§ 105-449.87. Backup tax and liability for the tax. - North Carolina Statutes

§ 105‑449.87.  Backuptax and liability for the tax.

(a)        Tax. – An excisetax at the motor fuel rate is imposed on the following:

(1)        Dyed diesel fuelthat is used to operate a highway vehicle for a use that is not a nontaxableuse under § 4082(b) of the Code.

(2)        Motor fuel that wasallowed an exemption from the motor fuel tax and was then used for a taxablepurpose.

(3)        Motor fuel that isused to operate a highway vehicle after an application for a refund of tax paidon the motor fuel is made or allowed under G.S. 105‑449.107(a) on thebasis that the motor fuel was used for an off‑highway purpose.

(4)        Repealed by SessionLaws 1995 (Regular Session, 1996), c. 647, s. 19.

(5)        Motor fuel that,based on its shipping document, is destined for delivery to another state andis then diverted and delivered in this State.

(b)        (Effective untilJanuary 1, 2009) General Liability. – The operator of a highway vehiclethat uses motor fuel that is taxable under subdivisions (a)(1) through (a)(3)of this section is liable for the tax. If the highway vehicle that uses thefuel is owned by or leased to a motor carrier, the motor carrier is jointly andseverally liable for the tax. If the end seller of motor fuel taxable underthis section knew or had reason to know that the motor fuel would be used for apurpose that is taxable under this section, the end seller is jointly andseverally liable for the tax. If the Secretary determines that a bulk‑enduser or retailer used or sold untaxed dyed diesel fuel to operate a highway vehiclewhen the fuel is dispensed from a storage facility or through a meter markedfor nonhighway use, all fuel delivered into that storage facility is presumedto have been used to operate a highway vehicle. An end seller of dyed dieselfuel is considered to have known or had reason to know that the fuel would beused for a purpose that is taxable under this section if the end sellerdelivered the fuel into a storage facility that was not marked as required byG.S. 105‑449.123.

(b)        (EffectiveJanuary 1, 2009) General Liability. – The operator of a highway vehiclethat uses motor fuel that is taxable under subdivisions (a)(1) through (a)(3)of this section is liable for the tax. If the highway vehicle that uses thefuel is owned by or leased to a motor carrier, the motor carrier is jointly andseverally liable for the tax. If the end‑seller of motor fuel taxableunder this section knew or had reason to know that the motor fuel would be usedfor a purpose that is taxable under this section, the end‑seller is jointlyand severally liable for the tax. If the Secretary determines that a bulk end‑useror retailer used or sold untaxed dyed diesel fuel to operate a highway vehiclewhen the fuel is dispensed from a storage facility or through a meter markedfor nonhighway use, all fuel delivered into that storage facility is presumedto have been used to operate a highway vehicle. An end‑seller of dyeddiesel fuel is considered to have known or had reason to know that the fuelwould be used for a purpose that is taxable under this section if the end‑sellerdelivered the fuel into a storage facility that was not marked as required byG.S. 105‑449.123.

(c)        Diverted Fuel. – Theperson who authorizes a change in the destination state of motor fuel from thestate given on the fuel's shipping document to North Carolina is liable for thetax due on the motor fuel. If motor fuel is diverted from North Carolina toanother state, only the person who authorized the fuel to be diverted iseligible for a refund of the amount of tax paid on the fuel.  (1995, c. 390, s. 3; 1995(Reg. Sess., 1996), c. 647, s. 19; 1997‑60, s. 8; 1998‑146, s. 5;1999‑438, s. 22; 2002‑108, s. 10; 2008‑134, s. 38.)