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The Oregon Administrative Rules contain OARs filed through July 15, 2015
 
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DEPARTMENT OF TRANSPORTATION,
DRIVER AND MOTOR VEHICLE SERVICES DIVISION

 

DIVISION 176

USE FUEL TAX

735-176-0100

Definitions

(1) “Biodiesel” means a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, and meeting the requirements of ASTM D 6751.

(2) “Biodiesel blend” means a blend of biodiesel fuel meeting ASTM D 6751 with petroleum-based diesel fuel, designated BXX, where XX represents the volume percentage of biodiesel fuel in the blend.

(3) “Bulk Distributor” means an entity that sells bulk use fuel and is not otherwise qualified as a use fuel seller (as defined by ORS 319.520(13)) or a licensed motor vehicle fuel dealer (as defined by ORS 319.030 (6)), and is therefore not licensed with the state of Oregon. A Bulk Distributor must comply with Administrative Rules chapter 735, Division 176.

(4) “Bulk Facility” means a fixed storage location. The primary purpose of a bulk facility is to store fuel that will be distributed to customers’ locations. Dispensing fuel at the bulk facility into a vehicle or container is not prohibited, but the fuel may be subject to tax and the bulk facility operator may be required to become licensed as a Use Fuel Seller.

(5) “Cardlock Statement” means the printed detail of customer purchases using a cardlock card. Each statement shall contain:

(a) The card issuer’s name and address;

(b) The customer’s name and address; and

(c) The transaction activity detailed by card number.

(6) “Derived from used cooking oil” means the feedstock used to produce the biodiesel is 100% used cooking oil.

(7) “Electronic Invoice” means the data captured when a cardlock card is used for a fuel purchase. The electronic invoice shall contain the same information as an “Invoice.” Commonly, a series of electronic invoices will be printed in a periodic customer statement.

(8) “Electronic signature” shall have the same meaning and requirements as defined in ORS 84.004(8)

(9) “Emblem” means the document issued by the Department, which allows the licensed user to purchase fuel with the Oregon use fuel tax deferred. Emblems are issued for a specific vehicle and renewed annually.

(10) “Fleet Fueling” means a mobile retail fueling operation where the licensed seller places fuel into the tank of a vehicle or equipment at their customer’s locations. Any sales made without collecting Oregon tax are subject to invoice requirements in ORS 319.671.

(11) “Handler” or “handler of fuel for use in a motor vehicle” includes but is not limited to bulk distributors, producers, sellers, users, transporters, and any other person who purchases, sells, trades, stores, produces, or transports fuel.

(12) “Incidentally Operated” means the vehicle or equipment is primarily designed to be operated off road but is allowed up to five (5) miles on-road travel starting from the location the vehicle was garaged or parked the previous day. If in excess of these miles, all on-road use is subject to tax.

(13) “Invoice” means the receipt or other record of an individual transaction, completed at the time of the sale. An invoice shall contain the information required in OAR 735-176-0170 (6).

(14) “Non-retail Facility,” as defined in ORS 319.520(11), means an unattended facility where use fuels are dispensed through a cardlock card activated fuel dispensing device.

(15) “ODOT Fuels Tax Group” or “Department” means the organizational unit within the Oregon Department of Transportation or its agent that is primarily charged by the Department with the administration of ORS 319.010 through 319.880 on behalf of the state of Oregon.

(16) “Register” means to be entered into the Department’s registry. Bulk distributors that are not otherwise qualified as a use fuel seller (as defined by ORS 319.520(13) and 319.621), or a licensed motor vehicle fuel dealer (as defined by 319.010(6) and 319.030) and therefore not licensed with the state of Oregon, will be required to register. By registering with the state of Oregon, the bulk distributor receives a registry number, which enables the state of Oregon to track and record bulk sales information.

(17) “Retail Facility” means a fueling operation that does not qualify as a non-retail facility. Unattended facilities that are not capable of generating an electronic invoice are considered retail facilities.

(18) “Simplified User Reporting” means a use fuel user who opts to pay tax on all gallons purchased on a monthly basis at bulk facilities, retail facilities, and non-retail facilities and report those purchases in a format determined by the Department.

