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DEPARTMENT OF TRANSPORTATION,

DRIVER AND MOTOR VEHICLE SERVICES DIVISION





 

DIVISION 170
FUEL LICENSES AND RECORDS

735-170-0000
Definitions
(1) “Best Available Information”
means any data or information that can be used to determine tax due including calculated
projections or averages based on prior reports or data from other sources as determined
by the Department.
(2) “Bill of Lading”
means a document issued by the terminal operator that lists goods being shipped
and specifies the terms of their transport.
(3) “Delivery Tag”
means the delivery receipt or other record of a delivery.
(4) “Electronic signature”
shall have the same meaning and requirements as defined in ORS 84.004(8).
(5) “Ethanol Blended
Gasoline” means ethanol has been blended with gasoline and is intended for
use in a motor vehicle. This product is defined as motor vehicle fuel and is a taxable
product.
(6) To “Export”
means to have ownership title to motor vehicle fuel or aircraft fuel from locations
within Oregon, at the time it is delivered to locations outside Oregon by any means
of transport, other than in the fuel tank of a motor vehicle for the purpose of
propelling motor vehicle or aircraft except as provided in ORS 319.330.
(7) “Cause to be Exported”
means to have ownership title to motor vehicle fuel or aircraft fuel, at your order,
request or solicitation, at the time it is exported from the State of Oregon by
any means of transport, other than motor vehicle fuel exported from Oregon in the
fuel tank of a motor vehicle used for the propulsion of the motor vehicle.
(8) “Ex-Tax”
means that the tax is not included in the price of the fuel.
(9) “Failure to Report”
means any tax report and payment not received by the Department on or before the
due date of the next subsequent report.
(10) To “Import”
means to have ownership title to motor vehicle fuel or aircraft fuel from locations
outside of Oregon, at the time it is brought into the State of Oregon by any means
of transport, other than motor vehicle fuel brought into Oregon in the fuel tank
of a motor vehicle used for the propulsion of the motor vehicle.
(11) “Cause to be Imported”
means to have ownership title to motor vehicle fuel or aircraft fuel, at your order,
request or solicitation, at the time it is brought into the State of Oregon by any
means of transport, other than motor vehicle fuel brought into Oregon in the fuel
tank of a motor vehicle used for the propulsion of the motor vehicle.
(12) “Invoice”
means the receipt or other record of a sale transaction that describes an itemized
list of goods shipped specifying the price and terms of sale as defined in OAR 735-170-0010.
(13) “ODOT Fuels Tax
Group” or “Department” means the organizational unit within the
Oregon Department of Transportation or its agent that is primarily charged with
the administration of ORS 319.010 through 319.880 on behalf of the State of Oregon.
(14) “Performing the
Acts of a Dealer” means that the dealer is conducting business in Oregon as
defined in ORS 319.010(6).
(15) “Properly Licensed”
means that the person or entity “performing the acts of a dealer” is
legally licensed under the “true name” and legally authorized to conduct
business in Oregon per Oregon law.
(16) “Registered Fuel
Handler” includes but is not limited to fuel transporters, biodiesel producers,
ethanol producers, and terminal operators who handle fuel products. It does not
include dealers in Motor Vehicle Fuel or Use Fuel Sellers licensed by the state
of Oregon.
(17) “Terminal Position
Holder” means a dealer who owns terminal storage inventory in Oregon.
(18) “True Name”
means the name that is authorized per Oregon law to conduct business in Oregon.
Stat. Auth.: ORS 184.616, 184.619 &
319.010 - 319.880
Stats. Implemented: ORS 319.010
- 319.430
Hist.: MV 22, f. 2-15-63;
MV 13-1986, f. & ef. 9-2-86; Administrative Renumbering 3-1988, Renumbered from
735-011-0005; DMV 18-2003, f. 12-12-03 cert. ef. 1-1-04; DMV 10-2009, f. 5-22-09,
cert. ef. 7-1-09; DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15
735-170-0010
Records Required
The Department has the authority to
prescribe required records under ORS 319.390 and 319.400. Every Oregon dealer, whether
licensed or unlicensed, must maintain and keep the following records for at least
three years from the date the fuel tax is due:
(1) Stock summary showing
monthly totals for the gallons of motor vehicle fuel or aircraft fuel handled for
each owned and operated distributing location within the State of Oregon with an
analysis as to inventories, receipts, sales, use, transfers, and loss or gain.
(a) An actual physical gallon
