Sec. 03.03.01.16. Exemption Certificates

A. Exemption certificates are issued to identify purchasers authorized to acquire tax exempt special fuel from a licensed special fuel seller, or turbine fuel seller. They are issued and applicable only for specific types of fuel and valid only for the period indicated on the certificate. Suppliers are responsible for the tax on all sales made to holders of expired or otherwise invalid exemption certificates and for the tax on all sales to purchasers not in possession of a valid exemption certificate, except as provided for in Regulation .02B(1) of this chapter.

B. The type of special fuel to be exempt from the tax will be determined by the certificate number as designated on schedules published by the Comptroller and available to licensed suppliers upon request.

C. If the exemption certificate holder discontinues business, the exemption certificate shall be returned to the Comptroller for cancellation. Exemption certificates are non-transferable and holders are expected to apply for and secure a new certificate under the following circumstances:

(1) When there has been a change in the name of the company or entity even though the ownership remains the same;

(2) When the business of an individual or a partnership is taken over and continued by a corporation;

(3) When the licensee is a corporation and surrenders its charter and the business is continued by an individual, a partnership, or any other legal person;

(4) When an individual licensed as a dealer, user, or seller, dies, and the business is continued by another person or entity;

(5) When an individually owned business is taken over and continued by a partnership;

(6) When a business owned by a partnership is taken over and continued by an individual;

(7) When a business which is owned by an individual, partnership, or corporation is taken over and continued by a different individual, partnership, or corporation;

(8) When any other situation arises in which a business that is owned by one type of legal entity is taken over and continued by a different legal entity;

(9) When there is a change in the Federal Identification Number; or

(10) When the use of a previously exempted product for which the exemption was granted is changed.

D. An application for an exemption certificate shall be on forms provided by the Comptroller and shall indicate the type of special fuel for which an exemption is sought.

E. An exemption certificate for kerosene may be issued to sellers of kerosene at retail if:

(1) Kerosene is the only special fuel (other than propane) offered for sale and never sold for taxable use;

(2) All other special fuels (other than propane) offered for sale are purchased tax paid from the supplier; or

(3) The seller is a licensed special fuel seller.

F. An exemption certificate for propane may be issued to sellers of propane at retail if:

(1) Propane is the only special fuel (other than kerosene) offered for sale and never sold for taxable use;

(2) All other special fuels (other than kerosene) offered for sale are purchased tax paid from the supplier; or

(3) The seller is a licensed special fuel seller.