Historical Note

New Section made by final rulemaking at 14 A.A.R. 399, effective March 8, 2008 (Supp. 08-1).

R17-8-602. Exports

A. To qualify for a refund of Arizona use fuel tax paid on motor fuel exported, a Claimant shall provide the following documents to support a request for refund:

1. Export to another state within the United States:

a. Terminal, carrier, or bulk plant bill of lading showing the point of origin and destination of the motor fuel;

b. Invoice or monthly supplier report schedule indicating that the Arizona tax was paid;

c. Motor fuel invoice or shipping document reflecting final destination and gallons exported;

d. Tax report establishing that the destination state's tax was reported;

e. Name and license number issued by the destination state of the licensee responsible for payment of motor fuel tax and tax reporting to the destination state; and

f. If the export of motor fuel is a diversion, the Claimant shall provide the following documents to the Division:

i. A carrier bill of lading; and

ii. Other documentation which supports the delivery of motor fuel to a specific location, other than its intended destination, and

2. Exports to Mexico:

a. Documentation under (A)(1),

b. Documentation that Petróleos Mexicanos authorized the motor fuel import,

c. U.S. Department of Commerce export documentation, and

d. Copy of Mexican Pedimento.

3. Exports to Navajo Nation:

a. Documentation under (A)(1),

b. Name and license number of the Navajo Nation distributor,

c. Copy of Navajo Nation manifest or copy of the Navajo Nation monthly motor fuel distribution tax return, and

d. Invoice showing the Navajo Nation tax was included in total amount due.

B. The description of the motor fuel exported shall be identical on all documentation submitted in support of a request for refund of motor fuel tax paid on export.

Historical Note

New Section made by final rulemaking at 14 A.A.R. 399, effective March 8, 2008 (Supp. 08-1).

R17-8-603. Use Fuel Vendors

A. To qualify for refund of the use fuel tax differential, a use fuel vendor shall submit to the Division:

1. A complete application;

2. Supplier or distributor invoice, documenting the use fuel taxes that the vendor paid for the fuel; and

3. Supporting documentation:

a. For sales of use fuel dispensed from a pump which is labeled for use class and light class vehicles, a fuel log of use fuel tax differential sales, submitted on a format approved by the Division that includes the following vendor information:

i. Vendor name;

ii. Vendor address;

iii. Retail branch location;

iv. Division issued vendor license number;

v. Date of sale to consumer;

vi License plate number and name of jurisdiction that issued the license plate of the motor vehicle into which the fuel was dispensed;

vii. Number of gallons of use fuel that were purchased and dispensed into the fuel tank of a qualifying vehicle under subsection (D)(2);

viii. Amount of fuel tax refunded to purchaser; and

ix. Purchaser's signature indicating receipt of the refund made by a vendor of use fuel, submitted on a vendor use fuel refund log, provided by the Division.

b. For sales of use fuel dispensed from a pump that is labeled for light class or exempt use class only, items under subsection (A)(1) and (2).

B. The Division shall not accept an application for a period that a vendor of use fuel was not licensed under A.R.S. § 28-5605, except as provided under this subsection.

1. An application for a period that a vendor was not licensed under A.R.S. § 28-5605 will be accepted by the Division if the Claimant submits an application to the Division for a vendor license at the time initial application for refund is submitted.

2. The unlicensed use fuel vendor shall demonstrate compliance with A.R.S. § 28-5605(B), at the time of the applicable use fuel sale to the satisfaction of the Division by the following means:

a. Photographs,

b. Diagrams,

c. Statements, and

d. Any other documentation approved by the Division which demonstrates compliance.

C. A licensed use fuel vendor shall maintain the following records under R17-8-601(B)(6):

1. Records of daily sales to light class or exempt use class motor vehicles which provides details for each use fuel sale to include the following:

a. Gallonage,

b. Transaction date,

c. Price per gallon, and

d. Product description.