inventory measurement of motor vehicle fuel and aircraft fuel stocks for each owned
and operated distributing location must be taken at the end of each calendar month
and preserved for audit purposes.
(b) A record showing all
sales and withdrawals of motor vehicle fuel or aircraft fuel from storage. A dealer
that withdraws fuel from storage for highway and non-highway use must:
(A) Summarize records into
monthly totals and separately show the number of gallons used for highway and non-highway
purposes;
(B) Separately show the total
number of miles traveled and fuel used for each vehicle;
(C) Separately account for
fuel withdrawn from bulk storage and fuel received from other sources;
(2) Purchase journal showing
the number of gallons of motor vehicle fuel or aircraft fuel purchased or received
each month supported by purchase invoices or other documents.
(3) Sales journal showing
the number of gallons of motor vehicle fuel or aircraft fuel sold or distributed
each month, supported by sales invoices covering each sale or delivery.
(4) Sales invoice forms must
be approved by the Department and must include at least the following information:
(a) Date of sale or delivery;
(b) Point of origin;
(c) Name of dealer making
the sale or delivery;
(d) All invoices must separately
state and describe to the satisfaction of the Department the various products shipped
and must be serially numbered except where other sales invoice controls acceptable
to the Department are maintained;
(e) Name and address of the
purchaser, and place and state where the delivery was actually made. Other sales/delivery
documents showing physical address must be retained for audit and provided upon
request by the Department.
(f) The gallons of motor
vehicle fuel or aircraft fuel sold.
(5) All required records
must be summarized into calendar month totals and must be centralized in the accounting
office where the periodic tax audit is to be made.
(6) The Department may determine,
at its sole discretion, when the auditor for the state must travel outside the State
of Oregon to examine the dealer’s records. At any time such travel is determined
necessary the dealer must reimburse the state for all travel expenses incurred,
including transportation, meals and lodging costs.
(7) The Department has the
authority to investigate, examine and audit licensed or unlicensed dealers, carriers,
brokers, service stations, and other persons who are storing, selling, or distributing
motor vehicle fuels or other petroleum products in Oregon. Such investigations,
examinations and audits will occur during normal business hours;
(8) Documentation in the
following areas must be made readily available to the Department upon request by
the Department by the date prescribed by the Department;
(a) Accounts;
(b) Records;
(c) Stocks;
(d) Facilities;
(e) Equipment;
(f) Shipping;
(9) Dealers who fail to make
records available for inspection are subject to assessment based on “best
available information,” collection action, and possible license suspension
and revocation.
(10) Dealers that handle
use fuel under ORS 319.860 have the same record keeping requirements under 735-176-0110.
Stat. Auth.: ORS 184.616, 184.619, 319.010
- 319.430, 319.990
Stats. Implemented: ORS 319.370,
319.380, 319.390, 319.400
Hist.: MV 22, f. 2-15-63;
Administrative Renumbering 3-1988, Renumbered from 735-011-0055; MV 7-1988, f. &
cert. ef. 2-29-88; DMV 18-2003, f. 12-12-03 cert. ef. 1-1-04; DMV 10-2009, f. 5-22-09,
cert. ef. 7-1-09; DMV 15-2010, f. 8-27-10, cert. ef. 1-1-11; DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-170-0015
Records Required for Registered
Fuel Handlers
Except as otherwise provided in this
rule, all fuel handlers, registered and unregistered, including but not limited
to Bulk Distributors, Biodiesel Producers, Ethanol Producers, Terminal Operators,
and Petroleum Products Carriers, must maintain and keep the following records for
at least three years:
(1) Stock summary showing
monthly totals for the gallons of fuel sold, stored, handled, or produced for each
fuel type. Records are to be maintained for each operated distributing location
within the State of Oregon with an analysis as to inventories, receipts, sales,
production, transport, use, transfers, and loss or gain.
(a) An actual physical gallon
inventory measurement of each fuel type for each owned and operated location must
be taken at the end of each calendar month and preserved for audit purposes.
(b) Transport companies who
do not store or produce fuel are not required to maintain month-end inventories
of fuel placed in trucks for delivery.
(c) A record showing all
sales and withdrawals of fuel, by fuel type.
