Final Regulation PS-120-90

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Frderd Regiulcr

/-'vo~.
57,'No. 1 4 1 /

~ e d n e s d a ~luly
: 22. 1992

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1 Rule, a i d

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~'e~1ation.r

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. ,depending on individual circikrt once;.
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,gasdine at Lhc fenninnl r c k (2) the - .
treatment of gasoline blcndefockr. ~ n dwith an estimated average of .2 hour.
- These estimates are nn approximatian (3) the refund pmcCdms under ~ection' 4#t(e).
Generally. the final regulations
of the average time expected .to be.
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nectlsaT for'a wIIection of '
- adopt the proposed rule !ha1 the positinn
idormatian. They art bastd on auch .+-,-.
holder is Dable for tax on reg~ovalof ,
information as i s available fa the
gasoline at the terminal rack, modify the
htemal Revenue Service. Individual
:
proposed d e b forgnaohe bIend~tocks
respondents me y require g e a l t r or less'
to allow tax-free nonbulk trannl~.rsof
.7.+

time depending m their particulur
cirmmataaces.
Commente regarding the kccuracy af .
this burden eathate and suggestions for
rtducing thln burden ahauld he dittcted
to the Internal Revenue Service, nth:'..
IRS Reports Cleersnce Oflcer, T:FP. .
Wsshington. DC ZU24, and l o he Office
of Management and Budget. attention: - Desk Ofiiccr for the Deparbent of the
Treasury. Office of lnfarma tion and
Regulatory Affain..Warhkglon,
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Gasoline Exclse Sax
AGEH:Y:

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h k a l Revenue Service.

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Sections 4081 and 40B2 of the Internal
..S U M U A A Y : ~ ,dotunent
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conreins final Revenue Code impose, and provide - "
regulations relatin3 to the federal excise certain rules relating to, the federal
- tax cn gasoline. These reyIatiom
. gasolint excise tax. Sections 4081 and
reflect and i ~ p l e n e n certain
t
charqer . 4082 were emended in relel'anl parl by
made by the Tax Reform Act of Is86
h e Tax Reform Act of 1988(the "la6 :
and the Revenue Reconciliation Act of
Act") and the Revenue Reconciliation
1490. These regulations aifect refinerg.
Act d l
m (the "1990 Act"). '
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On August 27.2991, the 1RS published
- importers, and distibu~orsof gasoline ,
and provide guidafice d a t i n g to taxable in the Federal Register [58 FR 42287)
transactions, penons liable for t a l l . . .. propased amendment, to the regulatidns
gesolineblendstotks, andgasohol.. ,
(26 CFR par1 98) undm aectionr 4Ml and
4062. The IRS received s number of .
EFFE~TIVEDATES: Thege regulations are
effective Iznuary 1.1993. excepl lhal .
comments with respect to &c proposed
4 48.40814 is effective July I , 19%.
regulations, and a public hearing war
held or;November 25,lWl. After - - FOR NAWER I H F O R U A ~ HCOH~CT; Frank Bolmd. (2021 56-75
( k t o toll-' conridera tion of eU comments received
,
. . . .and statementi made a i the public.- ' .
fret call].
. .., . .
hearing.
the proposed regulations .re
WPPLEIIIEW~ARY I H F O R U A ~ O I C ,--_.+;
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Treasuiy.:

rcr~on:
r i a : ~egulzlions.

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Paperwork Redud03 Act
The collection oi i d o r m a tion
mntained in hi9 final regulation bar
been reviewed and sppmved by the
Office of Macegemenf and Budge; In
accordsnce mLh the Papemork
Reduction Act of 1 9 0 (44 U.S.C. 35W(h)J
.. under contml number 154S1270. The
., estimated annual burden per respondent
varies born .l h o a to 25 howl,
,

edopted el revised by this Treasury -

decision.

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Significant Isruts Raised io G b e n l s
and Cbgnges Made by the Fhal
Keguhiions
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Overview
Three major issuer &:e raised in & e
public comments on the propnstd ,
regulations: (11 The identity of the
person lieble for tax on removal of

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gasoline blendstocks approved
terminals and rehcrien, and mudify the
proposed refrmd pmcedures by revising
h e fom and mnkent of ibe daim tor a
refund. The final regulrtiom generatly
are effective on and after January1,
'1993.Transitional nJe6 are pmvided for
the period from ]ulp 1, am,to
December 31,1992..
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~ ~ ( i i t i o (8
n sramz-1)
Under &e proposed regulations. tbe
term " b d k transfer" meanr eny trznsfer
of gasoline by pipeline or marine v-ssel.

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Several cornmenlatom rrullgc~tedthar

the tern be expanded to include a
- sasoline registrant'&transfer of i t 9
gasoline by truck or rail car fmm one
npproved termina1 to mother approved
terminal. . The final regulations do not edopt his
suggestion.The principal p u p a e of the
1WO Act amendments to seeon 408t waa to make all nonbulk removals of,
gasoline from r terminal taxable:
Enforcement nI the ledem1 garoline
excise tax is greatly compliutcd if some
mmovals of gasoline ~t the terminal rack are extmpt from tax.
.
h response tv a comment, the final - :
re@ tionr derify that en@ into the .
Uniled Slates dots not occur whtn
gasoline i s brought into Pumo Eco
(which is parl of the United Siates
cusloms territory). However, entry inlu
the United Stater doer ocmr when
gasoline is brought into the United
Stales from Putdo Rico.
The final regulations shorten h e term
"gasoline blend stocks and add~tives"lo
"gisoiine bltnd~~ocks"
and adopt helist of gasolinc b l e n d s ~ h
contained in
the proposed repletions. with certain
rnodifica tione.
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Federal Rrgirter

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Wednerday, J d y 22.:1932 I Rules-.and,Regrilstione .-.:32425

Val. 57, No..141

. In the final regulations,the ttm, .. ,
"debuhnized natural gesoline" ia :. .
.. .:replaced by the term "net~ualgaeoline."

