Information Release

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.