2. Acquisition invoices of use fuel,

3. Inventory records of use fuel, and

4. Vendor use fuel refund log under subsection (A)(3)(a).

D. Card lock use fuel facility.

1. Applicability. For purposes of receiving a refund from the Division for use fuel sold to a light class or exempt use class vehicle at a card lock use fuel facility, the vendor shall:

a. Submit documentation to the Division under subsection (A)(3), except subsection (A)(3)(a)(ix);

b. Have controlled access to the card lock use fuel facility in compliance with A.R.S. § 28-5605;

c. Restrict use of a card lock use fuel facility to those approved purchasers that have completed a Declaration of Status; and

d. Shall maintain records under subsection (C).

2. Declaration of Status.

a. A vendor shall require that a purchaser of use fuel for use in light class or exempt use class vehicles complete and submit to the vendor a Declaration of Status for each vehicle that will have the ability to obtain fuel at a card lock use fuel facility labeled for light class or exempt use class vehicles.

b. A Declaration of Status must be completed for each additional vehicle prior to purchase of motor fuel at a card lock use fuel facility.

c. A Declaration of Status shall be made on a form provided by the Division and may be obtained at www.azdot.gov.

d. The original signature of the purchaser shall be included on the Declaration of Status.

e. A vendor who operates a card lock use fuel facility must retain all original Declarations of Status received from a purchaser in the vendor's files under R17-8-601(B)(6), and shall make the Declarations of Status available for review by the Division.

3. Labeling. A card lock vendor shall comply with state law by placing a label with verbiage and specifications as required under A.R.S. § 28-5605.

a. Card lock use fuel facilities shall post a use fuel tax rate label provided by Division.

b. Vendors found in violation of labeling regulations shall be subject to penalties under A.R.S. § 28-5605.

Historical Note

New Section made by final rulemaking at 14 A.A.R. 399, effective March 8, 2008 (Supp. 08-1).

R17-8-604. Off-Highway

A. The Division shall refund the Arizona motor fuel tax paid on the motor fuel consumed in Arizona while the vehicle is off-highway.

B. An application for refund shall include the following supporting documentation:

1. System or manual motor fuel log summary by VIN which includes the following:

a. Items under subsection (C)(1)(a), and

b. Mileage consumed off-highway.

2. Equipment and vehicle listing which includes year, make, model, gallon capacity, and

3. Proof of fuel purchase which may include:

a. Motor fuel invoices,

b. Motor fuel purchase receipts,

c. Computerized fuel purchase statement, and

d. International Fuel Tax Agreement reports.

C. A Claimant shall provide the following documentation to the Division for the identified refund types:

1. Refrigeration unit:

a. Fuel log summary consisting of, at a minimum, the following information:

i. Fuel type,

ii. Date fuel dispensed,

iii. Number of gallons dispensed, and

iv. Identification number of equipment or vehicle into which the fuel was dispensed.

b. Equipment or vehicle identification number.

2. Power take-off: A motor fuel consumption study under this Section shall be conducted at the Claimant's expense, and shall be approved by the Division prior to the initial application for refund, and shall include the following information:

a. A description of the methodology used to determine the percentage of exempt motor fuel consumed by the power-take-off;

b. A list of all equipment using motor fuel;

c. All operations where motor fuel is consumed;

d. Testing and study components shall be a true representation of the operation of business as follows:

i. Vehicles shall be grouped into similar categories based on similar power-take-off units and similar gross vehicle weight.

ii. Vehicles selected shall be representative of the category as to age, make, model, and engine size.

iii. Each vehicle category shall be tested individually to determine the amount of motor fuel consumed by the power-take-off unit.

iv. If a vehicle category contains:

(1) Less than four vehicles, all vehicles must be included in the test study.

(2) Thirty or fewer vehicles, then at least three vehicles must be included in the test sample.

(3) More than 30 and fewer than 151 vehicles, then at least 10 percent of the vehicles must be included in the test sample.

