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DEPARTMENT OF TRANSPORTATION,

DRIVER AND MOTOR VEHICLE SERVICES DIVISION





 
DIVISION 174
FUEL TAX REFUNDS AND PENALTIES

735-174-0000
General Provisions for Fuels Tax Refunds
(1) “ODOT Fuels Tax Group”
or “Department” means the organizational unit within the Oregon Department
of Transportation or its designated agent that is primarily charged with the administration
of ORS 319.010 through 319.880 on behalf of the State of Oregon.
(2) Motor Vehicle Fuel —
Gasoline. Oregon law provides that any person who has purchased motor vehicle fuel
and who has paid any tax, either directly or indirectly, levied under the provisions
of ORS 319.010 through 319.430, shall be entitled to a refund when such motor vehicle
fuel is exported from the state (under certain conditions) or is used by the claimant
for certain purposes. To obtain the refund, the claim must be filed within the prescribed
time limits in ORS 319.290 on forms supplied by the Department.
(a) The claim must be accompanied
by the original invoices or reasonable facsimiles approved by the Department, showing
purchase of the fuel.
(b) For claims filed after
July 1, 2015 using an electronic claim form, invoices may be provided electronically.
(A) For bulk fuel purchases,
provide the supplier name, date, gallons, and invoice number.
(B) For cardlock purchases,
you may attach an electronic copy of your cardlock statement.
(C) For individual invoices,
you may scan the invoices and attach them to the refund claim form or fax them within
7 days of submitting the claim.
(3) Special fuels —
Diesel Oil, Propane, etc. Refunds of any tax paid on use fuel shall be processed
as prescribed in OAR 735-174-0020(2)(j) and subject to the conditions provided in
ORS 319.831 and 319.835.
Stat. Auth.: ORS 184.616, 184.619, 319.010
- 319.880
Stats. Implemented: ORS 319.280,
319.320, 319.831, 319.835
Hist.: MV 24, f. 8-22-63,
ef. 9-2-63; MV 25, f. 8-3-65; MV 13-1986, f. & ef. 9-2-86; MV 7-1988, f. &
cert. ef. 2-29-88; Administrative Renumbering 3-1988, Renumbered from 735-011-0701;
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
735-174-0010
Tax Refunds on the Use of Gasoline and Other Motor Vehicle Fuels
(1) General Use and Certain Export Claims. Each such refund claim must be made on the current Fuels Tax Refund Claim form as prescribed by the Department for refund claims of motor vehicle fuel for general use or motor vehicle fuel exported in the tank of a motor vehicle when motor vehicle fuel tax is paid to the receiving state or jurisdiction as defined in ORS 319.280 and 319.320.
(2) Aircraft Fuel Use. Each such refund claim must be made on the current Fuels Tax Refund Claim as prescribed by the Department for all refund claims of fuel used in aircraft. The taxes established in ORS 319.020(2) are refundable as provided in ORS 319.330.
(3) Licensed Dealer Claims. Instead of filing refund claims, a licensed dealer in motor vehicle fuel may enter the gallons of motor vehicle fuel used in a refundable manner on forms prescribed by the Department, and include it with the monthly tax report. In doing so, all requirements pertaining to refund claims must be met and subject to limitations in ORS 319.375. Claims based on the export of motor vehicle fuel out of Oregon will be allowed only if the person claiming the refund holds a valid motor vehicle fuel dealer’s license, or equivalent, issued by the state, territory, or county to which the motor vehicle fuel is exported and where it is unloaded. The Department may require claimants to submit proof of such a license.
Stat. Auth.: ORS 184.616, 184.619, 319.010 - 319.880

