Montana Code 15-70-425. Refund or credit authorized
15-70-425. Refund or credit authorized. (1) A person who purchases and uses any gasoline or special fuel on which the Montana gasoline or special fuel tax has been paid for denaturing ethanol to be used in ethanol-blended gasoline, operating stationary gasoline or special fuel engines used off the public roads and highways of this state, or for any commercial use other than operating vehicles on any of the public roads and highways of this state is allowed a refund of the amount of tax paid directly or indirectly on the gasoline or special fuel used if the person has records, as provided in 15-70-426, to prove nontaxable use. The refund may not exceed the tax paid or to be paid to the state. A refund is not allowed for the tax per gallon on aviation fuel allocated to the department of transportation as provided in 67-1-301.
Terms Used In Montana Code 15-70-425
- Aviation fuel: means gasoline or any other liquid fuel by whatever name the liquid fuel may be known or sold, compounded for use in and sold for use in aircraft, including but not limited to any and all gasoline or liquid fuel meeting or exceeding the minimum specifications prescribed by the United States for use by its military forces in aircraft. See Montana Code 15-70-401
- Department: means the department of transportation. See Montana Code 15-70-401
- Distributor: means :
(i)a person who engages in the business in this state of producing, refining, manufacturing, or compounding gasoline or special fuel for sale, use, or distribution;
(ii)an importer who imports gasoline or special fuel for sale, use, or distribution;
(iii)a person who engages in the wholesale distribution of gasoline or special fuel in this state and chooses to become licensed to assume the Montana state gasoline tax or special fuel tax liability;
(iv)an exporter;
(v)a dealer licensed as of January 1, 1969, except a dealer at an established airport; or
(vi)a person in Montana who blends ethanol with gasoline. See Montana Code 15-70-401
- Ethanol: means nominally anhydrous ethyl alcohol that has been denatured as specified in 27 CFR, parts 20 and 21, and that meets the standards for ethanol adopted pursuant to 82-15-103. See Montana Code 15-70-401
- Ethanol-blended gasoline: means gasoline blended with ethanol. See Montana Code 15-70-401
- Gasoline: includes :
(i)all petroleum products commonly or commercially known or sold as gasolines, including casinghead gasoline, natural gasoline, aviation fuel, and all flammable liquids composed of a mixture of selected hydrocarbons expressly manufactured and blended for the purpose of effectively and efficiently operating internal combustion engines; and
(ii)any other type of additive when the additive is mixed or blended into gasoline, regardless of the additive's classifications or uses. See Montana Code 15-70-401
- Person: includes any person, firm, association, joint-stock company, syndicate, partnership, or corporation. See Montana Code 15-70-401
- Public roads and highways of this state: means all streets, roads, highways, and related structures:
(a)built and maintained with appropriated funds of the United States, the state of Montana, or any political subdivision of the state;
(b)dedicated to public use;
(c)acquired by eminent domain, as provided in Title 60, chapter 4, or Title 70, chapter 30; or
(d)acquired by adverse use by the public, with jurisdiction having been assumed by the state or any political subdivision of the state. See Montana Code 15-70-401
- special fuel: includes biodiesel and additives of all types when the additive is mixed or blended into special fuel, regardless of the additive's classifications or uses. See Montana Code 15-70-401
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- Taxes: means the taxes provided for in this chapter. See Montana Code 15-70-112
- United States: includes the District of Columbia and the territories. See Montana Code 1-1-201
- Use: means the operation of a motor vehicle on the public roads and highways of this state or of any political subdivision of this state. See Montana Code 15-70-401
(2)(a) The United States government, the state of Montana, any other state, or any county, incorporated city, town, or school district of this state is entitled to a refund of the taxes paid on special fuel regardless of the use of the special fuel.
(b)(i) A nonpublic school may use dyed special fuel in buses that are owned by the nonpublic school if the buses are used for the transportation of pupils solely for nonsectarian school-related purposes.
(ii)For the purposes of this subsection (2)(b), nonpublic schools are those schools that have been accredited pursuant to 20-7-102.
(3)A distributor who pays the gasoline or special fuel tax to this state erroneously is allowed a credit or refund of the amount of tax paid.
(4)(a) A distributor is entitled to a credit for the tax paid to the department on those sales of gasoline or special fuel with a tax liability of $200 or greater for which the distributor has not received consideration from or on behalf of the purchaser and for which the distributor has not forgiven any liability. The distributor shall have declared the accounts of the purchaser worthless not more than once during a 3-year period and claimed those accounts as bad debts for federal or state income tax purposes.
(b)If a credit has been granted under subsection (4)(a), any amount collected on the accounts declared worthless must be reported to the department and the tax due must be prorated on the collected amount and must be paid to the department.
(c)The department may require a distributor to submit periodic reports listing accounts that are delinquent for 90 days or more.
(5)A person who purchases and exports for sale, use, or consumption outside Montana any gasoline or special fuel on which the Montana gasoline or special fuel tax has been paid is entitled to a credit or refund of the amount of tax paid unless the person is not licensed and is not paying the tax to the state where fuel is destined. Upon completion of the reports required under 15-70-416, the department shall authorize the credit or refund.