Oregon Auditors may have Motor Carrier Fueling Info You Didn’t Realize They Had
posted in Alerts by Brian Gray
Oregon Auditors may have Motor Carrier Fueling Info You Didn’t Realize They Had
At a recent MCTAC meeting, the discussion surrounded purchasing fuel ex-tax at the pump with an Oregon credential and claiming credit for fuel taxes paid on mileage reports according to Oregon law (ORS 825.486 and OAR 740-055-0110).
Within this presentation, here are four main takeaways from this meeting:
Trucks over 26,000lbs traveling in Oregon can purchase fuel without state tax being added into the price by showing their Oregon Weight Mile Tax credential at fueling stations set up to be able to sell fuel without sales tax.
There are some fuel stations who don’t cater to large trucks and if large trucks use them to buy fuel, they are charged the tax plus end up paying the weight mile tax which is being double taxed.
If tax were paid at the pump, a credit can be taken (with having the proof) on their weight mile tax filing to get that money back.
Here’s where it gets interesting. Fueling stations that have more than 100 fuel transactions sold without tax must report those sales to Oregon. Oregon then uses those reports for auditing carriers. Oregon auditors can approach an audit with fueling information about the carrier that most carriers don’t realize they have.
Below are more details of purchasing fuel ex-tax at the pump with an Oregon Credential.
Claiming Credit for Fuel Taxes Paid on Mileage Reports:
- Acceptable Documentation
- Date and location
- Name of carrier
- Fuel type
- OR Weight Receipt or Temp Pass Number
- Amount of tax paid
The four places to purchase fuel are:
- Retail stations
- At the time of sale the retailer determines if the individual sale is ex-tax or tax paid.
- If the fuel is purchased with a fuel card, the information on the fuel statement regarding the tax status of the sale may or may not be correct.
- Cardlock sites
- At the time each fuel card is issued the customer decides its preferred tax status; either tax paid or ex-tax. The Seller will then issue cards per the customer’s request.
- The customer/carrier needs to complete an Exemption Certificate for the Seller to make these sales ex-tax.
- Fleet Fueling or Wet Hose
- Fleet fueling or on-site mobile fueling will appear on a fuel statement issued by the seller of the fuel.
- The customer/carrier needs to complete an Exemption Certificate for the Seller to make these sales ex-tax.
- Bulk fuel
- If a carrier maintains a bulk tank they may be purchasing fuel tax paid or ex-tax.
Exemption Certificate:
An Exemption Certificate is a form a motor carrier can complete and provide their fuel vendor, so the Seller is not legally obligated to collect tax on cardlock or fleet fueling purchases.
The Exemption Certificate only applies to diesel fuel purchased at cardlocks or through fleet fueling in Oregon and only exempts Oregon State tax.
Data Collection and Fuel Tax Verification:
- Electronic Reporting is required by fuel sellers with 100 or more transactions effective July 1, 2015 (OAR 735-176-0160).
- MCTD has access to these reports, including individual transactions.
- This data is used to verify WMT reporting and fuel tax credits claimed.
