(A) A tare allowance is allowed to each eligible purchaser, licensee importer, and supplier who lawfully is engaged in the distribution of user fee-paid motor fuel within this State to offset thermal shrinkage and measurement differences occurring after removal of the motor fuel subject to the user fee from the terminal. The amount of the tare allowance is equal to two and sixty-five one-hundredths percent not to exceed two thousand dollars a month of the amount of the user fee imposed by this chapter and paid by the person, directly or indirectly, subject to the requirements and limitations set out in subsections (B) and (C). However, the tare allowance is not applicable more than once to any motor fuel subject to the user fee.

(B) Every eligible purchaser who acquires motor fuel subject to the user fee from a supplier or licensed importer for distribution and use in this State, which motor fuel was previously subject to the user fee imposed by this chapter, is entitled to the tare allowance provided by subsection (A) by way of quarterly refund application to the department under regulations promulgated by and on forms prescribed by the department. The total amount of tare allowance claimed by the person may not exceed two thousand dollars for any month.

Terms Used In South Carolina Code 12-28-960

  • 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 Section 12-28-930 to make the election under Section 12-28-925. 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
  • 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
  • Removal: means a physical transfer other than by evaporation, loss, or destruction of motor fuel subject to the user fee from a terminal, manufacturing plant, customs custody, pipeline, marine vessel including barges and tankers, refinery, or any receptacle that stores motor fuel subject to the user fee. 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
  • 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

(C) Every licensed importer and supplier making sales of user fee-paid motor fuel to persons other than eligible purchasers is entitled to the tare allowance provided by subsection (A) by way of a credit against user fee remittances due to the State payable by the person. The total amount of tare allowance claimed by the person may not exceed two thousand dollars for any month.