(A) In computing the amount of motor fuel user fees due, the supplier is entitled to a credit against the user fee payable in the amount of the user fee paid by the supplier that is uncollectible from an eligible purchaser.

(B) The supplier shall provide notice to the department of a failure to collect user fees within ten days following the earliest date on which the supplier was entitled to collect the user from the eligible purchaser under § 12-28-925.

Terms Used In South Carolina Code 12-28-940

  • Department: means the South Carolina Department of Revenue. See South Carolina Code 12-28-110
  • Eligible purchaser: means a person who has been authorized by the department pursuant to § 12-28-930 to make the election under § 12-28-925. See South Carolina Code 12-28-110
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Motor fuel: means gasoline, diesel fuel, substitute fuel, renewable fuel, alternative fuel, and blended fuel. 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
  • 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.

(C) The department may promulgate regulations establishing the evidence a supplier shall provide to receive the credit.

(D) The credit must be claimed on the first return following the date of the failure of the eligible purchaser if the payment remains unpaid as of the filing date of that return or the credit is disallowed.

(E) The claim for credit must identify the defaulting eligible purchaser and any user fee liability that remains unpaid.

(F) If an eligible purchaser fails to make a timely payment of the amount of user fees due, the supplier’s credit is limited to the amount due from the purchaser, plus any user fee that accrues from that purchaser for a period ending upon the date the supplier receives notice from the department of revocation of eligible purchaser status.

(G) No additional credit is allowed to a supplier under this section until the department authorizes the purchaser to make a new election under § 12-28-925.

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