Companies might Lave to create a ; :informing the Ierminal operator of the
burdensome and expenrive "tax - - '
rubIease. hother common transaction
in which one penon owns the gamline
invoice" ryrlern in order to by properly
,Theproposed replatione included in and another penon holds the.inven~ory reimbuned for the amount of the tax - .
.Ti. the list oIgerolint blendstocks a - . . polition I8 a location exchange:As an
from their exchange partners, Thir could
.:,mixture of two or more ga~otine ' '-. * ,exernpie of a location exchange. M .
be erpecially problematic for complex operate8 a terminal in Maryland and N
-. 'r :blendrtocb if he mixture ja not ,.. .
arrangements involving multiple partlea
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:'-. gssolint. One commenter ruggtrtcd that
operates
e
terminal
in
New
Jenrey.
X
a
and
feejiities. . . - .
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c ~ m e n t a t o r ,sw e s t fiat. . . :,r &,i~
product bc deleted from the lirt. .-.:. curtomet of U wantr to buy ga8olint in
l t ~.r.
.; :)?bepure
wuch a mlxhuc g e n e r d y ha, . N e w lency. To ~ c c o m m ~ dits
additional coats mnd dirlootionr also
- customn. M exchanger the gasoline,.': -may resdt where the position'holdtr
'., iljo5t itf eflecLivtnesr an a blendetock.
,-..- -with N. without kan8ferringinventory
&ergcm its buyer fgr the amount of the
..-...The fin1 regulat~onradopt his.
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posilions on the books of the terminal . tax it txpecb to be due, bul no tax is
;:-r. muggeetion.
-.,-. :-;:, :.?; ,;.f :.:,:
,:-:.:
+i5:::.;"~otice
-a -.-1 0,188&1 ~ . ~ . - 4 8 < ~ ~ c v i doperalors.
er
impo3ed becausd the buyer (ore - * ..Under
eKi6t.h
ruler.
the?e..,-,- ' - . ~ubeequenthuger) removes the gasoline
-..>,
bat
tbt
[em
"gssoline
bleirdstocks"
-.:, .l+;i
d w * not include any product that
- tnnaactiona can be conducted 0n.a k f ~ tb-e
m t i i n . 1 in bulk ot a mduced
. 'L
. - connot be blended into ge~olihewithout free bash 80 long rhe g a s o h m i n r : ' : . . ,at, Of tax ir imposed because hebuyer
. M e t pmceesing or fractionation One bensferrer! between registered Perlons. (or a eubstquent buyer) selle the - :
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chat the find . . . .Under the polition hoidcr mlc,.ao taxis
at b e terminal rack to a
.
-c ~ m m e n t a t ~~uggesred
~-.,.-;-:regulationrLncorporatehrprincipl~-:."~
i m P o a c d w ~ e n t i d c t o g a ~ ~ l ~ ~ i @ ~ .garoholbl~nder.Aecord@to-tbe~..:
. and~thefinalmplationndo~o
...
~ a n s f e m d i n t h e t e ~ i n a ~ w i ~ o ~ ? --.-rntatom,newafidperhapscnstljl
,::>
changing fit penon holding Lhe Onc commentator sugges!ed that the
mechaniamr will need to be developed.
definition of tht [em "transmix ,
inventory poaition on the, books of the . to
a buyer[or - .
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confairing geeoline" be revised to avoid terminal operator beaus@the k a n c f ~ b subsequent buyer) far
excess of he .
unnecessary accomtitlg for transmix _
not treated a sale- S e e ~ r .o ~ ,o~,t ~ ~it paid
~
ite
in respect of tax
ha! contains only insignificant amounts fi 4a-4081-l(rJ-However-a position . the t,,,
of tax, if any, ectualiy .
holder remaim liable for the tax
of galohe. ms rtvisjon now- :, .
due horn the poaition holder. One eifect
- c m r l e bprawc only transmix, :.:- -. imposed when the gasoline is . .
may k to limit opportunities for gasohol
. . -containbgasalincthat~enbeblended rack.
~ ~ b Thus,
' e q uine tbe
n f labove,
~rem
o
v
e
d
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t
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e
t
e
~l tanl d c n ~ p - h a s e g a s a l ,i n..,e.~ t ~ r . ,
example. N,the b-dueEd
into gaspbe wi&Dut further pr~cerring
rate. ; . - - . .
: or fractionation i~sonridered n giarolne P06itiOn holder.would liable for b e
A
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"hen M'p ws1orner.
X rimover the
bjstdrlock under the gn?lr~gu!&tions.
hafinal rrnrlalions rbedd
gasoline at Ws terminal rack. . .,
retain the existing rules concerning h e '
- - Tax on ~ e h o matl o Te.mi~o1Rock
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identity of the pereon liable for tax
(J 48.4081-2)
Public Comments
gaa~linei s removed at the rack.
s v e r athe
l
awed
that: - when
The Proposed Regdat~ong .
because
holder
remains
Aifernatively.one commentator
ruggesred modifying the pro?osed
- under ~ m ~ o 6 e
P d40-4081-2(b). tax ia liable for the tax imposed when the
- inportd on gasoline removed born e
removed at the - ~ I a t i o n S8 0 that the receiving Pa* in
gasoliae i s
an exchange would be primarily Itable
termha1 er the tack. Under existin#
terminal rack, the position bolder will
for the b x while the position holder rules. the person liable for tax a tht
of h a t tax in the
indude&e
owner or the gasoline at the timt of
its buyer. ns
will result would be secondariiy liable for tax.
price
removal However, under propored in an increased outlay for tha buyer that h ~ t h e cr O ~ e n t a t o r ~ r o ~ o that
$ e da
terminal operator should be allowed to
3 46.4&1-2(~], the per-on liable for tax
not be recovered mtil the buyer
i a the position boider ( h e "position .
#ells the gasoline and includes
recognize any gasobne registrant as a
holder rule"]. Pmposed 8 48.4081-1 (m) . Unounl of h e
in [he price ii charges positinn holder even though the
regiskanr d m not
~ have e ttrminaljng
d e h t tbe
~ position holder to be the
i t s custorncr.
and @forageagreement with rhe .
p e n m that boldm the inventory polition
According to heco-tntakrs,
the
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to the galaline a8 reflecled on the change in pricing under the position . operator.
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resorb of the leminal operator. m
e i8 holder d e would inueaae costa for
meFa
Repllatlon, ,
. generally a paruon that has a contract
market parficipants. reduce competition.
4
with h e teminsl operator for the use of and impair the ability of the market to
-The final regulations adopt the p o l i tion holder rule as proposed, wr th rtorage Iacili tier and terminaling
- respond to changer in aupply and
~ervieenat 4 terminal for the gaaoiine.
the erective date delnyed until January
demand. For example, tommentaton
but the term a160 ineludea r terminal .- argued thar ~meUercornpanitm may find 1,lss3, In order to allow additional time
for mrnpanies to adjust to that d e . The
optretor that owns gasoline in its o w n . . i t difficult or txpemive to fmance the
.-. .. .. . increased wrt of buying gesoliirt ar rn ! poaition holdet d e provides the most 1 t 4 .
.
A posidon hoIder may not necessarily tax-included price. Moreover, bemuse + : effective metbod of essurhg that the .
o w n the ga~olinewhen 11 ir e m o v d a t , of their M t e d financial resources and
proper &mountof gnaoliie tax i s paid. the rack This may occur. for example,
A C C e l l to credit t h t s r wmprrni es may .
The Service recognue6~thatthe p ~ stion
i
. . beaust the porition holdet transfen . not be able to become porition bolden holder d t mny cause some cornpanics
L title to the gasobne to a buyer without . themeelves in order to buy gasoline tax
to innv cast8 in mahchlring nomc
. m y phyrica1 movement of the gasoline
bu~inerirelationshiprend account~ng
free. As a result, h e a t companies may
and withour changing h e holder of the
withdraw from a legment of the gasoline pmccdure~end &at the effect on certain
inventory position on the terminal
- market. m a m ir less competitive.
companies may bt paler-than on
operator's boob. A similer rrsuli occut*
AB another example. commentatom
otben. However. h e Service believes
- under various f i n a ~ c i q
ariangemente or suggested thar the position holder rule
h a t trcb al~ernelivtto h e position
-. . when a position bolder merely rubleaser would deaease the frequency of
holder rule impose^ ~ignificent
its apeee in the lemma1 without
exchanger and l n m e s e Iheir coat.
compliance burdens that would not b t
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32426