(19) “Special Use Fuel Permit” is an emblem issued by the Department to a specific vehicle powered by natural gas or propane. The permit is renewed annually and allows the permit holder to pay an annual fee rather than the per-gallon use fuel tax.

(20) “Third Party Payer” means a bulk facility that reports all bulk fuel sales, collects and remits the applicable tax to the state of Oregon on behalf of use fuel users, or a licensed use fuel seller who is collecting and remitting the applicable tax to the state of Oregon on behalf of use fuel users as part of its operation.

(21) “User” or “User of Fuel in a Motor Vehicle” as used in ORS 319.510 through 319.880 and OAR chapter 735, division 176, means a person as defined in ORS 319.520(12) who uses fuel in a motor vehicle as defined in 319.520(15). “User” or “user of fuel in a motor vehicle” includes, but is not limited to, a lessor who allows a motor vehicle to operate on the highways of this state and allows the lessee to use fuel in that motor vehicle.

Stat. Auth.: ORS 184.616, 184.619 & 319.510 - 319.880
Stats. Implemented: ORS 319.510 - 319.880
Hist.: DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15

735-176-0110

Use Fuel Record Keeping Requirements

(1) Record Requirements. Every handler of fuel for use in a motor vehicle shall maintain and keep records for a period of three years from the due date of the report or three years from the date the report is filed, whichever is later, as follows:

(a) A purchase journal or other record of fuel received supported by purchase invoices and bills of lading showing delivery location for all use fuel purchases. When the fuel is B20 or greater derived from used cooking oil: the bill of lading, invoice, or delivery ticket shall include certification from the supplier that the biodiesel is derived from 100% used cooking oil as well as the location of the refinery where the biodiesel was manufactured

(b) A record of all bulk fuel sales, use, and transfers;

(c) A physical inventory of bulk fuel storage shall be recorded at the end of business on the last day of each calendar month and preserved for audit purposes. Tank inventory readings may be electronic tank monitor readings or physical stick inventory readings;

(d) Source documents for tank inventory readings for audit purposes (whether manual or electronic readings);

(e) Copies of customer invoices, whether paper or electronic, shall be kept for audit purposes. If tax is collected from use fuel users at the time of sale, fuel invoices must clearly show the amount of use fuel tax collected.

(f) Invoices upon which tax collections are recorded shall be kept separate from other sales invoices;

(2) Required records will be summarized by calendar month and must be centralized in the state of Oregon at the office where the periodic tax audit is to be made.

(3) The Department may determine, at its sole discretion, when the auditor for the state must travel outside the state of Oregon to examine the licensee’s records. At any time such travel is determined necessary the licensee must reimburse the state for all travel expenses incurred, including transportation, meals and lodging costs.

(4) Fuel handlers must make documentation readily available to the Department upon request by the Department by the date prescribed by the Department.

(5) Fuel handlers who fail to provide records for review are subject to assessment based on “best available information.”

(6) Additional recordkeeping requirements for use fuel sellers:

(a) Pump meter readings shall be taken at the end of business on the last day of the month and retained for audit purposes. Physical pump meter readings (or non-resettable electronic readings) will be taken for all dispensers of use fuel operated by the seller at a location;

(b) Copies of customer invoices, whether paper or electronic, shall be kept for audit purposes. If tax is collected from use fuel users at the time of sale, fuel invoices must clearly show the amount of use fuel tax collected;

(c) Non-retail sellers will also retain fuel network statements to support customer invoices and fuel handled;

(d) Copies of exemption certificates that include a list of vehicles and the cards assigned to each vehicle if ex-tax cardlock cards are issued.

(e) Sellers who fail to provide records for review are subject to assessment based on “best available information” collection action, and possible license suspension and revocation.

(7) Additional record keeping requirements for use fuel users:

(a) If Oregon tax is included in the purchase price, a copy of the invoice, clearly showing the amount of tax collected, must be provided with the user report to receive tax-paid fuel credit;

(b) A record of the number of miles traveled over Oregon highways. In the absence of affirmative evidence all fuel will be presumed to have been used in a taxable manner;

(c) If fuel is stored in bulk, a physical inventory shall be taken at the end of each month and preserved for audit purposes. Consumption records will be retained by the user and made available to the Department upon request by the Department;

(d) A user with one use fuel vehicle with a light weight of less than 8,000 pounds, as verified by a method approved by the Department, may, in lieu of the requirements detailed in section (1)(a) through (7)(c) of this rule, keep an accurate record of Oregon miles driven. Tax for this user is calculated using a reasonable mile per gallon (as determined by the Department using industry standards) applied to Oregon miles traveled.

