Or. Admin. Code § 735-176-0110

Current through Register Vol. 63, No. 12, December 1, 2024

Section 735-176-0110 - Use Fuel Record Keeping Requirements

(1) Record Requirements. Every handler of fuel for use in a motor vehicle shall maintain and keep records for a period of three years from the due date of the report or three years from the date the report is filed, whichever is later, as follows:

(a) A purchase journal or other record of fuel received supported by purchase invoices and bills of lading showing delivery location for all use fuel purchases. When the fuel is B20 or greater derived from used cooking oil: the bill of lading, invoice, or delivery ticket shall include certification from the supplier that the biodiesel is derived from 100% used cooking oil as well as the location of the refinery where the biodiesel was manufactured

(b) A record of all bulk fuel sales, use, and transfers;

(c) A physical inventory of bulk fuel storage shall be recorded at the end of business on the last day of each calendar month and preserved for audit purposes. Tank inventory readings may be electronic tank monitor readings or physical stick inventory readings;

(d) Source documents for tank inventory readings for audit purposes (whether manual or electronic readings);

(e) Copies of customer invoices, whether paper or electronic, shall be kept for audit purposes. If tax is collected from use fuel users at the time of sale, fuel invoices must clearly show the amount of use fuel tax collected.

(f) Invoices upon which tax collections are recorded shall be kept separate from other sales invoices;

(2) Required records will be summarized by calendar month and must be centralized in the state of Oregon at the office where the periodic tax audit is to be made.

(3) The Department may determine, at its sole discretion, when the auditor for the state must travel outside the state of Oregon to examine the licensee's records. At any time such travel is determined necessary the licensee must reimburse the state for all travel expenses incurred, including transportation, meals and lodging costs.

(4) Fuel handlers must make documentation readily available to the Department upon request by the Department by the date prescribed by the Department.

(5) Fuel handlers who fail to provide records for review are subject to assessment based on "best available information."

(6) Additional recordkeeping requirements for use fuel sellers:

(a) Pump meter readings shall be taken at the end of business on the last day of the month and retained for audit purposes. Physical pump meter readings (or non-resettable electronic readings) will be taken for all dispensers of use fuel operated by the seller at a location;

(b) Copies of customer invoices, whether paper or electronic, shall be kept for audit purposes. If tax is collected from use fuel users at the time of sale, fuel invoices must clearly show the amount of use fuel tax collected;

(c) Non-retail sellers will also retain fuel network statements to support customer invoices and fuel handled;

(d) Copies of exemption certificates that include a list of vehicles and the cards assigned to each vehicle if ex-tax cardlock cards are issued.

(e) Sellers who fail to provide records for review are subject to assessment based on "best available information" collection action, and possible license suspension and revocation.

(7) Additional record keeping requirements for use fuel users:

(a) If Oregon tax is included in the purchase price, a copy of the invoice, clearly showing the amount of tax collected, must be provided with the user report to receive tax-paid fuel credit;

(b) A record of the number of miles traveled over Oregon highways. In the absence of affirmative evidence all fuel will be presumed to have been used in a taxable manner;

(c) If fuel is stored in bulk, a physical inventory shall be taken at the end of each month and preserved for audit purposes. Consumption records will be retained by the user and made available to the Department upon request by the Department;

(d) A user with one use fuel vehicle with a light weight of less than 8,000 pounds, as verified by a method approved by the Department, may, in lieu of the requirements detailed in section (1)(a) through (7)(c) of this rule, keep an accurate record of Oregon miles driven. Tax for this user is calculated using a reasonable mile per gallon (as determined by the Department using industry standards) applied to Oregon miles traveled.

Or. Admin. Code § 735-176-0110

DMV 13-2014, f. 11-25-14, cert. ef. 7/1/2015

Stat. Auth.: ORS 184.616, 184.619, 319.510 - 319.880

Stats. Implemented: ORS 319.510 - 319.990