restricted fuel
distributors; reporting requirements
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Committee on Transportation |
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Committee on Energy, Utilities & Technology |
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Caucus and COW |
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Third Read |
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As Passed the House |
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Senate Bill 1027 requires the submission of additional information from restricted gasoline distributors to the Arizona Department of Transportation (ADOT).
SB 1027 passed the Transportation Committee unamended.
Arizona law defines “supplier” as a person who is registered pursuant to section 4101 of the United States Internal Revenue Code for transactions in motor fuels in the bulk transfer terminal distribution system… A “restricted distributor” is a person who: 1. Transports for sale motor vehicle fuel to another county from the county that was originally reported by the supplier; 2. Purchases or otherwise acquires motor vehicle fuel in tank car or cargo lots; 3. Sells the motor vehicle fuel for delivery in this state or export from this state; 4. Is not required by this article to be licensed as a supplier.
Suppliers in Arizona collect fuel taxes at the “rack” where the fuel “breaks bulk.” Restricted distributors move fuel between Arizona’s counties. Suppliers and restricted distributors must work together to accurately report to ADOT the county in which the sale of the fuel takes place at the retail level. This ensures the appropriate calculation and distribution of Highway User Revenue Funds since these monies are distributed based on the gallons of fuel sold in each county. According to ADOT, the current reporting system is not sufficient to prevent the occurrence of reporting errors. Current law not only specifies distribution of HURF revenues, but also provides for corrective action in cases of erroneous reporting or other errors that may arise so that revenue distribution errors are corrected. Laws 2001, Chapter 40 limited HURF and VLT distribution adjustments to 25% per month.
ADOT further states that adjustments for amended reports and audits are a constant fact affecting the HURF distribution. While most adjustments are not material to the HURF recipients, on occasion a major supplier may amend its reports or a major audit of a company may result in a significant HURF distribution adjustment. As a result of HURF distribution adjustments, monies to HURF recipients may be dramatically affected. Approximately one year ago, a county experienced a drop of 48% in its monthly distribution as the result of the filing of multiple amended reports by a major fuel supplier, and recently certain cities experienced drops in their monthly revenue from HURF of between 33 to 36%.
Currently, restricted distributors are required to report the following on a monthly basis to ADOT:
1. The quantity and particular description of the fuel received by interstate shipment and delivered intercounty.
2. The name of the consignor and consignee.
3. The date shipped.
4. The date received.
5. How it was shipped.
6. Other information the director requires.
· Adds to the reporting requirements of restricted fuel distributors to include the amount of fuel acquired by the restricted distributor during the prior calendar month and the disposition of the fuel in each county.
· Contains a delayed effective date of January 1, 2003
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45th
Legislature
Second
Regular Session 2 April 2, 2002
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