. Federal Register

I

Vol. 57',

KO.'141 /

Wednesday, July

22 1992 1 Rule8 and Regulations

t

d i r ~ b u equally
d
among participenta
in the i d u ~ t r yMoreover.
.
any
&duntagel of the rule mhould be
ma* t
hoffset by he benefilr
hgitimak burinesues will achieve
b u g b the elrmina tion ol nrler that
dhw # * f i a t oppor!unities lor unfair
mmpecition thmugh lax e v a a i o ~Theut
. I e g i b G t t busbeoaec wilt b better able'
to com*tr if everyone in ttreir market
.. p a F t
k l a m e amount o l tax nn a gallon
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of g a s o h .
r a n p e a r , the Executive Branch, atatc

- gm-trruents.u d various mepenta of
the pemleum induetry have 1 ong been

c & d m w i t h the probIem of 8auoline
tax tursioe See Compliance w i ~ h
Federal Gasoline Excirc Tax RPvisions:
Hekforc the Subcommittee on
Oversi&t of h e House hmmittee on
Ways ezld Mean*, 09th Con& 2nd SUL
(1386):md Sbanfalla in W w a y Trust
Fund G U e c t i o n ~Hearing before the
S u b c h t t e e of h v e s tigations and
Oversqbt of the House Committee of
Public Works and Tran~portation1mat
C ~ E &lrt
, &as. [1989).C o n p s l
a&recxd Lbtse concemr by hvice

v the law in recent yearo. The
1 9 s Ad moved the point of hxetioo
t

h

hthc producer's sale of gasoline to
thc e&kr of the sale or removal of
gasoli3t h m the t e m h a l effective
Jattra;y
L 1888 ' h e 1990 Act provided
&at t
h-oval of ga80kne at the
te.&el
rack wan rubject to tax
r e p d l e s s of whether the g a 6 ~ L n ehad
p-ody
been subject to tar, cflectivs
July t MI.
N c i h the 1988 Ad nar the. 1 F Act
i d e G e s tbe person that is required to
paF the tax to Che government Instead
tta c o b n c e report lo the 1990 Act,
,

HP- Cont Repi No. W. lOlsl Cong., Zd
S t s ~1052
.
(1990),m
h that tbe IRS
is to pmvide nJe8 and adminiskativc
p n x e d n m for determining liability for
pa~preztof b e tax. Corrlgcsa clearly
b t e n d d thr 1 D1S develop rule6 to
assure that tax is, in fad. paid to the

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by examming the nccrrda of tht-I
operator.
In addiuon, terminal operatom rhodd
e n ~ t mh a t eacb pwition holder Ir
regia ~eredwith the IRS becauue the
terminal optrotor my be jointly m d
severally liable for the tax if he posilion
holder ilno! r gasoline registrant. ICI an
ad&umd &cL, on the poriricn holder.
the terminal opera tor ia likely for its
own business purposeu to review !he m d i ! and financial relourcer of persona
reque~tingternhaling and rtorage
~ervicerin the terminal. Another important enlorcement
k n c f i t of the position holder rule ia tbrt
i t uhould reduce the number of
taxpayem and ngisbanta. Thir d
allow the IRS lo maximize the
effectiveness of itn enforetment
resowe~m.
The recudkeeping burden associated
with the p i t i o n bolder mle rhould in
most easel, h no greeter then the
burden for taxpayen undtr tbc existing
de.Thepositionholdtrdc.inIaet
reduces the burden with respeer to
bansfere in a terminal bixauee tbe
kanrfen are not beated an d c s
potentiany~ubjectto tax and tbus the
eellernecdnotdeterminewbetherfta
m s f e r e e ia matered. in the case ot
exchanges. tbe Service recognlrtr that
the polition holder nJe may m a t e the
need for additional recordkeeping. but
believes that these bmrectione dready
require considerable recordkeeping for
business and tax purpoxs. The poaitioa
holder rule dm abould reduce the need
for refund3 under wtion 4057(e)
. because h e r u l e will reduce the
-possibilitiesof taxable #ales within a
terminal.
The fme! reguletinns not adopt h e
ruggestion that p r i m q Lability be
shifted to the mceiving p m y in en
e x c h a q t leaviag the poJbon holder
only recoadarily liable,fot t a Unlike
~
theporitioaholdcrnJe.hrdt~tive
would prevent the IRS from identhe taxpayer M u g h an mudit of the
terminal operator" b o o k It would
requiredetailedrecordkeepiqbytht
pmicr to b e u f b a n g e beuuce each
partp potentialty wodd be lirble for tax
with rerpea to the gasohe It rtc*lvtr
and tbe garnoline i t exchmgtr. It a h o

the terminal operator. Although this
appmach might provide thtoughputtem
with wrme additional flexibility, it would
piece a large recordkeeping burden on
terminal opcrntora An opemtor would
have to maintain both itm ~ I a r
inventorjr mordr and a new l e t of "tax"
record4 w It could determine the
ldentlty of the "tax' poaition holder. The
proposal also would expend the number
of taxpayen as compared to the position

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govemtnL
T o t txisrule that tbe owner of the
g-lint
m t thc time of the taxable event
is Labk lor the tax bar d o w e d certain
pewom to obseure the identity of the
tnxpyer through a complex chain of
sal- psong related pariea. Thie m a t e a
the pokntial fat, and aceordug to - , . wodd expand the numbcr of iaxpry~n,
severel wmmentatore and authorities
as compared to tbe pomtion bolder rule,
and could allow companiel to o b s ~
-has multed in considerable gasoline
tax evasion
tbe identity of the taxpayer. eapedaUy
in complicated, multi-party exchanges. Under tbe position bolder d e , he
The final regulationr a!ro do not
t a x p a y wtb respect to a removal e l
adopt the suggestion h a t a terminal
the te,minal rack wdl be either the
t
d operalor or e penon &at has r operator be d o w e d to r e c o p n t
c w t r d &bonsh~p with the - ,
gasoline ~ s b o t 8s
s posihon boldem
even if the regisMnb do not have .
t&operator.
Tbua. the IRScan
eejily idtatify he peraon liable for tax
temin~lingand mtomge agreements with
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holder d c .
Taxable Events OLher Than Rempvol ct
the Tembal Rack I§4B40814)
Pmpored 8 48.40B14 pmvIdca rules
for taxtng event8 othtr than the removal
of garoline at Be t e a l rack. Thege
taxes are imposed on ccnain removals
fromarefinery,cn~esinl~theUnittd
Ste:em. bulk transfen riot nctived at an
wpmved f e m i n a l or r t f i n t ~bulk
,
trmden by an -girtwed
pooition
bolder, wler to m g i s t t r e d personi.
rod n m ~ a orl #ahof blended galdint
bynblendtrThe finel Itgulationa generally adopt
there provisions as proposed. ~ o w t v t r .
pmposed O 48.4#13~] i s &led to
mvide that no ta* ir impord on
rem~drhmrrrheryrackif(r~the
gasoline In =wed by nil w h m an
approved rehery and mctived at an
approved termiDaL (2) the refinery and
tbc terminal
operated by the same
g a s o h e regismnt, end 131 the gasoline
be removtd by bulk bansfer
becaurt the f t h w y ir nut rewed by
pipeline or waterborne gasoline
mbporting vespel.
Under pmpostd O 4&4067-3{dL tax in
hpored on the bulk tranrfer h m a
terminal if the position bolder ia not
regiltwed. One commentator noted that
the pmpored regulationr did not.
deeuibe the tm ~ o u q u e n wof bulk
transfur fmm a kmind by pemou
other than tbr poritiw bol&r. The h d