(4) More than 151 vehicles, then at least 15 vehicles must be included in the test sample.

e. Explanation of the measuring method used to determine fuel consumption by vehicles, equipment, and machinery, which shall include manufacturer specifications;

f. Results of a period of a study which shall include a period covering cyclical or seasonal impacts which includes low and high points of fuel usage for exempt or non-exempt purposes;

g. Results from a test or study shall be a duration of at least two weeks; and

h. The approved power-take-off percentage may then be used for three years or shall be updated as requested by the Division.

3. Idle time under R17-8-605.

Historical Note

New Section made by final rulemaking at 14 A.A.R. 399, effective March 8, 2008 (Supp. 08-1).

R17-8-605. Idle Time

A. Under the provisions of this Article, the Division shall refund the Arizona motor fuel tax imposed on the motor fuel consumed by a Claimant's vehicle while in idle status.

B. In addition to the application under R17-8-601, a Claimant shall provide the following documentation to the Division to verify the quantity of motor fuel consumed by a vehicle while in idle status:

1. Documentation that proves the total quantity of motor fuel purchased by the Claimant in Arizona during refund period;

a. An invoice that contains the following information:

i. Date of purchase,

ii. Seller's name,

iii. Physical address where motor fuel was purchased,

iv. Number of gallons of motor fuel purchased,

v. Type of motor fuel purchased,

vi. Price per gallon of motor fuel.

b. A fuel log shall be maintained that contains the following information:

i. The date that the motor fuel was placed in the fuel tank of a motor vehicle;

ii. The vehicle make, model, year, and VIN in which the motor fuel was placed; and

iii. The number of gallons of motor fuel placed in a fuel tank.

c. In lieu of subsections (B)(1)(a) and (b), a licensee may submit a summary of the fuel purchases made by the Claimant for the vehicle during the refund period. The summary shall contain the same information required to be on a fuel invoice under subsection (B)(1)(a).

2. Documentation that proves that the Claimant's vehicle was located in Arizona, off-highway, at the time it was in idle status, and the length of time the vehicle was in idle status, using one or more of the following methods:

a. Nonscheduled route:

i. A logbook, approved by the Division, maintained for each vehicle that identifies the date and time when the idle status started, the date and time when the idle status ended, and a physical description of the location of the vehicle during the idle status that establishes that the vehicle was in Arizona, but located off-highway.

ii. The driver shall make an affirmative statement in the driver's daily log that the engine was operating during the idle status and shall prepare the logbook entries simultaneously with the idle status.

iii. The Claimant shall retain trip schedules or bills of lading to support the logbook entries.

b. Scheduled route:

i. Published schedule which includes arrival at and departure from fixed locations at prescribed times, or

ii. A record of average wait times recorded in a daily log consisting of arrival at and departure from fixed locations at prescribed times, approved by the Division.

iii. The Claimant shall document that the engine remained running during the scheduled stops.

c. Global Positioning System:

i. A report from a GPS, approved pursuant to subsection (C).

ii. The Claimant shall maintain trip schedules or bills of lading to support GPS reports.

3. Documentation that proves the quantity of motor fuel consumed by the Claimant's vehicle while in idle status;

a. The Claimant shall document the number of the gallons of motor fuel consumed per hour to maintain idle status by one or more of the following methods:

i. Engine manufacturer's standard specifications that establish the quantity of motor fuel consumed per hour while the vehicle is in idle status.

ii. Computerized system that computes the quantity of motor fuel consumed per hour while in idle status.

iii. A study or test that determines motor fuel consumption per hour while in idle status, prior to the period covered by the refund claim.

b. A study under this Section shall meet the following specifications:

i. The study shall be conducted at the Claimant's expense,

ii. The methodology shall be approved by the Division prior to conducting the study under subsection (C),

iii. The fuel consumption characteristics of the vehicles and their operation during the period of the refund shall not vary significantly from the conditions that existed during the study, and

iv. The results of the study shall be approved by the Division prior to the time period covered under the refund claim.

