Montana Administrative Code

18.15.129 DETERMINATION OF WHOLESALE PRICE OF FUEL (1) The price the department charges a contracted licensed distributor for seized fuel shall be no less than the wholesale price as determined by this rule. (2) The wholesale price of seized fuel shall be determined by averaging …

18.15.130 CONTRACTING FOR PURCHASE OF SEIZED FUEL (1) The department's purchasing bureau shall contract for the purchase and disposition of seized fuel. (2) The following requirements shall be included in any contract for the purchase and disposition of seized fuel: (a) The distr…

18.15.201 DETERMINATION OF WHEN GASOLINE, SPECIAL FUEL, OR AVIATION FUEL DISTRIBUTED (1) When gasoline, special fuel, or aviation fuel is withdrawn from a refinery or pipeline terminal in this state, the gasoline, special fuel, or aviation fuel shall be deemed to be distributed b…

18.15.202 DISTRIBUTOR'S BOND (1) Gasoline, special fuel, or aviation fuel distributors must furnish the Department of Transportation a corporate surety bond executed by the distributor as principal with a corporate surety authorized to transact business in this state or other col…

18.15.203 DISTRIBUTOR'S STATEMENTS (1) Every distributor must file a monthly distributor's license tax report, on a form furnished by the department within the time prescribed by 15-70-410, MCA. Supporting detail schedules on forms furnished by the department must accompany the d…

18.15.204 DISTRIBUTOR'S RECORDS (1) Every distributor importing, manufacturing, refining, dealing in, transporting, or storing fuel in this state must maintain and keep records, receipts, invoices, including electronic format data, and other pertinent papers the department requir…

18.15.205 DISTRIBUTOR'S INVOICE (1) Except as provided in (2), any distributor who sells and delivers gasoline, special fuel, or aviation fuel in this state must issue an original invoice at the time of delivery to the purchaser. Each invoice must contain the following: (a) a pre…

18.15.210 WHOLESALE DISTRIBUTOR (1) As used in these rules, the term "wholesale distributor" and "wholesale distribution" includes any person who: (a) purchases gasoline, special fuel, or aviation fuel and subsequently sells and delivers the gasoline, special fuel, or aviation fu…

18.15.211 WHOLESALE DISTRIBUTOR'S OBLIGATIONS (1) A wholesale distributor must comply with all the laws, rules, and other obligations which are imposed on a "distributor" of gasoline, special fuel, or aviation fuel. Authorizing statute(s): 15-70-104, MCA Implementing statute(s): …

18.15.217 ETHANOL-BLENDED GASOLINE BLENDERS (1) Pursuant to 15-70-401, MCA, a person who blends ethanol with gasoline to produce ethanol-blended gasoline is a "distributor" if no tax has been paid on the ethanol or gasoline blended to produce ethanol-blended gasoline. As a distri…

18.15.218 TREATMENT OF ETHANOL-BLENDED GASOLINE (1) For the purposes of Title 15, chapter 70, MCA, reference to gasoline includes ethanol-blended gasoline (regardless of where produced and how produced). Gasoline and ethanol-blended gasoline are taxed at the rate specified in 15-…

18.15.219 ETHANOL CONTENT (1) A product consisting of 100% anhydrous ethanol is not considered to be ethanol-blended gasoline. Authorizing statute(s): 15-70-104, MCA Implementing statute(s): 15-70-401, MCA History: NEW, 1980 MAR p. 972, Eff. 3/14/80; TRANS, from Dept. of Revenue,…

18.15.225 INCIDENCE OF THE FUEL TAX (1) The incidence of the distributor's license tax is on the distributor and not on the user. Fuel is not exempt from taxation because the ultimate user or consumer is an agency of the United States government, including the United States armed…

18.15.226 DISTRIBUTOR - SUPPORTING DOCUMENTATION FOR BAD DEBT CREDIT (1) A credit claim for taxes paid on accounts for which the distributor received no compensation must accompany documents or copies of documents showing the accounts were worthless and claimed as bad debts on th…

18.15.227 PREPAYMENT OF MOTOR FUEL TAXES (1) A licensed distributor may overpay its known motor fuel tax liability. The overpayment must be designated as such by the distributor. The credit balance created by the overpayment will apply to future tax deficiencies if the gasoline, …