~atio~darifythatta*i~mt
imposed on tbt bulk m f e r born a
terminJ by such 8 pason (whether or
not rtgisltfid) SO hq rr the posiban

holderwithnepecttotbeganolincir
r e g i s t e d Under # a-4
tax ir
imposed only when garolinc b =mwtd
at tht terminal re& and b d trafm
ut not mmovdr et the termiod mck.
However, tu is impored undm
O 4&WJ[cJif -line
ia removed
h m n itrminal io 4 b a m l f e r
is
reuived rt an unapproved terminal or

refmery.

~pecio
Rufes
~ for Gosoline B!endstocks
(§ QB-IMI41
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Under the h a 1 mgtdatjons [am under
the pmwsed regdatiom]. gesohe
b l e n d c t o b g e n d y are treated h e

Federal Redeter
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57,

- hibulk narollne
ro Ionn
are in
banrftrl~erminla~
aynt&
same as

as they

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No, 141

Wednesday. July 22, 1992

know that anv information in the - .'
cettifimtc ir fatat, end (41 hat verified
the RCCUraCy of ihe nolification
certifica~ein accordance wih IRS

Accordmgly, tax is not impowed on a
bdk transfer of gasoline blendstockr f l
he relevant par:g (determined under the procedures.
' ruler applicable 10 gasolme in !he buh

CQspbd[§ 4B.43J14)
- tt~qdet/~erminaI
lyatem) ir a garollne
- .-' .-:registrant.
Regulations concerning the tolerance
--.- -..;:- under ~ o t i t e 8 & 1 ~ . ' a r e ~ i ~ l e;n ' d ,rule for d e l t ~ , i n i r qthe percentage of
:
alcohol required lor gasohol and h e rule
-,- ,--:
. .-penon may. by nonbulk transfer,
remoue garoiine blendstocks from a
.
.
to the later blending of gesohol
- .
:."-' ttrminal or rtfinery !ax free even if h e . relating
were published in the Faders1 Register.
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,

1. Rules and

Regulations . . jm?

Public C o m e n u
Comentaiors argued that the
infarmstioncollection requjmmcnls
under the proposed regulations are too
burdensome.

. The Final Regulations
Thc final rcguhtions retrin the
requirement thal the claimant identify
the ~ S taxpnyer
I
end the rubmequtnt
owner8 of h e garoline. This requirement
ir neces~ary10 fhet the IRS mey verify
that In!tax actually hrr been paid to
the government end that the daimant -.
ha# paid the oeeond t?x on tbc rame
easolhe. However. the final regulations
modiIy the reporting and Inlorma tion- .
~ l l e r t j o nmquirrmentr *o that
claimants will not have to obtain
'invoicer relating tn previous males of thr
gasoline. hatcad r daimant will fulfill
i t 6 responsibility by i n c l u h g with its
return 4 wpy of, the t r e t taxpayer's
.
report which mbould be passed down
the chain of rslea.
Section 4 . 8 . M - 7 of the h a 1
regulatlonm ael fortb the Tormat for the ,
Rrst faxpaytr'mrepod and expands therepotting requirement to cover ell laxable tventr'except r t m m a i ~
at r
. terminal or tehery rack nonbulk
entries into the United Str~er.and
removrls or r e h by blenders. R e p o w