C. The Division shall review and approve the method used and the data captured by a GPS or manual report prior to the initial claim for refund and the report shall include the following components:

1. A description of the methodology used to determine the percentage of exempt use fuel consumption;

2. A list of all equipment consuming use fuel;

3. A description of all of the vehicle operations where use fuel is consumed;

4. Whether vehicles are traveling scheduled routes, and whether seasonal or cyclical events affect use fuel;

5. Testing and study components shall be a true representation of operation of business as follows:

a. Vehicles shall be grouped into similar categories based on similar units and similar gross vehicle weight.

b. Each vehicle category must be tested individually to determine the idle time fuel consumption.

c. Vehicles selected for testing shall be representative of the category as to age, make, model, and engine size.

6. Study components under R17-8-604(C)(2)(d)(iv);

7. Explanation of the measuring method used to determine fuel consumption by vehicles, equipment, and machinery, which shall include manufacturer specifications;

8. Study results under this subsection shall include a period covering cyclical or seasonal impacts which includes low and high points of fuel usage for exempt or non-exempt purposes;

9. Results from a test or study shall be of duration of at least two weeks;

10. The approved idle time study may then be used for three years or shall be updated as requested by the Division.

D. A Claimant shall submit technical documentation that details the operating system of any system or manual study used including, but not limited to, the following:

1. Identification of the computer system, including the name of the manufacturer, name of the software, and software version number;

2. Identification of vehicle engines on which the software will be used by the Claimant, including makes, models, years, and fuel types;

3. Description of the methodology used by computer system to determine idle status;

4. Description of the methodology used to determine fuel consumption while in idle status;

5. Description of the methodology used to determine the location of the vehicle during idle status; and

6. Operating policies and procedures for the systems that are used in the Claimant's business operations.

E. The Claimant shall provide additional supporting documentation if there is any update to the system study for which documentation was initially submitted and approved.

1. A Claimant shall submit to the Division an updated study under this Section three years from the date of Division approval or at the Division's request.

2. A study under this Section shall be conducted at the Claimant's expense.

3. The methodology used in support of a study under these rules shall be approved by the Division prior to conducting the study under subsection (C).

4. If the Division rejects the results of a study, a Claimant may request a hearing under A.R.S. § 28-5924.

Historical Note

New Section made by final rulemaking at 14 A.A.R. 399, effective March 8, 2008 (Supp. 08-1).

R17-8-606. Tribal Government

A. The Division shall refund the Arizona motor fuel tax imposed on the motor fuel consumed by a vehicle owned or leased to a tribal government under this Article.

B. An application for refund shall include all of the following supporting documentation for each vehicle:

1. Detailed fuel receipt statement which includes the following purchase information:

a. Date of fuel purchase,

b. Gallonage,

c. Location,

d. Fuel type, and

e. Purchaser's name and address.

2. Fuel purchase summary by vehicle which includes documentation under (B)(1); or

3. Bulk motor fuel purchase invoice; which includes:

a. Gallonage,

b. Delivery location,

c. Fuel type, and

d. Tax rate paid.

4. If vehicle is leased, a copy of the lease agreement.

C. A vehicle and equipment listing shall be maintained by the tribal government to include year, make, model, gallon capacity, and VIN.

Historical Note

New Section made by final rulemaking at 14 A.A.R. 399, effective March 8, 2008 (Supp. 08-1).

R17-8-607. Tribal Member

A. Enrolled members of a tribe may make application to the Division for a refund of the Arizona motor fuel taxes on fuel purchased on the reservation of the tribe in which the member is enrolled, provided the motor fuel was not used off the reservation for a commercial purpose.

B. An application for refund shall include the following supporting documentation:

1. Copy of the vehicle registration,

2. Copy of the Tribal member identification card,

3. Receipt of motor fuel purchased on the reservation, and

4. Signed statement certifying motor fuel was used for non-commercial purposes under A.R.S. § 28-5610(A).

Historical Note

New Section made by final rulemaking at 14 A.A.R. 399, effective March 8, 2008 (Supp. 08-1).

R17-8-608. Transport of Forest Products; Healthy Forest Initiative

A. A claim for refund, pursuant to A.R.S. § 28-5614(B), of the tax on motor fuel used to transport forest products on Arizona highways shall comply with the requirements of R17-8-601.