18.15.301 INTRASTATE FUEL DELIVERIES (REPEALED) (REPEALED) Authorizing statute(s): 15-70-104, MCA Implementing statute(s): 15-70-403, MCA History: Eff. 12/31/72; TRANS, from Dept. of Revenue, Ch. 512, L. 1991, Eff. 7/1/91; AMD, 1996 MAR p. 913, Eff. 4/5/96; TRANS & AMD from ARM 1…

18.15.302 EXPORT DELIVERIES (1) If the delivery is placed into storage in this state and later distributed at a point outside this state, the exporter may not claim credit for the petroleum cleanup fee. Authorizing statute(s): 15-70-104, 75-11-319, MCA Implementing statute(s): 15…

18.15.303 IMPORT DELIVERIES (1) If a distributor ships gasoline, special fuel, or aviation fuel into Montana and delivers the fuel directly to another distributor before the fuel passes through the pipeline storage in this state, the delivering distributor must report the transac…

18.15.304 BLENDING STOCKS (1) Distributors may transfer casinghead or catalytic blending stocks to other licensed distributors without the payment of tax; provided these products will be used for blending purposes only and the blended product will be distributed as either gasolin…

18.15.305 EXEMPTION - U.S. AND OTHER STATES (1) Licensed distributors making sales of gasoline, special fuel, or aviation fuel, to the United States government or a state entity FOB rack for use by the purchaser out of the state of Montana must report the sale as a credit to the …

18.15.401 SELLER'S INVOICE (1) Any person, who sells and delivers gasoline or special fuel to a purchaser on which a refund may be claimed, must issue an invoice at the time of delivery. Only one invoice may be issued for each delivery. If all information is not provided on the i…

18.15.402 FILING INVOICES (1) No altered or corrected invoice will be accepted for refund purposes when errors occur. The original invoice must not be altered or corrected but must be voided and a new original invoice issued. All altered or corrected invoices must be marked void …

18.15.408 REFUND PERCENTAGES FOR PTO OR AUXILIARY ENGINES (1) The following percentages are allowed for the refund of gasoline or special fuel used in operating a PTO or auxiliary engines when the above records are maintained. The amounts are specified as a percentage of the tota…

18.15.409 LOST OR DESTROYED GASOLINE, SPECIAL FUEL, OR AVIATION FUEL (1) The department reserves the right to demand from a person claiming a refund under the provisions of 15-70-425, 15-70-426, 15-70-432, or 15-70-434, MCA, that positive proof be submitted of the exact amount of…

18.15.410 GASOLINE, SPECIAL FUEL, OR AVIATION FUEL LOST FROM STORAGE (1) In cases where gasoline, special fuel, or aviation fuel is placed into a storage tank or similar facility and the gasoline, special fuel, or aviation fuel is lost as a result of a leak in either the tank, th…

18.15.411 PROCESSING CLAIMS FOR REFUNDS (1) If any claim or any part of a claim is rejected, the department may, after investigation, require the claimant to file an amended statement or provide supporting documentation before action is taken under the following terms: (a) Suppor…

18.15.412 AGRICULTURAL USE FUEL TAX REFUND (1) The use of gasoline or special fuel by a person who earns income while engaged in the business of farming or ranching, which qualifies as agricultural use, may apply for a refund of the applicable tax on the gallons of gasoline or sp…

18.15.418 CARDTROL COMPLIANCE AND ADMINISTRATION (1) A special fuel seller is responsible for payment of the tax on dyed special fuel dispensed through a cardtrol, keylock, or similar device from an unattended pump or dispensing unit if the seller knows the fuel is sold to a cust…

18.15.419 STATEMENT FOR KEYLOCK CARDTROL REPORTING (1) Any seller who sells gasoline or special fuel to a purchaser through a keylock or cardtrol on which a refund may be claimed in accordance with 15-70-430, MCA, shall provide the purchaser with a statement of fuel purchased. Th…

18.15.501 ESTIMATE OF DIESEL POWERED VEHICLES SUPPLY TANKS (1) When a diesel powered vehicle is found to have dyed fuel in the supply tank(s) and has been traveling on public roads, the department will assess the special fuels tax on each of the diesel powered vehicle's supply ta…

18.15.502 OFF-HIGHWAY VEHICLE/EQUIPMENT (1) For the purpose of this rule, an "off-highway or off-road vehicle" is defined as a vehicle not designed to transport persons or property upon the public roads and highways of this state, including special mobile (SM) plated vehicles and…