the gesoline blendstockm
gasoline. A registered pemon on March 4, IgPZ (57 FR 7653). rhesc
final regulations incorporate the
, .,
---'alsomay #ell gasoline blendstock8 tax
- -.,; h e to another registered person even If tolerance and later blending rules .
- - -- r tht rele Ir in comection with s nonbilk wirhaul rub~tantivechange.
and the gasoline will be used
hdjiionr fp;, &d fieporting%lD1,rr8
- - -., .'remo\ral
by the buyer to produce gasoline.
Reiunds of Gosoline Tax Under
.
kr contrast under the proposed-' . . .:lo.
Shcriorr ml(e)I§ 48.4V+7.
.
,
reflations. nocbulk rernovale of
gasolint blendstocka srr generally
T
h
e
Propiked
~
e
~
u
l
a
t
i
o
n
.n
$able if h e blendstocks will be used
B e g h h g July 1,1#l. rtction 4081
to produce gascllne regardless of
may impose tax ma- than once on r
. H.bcher the removala are by e .
ne. ,mgistered person. Under a special rule, particdar vdlume o F 8 ~ 0 1 ~ For.
hou.er.er. ~ E ! E~ B TAME.
E
and TBA :exampie. gasoline *old to,en .. . ,, .. .
,. may,by nonbulk transfer, be removed . . unrepsterd person wi&in h c b u k . .
from 8 terminal or refinery, o r brought
tranefet!termhal ~ y s t e mir taxed on
. . into the United State¶, tax free it these . .:that ralt (the 'Tmt tax*) and taxed,.
:
:..products are received at a n approved .
again [the "second tax") when it is - , .
- . , tetminal or refioety. .
,,
removed at the ~erminalrack, Under the
S a m c~ ~ ~ ~ ~ ~ ~ 0bjeGed
e f i t a tot othe~ ~ - proposed regdetianr. tach aelcr liable
,
- pmposed beatQ~-ntof nonbdk rem?va10 fot t ex on the ralr ol gasoline within the
'olgasol~ncblendstocks and
.
iroptionalZorBesccvenrs,but
. bulk transferltenninalmystem to an - ,
recomme~~ed
hat the mles of Notice
buyermust include ~h it; taxpayerr an encouraged to report 8
',
&I8 be retained. Tht commentalon
o f tax a rtatement idenuying
the they expect that a mtcond tax will be
w e d that gasoline blends'~drnbk
imposed with respect to Lhe gasoline.
buyerm d amount and type of gaBolint
h q u e n l i y eanrported between facilitiei
.Tult axpayer npod.vL
Under Ihe b q 1 regulations, in order
h h e bulk trenrler/terminaI system by pmpo,ed rrsJstioru
prnsnbe
for A person who psye a neeond tax IO
nonbik bansrer- The effectof apalying fondition#
whjdr the pcrPan
claim r refund in respect of a first tax
, the rule in the proposed regulatj~na
imposed after December 31,1992
payr
the
~econd
tax
to the government
would
be
the1
taxed
and
untaxed
[rtgardlesa of the point at which the firs!
may obtain a refund. A claimant must
gpmline blendstmks *hen would be tax
is imposed], a crrpy of the first
comncryted in refineries and termball. (11 identify ht person w b paid the fuat
taxpayer'. report musl bt submitied by
-la* to h e governen! (the " h i
M'ben gasoline produced from thew
,
blends~ockoisrrmovedatthttenajnal t a x ~ @ ~ t r " l , ~ 2 ) i d e n ~ b e Y t V o ~tbc
e rpenon
~ n who pays the recond car
Accordingly, any fmt tsxpeyer required
rack. a refund would be available for the t h e chain of salcr between the rust
lo npon mull give s copy of tht report
portion representing pnviourly-taxed . .taxpayet a a d Lhe d a b a n t (3) oblain
to certain ptnonm. For example, if h e .
bltndrbdta (but nu! with respect to the -.invoicera1 mu the tranrsctionr in this:
h a t tax b impomed on tbe #ale of
remainder). T h e recordkeeping required - cbainolrales, [ I )obtain a rtatemcnt .,
gesoliae
within the bulk h n r b r /
.
to determine the amount ofthat portion
Fmm tht person who paid the 1 1 1tax
lcrmlnal sysltm to an unngiskrtd
.
would make the propoatd rule difficult that such pcrnon ham not daimed or
'buyer,the fit taxpayer must give a
- to adrmnilter for taxpayem mnd tht
- e c i v e d I u t & t for, or fthllld OE tbe
copy to the buyer. Fint tavpeyera fillhg
AmordL*gly,h*fin*l r w l 6 h o m
- . fmt tan-and (S] obtain evidenw that the
: - apply to all g a s o h e blendstockr the ,:
claimantha,
beeanditionl to :. , -optional nportr sbodd (but are not
rcpuirtdb) b U o w r i m i l ~ r p m d u r e j , .
-: speuel rule thal mpplied under the. .
-dowancc for %fund of rnanufacturetr . far bansactjoy outside ol the bulk .
. .-. .- pmposd Wdationa Q ~ toY
.- . . taxer a[ r ~ t i o ~a 1 B [ a (nlatiag
)
to .
ba~letlttrmiaalaptem .; : ,
and
.- i m E
-wht&tr the d a b a n * brr buden of
- . ., impord on ncnbulk removal8 ham
. II a pemon receivta a first taxpayer'r
- the UIl rilh nrpcl
lo Lhs ,Kond
report and subsequently aclla the .
.
; terminal of rehery; or on n o n u .
. Theconditiorilel,o itlcludt, whtm
gasoline within the bulk bander/ .
. -. e n h e 1 i n l a h e Uni~edStates.of ony
appliuble, raliafacGon of the nporting
terminal ayrtem (other than a sale in s
gasohe biendstod~if Iht perwn
=quirernent
by the person p a n
terminal thal d ~ e no!
r involve r change
. . * ' . - othenvisc liable Eor tax (1)i s e gasoline
fint tktC md a nquiremenl that the
in the position bolder). that person rnuut
regibeant (2) ha^ an unexpired
-notification ~ e t ~ c a[ ta se
in , dnimant tubmil a copy ofthe h r t
.
. give a copy of tbc fmt taxpayer'r report
.
laxpnyef'8 repon wiLh t b p refund claim. and a statement d e r c r i b q he
- . - .' .,- 5 48.40Blb) h m the operainr of the
, , --.
rubscguent sale to itr buyer. A person
These provieions we- proposed to be
. . terminal or refinery where the gasoline
.; ,
.-..blendntocks m mceived. [3) does'nok
effective on fdy 1. Im.
m c ; e j q a hnt hxpaytr'r report m a
. .
-.. . . - . .
... .
.
.
: . LJ. .: ,
.person will U6@

':::i.;
.

-'.1-,= &to

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Tw

m e

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nt

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Federal Register / Vat 57, Na 1 4 1 / Wedneeday, ]dy 22, 1992

32428

1 Rules and

Repletions

.

~ u t b o r i t yZB US.C 7805 '
Section
under ~ections408I and -2
end that
bale outeide of the buIk t r a n ~ f e r l
*B 40814 also h u e d ~ d t 28r U.S.C. ~ [ u ) :
the owner of the galoline immediately
terminal oyetem ehould [but is not
~ ~ ~ Q B . 4 - Migsued
l a wder a U.S.C.
- required ro] f ~ l l n wa aimiler procedure if beIore h e taxable event in liable for tax. ate];
Seciionr za.4081-7 and 4 8 . ~ 1 - 8 ( t ]
Where
huo
taxes
are
impored
w
i
t
h
Lhat pers;rn subsequently #ell# the
d m llrrutd undtr 28 US.C. catli{tl ' • *
respec1 to rhe same gaeoIine and the
gnsolint and the parties expect that
first
tax
ia
impoeed
before
Ianuary
1,
Par. Z Subpart H of par1 48 is
enotler tax will be imposed under
amended am follows:
section 4081 w i h respect to the ga~oline. 1993. (he firet taxpayer need not file 6
first taxpayet'r report and bt aecond
U the first taxpayer'n volume of .
1. N e w 140.40814 is sdded.
tuxpayer need not include e COPY of that
gasoline is divided among morr than
2. %tions
~ , ~ 1end
- ~1. 4 0 8 1 - ~
one buyer, multiple copies of the report report @ a refund claim lo satisfy the
revised.
&hoddbe made 8t tf,e stage the gasoline condilione for allowance under section
n,auhoritycitationfollowing
4081[e). For olher matters, taxpayers
. ir &vided. with appropriate notations
, 4 48.40D1-Z ir removed.
concerning he volume aold to each .
may rely on previously pubIiehed
4. New $4 48.4081-3 through 48.40814
buyer. ro that each buyer has a copy of guidance to the exlent thin guidance ia
edded,
the first taxpayer's report.
no! inconsi~tentwith section 4081, r r
5.
Sections an-1, 48.4083-L
The daimant'r nubmission ola copy
emended by the 1990 Act. The relevant
48-m* the authority citation
'ofthe h t laxpa yer's report doer not
guidance in this area includes Notice 87meanthatthecle~~illberllowed.For
f 0 U 0 ~ 4 8 . 4 ~ - ~ - 4 ~ l , ~ d
48.m
afe removed.
example, a claim will not be aUowed if
C.B. 4 a Notice &&log, 1-2
CB.
the first taxpayer did not actually pay
Notice
1989-2 ca 435. dm. 0. The added and =vised provieionr
read as f o h
tbe firnt tax to the novernment. A claim
Rul. 8&70.198&2 C.B. 338. d s o will not be allowed if the IRS
Special h a l y w r
cannot determine the! the first
It has been determined that these
taxpayer's report applies to the gaeoline
This section l i a b captions conteined
regulations are not major mIes an
to w h c h the claim relalea.
in
0 0 48.4081-1through 48.40814.
defined
i
n
Executive
Order
X29l.
The final regula tiom require the first
taxpayer to ntate DO the h t taxpayere& . Therefore. a Regulatory Impact Analyris ..Section# . d m - 1 G s o l i n r fox: definitions.
report that if hae not b e d or .
. in no(nquired 11also has been
[a] Ovcmirw.
rewived a udt for, or refund 01, he , determined that ~cction553b)of the
(b] Approved lerminnl or refincry.
Administrative Procedure Act I5 U.S.C.
(c) Blmded gaaoIine:
first tax (instead of requiring !he . ,
[d) Bknder.
chapter 5) and tht Replatory Fl&bility
daimant to obtain such e rtatement
(a) B d k hmnafer.
Act (5 U S : C chapter 6) do not apply to
from tbe fust taxpayer). hadcbtioa
these ngda tiom and therelam a final - ti) Bdk bansfcr/ttrrninnl ryaitm
under the find regulatiom. h e .
(8)Entu*r.
.
Regulatory Flexibility Aaaly~isir not requiremente of neetion W16(a] me
fi] Entry into Ibc United Slates.
satisfied by a Biatement by the claimant required h u a n t to stction 7W(f) of
(i)
GmroIink
the Internal Revenue Code, the notice of
that it has not included the amount of
0) Cawline blendst&
pmposed rulemaking was submitted to
the accoad tax in tbe sale price of the
(1)In general
.
,
the &ef Counsel for Advocacy of the
g a r o h e and has not collected that
(2) Roducth mquiriq l d m procesrmg.
Small Business Admimstration for
amount born its buyer.
fi)Cauolint egiswant.
comment on j l s impact on small .
One comeritetor euggested that a
(11 Jnduakial user.
businesl.
(m) Forition holder.
rr.dit rather than a =fund be allowed
when the same penon pays both the
(nl
D d b ghf0~ti00
( 0 ) Refiner.
firat and second taxes. Tbir would
(p) R t b t r y .
The principal author of &ese
occur. for e x ~ n p l ewhen
,
a taxpayer
[q] R c m w d
reguletiona i s Frank Boland. Office of
removes gasoline at a terminal rack
(r) Sole. .
trucks the gasoline to a sewnd terminel, the Aesistant Chief Counsd
[I} In grneml.
(Pesethroughs
&
Special
Lndustries],
and then removes the gnsoline at the
[Z]Example.
lnternal Rtvenuc Sewice. However.
rack of the second terminal. This
( 8 ) TcimklaL
other pemonc from the Service and the
ruggcation ir not adopted because such
(t) T d n a l opcratot.
Treanury
Deparhnent
participated
in
a credit is not authorized by nections
(u)Thm bpuntr.
their development
. .
fvl Vera3
40811el or M161dI. However. the final
iw]EEtct)vt date.
reg-daiions prdvided a simplified refund , t i a t of Subjecw
pmcedure in these csses.
h r i o n M4OBI-Z Caroline U Lax on
ZSCrmPartM
.
n m o v d a t o rcmrkalmck
Tmnsitimd Rules AppIimble After
Agricultrpt. A i m R Boats. Coal.
June 30.1H1,
and BeforeJanuary 1.1SW
fa] Ovemm.
Excise tax-, Fun. jewelry, Motor fuels.
(b) Imposition oft.*.
(JM.MBI-9) Motor vehicle* Sporting goods,nmm.
(c] l i 4 M l y for U x
,
. The 19wAa amendmentr relato
[I) h g c n d
26 CRI Pad W72
rection 4#1 are effective July 1,1991,
( t ]Iokt and ~ t v e t a liability
l
of terminal
wen tho@ $0 rs8.40~1-1through
operalor.
Reporting and recordkeeping
(3)hnditionr for avoidance of Iiabiliv.
4.408141art not effective until January requirement*
,
.