Stat. Auth.: ORS 184.616, 184.619, 319.510 - 319.880
Stats. Implemented: ORS 319.510 - 319.990
Hist.: DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15

735-176-0120

Use Fuel Seller Licensing Requirements

(1) Seller License. Persons who sell fuel for use in a motor vehicle are required to be licensed. They must maintain records of fuel manufactured, purchased, handled, and distributed or sold and must preserve them for three years from the reporting due date or the date the report was filed, whichever is later. Persons who do not sell fuel for use in a motor vehicle are not required to be licensed. They must, however, maintain records of fuel manufactured, purchased, handled, and distributed or sold and include that information with the Motor Vehicle Fuel Dealer report or Registered Bulk Distributor report.

(2) Bond amounts for licensed sellers will be two times the estimated monthly tax liability as determined by the Department.

(a) For new licensees, the bond amount shall be determined by volume sold by prior owner or similar sellers in the area.

(b) In the event there is no reliable data on which to estimate the bond, the seller will post $1,000 bond or deposit, subject to annual review and adjustment.

(3) If a deposit other than cash is made, the bond or security on deposit shall have the Department of Transportation listed as an owner.

Stat. Auth.: ORS 184.616, 184.619 & 319.510 - 319.880
Stats. Implemented: ORS 319.621, 319.665 & 319.697
Hist.: DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15

735-176-0130

Bulk Distributor Registration Requirements

Every person producing, manufacturing, importing, distributing, storing, transporting, or otherwise handling fuel must be registered. They must maintain records of fuel produced, imported, distributed, transported, or otherwise handled for three years from the reporting due date, or the date the report was filed, whichever is later.

Stat. Auth.: ORS 184.616, 184.619 & 319.510 - 319.880
Stats. Implemented: ORS 319.621, 319.665 & 319.697
Hist.: DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15

735-176-0140

Use Fuel User Licensing Requirements

(1) License Requirements.

(a) Persons who use fuel as defined in ORS 319.520(12) in a motor vehicle, except those excluded in 319.550 and 319.885, must first apply for and obtain a user license and a vehicle emblem for each vehicle;

(b) User licenses are subject to bonding as specified in subsection (4) of this section;

(c) Emblems are issued for specific vehicles on an annual basis; and

(d) ORS 319.611(1) imposes a penalty of 25 percent of the tax for using fuel without first obtaining a valid license and vehicle emblem.

(2) Other users required to be licensed and report vehicle operations and fuel usage include:

(a) Users of vehicles over 26,000 Gross Vehicle Weight Rating when any of the miles operated in Oregon are not subject to weight mile tax;

(b) Oregon state agencies;

(c) Oregon counties;

(d) Oregon cities;

(e) Rural fire protection districts;

(f) School districts;

(g) Special districts; and

(h) Other users as notified by the Department.

(3) Nonresidents in this state a total of 30 days or less during the calendar year are not required to be licensed if, for all fuel used in a motor vehicle in this state, the nonresident pays to a seller, at the time of the sale, the tax provided in ORS 319.530.

(4) Bond amounts are limited as shown in ORS 319.570. Bonds for licensed users will be two times the estimated monthly tax liability as determined by the Department. The estimated tax liability is not reduced by tax-paid fuel purchases.

(a) In the event there is no reliable data on which to estimate the bond, the user will post $100 bond or deposit, subject to annual review and adjustment.

(b) If a deposit other than cash is made, the bond or security on deposit shall have the Department of Transportation listed as an owner.

(5) An emblem is required to be displayed on the vehicle for which it was issued when purchasing fuel for the vehicle. An emblem is considered to be displayed in a conspicuous place if it is readily accessible and presented to the station attendant at the time of fueling, or the cardlock card issuer upon request and at the time the account is set up, or when requested by the supplier.