(2) Purchase journal showing
the number of gallons of fuel purchased or received each month supported by purchase
invoices or other documents.
(3) Sales journal showing
the number of gallons of fuel sold or distributed each month, supported by sales
invoices covering each sale or delivery.
(4) Sales invoice forms must
include at least the following information:
(a) Date of sale or delivery;
(b) Point of origin;
(c) Name of registrant making
the sale or delivery;
(d) All invoices must separately
state and describe the various products shipped;
(e) The gallons of fuel sold
or transported;
(f) The invoice must clearly
show the place and state where the delivery was actually made. Physical delivery
address must be kept for audit purposes.
(5) All required records
must be summarized into calendar month totals and must be centralized in the accounting
office where the periodic records review is to be conducted. To comply with this
rule, all for hire carriers as defined in ORS 825.005(7), must maintain all records
required in the normal course of their operations including but not limited to those
records required by Oregon Administrative Rules, Chapter 740, Division 55.
(6) The Department has the
authority to investigate, examine and audit fuel handlers, dealers, carriers, brokers,
service stations, and other persons who are storing, selling, or distributing motor
vehicle fuels or other petroleum products in Oregon. Such investigations, examinations,
and audits will occur during normal business hours;
(7) Documentation of the
fuel handled, received, produced, stored, sold, and transported must be made readily
available to the Department upon request by the Department by the date prescribed
by the Department;
(8) Fuel handlers, whether
registered or unregistered, who fail to make records available for inspection are
subject to assessment based on “best available information,” and possible
collection action.
Stat. Auth.: ORS 184.616, 184.619, 319.010
- 319.430, 319.990
Stats. Implemented: ORS 319.370,
319.380, 319.390, 319.400
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-170-0020
Required Tax Report Forms and Report Preparation
(1) Every licensed dealer must prepare
a tax report that completely summarizes the number of gallons of motor vehicle fuel
or aircraft fuel sold, distributed, or used in the State of Oregon each month with
required schedules and detail to fully explain the various entries.
(2) A schedule must be prepared
identifying the gallons sold and tax due in each taxing jurisdiction administered
by the Department on forms provided by the Department.
(3) Every licensed dealer
must follow motor vehicle fuel tax reporting instructions and use prepared forms
as provided by the Department. Willful or habitual failure to complete tax reports
in the manner prescribed by the Department may result in assessment based on “best
available information,” collection action, and possible license suspension
and revocation.
(4) “To report”
or “be reported” means a complete report, with all required schedules
on forms prescribed by the Department and full remittance of tax, must be received
by the Department or its designated agent not later than the 25th of the succeeding
calendar month.
(a) All reports and required
schedules with 100 or more transactions shall be filed electronically in a manner
prescribed by the Department. Once a licensee or registrant is required to file
their reports electronically, all subsequent reports shall be filed electronically
regardless of the number of transactions.
(b) Computerized report data
may be substituted for schedule detail when the dealer has less than 100 transactions
and the format is compatible with the prescribed forms.
(c) If an electronic transaction
requires the payment of taxes or fees, payment of those taxes or fees within the
electronic transaction shall be:
(A) Made through an Automated
Clearing House (ACH) debit or credit transaction;
(B) Made in US funds.
(5) Every person (as defined
by ORS 319.010(13)) producing, manufacturing, importing, distributing, and blending
use fuel must report Use Fuel Handled on Schedule 735-1305D not later than the 25th
day of each calendar month for use fuel handled during the preceding calendar month.
(a) Schedule 735-1305D and
supporting documents may be sent with other required materials or sent via email
to the department not later than the 25th day of each calendar month.
(b) Use fuel tax will not
be assessed on use fuel handled and reported on Schedule 735-1305D, nor is a person
who produces, manufactures, imports, distributes and blends use fuel required to
be registered with the department as a use fuel licensee, unless such person also
