HOUSE BILL NO. 138
INTRODUCED BY H. HARPER
BY REQUEST OF THE DEPARTMENT OF TRANSPORTATION
AN ACT ELIMINATING THE ANNUAL LICENSE RENEWAL FEE FOR WHOLESALE GASOLINE AND SPECIAL FUEL DISTRIBUTORS; ELIMINATING THE LICENSING REQUIREMENT THAT APPLIES TO A PERSON WHO SELLS GASOLINE OR SPECIAL FUEL FOR WHICH A REFUND MAY BE CLAIMED; AMENDING SECTIONS 15-70-202, 15-70-223, 15-70-341, AND 75-11-314, MCA; REPEALING SECTIONS 15-70-203 AND 15-70-342, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-70-202, MCA, is amended to read:
"15-70-202. License, fee, and security of gasoline distributors. (1) (a) All gasoline distributors, including exporters,
as defined in 15-70-201, and a person who imports, as defined in 15-70-201, prior to the commencement of doing business,
shall file:
(i) an application for a license with the department of transportation on forms prescribed and furnished by the department setting forth the information as may be requested by the department; and
(ii) security with the department in an amount to be determined by the department. The required amount of security may not exceed twice the estimated amount of gasoline taxes the distributor will pay to this state each month.
(b) Upon approval of the application, the department shall issue to the distributor a nonassignable license that is in force until surrendered or canceled.
(2) A person who engages in the wholesale distribution of gasoline in this state exercising the option under
15-70-201(6)(c) shall pay an annual license fee of $200.
(3)(2) "Security" means:
(a) a bond executed by a distributor as principal with a corporate surety qualified under the laws of Montana, payable to the state of Montana, and conditioned upon faithful performance of all requirements of this part, including the payment of all taxes and penalties; or
(b) a deposit made by the distributor with the department, under conditions as the department may prescribe, of certificates of deposit or irrevocable letters of credit issued by a bank and insured by the federal deposit insurance corporation.
(4)(3) Failure to obtain a gasoline distributor license as required in this section subjects the distributor to the provisions
of 15-70-233 allowing for the seizure, confiscation, and possible forfeiture of the fuel."
Section 2. Section 15-70-223, MCA, is amended to read:
"15-70-223. Estimate allowed for agricultural use -- seller's signed statement acceptable on keylock or cardtrol purchases. (1) An applicant whose use qualifies as agricultural use may apply for a refund of 60% of the applicable tax on the gallons of gasoline as indicated by bulk delivery invoices or by evidence of keylock or cardtrol purchases as an estimate of off-roadway use. To ensure that the applicant's use qualifies as agricultural use, the department of transportation may request from the department of revenue information on the ratio of the applicant's gross farm income to total gross income, provided that the department of transportation gives notice to the applicant.
(2) For purposes of application for a refund under subsection (1), the department shall accept, as evidence of keylock or
cardtrol purchases, a statement of the sale of gasoline with applicable tax that identifies the purchaser and that is signed by a
licensed distributor or a person licensed under 15-70-203 from whom the gasoline was purchased.
(3) If any an invoice or evidence is either lost or destroyed, the purchaser may support his a claim for refund by
submitting an affidavit relating the circumstances of such the loss or destruction and by producing such other evidence as
may be required by the department of transportation.
(4) An applicant whose use does not qualify as agricultural use may not estimate and must shall maintain records as
required by 15-70-222."
Section 3. Section 15-70-341, MCA, is amended to read:
"15-70-341. License, reissuance fee, and security of special fuel distributors. (1) (a) All special fuel distributors, including importers and exporters as defined in 15-70-301, prior to the commencement of doing business, shall file:
(i) an application for a license with the department, on forms prescribed and furnished by the department, setting forth the information that may be requested by the department; and
(ii) security with the department in an amount to be determined by the department.
(b) The required amount of security may not exceed twice the estimated amount of special fuel taxes the distributor will pay to this state each month.
(c) Upon approval of the application, the department shall issue to the distributor a nonassignable license that continues in force until surrendered or revoked.
(2) A person who engages in the wholesale distribution of special fuel in this state exercising the option under
15-70-301(7)(c) and not already licensed under 15-70-202 shall pay an annual license fee of $200.
(3)(2) If the distributor's license is surrendered or revoked, the distributor shall pay a reissuance fee of $100.
(4)(3) Failure to obtain a special fuel distributor license as required in this section subjects the distributor to the
provisions of 15-70-357 allowing for the seizure, confiscation, and possible forfeiture of the fuel.
(5)(4) As used in this section, "security" means:
(a) a bond executed by a distributor as principal with a corporate surety qualified under the laws of Montana, payable to the state of Montana, and conditioned upon faithful performance of all requirements of this part, including the payment of all taxes and penalties; or
(b) (i) a deposit made by the distributor with the department, under the conditions that the department may prescribe; or
(ii) certificates of deposit or irrevocable letters of credit issued by a bank and insured by the federal deposit insurance corporation."
Section 4. Section 75-11-314, MCA, is amended to read:
"75-11-314. Petroleum storage tank cleanup fee -- collection -- penalties -- warrant for distraint -- statute of limitations. (1) Except as provided in subsection (4), each distributor shall pay to the department of transportation a petroleum storage tank cleanup fee for each gallon of gasoline, aviation gasoline, special fuel, or heating oil distributed by the distributor within the state and upon which the fee has not been paid by any other distributor. The fee must equal:
(a) 1 cent for each gallon of gasoline distributed from July 1, 1989, through June 30, 1991;
(b) 0.75 cent for each gallon of gasoline distributed after July 1, 1991;
(c) 0.75 cent for each gallon of aviation gasoline distributed after July 1, 1993;
(d) 0.75 cent for each gallon of special fuel distributed after July 1, 1993; and
(e) 0.75 cent for each gallon of heating oil distributed after July 1, 1993.
(2) Gasoline, aviation gasoline, special fuel, and heating oil exported or sold for export out of the state must be included in the measure of a distributor's fee.
(3) Alcohol that is blended with gasoline to be sold as gasohol is subject to the fee provided in subsection (1).
(4) A fee may not be imposed or collected beginning on the first day of the first month in the first calendar quarter after the unobligated balance in the fund equals or exceeds $8 million. Whenever the unobligated fund balance, less claims anticipated for board approval within the next 90 days, is less than $4 million, the department of transportation shall, within 30 days, notify distributors by mail that the fee is reinstated beginning on the first day of the first month that begins no less than 30 days after the date of the notice. Once reinstated, the fee must be imposed and collected until the unobligated fund balance again equals or exceeds $8 million.
(5) The department of transportation shall collect the fee in the same manner as the basic gasoline license tax under Title
15, chapter 70, part 2. The provisions of 15-70-103, 15-70-111, 15-70-202, 15-70-205, 15-70-206, 15-70-208 through
15-70-212, 15-70-221(2), and 15-70-232 apply to the fee. The provisions of 15-70-203, 15-70-204, 15-70-207,
15-70-221(1), and 15-70-222 through 15-70-224 do not apply to the fee."
Section 5. Repealer. Sections 15-70-203 and 15-70-342, MCA, are repealed.
Section 6. Effective date. [This act] is effective on passage and approval.
Section 7. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to the license year after December 31, 1998.
- END -
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