(6) The Department may refuse to cancel a user license when such cancellation is requested by the user, if the user is required to report. Effective cancellation dates may be set by the Department if the user does not return emblems. If emblem(s) is not returned at the request of the Department, then the user shall file reports throughout the year in which the emblem will expire.

(7) Responsibilities of the User:

(a) List all use fuel vehicles on application and user report;

(b) Retain emblem with the vehicle;

(c) Retain fueling and mileage records by vehicle;

(d) Notify the Department of any changes in vehicles;

(e) Cancel license in writing if the license is no longer needed; and

(f) Return emblems when license is canceled or revoked.

Stat. Auth.: ORS 184.616, 184.619, 319.510 - 319.880
Stats. Implemented: ORS 319.550 - 319.690
Hist.: DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15

735-176-0150

Special Use Fuel Permit Requirements

Owners of vehicles powered by natural gas or propane may purchase an annual permit in lieu of paying the per-gallon use fuel tax. Each permit is issued to a specific vehicle and is not transferrable.

(1) Persons who operate a qualifying vehicle must first apply for and obtain a special user permit and a vehicle emblem for each vehicle;

(2) Application for the permit and payment of fees will be made electronically, through a website established for the Department

(3) Emblems are issued for a specific vehicle on an annual basis;

(4) Permit fees are based on vehicle weight as indicated on the registration; and

(5) Permit fees may be prorated as follows, for permit applications received between:

(a) Jan 1 to Mar 31 — 100%.

(b) Apr 1 to June 30 — 75%.

(c) July 1 to Sept 30 — 50%.

(d) Oct 1 to Dec 31 — 25%.

(e) There is no refund for permits cancelled before the end of the calendar year.

Stat. Auth.: ORS 184.616, 184.619, 319.510 - 319.880
Stats. Implemented: ORS 319.550 - 319.690
Hist.: DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15

735-176-0160

Use Fuel Reporting Requirements

(1) Fuel is presumed to be used in a taxable manner when sold. Failure to account for non-taxed sales with accurate documentation completed at the time of sale, may result in the assessment of tax on the gallons of fuel sold, along with penalty and interest on the tax that has not been reported and paid.

(2) Every use fuel handler must prepare a report that completely summarizes use fuel gallons sold, distributed, or used during the report period. Schedules are required for each type of operation and fuel sold. Total taxable gallons from each schedule will be carried to the appropriate line on the front page of the report for computation of the tax, penalty and interest as applicable.

(3) Bulk fuel sales or use, both tax paid and tax exempt, must be reported on the forms prescribed by the Department and submitted not later than the 20th day of the succeeding calendar month.

(4) “To report” or “be reported” means a complete report, with all required schedules on forms prescribed by the Department and full remittance of tax must be received by the Department or its designated agent, not later than the 20th of the succeeding calendar month.

(a) All reports and required schedules with 100 or more transactions shall be filed electronically in a manner prescribed by the Department. Once a licensee or registrant is required to file their reports electronically, all subsequent reports shall be filed electronically regardless of the number of transactions.

(b) Received is the date the report is physically received by the Department or its designated agent.

(c) When the due date falls on a Saturday, a Sunday, or any recognized state or federal holiday, the report and payment must be received by the Department on or before the next business day.

(d) Computerized report data may be substituted for schedule detail when the dealer has less than 100 transactions and the format is compatible with the prescribed forms.

(e) If an electronic transaction requires the payment of taxes or fees, payment of those taxes or fees within the electronic transaction shall be:

(A) Made through an Automated Clearing House (ACH) debit or credit transaction;

(B) Made in US funds.

(5) A licensee or registrant will be deemed to have failed to file a report when:

(a) The report has not been filed by the next report due date if the handler is a monthly filer; or within 45 days of the due date if the licensee is a quarterly or annual filer; or

(b) The Department has requested that a report be filed by a specified date and the report is not received by the specified date.

(6) An agent may sign on an individual’s behalf when a valid power of attorney or guardianship is in effect.

(7) Licensed use fuel sellers and use fuel users may qualify to report quarterly or annually when authorized under ORS 319.692.

