Oklahoma § 68-500.19 - Election regarding fuel removals from out-of-state

§ 68-500.19. Election regarding fuel removals from out-of-state

terminals.

A. Any licensed supplier or licensed permissive supplier may

make a blanket election with the Commission to treat all removals

from all of its out-of-state terminals with a destination in this

state as shown on the terminal-issued shipping paper as if the

Oklahoma Statutes - Title 68. Revenue and Taxation

removals were removed across the rack by the supplier from a

terminal in this state for all purposes.

B. The election provided by this section shall be made by

filing a "notice of election" with the Commission.

C. The Commission shall release a list of electing suppliers

under this section upon request by any person.

D. The absence of an election by a supplier under this section

shall in no way relieve the supplier of responsibility for remitting

the tax imposed by this act upon the removal from an out-of-state

terminal for import into this state by the supplier.

E. Any supplier which makes the election provided by this

section shall precollect the tax imposed by this act on all removals

from a qualified terminal on its account as a position holder, or as

a person receiving fuel from a position holder pursuant to a twoparty exchange agreement without regard to the license status of the

person acquiring the fuel from the supplier, except deliveries from

out-of-state terminals to licensed bonded importers, the point or

terms of sale, or the character of delivery.

F. Each supplier who elects to precollect tax under this act

agrees to waive any defense that the state lacks jurisdiction to

require collection on all out-of-state sales by such person as to

which the person had knowledge that the shipments were destined for

this state and that this state imposes the requirement pursuant to

this subsection under its general police powers to regulate the

movement of motor fuels.

G. Each supplier who elects to precollect tax pursuant to this

act shall not be subject to any civil penalties or interest imposed

pursuant to this act for any corrections resulting from a diversion

of the motor fuel from the original destination as represented by

the purchaser or the agent of the purchaser. However, the supplier

and exporter under this subsection may, by mutual agreement, permit

the supplier to assume the liability of the exporter and adjust the

taxes of the exporter payable to the supplier.

Added by Laws 1996, c. 345, § 19, eff. Oct. 1, 1996.