Subject to the procedural requirements and conditions set out in this article, the following are exempt from the user fee imposed by § 12-28-310 on motor fuel subject to the user fee:

(1) motor fuel subject to the user fee for which proof of export is available in the form of a terminal issued destination state shipping paper;

Terms Used In South Carolina Code 12-28-710

  • Bulk plant: means a motor fuel storage and distribution facility that is not a terminal and from which motor fuel may be removed at a rack. See South Carolina Code 12-28-110
  • Delivery: means the placing of motor fuel subject to the user fee or any liquid into the fuel tank of a motor vehicle. See South Carolina Code 12-28-110
  • Department: means the South Carolina Department of Revenue. See South Carolina Code 12-28-110
  • Destination state: means the state, territory, or foreign country to which motor fuel is directed for delivery into a storage facility, a receptacle, a container, or a type of transportation equipment for the purpose of resale or use. See South Carolina Code 12-28-110
  • Diesel fuel: means a liquid, including biodiesel and a biodiesel blend that is commonly or commercially known or sold as a fuel that is suitable for use in a diesel-powered highway vehicle. See South Carolina Code 12-28-110
  • Export: means to obtain motor fuel in this State for sale or other distribution in another state. See South Carolina Code 12-28-110
  • Exporter: means a person, other than a supplier, who purchases motor fuel subject to the user fee in this State for the purpose of transporting or delivering the fuel to another state or country. See South Carolina Code 12-28-110
  • Gasoline: means all products commonly or commercially known or sold as gasoline that are suitable for use as a motor fuel. See South Carolina Code 12-28-110
  • Heating oil: means a motor fuel subject to the user fee that is burned in a boiler, furnace, or stove for heating or industrial processing purposes. See South Carolina Code 12-28-110
  • Motor fuel: means gasoline, diesel fuel, substitute fuel, renewable fuel, alternative fuel, and blended fuel. See South Carolina Code 12-28-110
  • Motor fuel subject to the user fee: means gasoline, diesel fuel, kerosene, blended fuel, substitute fuel, alternative fuel and blends of them and any other substance blended with them. See South Carolina Code 12-28-110
  • Motor vehicle: means a vehicle that is propelled by an internal combustion engine or motor and is designed to permit the vehicle's mobile use on highways. See South Carolina Code 12-28-110
  • Person: means a natural person, a partnership, a firm, an association, a corporation, a representative appointed by a court, the State, a political subdivision or any other entity, group, or syndicate. See South Carolina Code 12-28-110
  • Supplier: means a person who meets all the following conditions:

    (i) is subject to the general taxing jurisdiction of this State;

    (ii) is registered under Section 4101 of the Internal Revenue Code for transactions in taxable motor fuels in the bulk transfer/terminal distribution system; and

    (iii) is one of the following:

    1. See South Carolina Code 12-28-110
  • Tank wagon: means a straight truck having multiple compartments designed or used to carry liquid motor fuel. See South Carolina Code 12-28-110
  • Terminal: is a storage and distribution facility for motor fuel subject to the user fee, supplied by pipeline or marine vessel, which has been registered as a qualified terminal by the Internal Revenue Service. See South Carolina Code 12-28-110
  • Transport truck: means a semitrailer or trailer combination rig designed or used to transport liquid motor fuel over the highways. See South Carolina Code 12-28-110
  • User fees: Fees charged to users of goods or services provided by the government. In levying or authorizing these fees, the legislature determines whether the revenue should go into the treasury or should be available to the agency providing the goods or services.

(a) exported by a supplier who is licensed in the destination state;

(b) sold by a supplier to another person for immediate export to a state for which the destination state’s motor fuel user fee has been paid to the supplier who is licensed to remit user fees to the destination state;

(c) which is destined for use other than for resale within the destination state for which an exemption has been made available by the destination state subject to procedural regulations promulgated by the department;

(2) motor fuel subject to the user fee which was acquired by a licensed exporter and as to which the user fee imposed by this chapter previously has been paid or accrued, which motor fuel was placed into storage in this State and subsequently was exported by transport truck by or on behalf of the licensed exporter;

(3) motor fuel subject to the user fee which was acquired by an unlicensed exporter and as to which the user fee imposed by this chapter previously has been paid or accrued and subsequently was exported by transport truck by or on behalf of the licensed exporter in a diversion across state boundaries properly reported in conformity with § 12-28-1525;

(4) motor fuel subject to the user fee exported out of a bulk plant in this State in a tank wagon if the destination of that vehicle does not exceed twenty-five miles from the borders of this State and as to which the user fee imposed by this chapter previously has been paid or accrued, subject to gallonage limits and other conditions established by the department;

(5) K-1 kerosene sold at retail through dispensers which have been designed and constructed to prevent delivery directly from the dispenser into a vehicle fuel supply tank and K-1 kerosene sold at retail through nonbarricaded dispensers in quantities of not more than twenty-one gallons for use other than for highway purposes, under regulations as the department reasonably requires;

(6) motor fuel subject to the user fee sold to the United States or its agencies or instrumentalities;

(7) subject to determination by the department, that portion of motor fuel subject to the user fee used to operate equipment attached to a motor vehicle, if the motor fuel subject to the user fee was placed into the fuel supply tank of a motor vehicle that has a common fuel reservoir for travel on a highway and for the operation of equipment;

(8) motor fuel subject to the user fee acquired by an end user out-of-state and carried into this State, retained within and consumed from the same vehicle fuel supply tank within which it was imported;

(9) kerosene and diesel fuel used as heating oil or in trains or used in equipment not licensed as a motor vehicle other than as expressly exempted under another provision;

(10) motor fuel subject to the user fee which was lost or destroyed as a direct result of a sudden and unexpected casualty;

(11) diesel fuel subject to the user fee which has been contaminated by dye so as to be unsalable or unusable as highway fuel;

(12) motor fuel subject to the user fee used in state-owned school buses and in state-owned administration and service vehicles used in the pupil transportation program and transportation of students by state-funded institutions of higher learning;

(13) motor fuel subject to the user fee used in manufacture of fuel oil;

(14) motor fuel subject to the user fee sold for use in commercial shrimp boats;

(15) gasoline subject to the user fee used in operating tractors or other farm equipment used exclusively in farm operations, no part of which is used in any vehicle or equipment driven upon the public roads, streets, or highways of this State. A claim for refund must be made under § 12-28-790;

(16) gasoline used in aircraft.

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