19514, 12B-5.020 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 19514

Notice of Proposed Rule

Department:

DEPARTMENT OF REVENUE

Division:

Miscellaneous Tax

Chapter:

TAX ON MOTOR FUELS, DIESEL FUELS, AVIATION FUELS, POLLUTANTS, AND NATURAL GAS FUEL

Overview

RULE:

12B-5.020	Definitions; Specific Exemptions
12B-5.030	Importers
12B-5.040	Carriers
12B-5.050	Terminal Suppliers
12B-5.060	Wholesalers
12B-5.070	Terminal Operators
12B-5.080	Exporters
12B-5.090	Local Government Users
12B-5.100	Mass Transit Systems
12B-5.110	Blenders
12B-5.120	Resellers and Retail Dealers
12B-5.130	Refunds
12B-5.140	Dyeing and Marking; Mixing
12B-5.150	Public Use Forms
12B-5.200	Realtailers of Alternative Fuel
12B-5.300	Aviation Fuel Licensees
12B-5.400	Producers and Importers of Pollutants

PURPOSE:

PART I. TAX ON MOTOR AND DIESEL FUEL
The purpose of the proposed amendments to Part I, Tax on Motor and Diesel Fuel, of Rule Chapter 12B-5, F.A.C., is to: (1) provide definitions for the terms “enterer” and “gasoline”; (2) provide when a credit for taxes paid on fuel sold to the United States government, its departments, or its agencies in quantities of 500 gallons or more may be obtained; (3) clarify guidelines on how to obtain, or how to renew, annual fuel licenses and when to obtain a license as a retail dealer; (4) provide when tax returns and information returns are required to be filed with the Department; (5) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; (6) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; (7) provide guidelines to fuel license holders on how to obtain any required Fuel Tax Refund Permit; (8) provide guidelines on how to take an ultimate vendor credit or how to receive a refund of Florida fuel taxes paid on fuel exempt from specified fuel taxes and when the Department will grant such authorized refunds; (9) remove provisions regarding the partial exemption from sales tax and discretionary sales surtax that are provided in Sections 212.08(4)(a)2. and 212.054(2)(b)4., F.S., and Rule 12A-1.0641, F.A.C.; (10) adopt, by reference, forms used by the Department in the administration of Florida fuel taxes; and (11) provide technical changes.
PART II. TAX ON ALTERNATIVE FUEL
The purpose of the proposed amendments to Part II, Tax on Alternative Fuel, of Rule Chapter 12B-5, F.A.C., is to: (1) clarify guidelines on how to obtain a license as a retailer of alternative fuel; (2) provide that sales of alternative fuel are subject to sales tax; (3) provide when returns and payments required to be filed by retailers of alternative fuel are due to the Department; (4) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; (5) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; and (6) provide technical changes.
PART III. TAX ON AVIATION FUEL AND KEROSENE
The purpose of the proposed amendments to Part III, Tax on Aviation Fuel and Kerosene, of Rule Chapter 12B-5, F.A.C., is to: (1) provide that the sale of aviation fuel to the United States government, its departments, or its agencies is exempt; (2) provide guidelines on how to report tax due on undyed kerosene and how to obtain an ultimate vendor credit for tax paid on kerosene used for tax-exempt purposes; (3) clarify when returns reporting aviation fuel taxes are required to be filed; (4) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; (5) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; (6) provide guidelines to air carriers on how to apply for a quarterly refund of aviation fuel tax paid for wages paid to certain employees and when an application for refund must be submitted to the Department; (7) remove provisions regarding the proration of aviation fuel by air carriers rendered obsolete on July 1, 2000, by the repeal of proration provisions from Section 212.0598, F.S.; (8) provide guidelines to fixed base operators on how to obtain a refund of aviation fuel taxes paid on aviation fuel sold to the United States government, its departments, or its agencies and when an application for refund must be filed with the Department; (9) clarify guidelines on how to obtain, or to renew, an annual license to operate as a commercial air carrier in Florida; and (10) provide technical changes.
PART IV. TAX ON POLLUTANTS
The purpose of the proposed amendments to Part IV, Tax on Pollutants, of Rule Chapter 12-5, F.A.C., is to: (1) clarify guidelines on how to obtain, or to renew, an annual license as an importer or producer of taxable pollutants; (2) clarify that the United States government, its departments, or its agencies are exempt from the tax due on pollutants; (3) provide when returns are required to be filed and taxes on pollutants are due to the Department; (4) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; (5) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; (6) remove provisions for taking a credit of pollutant tax that are not consistent with the provisions of Section 206.9942(6), F.S.; (7) provide that an application for pollutant tax refund must be filed with the Department for each calendar quarter; (8) provide guidelines on how to file an application for a refund of pollutant tax with the Department; and (9) provide technical changes.

