Use Fuel User COMPLIANCE GUIDE

Transcription

1 Use Fuel User COMPLIANCE GUIDE Oregon Department of Transportation Fuels Tax Group

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3 Table of Contents GENERAL OVERVIEW... 2 Fuels Tax Group Contact Information... 2 Licensing... 2 Recordkeeping... 3 Emblems... 3 Audits... 4 Cardlock Requirements... 4 DATA TRACKING... 4 Taxed Purchases... 4 Ex Tax Purchases... 4 Vehicle Use... 5 Vehicle Log... 6 Hourly Use... 6 Fuel Consumption Record... 6 REPORTING... 7 General Guidelines... 7 Report Due Dates... 8 Report Preparation... 8 Amendments Payments DEFINITIONS Rounding April 2017 i

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5 GENERAL OVERVIEW This guide provides general information for licensing, reporting and records keeping for Use Fuel Users. Complete details and specifics related to administration of use fuel are governed by Oregon Revised Statute Chapter through and and Oregon Administrative Rule 735 Divisions 170, 174 and 176. Use fuel is the statutory name given to fuels except gasoline, jet fuel or aviation gasoline. It includes diesel, all blends of biodiesel, propane, compressed natural gas (CNG) and liquefied natural gas (LNG). Unlike all other states, in Oregon the taxation point for use fuel is when it is placed in the tank of a motor vehicle. Online services are available for licensing, reporting, payments and emblems. For more information or assistance, contact the Fuels Tax Group. Fuels Tax Group Contact Information The main phone number is or you may dial toll free The address is: Oregon Department of Transportation Fuels Tax Group, MS Capitol Street NE Salem, OR The Fuels Tax Group website address is Licensing Licensing is required except when you pay the tax to the seller at the time of the purchase and : Fuel a vehicle that is 26,000 pounds or less. Are a non resident of Oregon for 30 days or less. Fuel a motor home or recreational vehicle. For users who fuel their vehicles with propane or natural gas a flat rate option is available in lieu of per gallon reporting. Contact the Fuels Tax Group for more information. Licensees must provide a bond or deposit in lieu of bond as part of the licensing process. The bonded amount is based on a tax liability calculation. April

6 If your operation changes or you sell your business, contact the Fuels Tax Group to either have your licensing requirements reviewed or to cancel your license. Recordkeeping Licensees are required to track all use fuels purchased (bulk, cardlock and retail) and how they are used. This guide contains tracking and computing worksheets that you may use electronically or manually. Licensees may use their own software or worksheets for tracking and computing taxable gallons as long as the information clearly supports the reported amount and meets minimum data requirements. If you don t have a computer or don t have Excel on your computer, but would like to use the Fuels Tax Group worksheets, contact the Fuels Tax Group to have a set of blank worksheets mailed to you. Documentation that must be maintained by the licensee: Invoices, bills of lading and retail receipts for purchases. Fuel consumption records for bulk fuel usage. Monthly bulk tank inventory readings. Vehicle logs for vehicle use. Hourly logs for equipment use fueled by the same tank as the vehicle. Account statements of any type are not acceptable as they do not contain sufficient detail for individual transactions. Retail receipts must include seller name and address, the type of fuel, gallons sold, date of purchase and whether it is a taxed or ex tax sale. Records must be maintained for at least three years from the reporting period and available upon request. Emblems Licensed Use Fuel Users are able to purchase ex tax fuel from sellers who offer it by presenting an emblem issued by the Department. Licensees manage their emblems in the online system. They may update their vehicle list and print the emblems at their convenience. If you don t have a computer, contact the Fuels Tax Group to assist you with emblems. April

