XT 2000-07 - Motor Fuel Tax Information Release - House Bill
612 Information For All Ohio Motor Fuel Terminal Operators -
September 6, 2000
The 123rd General Assembly enacted House Bill 612.
This legislation is effective September 29, 2000. So as not
to create confusion, the following changes will begin with
the October 2000 reports.
TRANSMIX
Prior to House Bill 612 transmix was defined as
gasoline. It is our understanding that transmix is regularly
mixed with diesel fuel. Section 5735.01 (D) will now define
transmix as diesel fuel when it is mixed with diesel fuel and
Section 5735.01 (E) (3) will now define transmix as gasoline
when it is mixed with gasoline. Transmix will take on the
identity of the product with which it is blended (diesel fuel
or gasoline). If you receive transmix into a dedicated tank
(slop tank) inside the terminal and maintain an inventory of
transmix in the terminal, you should continue to report this
as a receipt of "other fuel" in the product category. Upon
blending with either diesel fuel or gasoline, you will make a
book adjustment (BA) disbursement of other fuel (transmix)
and a book adjustment (BA) receipt of either diesel fuel or
gasoline using the proper product codes (160, 65,
etc.).
ETHANOL
The point of taxation on ethanol is changed to be the same as
gasoline. While the point of taxation is not an issue for
terminal operators, because of this change, ethanol (product
code 241) will not be tracked separately. All ethanol
received, disbursed, or in storage on and after October 1,
2000, must be reported as gasoline (product code 65). If you
have any ethanol in terminal storage at the opening of
business on October 1, you must show a book adjustment (BA)
disbursement of ethanol (product code 241) and a book
adjustment (BA) receipt of gasoline (product code 65).
FILING PROCEDURES
It has come to our attention that it is a common practice to
move fuel from one terminal to another. The current
instructions for the terminal receipts and disbursements
schedules do not address this type of fuel movement. As a
result, some terminal operators are not reporting terminal to
terminal movements. This is causing problems in auditing the
terminal operator’s report. To accurately audit this report
the terminal to terminal movements must be reported on the
disbursements schedule (TO 2-2). Terminal disbursements to
another terminal must be reported in columns 5 and 6 of form
TO 2-2. Insert the terminal operator’s name in column 5 and
the four digit federal terminal control number in column 6
for the terminal where the fuel was transferred. This change
is effective immediately.
If you have any questions, please contact the Motor Fuel Tax
Compliance Unit at (614) 466-3503.