Stats. Implemented: ORS 319.280, 319.330

Hist.: MV 24, f. 8-22-63, ef. 9-2-63; MV 25, f. 8-3-65; MV 33, f. 9-12-67, ef. 9-13-67; MV 48, f. 10-5-72, ef. 10-15-72; MV 53, f. 2-20-74, ef. 3-11-74; MV 4-1980, f. & ef. 3-4-80; MV 13-1986, f. & ef. 9-2-86; MV 7-1988, f. & cert. ef. 2-29-88; Administrative Renumbering 3-1988, Renumbered from 735-011-0706; DMV 18-2003, f. 12-12-03 cert. ef. 1-1-04; DMV 10-2009, f. 5-22-09, cert. ef. 7-1-09
735-174-0020
Records and Invoice Requirements
(1) A tax refund claimant must retain
records to substantiate a claim. Failure of the claimant to maintain required records
and provide them for examination by the Department constitutes a waiver of all rights
to the refund.
(2) The following rules shall
govern records maintained to support refund claims and apply to all fuel maintained
in storage other than a fuel can with a capacity of five gallons or less:
(a) The fuel storage tank
must be equipped with a properly working metering device or have a consistent method
for determining the amount of fuel withdrawn from storage for fuel to be considered
for refund. For storage tanks equipped with a metering device, meter readings must
be taken and documented each time fuel is dispensed.
(b) If more than one storage
tank is maintained, tanks must be named or labeled and the invoices must be marked,
by the supplier, at the time of delivery to identify the storage tank into which
the fuel was delivered and indicate the accurate amount of fuel placed in each tank.
(c) Consumption records must
be maintained for all bulk storage tanks regardless of the fuel use. All fuel purchases
and distributions must be fully accounted for by detailed withdrawal records, to
accurately show the manner in which it was used. This includes monthly meter readings
and inventory readings.
(A) Consumption records must
be made available upon request by the Department when fuel is used from a bulk storage
tank.
(B) The separate storage
method is not a sufficient means to determine refundable and non-refundable usage
without the support of consumption records.
(d) Any fuel on hand (by
actual measurement) should be deducted from a claim and should be reported as an
opening inventory on the next claim. Credit for the inventory will be allowed on
the next claim if it is filed within fifteen months from the filing date of the
claim that established the inventory.
(e) Fuel Purchased for Other
than Bulk Storage. Motor vehicle fuel purchased in small containers for non-highway
use only, should be so identified on the purchase invoice as to the type of container
or equipment fueled and include the name or signature of the purchaser.
(f) Fuel purchased at a cardlock.
When fuel is purchased at a cardlock and a portion of that fuel is refundable the
following conditions must be met:
(A) Cards must be assigned
to a specific vehicle and the vehicle plate number, unit number, or description
must be included on the cardlock statement at the time the statement is produced.
(B) Cards must be assigned
to a piece of equipment or group of equipment and that must be indicated on the
cardlock statement at the time the statement is produced.
(C) Cards must be assigned
to a mobile fuel storage tank that is designated to contain gasoline to fill a group
of equipment, and this must be indicated on the cardlock statement at the time the
statement is produced. A mobile tank that is fueled at a cardlock is considered
to be bulk storage.
(g) Proof of Highway Use.
When minimal or no non-refundable use deduction, as determined by the Department,
is made from invoices attached to the claim, the claimant should be prepared to
show additional invoices or other proof of purchase of public road fuel upon request
of the Department.
(A) Proof of non-refundable
use includes all fuel purchases for all vehicles registered to the claimant.
(B) Proof of non-refundable
use does not eliminate the requirements to keep and provide, upon request of the
Department, consumption records for fuel used from a bulk storage tank that includes
fuel used only in a refundable manner.
(h) Persons claiming a tax
refund on motor vehicle fuel exported to another state in the fuel supply tank of
a motor vehicle are required to provide the following:
(A) Evidence of payment of
tax to another state and information for each vehicle showing the source of all
motor vehicle fuel used, the total number of miles traveled, and the miles traveled
in each state; and
(B) Evidence satisfactory
to the Department of the amount of motor vehicle fuel that was exported
(i) A person or agency who
operates a licensed motor vehicle on and off public highways may claim a refund
of the Oregon tax on the fuel used to operate the vehicle as designated in ORS 319.320(1)
and 319.320(4). The refund can be approved only if the claimant has maintained and
provided the following records:
(A) The total miles operated
as established by a working odometer for each licensed motor vehicle, including
private passenger cars during the entire claim period; and
(B) The total gallons of
fuel used in the vehicle to include both refundable and non-refundable use;
(C) The source of the fuel
used in the vehicle to include purchase invoices supporting all fuel handled through
bulk storage, as well as all fuel purchased at service stations, or received from
other sources; and
(D) Calculation of highway
fuel used for each vehicle, determined by calculating the total miles driven divided
by the total gallons of fuel used and applying the resulting miles per gallon to
total off road miles.
(j) Claims covering the operation
of unlicensed motor vehicles entirely over roads or property subject to refund are
required to establish the source and number of gallons of motor vehicle fuel used
by consumption records.
(k) The claimant must be
able to establish to the satisfaction of the Department the amount of fuel used
in a refundable manner.
(3) Requirements covering
invoices submitted in support of fuel tax refund claims:
(a) Each invoice, or reasonable
facsimile approved by the Department, submitted with a claim must be the original