meets the definition of a user or seller as defined by 735-176-0100(3), 735-176-0150
and ORS 319.520(13).
(c) Licensed dealers that
are also licensed as use fuel sellers (as defined by ORS 319.520(9)) and who report
use fuel handled on use fuel seller reports by submitting those reports in accordance
with the applicable statutes and rules, are not required to complete form 735-1305D.
Stat. Auth.: ORS 184.616, 184.619, 319.010
- 319.430, 319.990
Stats. Implemented: ORS 319.010
- 319.430, 319.990
Hist.: MV 22, f. 2-15-63;
MV 13-1986, f. & ef. 9-2-86; Administrative Renumbering 3-1988, Renumbered from
735-011-0105; MV 7-1988, f. & cert. ef. 2-29-88; DMV 18-2003, f. 12-12-03 cert.
ef. 1-1-04; DMV 10-2009, f. 5-22-09, cert. ef. 7-1-09; DMV 15-2010, f. 8-27-10,
cert. ef. 1-1-11; DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15
735-170-0035
Reporting Requirements for Registered
Fuel Handlers
(1) All registered handlers will file
a monthly report detailing the fuel handled, sold, produced, distributed, transported,
or used during the month. For hire carriers, as defined in ORS 825.005(7), and
other common carriers, that only transport fuel for dealers or registered fuel handlers
are not required to submit reports, but are subject to the record keeping requirements
in OAR 735-170-0015.
(2) Every registrant must
follow the applicable fuel reporting instructions and use forms as provided by the
Department. Willful or habitual failure to complete tax reports in the manner prescribed
by the Department may result in assessment based on “best available information,”
collection action, and possible suspension or revocation.
(3) “To report”
or “be reported” means a complete report, with all required schedules
on forms prescribed by the Department and full remittance of tax or fee, must be
received by the Department or its designated agent not later than the 25th of the
succeeding calendar month.
(a) All reports and required
schedules with 100 or more transactions shall be filed electronically in a manner
prescribed by the Department. Once a licensee or registrant is required to file
their reports electronically, all subsequent reports shall be filed electronically
regardless of the number of transactions.
(b) Computerized report data
may be substituted for schedule detail when the fuel handler has less than 100 transactions
and the format is compatible with the prescribed forms.
(c) If an electronic transaction
requires the payment of taxes or fees, payment of those taxes or fees within the
electronic transaction shall be:
(A) Made through an Automated
Clearing House (ACH) debit or credit transaction;
(B) Made in US funds.
Stat. Auth.: ORS 184.616, 184.619, 319.010
- 319.430, 319.990
Stats. Implemented: ORS 319.010
- 319.430, 319.990
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-170-0040
Tax Report Filing Dates
(1) A licensed dealer or registered
fuel handler must complete a monthly tax report with full payment of taxes which
must be received by the Department not later than the 25th of the succeeding calendar
month.
(a) “Received”
is the date the report is physically received by the Department or its designated
agent.
(b) When the due date falls
on a Saturday, a Sunday, or any recognized state or federal holiday, the report
and payment must be received by the Department or its designated agent on or before
the next business day.
(2) Tax reports and payments
not received by the Department in a timely fashion will be considered late and subject
to interest and penalty as described in ORS 319.180. Any tax report and payment
not received by the due date of the subsequent report constitutes a “failure
to report” and is subject to an additional 10% penalty as described in ORS
319.200.
(3) If the report and payment
are not received on or before the 25th day of the month a penalty will be assessed
pursuant to ORS 319.180 or, if the Department determines that no tax is due, a penalty
of $25 will be assessed.
Stat. Auth.: ORS 184.616, 184.619, 319.010
- 319.430, 319.990
Stats. Implemented: ORS 319.020,
319.180, 319.190, 319.200
Hist.: MV 22, f. 2-15-63;
MV 48, f. 10-5-72, ef. 10-15-72; MV 53, f. 2-20-74, ef. 3-11-74; MV 1-1980(Temp),
f. & ef. 1-21-80; MV 6-1980, f. & ef. 4-18-80; MV 11-1982, f. 4-30-82, ef.
5-1-82; MV 13-1986, f. & ef. 9-2-86; Administrative Renumbering 3-1988, Renumbered
from 735-011-0115; DMV 10-2009, f. 5-22-09, cert. ef. 7-1-09; DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-170-0045
Motor Vehicle Fuel Tax Waiver of Late Payment Penalties
(1) If a dealer or registrant disagrees
with an action of the Department, they may request reassessment of the determination