18.15.503 DYED SPECIAL FUEL ALLOWANCE (1) The department will allow the state of Montana, cities, counties, school districts, and federal and tribal governments to use dyed, low sulphur special fuel on the public roads if the following criteria are met: (a) The vehicles are owned…

18.15.504 DYED SPECIAL FUEL (1) The department has adopted the following provisions relating to dye color and concentration requirements for tax-exempt diesel fuel, excluding buses and governmental vehicles. (a) In Montana red dye will be used to identify all tax-exempt special f…

18.15.601 IFTA AGREEMENT (1) The department adopts and implements the International Fuel Tax Agreement (IFTA) as set forth in 15-70-121, MCA. Authorizing statute(s): 15-70-104, 15-70-121, MCA Implementing statute(s): 15-70-121, MCA History: NEW, 1999 MAR p. 645, Eff. 4/9/99; AMD,…

18.15.602 QUARTERLY REPORTS - TAX PAYMENT - REVOCATION (1) Every special fuel user licensed under the International Fuel Tax Agreement (IFTA) pursuant to 15-70-121, MCA, must file with the department, on forms prescribed by the department, a report showing the amount of fuel used…

18.15.603 IFTA LICENSE BOND REQUIREMENT (1) The department may require IFTA licensees, or others as determined by the department, who fail to timely file a fuel tax return(s) or timely pay fuel tax liability to post a bond equivalent to twice the licensee's estimated quarterly ta…

18.15.604 IFTA REINSTATEMENT FEE (REPEALED) Authorizing statute(s): 15-70-104, MCA Implementing statute(s): 15-70-121, MCA History: NEW, 2004 MAR p. 2278, Eff. 9/24/04; TRANS & AMD from ARM 18.10.125, 2016 MAR p. 1849, Eff. 10/15/16; REP, 2020 MAR p. 2238, Eff. 12/12/20.

18.15.610 TERMINATION OF AN IFTA LICENSE (1) Upon ceasing operations in Montana, each special fuel user licensed under IFTA, shall: (a) Submit a final return with the original license; (b) Pay all tax, penalty, and interest due; (c) Request cancellation of the IFTA license. (2) A…

18.15.611 CONFISCATION OF CERTAIN LICENSE COPIES (1) A reproduced copy of an IFTA license that is not clear and legible is invalid and is subject to confiscation by motor carrier services division personnel, and authorized employees of the department. The person from whom the lic…

18.15.612 FAILURE TO MAINTAIN RECORDS (1) In the event a special fuel user fails to retain the required records for fuel used in internal combustion engines to produce materials used on taxable projects, the department shall use the industry standard or other available informatio…

18.15.701 ETHANOL DISTRIBUTORS (1) It is the responsibility of the ethanol distributor, including anyone who imports ethanol, to collect and remit to the department the tax that is due on the ethanol pursuant to 15-70-403, MCA. Authorizing statute(s): 15-70-104, MCA Implementing …

18.15.702 PROCESSING OF THE TAX INCENTIVE PAYMENT (1) The ethanol distributor shall make one application, on forms available from the administration division, for the payment of the tax incentive to the division not later than the 25th day of the calendar month following the mont…

18.15.703 OFFSETS (1) The division shall offset against any ethanol tax incentive payments which are due under the act: (a) any overpayment or unauthorized payment made on prior ethanol tax incentive applications; and (b) any finally assessed tax due from the ethanol distributor …

18.15.710 QUARTERLY REPORTS (1) The department may require quarterly reports from the applicant to ensure ethanol implementation is on schedule. Authorizing statute(s): 15-70-104, 15-70-522, MCA Implementing statute(s): 15-70-512, 15-70-522, MCA History: NEW, 1998 MAR p. 3113, Ef…

18.15.711 CANCELLATION OR DENIAL OF LICENSE (1) The department may cancel or deny a license if it is discovered that the applicant has provided inaccurate information to the department. Authorizing statute(s): 15-70-104, 15-70-522, MCA Implementing statute(s): 15-70-511, 15-70-52…

18.15.712 USE OF MONTANA PRODUCTS (1) The payment of the ethanol tax incentive will be based solely on the percentage of Montana products, including Montana wood or wood products, that are used in the production of anhydrous ethanol. Authorizing statute(s): 15-70-522, MCA Impleme…

18.15.801 ALTERNATIVE FUEL DEALER LICENSE (1) A person may not act as an alternative fuel dealer in this state unless the person is a holder of a valid alternative fuel dealer license issued by the department. (2) Every alternative fuel dealer must apply for and obtain an alterna…