B. An application shall include the following supporting documentation obtained from the Arizona Department of Commerce:

1. A completed Healthy Forest Enterprise Use Fuel Vehicle Schedule,

2. Certification issued by the Arizona Department of Commerce pursuant to A.R.S. § 41-1516 for the same period of time as the refund claim,

3. Memorandum of Understanding between the Arizona Department of Commerce and the Claimant pursuant to A.R.S. § 41-1516,

4. Individual Vehicle Mileage and Fuel Report Summaries for each vehicle, and

5. Changes to the Arizona Department of Commerce Certification.

Historical Note

New Section made by final rulemaking at 14 A.A.R. 399, effective March 8, 2008 (Supp. 08-1).

R17-8-609. Motor Vehicle Fuel Used in Aircraft

A. A claim for the refund of the tax, pursuant to A.R.S. § 28-5611(A)(2) or non-agricultural purposes under A.R.S. § 28-5611(B), on motor vehicle fuel used to power aircraft shall comply with the requirements of R17-8-601 and subsections (B) and (C) of this Section.

B. An application shall include the following supporting documentation:

1. Motor fuel log summary by aircraft which includes:

a. Purchase date,

b. Name and location of vendor of fuel to show that Arizona motor fuel tax was included in the purchase price,

c. Gallons dispensed,

d. Fuel type, and

e. Manner consumed.

2. List of aircraft to include, year, make model, and N-number assigned by the Federal Aviation Administration, and

3. Purchase invoice indicating items under (B)(1) and amount of tax paid amount.

C. Motor vehicle fuel used to power aircraft for agricultural purposes shall, in addition to subsection (B), include a flight log detailing the purpose of use.

Historical Note

New Section made by final rulemaking at 14 A.A.R. 399, effective March 8, 2008 (Supp. 08-1).

R17-8-610. Motor Fuel Losses Caused by Fire, Theft, Accident, or Contamination

A. A Claimant may apply to the Division for a refund of the tax on motor fuel lost due to fire, theft, accident, or contamination.

B. A request for refund pursuant to A.R.S. §§ 28-5610 or 28-5611 of the tax on motor fuel that is lost due to fire, theft, accident, or contamination shall comply with the requirements of R17-8-601.

C. An application shall include the following supporting documentation:

1. Signed statements from persons with personal knowledge regarding the facts and circumstances of the loss, including:

a. Date of loss or contamination,

b. Location where the loss or contamination occurred,

c. Detailed explanation regarding the nature of the loss or contamination,

d. Name and contact information of persons who witnessed loss or contamination,

e. Quantity of fuel lost or contaminated, and

f. Disposition of the contaminated motor fuel.

2. Copies of records that substantiate the date of acquisition and quantity acquired of the fuel lost as well as the fact the Arizona motor fuel tax was paid by the Claimant when the fuel was acquired.

Historical Note

New Section made by final rulemaking at 14 A.A.R. 399, effective March 8, 2008 (Supp. 08-1).

R17-8-611. Bulk Purchase of Motor Fuel

A. A request for refund of taxes paid on the bulk purchase of motor fuel dispensed into a light class, or exempt use class vehicle, shall be submitted to the Division under R17-8-601(B), on an application provided by the Division.

B. Bulk motor fuel shall be purchased and consumed in Arizona to qualify for refund.

C. An application for refund shall include the following supporting documentation:

1. Invoice that contains the following information:

a. Name and address of vendor,

b. Tax rate,

c. Product type,

d. Delivery date,

e. Quantity of fuel,

f. Invoiced amount, and

g. A statement from the seller of the motor fuel that the motor fuel is non-dyed use fuel.

2. Fuel usage log which includes the following information:

a. Date fuel dispensed,

b. VIN of vehicle into which fuel was dispensed,

c. Gallons dispensed, and

d. Fuel type.

3. Annual vehicle listing to include make, model, year, and VIN.

Historical Note

New Section made by final rulemaking at 14 A.A.R. 399, effective March 8, 2008 (Supp. 08-1).