in writing within 30 days of the date of the notice. Notice types which may be
reconsidered include:
(a) Denial or suspension
of license.
(b) Adjustments to motor
vehicle fuel dealer tax reports.
(c) Assessment of tax based
on available information.
(2) If the Department and
the dealer or registrant are not able to resolve the issue through the internal
review process, the dealer or registrant may request a contested case hearing under
the provisions of ORS Chapter 183. The dealer or registrant must request the hearing
in writing before the Notice of Assessment becomes final.
(3) ORS 319.090(2) and 319.180(4)
allow the Department to waive certain penalties.
(4) Any entity or a person
may submit a written request for waiver of penalty to the Department.
(5) The penalty under ORS
319.090 and 319.180 may be waived if the taxpayer shows reasonable cause.
(a) A taxpayer who wishes
to apply for waiver of the penalty must make an affirmative showing of all facts
alleged as a reasonable cause. The written statement must contain a declaration
that it is made under penalty of perjury. The statement should be filed with the
report or filed with the Department as soon as possible thereafter.
(b) Circumstances that may
constitute reasonable cause include, but are not limited to the following:
(A) War, riot, rebellion,
acts of God or other disaster; or
(B) Acts or omissions by
a third party which were beyond the control of the person; or
(C) The person in good faith
took all steps and precautions reasonably necessary to comply with the statute;
and
(D) Any other criteria the
Department may find to be informative and appropriate.
(6) For purposes of determining
the amount of motor vehicle fuel sold, distributed or used where a dealer fails
to report as described in ORS 319.200, “best available information”
is defined in OAR 735-170-0000.
(7) Penalties described in
ORS 319.190 will not be waived. Penalties described in 319.200 are cumulative to
penalties described in 319.090, 319.180 and 319.190 and will not be waived.
(8) The following reasons
are not acceptable for granting a penalty waiver:
(a) Employee incompetence
or inexperience;
(b) Employee turnover;
(c) Misunderstanding or ignorance
of law;
(d) Computer failure or error
that is not the result of a natural disaster;
(e) Changeover to new accounting
processes, software or upgrades;
(f) Change in company operations;
(g) Errors or reliance on
the part of third party suppliers or customers.
(9) Penalties for amended
reports and audit adjustments will be applied in accordance with applicable statutes.
At the discretion of the Department the following criteria may be used to determine
waiver of penalty:
(a) Accuracy of previous
audits and payment history;
(b) Accuracy of current reports
based on Departmental review;
(c) Compliance with previous
audit recommendations;
(d) Cooperation in providing
requested records in a timely manner;
(e) Any other criteria the
Department may find to be informative and appropriate.
(10) A taxpayer filing tax
reports through the Department’s electronic system will not be charged penalty
or interest if:
(a) The licensee attempts
to submit a timely filed tax report
(b) The Department’s
electronic filing system is not available to receive the transmission
(c) The licensee immediately
notifies the Department that the electronic filing system is not available to receive
their transmission.
(d) The licensee submits
the tax report and remits the balance due on the first business day the system is
available to receive the transmission.
Stat. Auth.: ORS 184.616, 184.619, 319.010
- 319.430, 319.990
Stats. Implemented: ORS 319.090,
319.180, 319.200
Hist.: MV 37-1987, f. 12-7-87,
ef. 1-1-88; Administrative Renumbering 3-1988, Renumbered from 735-011-0745; Renumbered
from 735-174-0050 by DMV 18-2003, f. 12-12-03 cert. ef. 1-1-04; DMV 10-2009, f.
5-22-09, cert. ef. 7-1-09; DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15
735-170-0050
Transactions Which May Be Classed as Export Sales
Transactions that may be classified as export sales consist of:
(1) Motor vehicle fuel and aircraft fuel delivered by an Oregon licensed dealer to a destination outside the state of Oregon where the recipient is licensed in the destination state, country or territory and takes legal title of the fuel is considered an export sale.
(2) Motor vehicle and aircraft fuel leaving Oregon in the fuel tank of a motor vehicle or aircraft used only for the propulsion of the vehicle or aircraft is not an export, except as provided in ORS 319.330.
(3) The export certificate as described in ORS 319.240 is waived.
Stat. Auth.: ORS 184.616, 184.619, 319.010 - 319.430, 319.990