.

,,,

-

"

-

1,1993.

'-

'

Section 48.4081-9 of the final
regulations provider transitional rules
applying Ibe 1940 Act'r gesoline tax
amendment8 during the period from July
1.15Yl, to Deember 31.1592. The
iramitional d e r provide that taxable
events h h g thi~period are determined

(dl Rnie of tar
Adoption o l hendmenb to tbe
(e) Enectivc drtt. .
.
Regulatious
Section M W-3 Gasoline tax; !axoble
Accordingly, 26 CFIl parts 48 i n d 802 even& ofher fhen nmoval ol tOc terminal
are amended ea follows:
mck
Paragraph 1. The authority siLation for
[a) Ovtniew.
part Q8 is amended by e d d ~ n gthe
@] Tax on I h c removal frnm irt-fincry.
following cite tions:
(1)In general.
,

F d e d Rwttt

VO!. 57, No. 1 4 1 / Wednesday,

:?I w
m for ctrtlin mfintrit*
.
,3) L b L y lor trr
141 Ltr a u l
ic] ia*~ c n a10
m tht United Strtes.

rata
(I) b!cr Mending.

ac uarr+&ttmdpsitiou holder.
,

mceiYed

,

-. -

.

1-

-- --td

or nTmtry.

.,

',

- - [l)b ge-d
- r .-12) L i a b i i fo: tar.
..
---p]fi!edtu
- (0i u rreatlcr o!gea~lintwithin the buik
- ~ ~ S I aI! ~ ~ eUl r r .

-..-

,

+

,

'

' [I] b gc=aL

(21Lab*
for U
i3) F~:c
K tsx.
:g] 7- e n m o r d or #ale by
): k p e r a L
'2) LiabLz; ffa- t a r
,3) Fate d ~u
:4j

.

;a) W e r i m ' .

31S o n s nmovalr and enbier of
bidnot used to p d u c t .
p~b.
- !I] P t m d t n d m ~ e not
r in mmection

d a d ~ ' ~ l r i ein
n co&eetion

:I]k

.

m
w hsde~
'
:I] Tu r r d e c ~4;recriain nonbuk
= d r w e ~ b t r
,
[el S o p b . i i n m u r a ~ sand e n ~ e of
r
p n h t bkdstxkr rwe:rcd rl I n npprovtd
1or x h ~ .
id] BL >aftn tg m n i 3 r t r e d k r d u r W

=. .

gove-enl.
[t)Time

for airq daim.

(r) b a m p l c l .

,

Ig)Effective date.

'

(1) In general.
[ Z ) Crosr reference.

.

[,I I
,gcnad
[b) Elective 6118.

\ i t i L i w d 01wht to pmvide

-

Secn'on

[ a ]b t r r i r w .
(bl h p u r ~ l l o nof tax
{cl Liablkty for t4l;

i3] T o m f ocrdfiatt.
:f) H t c r r r &IL

(1)m a r r y liability.

k r i a n &S -1 4 k o h n r tw norficotion
z-a,~~u$grrr~
regirtmnL
h
{a) Dutn-n*.
Cc-tr.
8%)

:I1 h gtnrrl
'11 Fom -5 CCr66-it.
:3) Ubt u Form W m
r r noniklioa

plbibiltd

(21 S a n d a r y lir

[dl ReLancl on prewourly iwued g u i h
(el C4qdltiom for refundl or gaaoliar
under ltcljon -(el.
(I)Condl tionm to allowmnce of r a h d
(2) Form urd contmnt 01 d*im.
(3) Time tor Cding dmim
(0 EiItFtive b t m .

4 a.4001-1 Guorkr* t.f dr(a] Ovcnim.T h i m #=tion pmvidn
defdtioru for purpolsr of the
reguletionr n l n t i q lo the garnolime t
m
irnpostd by retion 4081 of the In-

.+a)Out n-iw.