(a) Bulk distributors will file monthly reports

(b) A credit of 4% of the tax is available to a licensed use fuel seller based on the seller’s tax liability, which is supported by schedules showing the fuel was placed into the fuel tank of motor vehicles.

(A) The 4% credit of tax is not applicable to bulk fuel sales.

(B) The 4% credit of tax is not applicable when the seller tax report and/or payment are received after the due date.

(8) Additional reporting requirements for use fuel users:

(a) A licensed user will pay tax on all fuel unless vehicle operation information is provided.

(b) Users who have paid any Oregon tax on fuel purchased from Oregon sellers of fuel must detail such purchases in the fuel schedule of the tax report form and treat such transactions as credits against their total tax liability.

(A) Payment of tax to third party payer does not relieve the user of tax liability or reporting requirements. If the third party payer does not remit the tax, or the Department is unable to verify the tax was paid, an assessment of tax, penalty and interest will be sent to the user.

(B) Credit may be taken for Oregon use fuel tax paid on gallons purchased, up to the amount of gallons used in Oregon during the report period.

(C) Users who do not provide vehicle specific mileage and consumption records are not eligible for refunds or credits of tax paid on fuel used in a non-taxable manner.

(c) Some fuel may be exempt from Oregon tax when vehicle operations are provided:

(A) Miles reported to Motor Carrier Transportation Division on which weight-mile taxes were paid.

(B) Miles driven outside Oregon when mileage records are retained.

(C) Miles driven on private property when mileage records are retained.

(D) For qualifying school districts and education service districts, bus miles driven to transport students, and in support of student transportation, such as driver training, fueling, maintenance, and similar activities as approved by the Department are tax refundable. Bus charter miles driven and school district vehicles not used to transport students are subject to tax.

Stat. Auth.: ORS 184.616, 184.619, 319.510 - 319.880
Stats. Implemented: ORS 319.550 - 319.690
Hist.: DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15

735-176-0170

Collecting Tax on Sales or Use; Invoice Requirement

(1) Suppliers may collect tax on deliveries into the bulk tank of an end user at the customer’s request, provided the supplier is registered as a third party payer or is a licensed use fuel seller.

(a) Collection of tax at a customer’s request does not relieve the customer of the need to be licensed and report.

(b) Taxes collected by a third party payer must be reported and remitted to the Department, in accordance with OAR 735-176-0160, on a monthly basis in a format determined by the Department.

(c) The 4% credit available to use fuel sellers is not applicable to bulk fuel sales.

(2) Persons who sell fuel and place it into the fuel tank of motor vehicles, except for sellers at non-retail facilities as defined in ORS 319.520(11), shall collect the Oregon tax at the time of sale except for sales into:

(a) Vehicles displaying a valid ODOT Motor Carrier Transportation Division weight receipt or pass;

(b) Vehicles displaying a valid use fuel vehicle emblem issued by the Department;

(c) Vehicles displaying a United States government license plate or the registration plate for state or local government owned vehicle issued registration pursuant to ORS 805.040 or a school bus or school activity vehicle issued registration pursuant to ORS 805.050;

(d) Farm tractors or other agricultural implements only incidentally operated on the highway as defined in ORS 319.520(10); and

(e) Cans, barrels, or containers other than the fuel supply tank of a motor vehicle.

(f) Vehicles displaying a valid Special Use Fuel Permit when purchasing natural gas or propane.

(3) A seller, as defined by ORS 319.520(13)(b), who sells fuel at non-retail facilities in Oregon shall collect the tax from a purchaser whose account is owned by the seller. The non-retail seller shall include the transactions in the taxable sales report unless the seller retains written certification signed by the purchaser on forms provided by the Department that the use of the fuel is tax deferred or exempt from the tax imposed under 319.530.

(a) “Certifies to the Seller” means the customer completes and signs the “Certification of Oregon Use Fuel Exempt Tax Status” form as provided by the Department. The seller is responsible for collecting and remitting the tax until the signed and dated exemption certificate is received from the customer. The form will contain:

(A) The name and address of the seller;

(B The name, address, account number and signature of the purchaser;

(C) The reason that the use fuel tax should not be collected by the seller;

(D) A list of vehicles and equipment;

(E) A statement from the purchaser that for all use fuel purchased at Oregon non-retail facilities on account with the seller, such fuel will be used only for purposes that are tax deferred or exempt from use fuel taxation under ORS 319.510 through 319.880.