Stats. Implemented: ORS 319.240

Hist.: MV 22, f. 2-15-63; MV 13-1986, f. & ef. 9-2-86; MV 7-1988, f. & cert. ef. 2-29-88; Administrative Renumbering 3-1988, Renumbered from 735-011-0205; DMV 18-2003, f. 12-12-03 cert. ef. 1-1-04; DMV 10-2009, f. 5-22-09, cert. ef. 7-1-09
735-170-0090
Exemption Certificates
(1) Every licensed dealer making sales or deliveries to the Armed Forces of the United States for which tax exemption is claimed, must complete an Exemption Certificate Form as prescribed by the Department.
(2) In order to obtain exemption from the tax, the Exemption Certificate must be completed and signed at the time of sale and delivery. Whenever the vendor is other than an Oregon licensed dealer, the Exemption Certificate may be turned over to a dealer for credit and for inclusion with the dealer’s monthly tax report. All Exemption Certificates must be kept on file in the dealer’s office where the tax audit is to be made.
(3) All claims for tax exemption must be entered on the tax report as prescribed in the current motor vehicle fuel tax reporting instructions as provided by the Department.
Stat. Auth.: ORS 184.616, 184.619, 319.010 - 319.430, 319.990

Stats. Implemented: ORS 319.250

Hist.: MV 22, f. 2-15-63; MV 13-1986, f. & ef. 9-2-86; MV 7-1988, f. & cert. ef. 2-29-88; Administrative Renumbering 3-1988, Renumbered from 735-011-0255; DMV 18-2003, f. 12-12-03 cert. ef. 1-1-04; DMV 10-2009, f. 5-22-09, cert. ef. 7-1-09
735-170-0100
Fuel Lost or Destroyed — Tax Exemption Requirements
The following requirements are for claims by Oregon licensed dealers for exemption from the Oregon tax on motor vehicle fuel or aircraft fuel lost or destroyed through transportation and other mishaps prior to the time title to the product passes from the licensed dealer:
(1) Motor vehicle fuel or aircraft fuel lost by a carrier or other person in this state must be included in the taxable distribution section of the monthly tax report. When a carrier or person responsible for lost motor vehicle or aircraft fuel furnishes acceptable documentation of actual loss, credit for the Oregon tax may be taken. Acceptable documentation of the loss, as described in section (2) of this rule, must be submitted to the Department for approval. After approval by the Department, the documents must be filed with the accounting records in the dealer’s office where the tax audit is to be made. Credits for approved losses must be reported as prescribed by the Department.
(2) Acceptable documentary proof of loss will include the following:
(a) A signed statement by the driver of the vehicle, or some person having actual knowledge of the loss, stating:
(A) The circumstances surrounding the accident or mishap;
(B) The total quantity of fuel shipped;
(C) The quantity of fuel actually lost or destroyed;
(D) The quantity of fuel salvaged;
(E) The disposition of the salvaged fuel; and
(F) The procedure used in the determination of the exact quantity of fuel lost or destroyed.
(b) A certified copy of the carrier’s settlement of claim against the insurance company, if the loss is occasioned by a for-hire or other insured carrier. The details required by subsection (2)(a) of this rule must be supplied; or
(c) A signed statement by a State Police officer or other person witnessing the accident or mishap, that:
(A) Sets out the details of the accident; and
(B) States the quantity of fuel actually lost as nearly as can be determined by the officer or other person. The details required by subsection (2)(a) of this rule must be supplied.
(3) Losses that occur through accident or mishap to the dealer’s own equipment must be supported by a signed statement made by the driver of the vehicle or person directly in charge of the equipment at the time of the accident. The statement must include the details required by subsection (2)(a) of this rule. This statement must be filed in the dealer’s office where the tax audit is to be made.
(4) A tax exemption cannot be allowed when motor vehicle fuel is lost under the following conditions:
(a) Fuel lost from storage tanks that are directly connected by means of a pipe line to retail service station pumps, or fuel that the licensed dealer no longer retains complete control over; or
(b) Fuel claimed to have been lost from spillage, leaky valves, loose connections, unloading mishaps, leaky or defective storage tanks, or similar circumstances, where the nature of the loss is such that it cannot be positively established that an actual loss did occur and the exact quantity cannot be determined.
(5) In all cases where employers, agents, carriers, or other persons fail to account satisfactorily or completely for motor vehicle fuel and are charged by the dealer with the value of the product, such transactions must be included in the computation of the license tax.
Stat. Auth.: ORS ORS 184.616, 184.619, 319.010 - 319.430, 319.990