A

2)n t k -

11) h l m u
!2] CudrL

Rewenut Coda.
(b] Appmvcd Icnnind or @fine&term "appmved terminal or refinery'
mean# 4 terminal or refintry that ir
operated respectively. by r gasrrlint
registrat that u a te&d operator. rn

:3] G w h l blender.
a] T i e g i c d g a d 0 1 blender.
:c) Rile c ax on parolint mmovrd or
alered fa: + o h l producbon.
e d

( 2 ) G&k

(el Tax rrrn

-

m.

=-Ate.

id] Rntr d tu on aasohol removed or

.

-

I ~ U U I .I ~

d

.-

Smtion ~ . # p B l d C a s ~ l m&*
s
mtasmmenL

-

'ection

(ii) Alcohol.

(d) Blender. T h e term "blender"
meanm any person that produces
bltnded gasoline outside h e bulk

Infmnlioa
to
oa
form by claimaat that paid h r hliax !n h

(11 h a d

Ls g

~ 2[I);f and irmade
'*lid

k

-4
G c o l i n r tar NIC.
uppl~cublccfrcrlune 30.1mI. and befoe

ill

-

provided lo rubsequent. ' -

:ej G.+%!t

<

8@)[2)] the term "blended garolmc"
doe8 not includt a mlxturt of[i) Caa~linewith mmpect to which tax
war i m p w d under aection SOBl(rl at e
rate described in f 4 8 . 4 W l q e ) (relating
to gasoho)) or with m s p ~ to
t wbch a

-

gsuLine b/cnds:o:b.

b

g m o I ~ n e t ~ u n d e r r e c t i o n r w t ~ ( t ),.
(a] Ovewltw. '
[b)Con&tion, to allowance of rthrnb '
[c] Reporting requinrnenr8.
(I] Reporting by penona paying finftar
. (21 Model rvlt taxpayer'# r t p o n
(31 O ~ t i o n l*POrti!#
l
'or mfiin.laluk

(dl Form and content of refund d i n
(1) In general.
(2) Information to bt Included M daim
by
hal did not
& h e pvemmenL

r a B l 4 C a s o l ~ n e[ox:special

lrlrb &K

[il) Any rubntance with rerpect l o
which tmx bar not been imposed under
rection CDBIIs), other than I dc minirnlr
amount DI
R pmduct ~ u t h
ar carburetor
deterpent or oxidation inhibitor.
(21 Exception. In h e case of I mixture
that IP gnoobol (a8 defmed h I 4 B . m -

c ~ s o / i raz;
n ~ condili&

(5; Exception U the lame demon intaxtr in t h e rame calender quarter. '

.h] El!!~:rc d a l e .
.%'=

r nd

jor, ond repod'ng relating to, mfunds of

event&
( r ]hro-rion
ownen, ttc

Be blend=.

Exact.

.Mia7

of(i) Ceboline with rerptct to which tax
hem been i m p o ~ e dunder section 4#n[a):

(2) Amounl of tar
{3] Liability lor tax.
(4) Example#.
.
[g] tatcr paral lion mnd failure to b$nb
(11 Laicr neparation.
.
(21 Failun to blend.
[h] W t c t i v ~drte.

srrtion 48.dat-r

~9

mix-

..

111h

Rules and Replatione

of thIr d o n the term 'blended
garoline" m e a m g e ~ o l ~ tnh tm t i s a

[IIn
)gencrd

(4 h t t d t r r
[dl ;U c b d k tmuien from r terminal
[z]Ljrbibrm~
(31 RBI* dta*.
-.
Trr bvlL VMlhr,

-

(I] Cmwbol production tax ntm.

[ f ] Camohol u x

;I]h gewol
(1.1 h b i l y for tar

-

/

Iuly 22

byagasoheregisbantthelirr[c] Blendd gasolin~+~) In gene&
Exctpt am pmuided Inparagraph [em

,

bansfer/teminal ayfitem
[el Bulk m s f w . The t e m "bulk
harider"'meem any ealufer of gasoline
by pipcline or ve8'e'*
Bulk tmnsfer/~ennindsystem. The
term "bdk hn6ferlterminal ryrtem"
means the gamlinc di~tribuHonsystem
con6isting of refmeriel. pipeliner,
vessels. and terminals. Thul. gasoline in
a refinery. pipeline. velael. or terminal is
in the bulk tren6fer/temhal system.
Gasotvle in the fuel supply tank of any
engine, or in any tank car; rail ~ a r .
trailer, truck or other equipment
suitable for ground tramporla tion ir not
in the bulk transferlterminal myatem.
[g] Entertr. Tbe term "enterer"
generaiy mearu the importer of record
(widercustoms Iaw] with respect to the
gasoline. However, if the imporler of
record ie acting as an a ~ e n [for
t
example. the imporier o l record is a
customs broker engaged by tht owner of
the g a s o h t ) , the person lor whom the
agent ir a c t h g Is the enterer. If there ir
BO importer of m o r d for ga~oline
entemd into the United States, tht
owner of the gamline at the rime I t is
bmunb! Into h e United Sbtes ir the
en te&r.
fi) Entry into the United Sbrss. Gaolhe b rntemd into the United
States U, and t n q ocmm when(1) The gamlina is brought inlo h e
Udted States and applicable customs
law rtquirel that the garolint be entered
into the United States for connumption,
use. or warehouririg or
(2) n e g a s o h e i~ brvughl into the
United States fmm Puerto Rieo and
applicablt a s t o m a law would require
t h s t the gaeoline be entered into the
-United States Iot conrumption, use, or

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Federal Reg'srer f Vn]. 5 7,No. 141

32430

I M'ednerday,

July 22-19

.

