Louisiana Revised Statutes 47:818.14 – Exemptions from tax
Terms Used In Louisiana Revised Statutes 47:818.14
- Bulk transfer: means any transfer of motor fuel from one location to another by pipeline tender or marine delivery within a bulk transfer/terminal system, including but not limited to the following:
(a) A marine vessel movement of motor fuel from a refinery or terminal to a terminal. See Louisiana Revised Statutes 47:818.2
- Destination state: means the state, territory, or foreign country to which motor fuel is directed for delivery into a storage facility, a receptacle, a container, or a type of transportation equipment for the purpose of resale or use. See Louisiana Revised Statutes 47:818.2
- Diesel fuel: means any liquid or a combination of liquids blended together that is suitable for or used for the propulsion of diesel-powered engines. See Louisiana Revised Statutes 47:818.2
- Fuel supply tank: means any receptacle on a motor vehicle from which motor fuel is supplied for the propulsion of the motor vehicle. See Louisiana Revised Statutes 47:818.2
- Gasoline: means any liquid or combination of liquids blended together, offered for sale, sold, or used as the fuel for a gasoline-powered engine. See Louisiana Revised Statutes 47:818.2
- Highway: means every way or place of whatever nature, open to use for purposes of vehicular travel in this state, including the streets and alleys in towns and cities. See Louisiana Revised Statutes 47:818.2
- Industrial user: means any person that receives gasoline blend stocks for its own use in the manufacture of any product other than finished gasoline. See Louisiana Revised Statutes 47:818.2
- Kerosene: means the petroleum fraction containing hydrocarbons that are slightly heavier than those found in gasoline and naphtha, with a boiling range of 180 to 300 degrees Celsius. See Louisiana Revised Statutes 47:818.2
- Motor fuel: means gasoline, diesel fuel, and special fuels that can be used to propel a motor vehicle. See Louisiana Revised Statutes 47:818.2
- Permissive supplier: means a person who may not be subject to the taxing jurisdiction of this state, but who is registered under Section 4101 of the Internal Revenue Code for transactions in motor fuel in the bulk transfer/terminal system, and is a position holder in motor fuel located only in another state or a person who only receives motor fuel in another state pursuant to a two-party exchange. See Louisiana Revised Statutes 47:818.2
- Person: means and includes, in addition to the definition contained in Louisiana Revised Statutes 47:818.2
- Rack: means a mechanism for delivering motor fuel from a refinery, terminal, marine vessel, or bulk plant into a transport vehicle, railroad tank car, or other means of transfer that is outside the bulk transfer/terminal system. See Louisiana Revised Statutes 47:818.2
- Refinery: means a facility for the manufacturing or reprocessing of finished or unfinished products usable as motor fuel and from which motor fuel may be removed by pipeline or marine vessel or at a rack. See Louisiana Revised Statutes 47:818.2
- Removal: means a physical transfer other than by evaporation, loss, or destruction. See Louisiana Revised Statutes 47:818.2
- Sale: means a transfer of title, exchange, or barter of motor fuel. See Louisiana Revised Statutes 47:818.2
- Supplier: means a person who is either of the following:
(a) Subject to the general taxing jurisdiction of this state and is registered under Louisiana Revised Statutes 47:818.2
- Terminal: means a motor fuel storage and distribution facility to which a terminal control number has been assigned by the Internal Revenue Service, to which motor fuel is supplied by pipeline or marine vessel, and from which motor fuel may be removed at a rack. See Louisiana Revised Statutes 47:818.2
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.