7 Emblems must be renewed annually. There is a customary grace period granted by sellers in January to accommodate customers until they get their emblems updated. Audits Audits are conducted on a random basis. When notified of an audit, the licensee must provide copies of the documentation and/or worksheets that were used to prepare their reports. A Fuels Tax Group auditor will verify the reports against source documents, make any adjustments necessary and assess accordingly. Cardlock Requirements Cardlock card must be issued by vehicle or piece of equipment to be coded for ex tax purchasing. For vehicles the license plate must appear on the invoice description. If issued for a piece or group of like equipment the description must identify that equipment with a specific description, e.g., tractors, backhoe, etc. Off road is not an allowable description for cards coded for ex tax purchases. If you wish to have cards assigned to drivers, crew, locations, etc. they must be coded for tax paid purchases. Licensees who have ex tax cardlock cards must maintain a current Oregon Exemption Certificate and make sure their supplier has it on file. The Oregon Exemption Certificate form is available on the Fuels Tax Group website. DATA TRACKING Five worksheets make up the Use Fuel User Excel workbook. The instructions that follow apply to either electronic or manual use. Taxed Purchases This worksheet lists all Oregon taxed fuel purchases during the reporting period. Date enter date of purchase, invoice date or bill of lading date. Supplier enter name of vendor from whom you purchase fuel. Purchase Type enter bulk, cardlock or retail. Fuel Type enter clear diesel, dyed diesel, propane, CNG or LNG. Invoice # enter the invoice number, bill of lading number or the receipt number for that purchase. Gallons Purchased enter the gallons as shown on the documentation. Ex Tax Purchases This worksheet lists all Oregon ex tax fuel purchases during the reporting period. April

8 Date enter date of purchase, invoice date or bill of lading date. Supplier enter name of vendor from whom you purchase fuel. Purchase Type enter bulk, cardlock or retail. Fuel Type enter clear diesel, dyed diesel, propane, CNG or LNG. Invoice # enter the invoice number, bill of lading number or the receipt number for that purchase. Gallons Purchased enter the gallons as shown on the documentation. Vehicle Use This worksheet determines taxable gallons related to vehicle use. You may list all vehicles in your business on this worksheet; however you will only report taxable gallons for vehicles that are NOT 100% subject to the weight/mile tax. Month Enter month data is recorded for. Year Enter 4 digit year. Plate # Enter license plate number. Do not use fleet numbers, emblem number or other designations. Beginning Odometer Enter ending odometer reading from the last report. Ending Odometer Enter odometer reading taken on the last day of the reporting period. Total Miles Manually: Subtract beginning odometer from ending odometer and enter the result. The Excel worksheet is formulated to calculate this field. Off Road Enter the sum of all miles driven on private roads or private property. Out of State Enter the total miles the vehicle was driven out of state. Motor Carrier Enter the total miles reported to Motor Carrier for weight/mile tax. Student Enter total miles driven to transport students. Do not include charter miles not related to student transport. Total Exempted Miles Manually: Enter the sum of Off Road, Out of State, Motor Carrier and Student miles. The Excel worksheet is formulated to calculate this field. Taxable Miles Manually: Subtract Total Exempted Miles from Total Miles and enter the result. The Excel worksheet is formulated to calculate this field. Total Gallons Used Enter the sum of all gallons used in the vehicle during the reporting period in whole gallons; include bulk, cardlock and retail gallons. MPG Manually: Divide Total Miles by Total Gallons Used and enter the result. The Excel worksheet is formulated to calculate this field. Taxable Gallons Manually: Divide Taxable Miles by MPG and enter the result as a whole number. The Excel worksheet is formulated to calculate this field. April