In h e ~trminal,B b l n l f e n title to 2(10,000
opern !or, or throughputter that b . .
regislered under lection 4lM.
- , - gaflon* of h e grrol~nelo C C thtn trrnaferm
tillt to Iht ZW,W gallonr to U.B cantinuen 10
lomewhere othet than Puerto Rico. . - (I) Indusrrid user. The term
hdd tht invenjory porition on A'r rrcordr*
"induolri~luaer" meanm any person h a t
. (i) Caroline. The term !'ganolkz"
wlth rr~ptctto h e one million gallonr
.
,.
.
rectiven gasoline blendrlocka by bulk
r, *an+
Bccaule B conlinuta an the gonition holder
bander
l
o
r
ite
own
use
i
n
the
. [I) All pr~ducia[including ge;ohd :es
with rerp'tct to the graolint. Ct mnrlen of
manufacture of products other than ,
.. defined in O 43.4aBI4ibj(Z))]that are
title $0iht gaaol~nefrom B tu C and tmm C l o
gerolint d e s c i h d in paragraph (i](lJ
uf D an nut nalem cl gatoline. commonly or commercially h o r n or
. .
-. . .
I .
-.sold a1 gerolint and are rui~ablefor u x this section.
(11
~
e
h
n
i
i
r
o
The
i
terra
r
i
e
r
m
i
n
n
~
[m] Position holder. The t trm
:as a mqtor fuel [olber ban products h a t
"position holder" means, w i h resptc;tm means a gaaolint rlorage and
-- have an American Society for Terdistribution facility that ir rupplied by
- ~ a l e n d roctanr number of lesa tbm 75 gasoline in a terminal, the person b a t . pipeline
or vesrel, and from,which
e:, de!edned by the motor method]; .- ,holdsthe inventory position in h e . gasoline
mafbt removed. at a rsck. ..> a i d .-..--..
. . . . . _-* _. . . gasoline, as reflected on the recordm of However,
Lhe
term
doem
not
include
any
Ihe termlnal operalor.A peraon h o l b
.- (2) C83vline blendsiocks. * .
facility
at
yhich
gaaolinc
b
l
e
n
d
?
t
d
s
the
invenlory
polition
i
n
gasoline
wheo
"~.,~)Co~oIineblends~mks--(1)1n
.
that person has a contrectual agreement are urtd in tht manulechm of products
gencml. Excevt as provided in . .
other than gasoline [as d e h e d in
with rhe terminal opcrato:fer h e use af
, - parapaph h ~ l 2of
) this section. the term
psragmph [i)(l] of this section) and from
storage faeiIitie3 and termhaling
" g a s o h r blendstocks" means-rervicer at a t e d n a l with respect to fha "whichno gasoline id removed.
. (i)Alkylate;
'. (t) TednuI opemior.The term
I
gasoline.
The term aIao indudes
- (ii] Butane:
"terminal operalor"means any person
lerminal operelor Lhalowc~gssu1ine.h
(iii]Butent;
that ownm. operates. or othctwi~e
Its
terminal.
[IV) Caralytically cracked gasoline;
wntrols a terminal, '.
..
(n)Rock. The term "rack" means a
(v) Coke: gaso!ine;
[u) Thmqghputfer.7he term .
mechanism
for
delivering
gasoline
from
(\+I Eky! tertiary butyl ether (!3BE): a refinery ur ierminal into a truck. .
"throughputter"means nny person
[vij) Hexant:
thattrailer.
railmad
car,
or
other
rneansaf
:(xiii] Hydrocrackate; 41) Ownrr ga;~lkcwithin the bulknonbulk banefer.
- .. . . . - . .
(ix)Isomerale;
wanderlteminal system [other than in
to) RPfiner, The term 'rcfmer" means
- [x] Mtlhyl tertiary butyl ether
-:. ' any penon that owns, operates, at
. s tcrrninrlh or, , .- - . ,. , .
m9;
. . .
(2)I~apositionholder.'
otherwise
controb
a refinery.
.:
.
. .
(xi)Mked xylene (not including sny : b]Refinery. The term '?e%e*"
(v) V t ~ s The
d term "versel"mcanb s
.
separated isomer of xylene]; .: . .-- , means n facility used to produce,. . . waterborne gasobc trnnsporting vessel.
(rii] Nafural gasolme;
' .
( w ) E f f e c ~ ~ r d u f e . T h l a r ~ o-h :'
is
gasoline horn m d e oil, unfinished oils.
.. - - ..
(fiiii)
Penlane; . . . - . .
effective Januuy1,1893.
natwal g a l liquids. or other - +.
(xivJPentaae mixture: hydmcatbns and from which gasoline
fi48.4011-2 'Gaaolinc tu: Lu rn mrnor,l
(xv] Poljmer gasoline:
- . . msy be removed by pipe11ne;by vessel,
(mi]Reffinate;or a t a rack However, the tern does n d mt r ttdm m e t
(xvii] Reformate;
la]-Overview.
This Kction pravider
indude a facility where orJy blended .
(xviii) Straight-mn gasoiine;
the general d
e h a t all ~ m o v a l 01
s
gasoline or gasohol (ar defined in
( x i x ) Slrsighl-run nap:,?ha:
1 ~ . ~ 8 l ~ b ) (and
t l no
l . other type of : gasoline at a terminal re& are taxable
[xx) Teriary amyl mehy.
and the position holder wivith respect to
gasoline, is produced.
the g e s ~ h is
c liable !or the t a x
.
(Tk'VfE):
[q)RemovoL The term "removal" ,
(d)
Tertiary bu&l alcohol (gasoline
[b) Imposition of ta*.Except as
means any physicaI eansier of gasolint.
provided in 8 48.40814 [relai~rqto
p a d e l (TBAJ:
and any w e oigesoline oher than as 8
(xxiil ThennaIly aackcd gasoline;
material in t h e production of gasoline or gasoline blendstockal, tax i s imposed on
(xxiii]Toluene;
the rcmova1 of gasoline from a termins1
8peciaI helm [as defined in 8 48.4041( w v ) Transmix conlaining gasoline;
if the gasoline is removed at the rack.
8[l7).However. gasoline i a not removed
and .
.
[cl Uubilityfor tar+l) Ingeneml. when it evaporates or is otherwise loot
(*xv] b y ~ L h e rproduct designated-as or destroyed. . '
T h e writion bolder with m p e c t to the
a gaaalint blendrrack by the - .
Ir) Sole-(lJ ln geneml. The term .. .- gasoline L liable for the tax imposed under paragreph @) ofthis wetion. .
Coqnissioner by revenue ruling or other "male" means[z)Joint and revemf liobihty of administntive pmnouncement. .
.
ti) The transferof tide lo, or
(2) Mutts.requiring furlher .
. . rubstantiel incidents of ownenhjp in, lermin~Iowr~far.
Thattrminal operatar
processtng.,~etrrm"gasoline; . .:
gawIine (ol)ler than gssolrne in a
, is jointly and rcvemlly liable for iht tax
blendstods" d w l not hdude any ,. .-.-; terminal) to Ihe buyer for s dmpoaed under paragraph @ j of this
. -.
. .< , .
product that urnnot, without furthet . .
+ecticn if- .. .
consideradon, which may corisisi of
processing. be used in the prctduction of money. *crviets. ur other property or - (i)The position hoIder with respec! to
galroline desvibed in paragraph { i # ~
of.]
{ii) The tranafer of the inventory - - - : t h e gasoline i s a person otber than Ihe
- porition
thir a d o n For example, mixed
termin3 operator and it not n g a s ~ l i n t
with respect to g ~ ~ o l i n
inea
hydrocarborr etream that IBproduced in . terminal il the banrferec btcomm the
regirtrant:and
r natural gas p m e s s h g plant is no! a
{ii)nte tcrminai operator ban not met
pasilion hoIder with rr6pcct to the.
gasoline blcnd~rockit the sueam cannot gasoline.
ihe conditions of paragraph (cI(3) of this
be used to produce gaaoline described in
[2)fixomple.TbefoIlowingtxrmple. section.
peregrapb [i){l)
of this section without
- .
illustrater thenrlr olthis paragraph [r) [3) CondiLions{or uvoidancc of
further processing.
.liability,
A
terminal
operator
i
n
not
Example. B o m 4 one million gallon3 of ' '
(k)Gasoline registmnt.The term .
liable for tax under paragreph ( c ) ( z )of gasoline that 11 rnromd In Am
' terminal. 0 also
"gasohne regisbani" meenr an enlerer. .- (I h e pornition holder Mth m p r c l ro Ihr
this section i1, rt the time of the removal,
industrial user. refmer, terminal gasolint. While he g a ~ o l i n tremain. alomd
h e terminal operator+
.

warebouring if the gencljne were

.. bmughl in13 the United Stetcs from

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