A. The tax imposed by Section 4 of this act on the date of an increase in the tax rate set out in Section 4 of this act shall be applicable to previously taxed motor fuel:
1. In excess of one thousand (1,000) gallons held in storage by a bulk end user or a consumer; and
2. Inventory held for sale by a fuel vendor.
B. Persons in possession of motor fuel subject to this section:
1. Shall take an inventory to determine the gallons in storage for purposes of determining the tax on inventory in determining the amount of motor fuel tax due under this section;
2. May deduct the amount of motor fuel in dead storage;
3. May deduct these gallons in which tax at the full rate has previously been paid;
4. May take a deduction for gallons of dyed diesel fuel; and
5. Report the gallons listed in paragraph 1 of this subsection on forms provided by the Commission.
C. The amount of the inventory tax is equal to the inventory tax rate times the gallons in storage as determined pursuant to the provisions of this section. The inventory tax rate is equal to the difference between the increased tax rate minus the previous tax rate to which those gallons were previously subjected to tax.
D. The inventory tax report required by this section shall be accompanied by payment of the inventory tax calculated in accordance with this section, and payment made on or before the due date of the report.
Added by Laws 1996, c. 345, § 9, eff. Oct. 1, 1996.