9 For propane and natural gas, a conversion calculation must be applied to arrive at the final taxable gallons to enter on the report. If purchased gallons were converted to liquid gallons at the pump, the conversion calculation is not needed. Propane: Total taxable gallons divided by 1.3. For example, 1,000 gallons / 1.3 = 769 taxable gallons. Compressed Natural Gas: Total taxable gallons divided by 1.2. For example, 1,000 gallons / 1.2 = taxable gallons. Vehicle Log This worksheet is provided as a tool to compile the information for the Vehicle Use worksheet. Vehicle Plate Number Enter vehicle license plate number. Date Enter day, month and year of day use is being recorded on. Beginning Odometer Enter beginning odometer reading. It should be the same as the ending odometer reading from the previous date used. Ending Odometer Enter ending odometer reading, i.e., the reading after the vehicle is parked for the day. Total Miles Subtract Beginning Odometer from Ending Odometer. The Excel worksheet is formulated to calculate this field. From Enter city and state. To Enter city and state. Off Road Enter number of miles driven on private roads or private property. Motor Carrier Enter number of miles to report to Motor Carrier. Commonly these are miles driven as haul for hire. Out of State Enter number of miles vehicle driven out of state. Charter Enter number of miles not related to student transport. Student Enter number of miles driven to transport students. Gallons of Fuel Put Into Vehicle Enter gallons put into the vehicle for the trip; include bulk, cardlock and retail gallons. Hourly Use If you operate equipment or machinery that shares the fuel tank with a motor vehicle contact the Fuels Tax Group on how to calculate and report the gallons used. Fuel Consumption Record Licensees are required to track all bulk fuel usage. This identifies taxable and ex tax usage. Fuel Consumption records are required for both clear and dyed fuels. Tank Name Enter the tank identification. Type of Fuel Enter the description of the fuel in the tank; clear diesel, dyed diesel, etc. April

10 Month Enter month data is detailing. Year Enter 4 digit year. Beginning Inventory (stick or meter) Enter total gallons of fuel in the tank at the first day of the reporting period. Gallons Purchased Enter total gallons purchased during the reporting period. Ending Inventory (stick or meter) Enter total gallons of fuel in the tank on the last day of the reporting period after operations have stopped. Date Enter date the fuel is drawn from the tank. Initials Enter initials of the person recording the entry. Used For Enter specific description of what the fuel was put into. Standard descriptions should be used. Examples include Jack s tractor, red Ford pickup, garbage truck, etc. The simplest reference when fueling vehicles is the license plate number. Listing a location (shop fuel) or off road is not acceptable. Gallons Enter gallons drawn for use. REPORTING General Guidelines Licensees are required to report all fuel purchases; both taxed and ex tax. Licensees are required to report and maintain records even if they buy all taxed fuel. Farm plated vehicles are not exempt from fuels tax reporting. Non profit organizations are not exempt from fuels tax reporting. Select government entities are not required to pay fuels tax, but are required to report. Oregon does not differentiate between clear and dyed diesel; both are taxable if exempted use is not documented. Licensee may engage a third party preparer, however there are two requirements. 1. Licensee must provide a completed Power of Attorney form for the Fuels Tax Group to keep on file. The Power of Attorney form is available on the Fuels Tax website. 2. If a third party preparer is hired to complete reporting, the licensee is still responsible for the accuracy of reports, timely payments and any tax liability assessed in an audit. Reports may be handwritten, but must be legible. April

11 Report Due Dates Reports are due the 20 th of the month following the end of the reporting period. Reporting frequencies are monthly, quarterly and annual, based on a tax liability computation. Licensees may request in writing for a frequency change. The Fuels Tax Group may change reporting frequency depending on the tax liability. A report is timely when both the report and payment are received on or before the due date. A postmark date of the 20 th is not sufficient; postmarks are no longer used to determine a timely report. Late reports accrue interest and penalty. Interest is calculated daily at X current amount due. Penalty is calculated at 10% of the amount due. Report Preparation Do not include taxable gallons related to vehicles that are 100% subject to the weight/mile tax. Company Information If filing online, the Fuels Tax System will fill in all of this information. Company Name Enter name as licensed under with the Fuels Tax Group. FEIN Enter the Federal Employer Identification Number assigned to the Company Name. License Number Enter 8 digit license number. Tax Report Period o Monthly reporting Enter month and year of report, e.g., Jan o Quarterly reporting Enter quarter period, e.g., Jan Mar o Annual reporting Enter Annual and 4 digit year, e.g., Annual Amendment Place an X in the box if the report is a correction to a report already processed. Address Enter the mailing address for the licensee. City Enter the mailing address city. State Enter the mailing address state. Zip Code Enter the mailing address zip code. Name and Title of Preparer Print the name and title of the person who prepared the report. Use Fuel Purchases Line 1 Enter the sum total of all tax paid gallons purchased at retail, cardlock or supplier provided fleet fueling during the reporting period. Enter whole gallons. April

