§ 105-449.85. Compensating tax on and liability for unaccounted for motor fuel losses at a terminal. - North Carolina Statutes

§ 105‑449.85. Compensating tax on and liability for unaccounted for motor fuel losses at aterminal.

(a)        Tax. – An excisetax at the motor fuel rate is imposed annually on unaccounted for motor fuellosses at a terminal that exceed one‑half of one percent (0.5%) of thenumber of net gallons removed from the terminal during the year by a systemtransfer or at a terminal rack. To determine if this tax applies, the terminaloperator of the terminal must determine the difference between the following:

(1)        The amount of motorfuel in inventory at the terminal at the beginning of the year plus the amountof motor fuel received by the terminal during the year.

(2)        The amount of motorfuel in inventory at the terminal at the end of the year plus the amount ofmotor fuel removed from the terminal during the year.

(b)        (Effective untilJanuary 1, 2009) Liability. – The terminal operator whose motor fuel isunaccounted for is liable for the tax imposed by this section and is liable fora penalty equal to the amount of tax payable. Motor fuel received by a terminaloperator and not shown on an informational return filed by the terminaloperator with the Secretary as having been removed from the terminal ispresumed to be unaccounted for. A terminal operator may establish that motorfuel received at a terminal but not shown on an informational return as havingbeen removed from the terminal was lost or part of a transmix and is thereforenot unaccounted for.

(b)        (EffectiveJanuary 1, 2009) Liability. – The terminal operator whose motor fuel isunaccounted for is liable for the tax imposed by this section and is liable fora penalty equal to the amount of tax payable. Motor fuel received by a terminaloperator and not shown on an informational return filed by the terminal operatorwith the Secretary as having been removed from the terminal is presumed to beunaccounted for motor fuel. A terminal operator may establish that it canaccount for motor fuel received at a terminal but not shown on an informationalreturn as having been removed from the terminal if the motor fuel was lost orpart of a transmix.  (1995, c. 390, s. 3; 1995 (Reg. Sess., 1996), c. 647, s. 18; 2008‑134,s. 36.)