Stats. Implemented: ORS 319.010, 319.020

Hist.: MV 22, f. 2-15-63; MV 13-1986, f. & ef. 9-2-86; MV 7-1988, f. & cert. ef. 2-29-88; Administrative Renumbering 3-1988, Renumbered from 735-011-0300; DMV 18-2003, f. 12-12-03 cert. ef. 1-1-04; DMV 10-2009, f. 5-22-09, cert. ef. 7-1-09
735-170-0105
Performance Bond Requirements
(1) Licensed dealers are required to
maintain a bond amount that is twice the estimated monthly licensed tax. Twice the
dealer’s estimated monthly license tax as determined by the Department is
computed as follows:
(a) Prior to becoming licensed
the required bond amount will be twice the estimated tax based on the estimated
taxable gallons stated on the motor vehicle fuel dealer license application;
(b) The Department will periodically
review the bond for sufficiency based on an average of the gallons reported by the
dealer on its monthly fuel tax reports;
(c) The Department may notify
the dealer at any time to increase or decrease the bond. The dealer may at any time
request a bond determination from the Department.
(2) When twice the dealer’s
estimated monthly tax is less than $1,000 the minimum bond required is $1,000.
(3) If the dealer’s
motor vehicle fuel dealer license was issued on or before October 23, 1999 and twice
the dealer’s estimated monthly tax is more than $100,000 the maximum bond
is $100,000.
(4) If the dealer’s
motor vehicle fuel dealer license was issued after October 23, 1999 and twice the
dealer’s estimated monthly license tax is more than $250,000, the maximum
bond is $250,000.
(5) A bond is subject to
increase under certain conditions up to a maximum amount of $1 million.
(a) After a bond has been
increased for a period of 24 months, a dealer may submit a written request for reduction
of the bond.
(b) If the Department determines
that conditions for bond reduction have been met, the bond may be reduced to twice
the dealer’s estimated monthly tax or a maximum of $250,000 regardless of
when the motor vehicle fuel dealer license was issued.
Stat. Auth.: ORS 184.616, 184.619, 319.010
- 319.430, 319.990
Stats. Implemented: ORS 319.050
- 319.080
Hist.: DMV 10-2009, f. 5-22-09,
cert. ef. 7-1-09; DMV 13-2014, f. 11-25-14, cert. ef. 7-1-15
735-170-0110
Evidence Demonstrating that a Dealer did not Intend to Avoid Paying Taxes for Purposes of Determining the Bond Amount
(1) The following factors will be taken into consideration for the purposes of determining whether the dealer did not intend to avoid payment of license taxes:
(a) Error on the part of the dealer’s financial institution where the dealer can show that such error was not attributable to the dealer;
(b) An Act of God or natural disaster, i.e., earthquake, flood, fire, severe weather conditions;
(c) An act of war or terrorism;
(d) Incapacitation of key personnel responsible for reporting and remitting taxes; or
(e) Other evidence or explanations presented by the dealer demonstrating to the satisfaction of the Department that the dealer’s conduct was not intentional or purposely designed to avoid payment of license tax.
(2) If the conduct was due to carelessness, negligence, inattention or disregard of duties on the part of the dealer or someone authorized to act on the dealer’s behalf, the Department will not grant a waiver of the bond increase.
(3) The dealer must present a written request for waiver of the bond increase and all related evidence to support the request, to the Department within 30 days of the date of notice of bond increase. The Department will respond to the waiver request within 30 days of receipt.
Stat. Auth.: ORS 184.616, 184.619, 319.010 - 319.430, 319.990

