142.872. Diverted fuel, liability. - Missouri Statutes

Diverted fuel, liability.

142.872. 1. In the event a distributor diverts motor fuel removedfrom a terminal in this state from an intended destination outside thisstate as shown on the terminal-issued shipping papers to a destinationwithin this state, the distributor, in addition to compliance with thenotification provided for in section 142.917, shall notify and pay the taximposed by section 142.803 to the state upon the same terms and conditionsas in section 142.836. Each supplier who precollects the tax pursuant tothis chapter shall not be subject to any civil penalties or interestimposed pursuant to this chapter for any corrections resulting from adiversion of the motor fuel from the original destination as represented bythe purchaser or the agent of the purchaser. However, the supplier anddistributor may, by mutual agreement, permit the supplier to assume theliability of the exporter and adjust the taxes of the exporter payable tothe supplier. The exporter shall remain liable for all interest andpenalties which may accrue on this amount.

2. In the event that a person removes from a bulk plant in this stateand exports motor fuel upon which the tax imposed by this chapter haspreviously been paid or accrued, the exporter may apply for and thedirector shall issue a refund of the tax upon the exporter providing proofof export satisfactory to the director.

3. In the event that a person diverts motor fuel from a destinationoutside this state to a destination inside this state after having removedthe product from a terminal outside this state, the importer, in additionto compliance with the notification provided for in section 142.917, shallnotify the state and shall pay the tax upon import on the same terms andconditions as set out in section 142.836. However, an importer who haspurchased the product from a licensed supplier may, by mutual agreementwith the supplier, permit the supplier to assume the liability of theimporter and adjust the taxes of the importer payable to the supplier.

4. In the event of a legal diversion by a distributor from adestination in this state to another state the distributor diverting theproduct shall apply for a refund from this state in conformity with section142.815. The distributor may, by mutual agreement with the supplier,assign the claim to the supplier who may take a credit. In the event of alegal diversion by a supplier, the supplier may take a credit fordiversions directed by that supplier for the account of the supplier.

5. In the event that the other state involved in a cross-bordershipment has entered into a multistate compact with this state, thedistributor or supplier who diverts shall pay or seek refund only upon thedifference in state taxes with notice to both states upon proof shown ofpayment to the actual destination state. The director shall periodicallydetermine procedures for making this adjustment and maintain a list ofthose states which meet these criteria.

(L. 1998 S.B. 619)

Effective 1-1-99