either physical or electronic form, as issued at the time of purchase or initial
billing.
(b) Each invoice must show
the following:
(A) Month, day, and year
of sale;
(B) Name and complete address
of seller (city and state);
(C) Purchaser’s name
(Cash, boat number, etc., will not qualify);
(D) Kind of fuel and number
of gallons purchased;
(E) Price per gallon purchased
and dollar amount extended.
Stat. Auth.: ORS 184.616, 184.619, 319.010
- 319.880
Stats. Implemented: ORS 319.280
Hist.: MV 24, f. 8-22-63,
ef. 9-2-63; MV 25, f. 8-3-65; MV 13-1986, f. & ef. 9-2-86; MV 7-1988, f. &
cert. ef. 2-29-88; Administrative Renumbering 3-1988, Renumbered from 735-011-0716;
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
735-174-0030
Rules and Special Requirements for Fuel Tax Refunds
(1) Signatures Required on Refund Claims:
(a) Individuals must sign
their own claims;
(b) A partnership claim may
be signed by any one of the partners;
(c) Claims by business firms
or corporations must be signed by an authorized agent;
(d) Accountants and other
persons assisting in preparation of claims must also sign in the space provided.
(e) An agent may sign on
an individual’s behalf when a valid power of attorney or guardianship is in
effect.
(f) An executor of a person’s
estate may sign and make a claim for refund of fuels tax when a current letter of
transfer to an estate as prescribed by the Department is provided with the refund
claim.
(g) A refund claim, when
filed electronically, may be signed with an electronic signature. “Electronic
signature” shall have the same meaning and requirements as defined in ORS
84.004(8).
(2) Normally the “Buyer
and User” is the person entitled to the refund and is the person or firm named
on the invoice. Claims should be made out in the same name as that shown on the
invoices. If it is desired to have a claim paid in a name differing from that shown
on the purchase invoice, a letter of authorization as prescribed by the Department
must be attached and signed by the person to whom the invoice was issued.
(3) Power take-off fuel use
in motor vehicles as described in ORS 319.280:
(a) The refund formula in
ORS 319.280(2)(b) does not apply to garbage trucks with power take-off that operates
only a dump box, hoist, or other type of lift;
(b) Claims must be accompanied
by valid purchase invoices to cover the total gallons of motor vehicle fuel purchased.
Claimant must also maintain records to show the total gallons of motor vehicle fuel
used in each vehicle and the total miles operated by each vehicle. Service station
purchase invoices should identify each vehicle by showing the vehicle license plate
number, unit number, or description;
(c) When motor vehicle fuel
is drawn from the claimant’s bulk storage, a detailed record must be kept
of all withdrawals, together with beginning and ending inventories, so that a complete
accounting may be made of all fuel handled;
(d) A summary, showing beginning
inventory, receipts, withdrawals, loss or gain, and ending inventory, is to be shown
on the claim form in the space provided;
(e) Claimants who operate
petroleum delivery trucks must maintain records to show the total gallons of petroleum
products pumped by each vehicle using power take-off equipment, together with supporting
delivery meter readings;
(f) Each such refund claim
must be made on the current Fuels Tax Refund Claim form as prescribed by the Department.
This will be in addition to schedules or work sheets required for other refundable
use or equipment.
(4) Auxiliary Engines. Fuel
used in an auxiliary engine mounted on a licensed motor vehicle (ready mix concrete,
refrigeration or air conditioning units, etc.), is considered refundable use if
motor vehicle fuel for the auxiliary engine is supplied from a fuel tank, other
than the fuel tank that supplies the engine propelling the vehicle. Estimates of
refundable use do not qualify for refund. When separate fuel tanks are used, a record
of the gallons of fuel delivered into each tank must be kept and purchase invoices
covering both tanks must accompany the claim. Motor vehicle fuel used in the operation
of an auxiliary engine, mounted on a licensed motor vehicle, supplied from the fuel
tank that propels the vehicle, is only considered refundable use if a metering device
approved by the Department is used. The metering device must separately measure
gallons of fuel used only by the auxiliary engine.
(5) Use or disposition of
fuel which is not subject to refund:
(a) Fuel sold, lost, destroyed,
stolen, or given away;
(b) Fuel used with respect
to which payment of tax to the State of Oregon has not been verified;
(c) Fuel used to operate
motor vehicles upon public highways with certain exceptions;
(d) Fuel used to operate
licensed motor vehicles where complete mileage and fuel records required by law
and administrative rule are not maintained;
(e) Motor vehicle fuel used
in snowmobiles or other unlicensed motor vehicles, unless operated on private land.
(f) Fuel used while a vehicle
is idling.
Stat. Auth.: ORS 184.616, 184.619 &
319.010 - 319.880
Stats. Implemented: ORS 319.280
Hist.: MV 24, f. 8-22-63,
ef. 9-2-63; MV 26, f. 12-8-65; MV 42, f. 8-15-69; MV 45, f. 8-12-70, ef. 9-11-70;
MV 53, f. 2-20-74, ef. 3-11-74; MV 13-1986, f. & ef. 9-2-86; Administrative
Renumbering 3-1988, Renumbered from 735-011-0725; 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
735-174-0035
Additional Information to Substantiate a Refund Claim
(1) The Department will give a claimant written notice of the need to provide any additional records available as further proof of the validity of the refund claim. The Department will also give a claimant written notice in advance of records that will be required to be maintained and provided to the Department that are not specifically mentioned in statute or administrative rule.
(2) If the claimant cannot, or refuses to, provide the information required by the Department, the right to the refund is waived.
Stat. Auth.: ORS 184.616, 184.619, 319.010 - 319.880