Stat. Implemented: ORS 319.052

Hist.: DMV 18-2003, f. 12-12-03 cert. ef. 1-1-04; DMV 10-2009, f. 5-22-09, cert. ef. 7-1-09
735-170-0115
Change in Ownership or Cancellation of License
(1) A licensed dealer must notify the Department in writing of a change in ownership or cancellation of a license as described in ORS 319.125 before the next report is due. Performing the acts of a dealer without being properly licensed may subject the unlicensed dealer to penalties as described in ORS 319.090.
(2) An agent may sign on an individual’s behalf when a valid power of attorney or guardianship is in effect.
Stat. Auth.: ORS 184.616, 184.619, 319.010 - 319.430, 319.990

Stats. Implemented: ORS 319.125

Hist.: DMV 10-2009, f. 5-22-09, cert. ef. 7-1-09
735-170-0120
Notice of Suspension/Revocation -- Method of Delivery
(1) Each licensed dealer must provide the Department, by mail, with current contact information for the purpose of notification of license suspension.
(2) The contact information as described in section (1) of this rule must be a postal address and a telephone contact. An e-mail address is optional.
(3) Not later than the first business day following suspension or revocation of an Oregon Motor Vehicle Fuel dealer license, the Department will serve official notice to licensed dealers as follows:
(a) The Department will telephone fuel suppliers listed on the most recent tax report of the suspended or revoked dealer.
(b) The Department will notify all licensed dealers of the suspension or revocation at the postal address, and e-mail address if available, as provided by each dealer.
(4) Each licensed dealer will notify the Department of any change of address or contact information for the purpose of serving notices of suspension or revocation. The information most recently received by the Department from each licensed dealer will be the information that fulfills the Department’s notice requirements as required by law.
Stat. Auth.: ORS 184.616, 184.619, 319.010 - 319.430, 319.990

Stats. Implemented: ORS 319.096, 319.102

Hist.: DMV 18-2003, f. 12-12-03 cert. ef. 1-1-04; DMV 10-2009, f. 5-22-09, cert. ef. 7-1-09
735-170-0130
Motor Vehicle Fuel Tax Credit of Interest on Tax Overpayments
(1) The Department may allow interest credit for overpayments of motor vehicle fuel tax up to the amount of interest paid for underpayments of tax during any given audit period.
(2) For purposes of ORS 319.180(5)(b) and this rule, “any given audit period” means the time period from the last day of the immediate prior audit period up to the present. If there is no prior audit, “any given audit period” means a period not to exceed three years from the current date.
(3) Any interest payments made on underpayments of tax from a prior audit period will not be:
(a) Considered as interest on overpayments in the current audit period; or
(b) Subject to credit under ORS 319.180(5)(b).
Stat. Auth.: ORS 184.616, 184.619, 319.010 - 319.430, 319.990

Stats. Implemented: ORS 319.180

Hist.: MV 37-1987, f. 12-7-87, ef. 1-1-88; Administrative Renumbering 3-1988, Renumbered from 735-011-0755; Renumbered from 735-174-0060 by DMV 18-2003, f. 12-12-03 cert. ef. 1-1-04; DMV 10-2009, f. 5-22-09, cert. ef. 7-1-09
735-170-0140
Motor Vehicle Tax Refunds to License Oregon Motor Vehicle Fuel Dealers for Uncollectible Accounts
(1) Licensed dealers may file an amended report for credit of taxes paid attributable to uncollectible accounts pursuant to ORS 319.192 as appropriate to the type of fuel that is to be refunded.
(2) Dealers must follow prepared motor vehicle fuel tax reporting instructions for deductions for uncollectible accounts and provide required supporting documents as prescribed. Failure to provide such required supporting documents constitutes a waiver of all rights to the credit.
(3) Upon review and approval of the Amended Reports, the Department will issue a letter authorizing the credit within 90 days after the date of approval.
Stat. Auth.: ORS 184.616, 184.619, 319.010 - 319.430, 319.990

Stats. Implemented: ORS 319.192

Hist.: DMV 18-2003, f. 12-12-03 cert. ef. 1-1-04; DMV 10-2009, f. 5-22-09, cert. ef. 7-1-09


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