be made by filing a notice of election with the department.
C. The department shall release a list of electing suppliers under this section on request by any person.
D. The absence of an election by a supplier under this section in no way relieves the supplier of responsibility for remitting the tax imposed by this article on the removal from an out-of-state terminal for import into this state by the supplier.
E. Any supplier that makes the election provided by this section shall precollect the tax imposed pursuant to this article or the tax imposed pursuant to section 28-8344 on all removals from a qualified terminal on its account as a position holder, or as a person receiving motor vehicle or aviation fuel from a position holder pursuant to a two party exchange agreement without regard to the license status of the person acquiring the motor vehicle or aviation fuel from the supplier, the point or terms of sale or the character of delivery.
F. Each supplier who elects to precollect tax under this section agrees to waive any defense that the state lacks jurisdiction to require collection on all out-of-state sales by the supplier as to which the supplier had knowledge that the shipments were destined for this state and agrees that this state imposes the requirement pursuant to this subsection under its general police powers to regulate the movement of motor vehicle or aviation fuel.
G. Each supplier who elects to precollect tax pursuant to this section is not subject to any civil penalties or interest imposed pursuant to this article for any corrections resulting from a diversion of the motor vehicle or aviation fuel from the original destination as represented by the purchaser or the agent of the purchaser.