Sec. 03.06.01.45. Sales and Use Tax on Sales of Dyed Diesel Fuel by Marinas

A. Definitions.

(1) In this regulation, the following terms have the meanings indicated.

(2 Terms Defined.

(a) “Dyed diesel fuel” means diesel fuel that is dyed under U.S. Environmental Protection Agency rules for high sulfur diesel fuel or is dyed under Internal Revenue Service rules for nontaxable use.

(b) “Marina” means an entity that maintains a place of business where motor fuel is sold primarily to vessels.

B. Tax Computation.

(1) A marina that sells dyed diesel fuel on or after July 1, 2012:

(a) Shall pay the sales and use tax on that sale directly to the Comptroller; and

(b) May not collect the tax from the buyer as a separately stated item.

(2) To compute the sales and use tax, the marina shall apply the 6 percent tax rate to 94.5 percent of the taxable gross receipts from the sale of dyed diesel fuel.

C. Records. A marina shall issue a receipt or other record of sale to the buyer that clearly indicates that the sales and use tax is included in the price charged.

D. Exempt Sales.

(1) If a sale of dyed diesel fuel by a marina qualifies for exemption from sales and use tax, the vendor shall reduce the tax-included price of the dyed diesel fuel by the proportionate amount of tax included in the price.

(2) The receipt or other record of sale shall clearly indicate that the price charged has been reduced by the tax amount.

(3) A sale of dyed diesel fuel or repair part to be used in a commercial fishing vessel or a vessel otherwise used for commercial purposes is exempt from the tax.A marina may require that the customer certify in a signed written statement that the dyed diesel fuel or repair part is to be used in a commercial fishing vessel or for an otherwise commercial purpose if the record of sale does not otherwise clearly indicate entitlement to exemption.