SUMMARY:

PART I. TAX ON MOTOR AND DIESEL FUEL
The proposed amendments to Rule 12B-5.020, F.A.C. (Definitions; Specific Exemptions): (1) provide definitions for the terms “enterer” and “gasoline”; and (2) provide that terminal suppliers or wholesales may obtain a credit for taxes paid on fuel sold to the United States government, its departments, or its agencies in quantities of 500 gallons or more.
The proposed amendments to Rule 12B-5.030, F.A.C. (Importers): (1) clarify guidelines on how to obtain, or how to renew, an annual license as an importer of fuel; (2) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; and (3) provide a technical reference to Rule 12B-5.060, F.A.C., for obtaining an ultimate vendor credit.
The proposed amendments to Rule 12B-5.040, F.A.C. (Carriers): (1) clarify guidelines on how to obtain, or to renew, an annual license as a carrier of fuel; (2) provide when carriers are required to file information returns with the Department; (3) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; and (4) provide that electronic filing of information reports must be submitted to the Department, as provided in Rule Chapter 12-24, F.A.C.
The proposed amendments to Rule 12B-5.050, F.A.C. (Terminal Suppliers):  (1) clarify guidelines on how to obtain, or to renew, an annual license as a terminal supplier of fuel; (2) provide when returns and payments for taxes imposed on gasoline, gasohol, diesel, or aviation fuel are due to the Department; (3) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; (4) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; (5) provide that terminal suppliers who sell tax-exempt fuel to the United States government, its departments, or its agencies must accrue such taxes and obtain an ultimate vendor credit from the Department; (6) provide that terminal suppliers must accrue tax on sales of diesel fuel that is exempt from the specified taxes when used for agricultural purposes; (7) provide that terminal suppliers must complete Schedule 12, Ultimate Vendor Credits, and file it with their Terminal Supplier Fuel Tax Return to obtain an ultimate vendor credit; and (8) provide technical changes.
The proposed amendments to Rule 12B-5.060, F.A.C. (Wholesalers): (1) clarify guidelines on how to obtain, or to renew, an annual license as a wholesaler of fuel; (2) provide that fuel sold to the United States government, its departments, or its agencies in quantities of 500 gallons or more for exclusive use in equipment, devices, or motors operated by the United States is exempt; (3) provide when returns and payments for taxes imposed on gasoline, gasohol, diesel, or aviation fuel are due to the Department; (4) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; (5) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; (6) provide that wholesalers may obtain an ultimate vendor credit for taxes paid on sales of tax-exempt undyed diesel fuel to farmers for agricultural purposes and on sales of tax-exempt fuel to the United States government, its departments, or its agencies; (7) provide that wholesalers must complete Schedule 12, Ultimate Vendor Credits, and file it with their Wholesaler/Importer Fuel Tax Return to obtain an ultimate vendor credit; and (8) provide technical changes.
The proposed amendments to Rule 12B-5.070, F.A.C. (Terminal Operators): (1) provide when terminal operators must obtain a license as a terminal operator of fuel; (2) provide guidelines on how to obtain, or to renew, an annual license as a terminal operator; (3) provide that all terminal operators are required to file an information return with the Department and when such information return is due to the Department; (4) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; and (5) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns.
The proposed amendments to Rule 12B-5.080, F.A.C. (Exporters): (1) clarify guidelines for obtaining, or renewing, an annual license as an exporter of motor fuel or diesel fuel; (2) provide when exporters are required to report their export sales to the Department and when such returns are due; (3) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; (4) provide that when returns and other information reports are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such returns and information reports; (5) provide that exporters who export fuel to other states must file an Application for Refund with the Department to receive a refund of Florida taxes paid on exported fuel; (6) provide when an Application for Refund must be filed with the Department; and (7) provide technical changes.