(b) A seller may not sell use fuel without the tax until a valid exemption certificate is completed, signed and returned to the seller; and

(c) The customer provides the identifying information for each cardlock card to qualify the tax deferred status. The card issuer shall list the card number assigned to the vehicle or equipment when qualified for ex-tax purchases.

(4) Sellers, as defined by ORS 319.520(13), who do not operate non-retail facilities in Oregon but who own the accounts of purchasers who purchase fuel at Oregon non-retail facilities, must be licensed with the Department and are required to comply with all of the provisions of 319.510 through 319.880 and this rule.

(5) A seller, as defined by ORS 319.520(13), who sells at non-retail facilities in Oregon and does not collect the tax from a purchaser whose account is not owned by the seller, must provide, upon request of the Department, the purchaser’s account number and the name and address of the non-retail seller who owns the account.

(6) Use fuel invoices shall contain:

(a) The seller’s name and address,

(b) The purchaser’s name and address,

(c) The full date of sale,

(d) The fuel type and number of gallons purchased,

(e) The amount of Oregon fuel tax included in the purchase price, or

(f) If the Oregon fuel tax is not included, the reason for the ex-tax sale:

(A) Motor Carrier Weight Receipt or pass number.

(B) Use Fuel User Emblem number.

(C) US Government plate number, State or local government agency plate number.

(D) Description of the vehicle or equipment if unlicensed.

(E) Description of the container if not placed into a fuel supply tank of a vehicle or equipment.

(F) Special User Permit number when purchasing propane or natural gas.

Stat. Auth.: ORS 184.616, 184.619, 319.510 - 319.880
Stats. Implemented: ORS 319.550 - 319.690
Hist.: DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15

735-176-0180

Tax Forgiveness of Biodiesel and Biodiesel Blends Made From Used Cooking Oil

(1) To be eligible for the tax forgiveness in ORS 319.530 (5), biodiesel must meet the requirements of ASTM D 6751 and be derived from 100% used cooking oil.

(2) To be eligible for the tax forgiveness in ORS 319.530 (5), petroleum-based diesel must be blended with a minimum 20 percent biodiesel, which meets the requirements of ASTM D 6751, and is derived from 100% used cooking oil.

(3) To be eligible for the tax forgiveness in ORS 319.530 (5), the fuel must be sold at a retail location, and must be placed in the fuel tank of a motor vehicle. Fleet fueling, bulk sales, and cardlock sales are not eligible.

(4) To certify the biodiesel is derived from 100% used cooking oil, the bill of lading for the biodiesel shall include certification from the supplier that the biodiesel is derived from 100% used cooking oil as well as the location of the refinery where the biodiesel was manufactured.

Stat. Auth.: ORS 184.616, 184.619, 319.510 - 319.880
Stats. Implemented: ORS 319.530 - 319.690
Hist.: DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15

735-176-0190

Requesting Reassessment; Use Fuel Waiver of Late Payment Penalties

(1) If a user, seller, or bulk distributor disagrees with an action of the Department, they may request reassessment of the determination in writing within 30 days of the date of the notice. Notice types with appeal rights include:

(a) Denial or suspension of license.

(b) Adjustments to use fuel user or seller tax reports.

(c) Assessment of tax based on available information.

(2) If the Department and the user or seller are not able to resolve the issue through the internal review process, the user or seller may request a hearing.

(a) The hearing shall be a contested case hearing under the provisions of ORS Chapter 183.

(b) The licensee must request a hearing in writing before the Notice of Assessment becomes final.

(3) ORS 319.694(2) allows the Department to waive penalties for late payment of use fuel tax.

(4) An entity or a person may submit a written request for waiver of late payment penalties to the Department.

(5) The penalty under ORS 319.694 may be waived if the taxpayer shows reasonable cause for delay in filing the report or paying the tax.

(a) A taxpayer who wishes to apply for waiver of the penalty must explain the facts and circumstances that reasonably led to the failure to file a report or pay tax on time. The written statement will contain a declaration that it is made under penalty of perjury. The statement should be filed with the report or filed with the Department within 30 days of the Notice of Assessment.