12 Line 2 Enter the sum total of all tax paid bulk fuel purchased during the reporting period. Enter whole gallons. Line 3 Enter the sum total of all ex tax gallons purchased at retail, cardlock or supplier provided fleet fueling during the reporting period. Enter whole gallons. Line 4 Enter the sum total of all ex tax bulk fuel purchased during the reporting period. Enter whole gallons. Line 5 Add together lines 1 4. Enter the result. If filing online, the Fuels Tax System will calculate this field. Use Fuel Used Line 6 Enter the sum total of all gallons used during the reporting period. This includes taxed and ex tax gallons for all fuel types. Enter whole gallons. Line 7 Enter the sum total of all gallons used in a non taxable manner. Enter whole gallons. Line 8 Subtract line 7 from line 6. Enter the result. If filing online, the Fuels Tax System will calculate this field. Line 9 Enter the sum of lines 1 and 2. Enter the result. If filing online, the Fuels Tax System will calculate this field. Line 10 Subtract line 9 from line 8. Enter the result. If filing online, the Fuels Tax System will calculate this field. If result is less than 0, enter 0. If your tax paid purchases exceed your tax due, contact the Fuels Tax Group for details on how to prepare and submit for a refund. Tax Calculations Line 11 Multiply line 10 by Enter the result. If line 10 is zero or less, the tax is Enter the result. If filing online, the Fuels Tax System will calculate this field. Line 12 If a report and payment are not received on or before the due date, a 10% penalty is assessed. This includes amended reports submitted after the regular reporting period due date. Multiply the tax on line 11 by Enter the result. Enter the result. If filing online, the Fuels Tax System will calculate this field. Line 13 If a report and payment are not received on or before the due date, interest is assessed. This includes amended reports submitted after the regular reporting period due date. Determine the number of days late. Multiply the tax on line 11 by the number of days late, then multiple that total by Enter the result. If filing online, the Fuels Tax System will calculate this field. Line 14 Add together lines Enter the result. If filing online, the Fuels Tax System will calculate this field. Line 15 Multiply line 10 by Enter the result. If line 10 is zero or less, the tax is Enter the result. If filing online, the Fuels Tax System will calculate this field. Line 16 If a report and payment are not received on or before the due date, a 10% penalty is assessed. This includes amended reports submitted after the regular reporting April

13 period due date. Multiply the tax on line 15 by Enter the result. Enter the result. If filing online, the Fuels Tax System will calculate this field. Line 17 If a report and payment are not received on or before the due date, interest is assessed. This includes amended reports submitted after the regular reporting period due date. Determine the number of days late including days needed for report to get to the Fuels Tax Group. Multiply the tax on line 15 by the number of days late, then multiple that total by Enter the result. Enter the result. If filing online, the Fuels Tax System will calculate this field. Line 18 Add together lines Enter the result. If filing online, the Fuels Tax System will calculate this field. Line 19 Add together line 14 and line 18. Enter the result. This is the amount you pay for the reporting period. Enter the result. If filing online, the Fuels Tax System will calculate this field. Signature Signature Form must be signed by an owner, partner, business employee or member of the legal business entity (LLC, Corporation, etc.). The form may also be signed by a third party preparer for whom a Power of Attorney is on file with the Fuels Tax Group. When filing online, your access permissions serve as your electronic signature. Print Name Print full name (first name and last name) of person signing the form. Title Enter the title of the person signing the form. Date Enter the day, month and year the form was signed. Amendments An amended report is submitted when a correction needs to be processed. Enter the difference in gallons and calculate accordingly. Payments You may prepare reports online and pay online. Some licensees prepare the report online, to let the system do the math for them. Then they print it out (but don t file it) and mail with their check. If you prepare the report manually and mail with a check, make the check out to Oregon Department of Transportation and mail it to: ODOT FUELS TAX GROUP, UNIT 06 PO BOX 4395 PORTLAND, OR April

14 DEFINITIONS Rounding Use 5/4 standard rounding, where anything 0.5 and above rounds up to the next whole gallon, and anything below 0.5 rounds down to the next whole gallon. April