The proposed amendments to Rule 12B-5.090, F.A.C. (Local Government Users): (1) clarify guidelines for counties, municipalities, and school districts on how to obtain a license as a local government user of diesel fuel; (2) provide when returns and payments required to be filed by local government users are due to the Department; (3) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; (4) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; (5) provide that local government users may take a credit, or obtain a refund, of specified taxes paid on motor fuel and of the specified fuel sales tax; (6) provide that local government users must hold a Fuel Tax Refund Permit to seek a refund each calendar quarter for the specified fuel sales tax; (7) provide guidelines on how to apply for a Fuel Tax Refund Permit; (8) provide guidelines to local government users on how to apply for a quarterly refund; (9) provide how an application for a quarterly refund must be submitted to the Department; and (10) provide technical changes.
The proposed amendments to Rule 12B-5.100, F.A.C. (Mass Transit Systems): (1) clarify guidelines for mass transit systems on how to obtain a license to seek a refund of tax paid or to seek a partial exemption; (2) provide when returns and payments required to be filed by mass transit systems are due to the Department; (3) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; (4) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; (5) provide that mass transit systems may obtain a refund of specified taxes paid on dyed diesel fuel; (6) provide that mass transit systems must hold a Fuel Tax Refund Permit to seek a refund each calendar quarter for the specified diesel fuel taxes; (7) provide guidelines on how to apply for a Fuel Tax Refund Permit; (8) provide guidelines on how to apply for a quarterly refund; (9) provide when an application for a quarterly refund must be submitted to the Department; and (10) provide technical changes.
The proposed amendments to Rule 12B-5.110, F.A.C. (Blenders): (1) clarify guidelines on how to obtain a license as a blender; (2) provide when returns and payments required to be filed by blenders are due to the Department; (3) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; (4) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; and (5) provide technical changes.
The proposed amendments to Rule 12B-5.120, F.A.C. (Resellers and Retail Dealers): (1) clarify guidelines on when retail dealers and resellers are required to register as a sales and use tax dealer; and (2) provide guidelines on how to register each place of business for sales and use tax purposes.
The proposed amendments to Rule 12B-5.130, F.A.C. (Refunds): (1) provide that any person who uses motor fuel for agricultural, aquacultural, or commercial fishing purposes may obtain a refund of specified fuel taxes; (2) provide that such persons must hold a Fuel Tax Refund Permit to seek a refund each calendar quarter for the specified motor fuel taxes; (3) provide guidelines on how to apply for a Fuel Tax Refund Permit; (4) provide guidelines on how to apply for a quarterly refund of taxes paid on motor fuel used for agricultural, aquacultural, or commercial fishing purposes; (5) provide when an application for a quarterly refund must be submitted to the Department; (6) provide guidelines on when the Department will grant a refund of tax paid on undyed diesel fuel consumed by vehicles that use fuel to turn a concrete mixer drum or for compacting solid waste, or for undyed diesel fuel consumed by a power take-off  unit or engine exhaust for unloading bulk cargo by pumping; (7) define the term “full load pump-off” to mean 54,000 pounds or its equivalent in gallons; (8) provide guidelines on when a refund of fuel tax paid on undyed diesel fuel used in off-road stationary equipment or in self-propelled off-road equipment will be granted by the Department; (9) provide guidelines on when a refund of fuel tax paid on undyed diesel fuel used to operate a refrigeration unit or other equipment located on a commercial motor vehicle will be granted by the Department; (10) provide guidelines on when an application for such refund must be filed with the Department and the recordkeeping requirements for making such application to the Department; (11) provide guidelines for when dealers who sell dyed diesel fuel for use in vessels are required to collect sales tax, plus any applicable discretionary sales surtax, or are required to obtain an exemption certificate from a qualified purchaser; (12) provide guidelines to purchasers of undyed diesel fuel used in noncommercial vessels on how to obtain an annual refund of taxes paid on fuel used for such purposes from the Department; (13) provide guidelines to purchasers of undyed diesel fuel used in qualified motor coaches on how to obtain an annual refund of taxes paid on fuel used for such purposes from the Department; (14) remove provisions regarding the partial exemptions from sales tax and discretionary sales surtax that are provided in Sections 212.08(4)(a)2. and 212.054(2)(b)4., F.S., and Rule 12A-1.0641, F.A.C.; and (15) provide technical changes.
The proposed amendments to Rule 12B-5.140, F.A.C. (Dyeing and Marking; Mixing): (1) provide that a licensed terminal supplier, importer, or wholesaler of fuel must obtain a refund authorization number from the Department to receive a refund of taxes paid on fuel that has been mixed with dyed diesel fuel in storage; (2) extend to 30 days the period during which the Department must be notified of a mixing incident; (3) provide guidelines on how to obtain a refund of such taxes; (4) provide when an application for refund must be filed with the Department; (5) provide that dye in any fuel storage facility that is not properly marked is in violation of s. 206.8741, F.S., and subject to the penalty imposed under Section 206.872(11), F.S.;  and (6) provide technical changes.