Stats. Implemented: ORS 319.280

Hist.: DMV 10-2009, f. 5-22-09, cert. ef. 7-1-09
735-174-0040
Tax Refunds on Use of Gasoline and Other Motor Vehicle Fuels in Motor Boats
(1) The refund of tax on fuel used in
motor boats is limited to fuel used for commercial purposes.
(2) Marked invoices and consumption
records, if fueled from a bulk tank, are required to support such claims as prescribed
in Administrative Rule 735-174-0020. Invoices must be marked by the supplier at
the time of sale with the boat license number or vessel name if the fuel is placed
directly into the fuel tank of the boat.
(3) The Department considers
the use of fuel in motor boats for commercial purposes to include the following:
(a) Commercial fishing.
(A) A valid commercial fishing
license number must be provided and active for the refund period.
(B) A valid boat license
number must be provided and active for the refund period. It must be registered
to the name of the claimant or a letter of authorization as prescribed by the Department,
signed by the person to whom the invoice was issued must be attached.
(b) Charter boat operations.
(A) A valid commercial charter
boat license number must be provided and active for the refund period.
(B) A valid boat license
number must be provided and active for the refund period. It must be registered
to the name of the claimant or a letter of authorization as prescribed by the Department,
signed by the person to whom the invoice was issued must be attached.
(c) Log pond operations.
(d) Mail boat operations.
(e) Tourist boat operations.
(f) Any other type of operation
that the Department may determine to be commercial use based on the documentary
evidence provided by the claimant.
Stat. Auth.: ORS 184.616, 184.619 &
319.280
Stats. Implemented: ORS 319.280
Hist.: MV 20-1985, f. 12-30-85,
ef. 1-1-86; Administrative Renumbering 3-1988, Renumbered from 735-011-0735; 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
735-174-0045
Tax Refunds for Use of Gasoline and Other Motor Vehicle Fuels in Aircraft
(1) The refund of tax on gasoline used
in aircraft is limited to the person who purchased and used the fuel in an aircraft.
(2) If the aircraft is fueled
from a bulk tank, marked invoices and consumption records must support refund claims
as prescribed in Administrative Rule 735-174-0020.
(3) A valid tail number must
be provided and active for the refund period. It must be registered to the name
of the claimant or a letter of authorization as prescribed by the Department, signed
by the person to whom the invoice was issued must be attached.
(4) The valid pilot’s
license number of the claimant must be provided with the claim. A copy of the pilot’s
license must be provided upon request of the Department.
Stat. Auth.: ORS 184.616, 184.619 &
319.010 - 319.880
Stats. Implemented: ORS 319.280
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
735-174-0050 [Renumbered to 735-170-0045]
735-174-0060 [Renumbered to 735-170-0130]


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