(b) Circumstances that may constitute reasonable cause include, but are not limited to, the following:

(A) War, riot, rebellion, acts of God or other disaster which rendered it impossible to make the filing or payment or which made delay unavoidable in making the filing or payment; or

(B) Acts or omissions by a third party which were beyond the control of the person making the filing or payment and which made delay unavoidable in making the filing or payment; or

(C) The person took in good faith all steps and precautions reasonably necessary to ensure the timeliness of the filing or payment; and

(D) Any other criteria the Department may find to be informative and appropriate.

(c) The calculation of the penalty will be shown on all adjustments. If the person requests a waiver and it is granted, the amount waived will also be shown.

(d) The following reasons are not acceptable for granting penalty waiver:

(A) Employee incompetence or inexperience;

(B) Employee turnover;

(C) Misunderstanding or ignorance of law;

(D) Computer failure or error that is not the result of a natural disaster;

(E) Changeover to new accounting processes, software or upgrades;

(F) Change in company operations; or

(G) Reliance on, or errors made by third party payers, suppliers or customers.

(6) A taxpayer filing tax reports through the Department’s electronic system will not be charged penalty or interest if:

(a) The licensee attempts to submit a timely filed tax report

(b) The Department’s electronic filing system is not available to receive the transmission

(c) The licensee immediately notifies the Department that the electronic filing system is not available to receive their transmission.

(d) The licensee submits the tax report and remits the balance due on the first business day the system is available to receive the transmission.

Stat. Auth.: ORS 184.616, 184.619, 319.510 - 319.880
Stats. Implemented: ORS 319.530 - 319.690
Hist.: DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15

735-176-0200

Use Fuel Tax Credit of Interest on Tax Overpayments

(1) The Department may allow interest credit for overpayments of use fuel tax up to the amount of interest paid for underpayments of tax during any given audit period.

(2) For purpose of ORS 319.694(3)(b) and this rule, “any given audit period” means the time period from the last day of the immediate prior audit period up to the present. If there is no prior audit, “any given audit period” shall mean a period not to exceed three years prior to the current date.

(3) Any interest payments made on underpayments of tax from a prior audit period shall not be:

(a) Considered as interest on overpayments in the current audit period; or

(b) Subject to credit under ORS 319.694(3)(b).

Stat. Auth.: ORS 184.616, 184.619, 319.510 - 319.880
Stats. Implemented: ORS 319.550 - 319.690
Hist.: DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15

735-176-0210

Refunds and Credits of Use Fuel Tax

(1) Refunds of use fuel tax are allowed in the following circumstances:

(a) Fuel is used in another state and is also taxed by that state (proof of payment of tax to other state is required);

(b) Fuel is used on private property in a motor vehicle (mileage records are required);

(c) Fuel is used in a qualifying government vehicle (federal, state, county, city);

(d) Fuel is used in qualifying student transportation;

(e) Fuel is used by a rural fire district;

(f) Fuel is used by a qualifying special district;

(g) Fuel used in vehicles subject to the road usage charge when that fee was paid and the use fuel tax was also charged on the fuel; and

(h) Refunds are limited to fuel purchased within 15 months of the date of the claim; application for refund is made on the form prescribed by the Department.

(2) Special Use Fuel Permit holders who also pay the Oregon tax on propane or natural gas may request a refund of the tax paid when:

(a) Fuel is used in a vehicle to which a special permit is issued, during the time the permit is valid.

(b) The Oregon fuel tax is shown on the receipt or invoice and remitted by the supplier.

(c) The Oregon fuel tax to be refunded is $25.00 or more.

(3) Use fuel users who pay their taxes through a third party payer or opt for simplified reporting are not eligible for refunds or credits.

(4) An erroneous collection occurs when the seller has the information to correctly and completely document a tax deferred non-retail sale at the time of the transaction, but the seller collected the tax in error. Erroneous collection claims are filed with the fuel supplier/seller and must be submitted as an amended tax report.

Stat. Auth.: ORS 184.616, 184.619, 319.510 - 319.880
Stats. Implemented: ORS 319.550 - 319.690
Hist.: DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15

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