The proposed amendments to Rule 12B-5.150, F.A.C.: (1) change the title to “Public Use Forms”; (2) to adopt, by reference, forms used by the Department in the administration of Florida fuel taxes; and (3) to remove the adoption, by reference, of forms that are no longer used by the Department or that do not meet the definition of a “rule,” as defined in Section 120.52(15), F.S.
PART II. TAX ON ALTERNATIVE FUEL
The proposed amendments to Rule 12B-5.200, F.A.C.: (1) change the title of the rule to “Retailers of Alternative Fuel”; (2) clarify guidelines on how to obtain a license as a retailer of alternative fuel; (3) provide that sales of alternative fuel are subject to sales tax; (4) provide when returns and payments required to be filed by retailers of alternative fuel are due to the Department; (5) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; (6) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; and (7) provide technical changes.
PART III. TAX ON AVIATION FUEL AND KEROSENE
The proposed amendments to Rule 12B-5.300, F.A.C. (Aviation Fuel Licensees): (1) provide that the sale of aviation fuel to the United States government, its departments, or its agencies is exempt; (2) provide that terminal suppliers must report tax due on undyed kerosene delivered to a residence for home heating or cooking and may obtain an ultimate vendor credit from the Department for tax paid on such kerosene; (3) provide that terminal suppliers and wholesalers who deliver undyed kerosene to retail dealers for resale to consumers to be used for home heating and cooking may obtain an ultimate vendor credit from the Department for tax paid on such kerosene; (4) provide that terminal suppliers must complete Schedule 12, Ultimate Vendor Credits, and file it with their Terminal Supplier Fuel Tax Return to obtain an ultimate vendor credit; (5) provide that wholesalers must complete Schedule 12 and file it with their Wholesaler/Importer Fuel Tax Return to obtain an ultimate vendor credit; (6) provide that resellers who make sales of undyed kerosene without payment of the aviation fuel tax are subject to the specified penalties; (7) clarify when returns reporting aviation fuel taxes are required to be filed; (8) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; (9) provide guidelines to air carriers on how to apply for a quarterly refund of aviation fuel tax paid for wages paid to certain employees and when an application for refund must be submitted to the Department; (10) remove provisions regarding the proration of aviation fuel by air carriers rendered obsolete on July 1, 2000, by the repeal of proration provisions from Section 212.0598, F.S.; (11) provide guidelines to fixed base operators on how to obtain a refund of aviation fuel taxes paid on aviation fuel sold to the United States government, its departments, or its agencies and when an application for refund must be filed with the Department; (12) clarify guidelines on how to obtain, or to renew, an annual license to operate as a commercial air carrier in Florida; (13) provide when commercial air carriers are required to report and pay aviation fuel taxes; (14) provide when returns and payments are due to the Department; (15) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; (16) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; and (17) provide technical changes.
PART IV. TAX ON POLLUTANTS
The proposed amendments to Rule 12B-5.400, F.A.C. (Producers and Importers of Pollutants): (1) clarify guidelines on how to obtain, or to renew, an annual license as an importer or producer of taxable pollutants; (2) clarify that the United States government, its departments, or its agencies are exempt from the tax due on pollutants; (3) remove obsolete effective tax rates for the Coastal Protection Tax, the Inland Protection Tax, and the Water Quality Assurance Tax; (4) provide when an importer or producer of pollutants is required to file a return and to pay the taxes due on pollutants; (5) provide when payments and returns are due to the Department; (6) provide the definition of the term “legal holiday,” as defined in s. 7503 of the Internal Revenue Code of 1986, as amended; (7) provide that when payments or returns are required to be submitted electronically, the provisions of Rule Chapter 12-24, F.A.C., apply to such payments or returns; (8) remove provisions for taking a credit of pollutant tax that are not consistent with the provisions of Section 206.9942(6), F.S.; (9) provide that an application for pollutant tax refund must be filed with the Department for each calendar quarter; (10) provide guidelines on how to file an application for a refund of pollutant tax with the Department; and (11) provide technical changes.

RULEMAKING AUTHORITY:

206.14(1) FS., 206.59(1) FS., 206.62(10) FS., 206.87(1)(e)2. FS., 206.8741(1) FS., 206.8745(6) FS., 206.877 FS., 206.97 FS., 206.9915 FS., 213.06(1) FS.

LAW:

206.01 FS., 206.02 FS., 206.021 FS., 206.022 FS., 206.025 FS., 206.026 FS., 206.027 FS., 206.028 FS., 206.03 FS., 206.04 FS., 206.041 FS., 206.05 FS., 206.051 FS., 206.052 FS., 206.054 FS., 206.055 FS., 206.09 FS., 206.095 FS., 206.11(1)(d) FS., 206.199 FS., 206.20 FS., 206.204 FS., 206.205 FS., 206.404 FS., 206.41 FS., 206.413 FS., 206.414 FS., 206.416 FS., 206.43 FS., 206.44 FS., 206.48 FS., 206.485 FS., 206.62 FS., 206.64 FS., 206.645 FS., 206.86 FS., 206.87 FS., 206.872 FS., 206.873 FS., 206.874 FS., 206.8741 FS., 206.8745 FS., 206.877 FS., 206.89 FS., 206.90 FS., 206.91 FS., 206.92 FS., 206.97 FS., 206.9815 FS., 206.9825 FS., 206.9835 FS., 206.9865 FS., 206.9875 FS., 206.9915 FS., 206.9925 FS., 206.9931 FS., 206.9935 FS., 206.9941 FS., 206.9942 FS., 206.9943 FS., 212.18(3) FS.

PRINT PUBLISH DATE:

1/13/2006 Vol. 32/02

COMMENTS:

From 1/13/2006 To 2/3/2006 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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