La. Revenue and Taxation § 47:818.2

Current with changes from the 2024 Legislative Session

Section 47:818.2 - Definitions

As used in this Part, unless the context requires otherwise, the following terms have the meanings ascribed herein:

(1) "Alcohol" means fuel grade ethanol or methanol or a mixture of fuel grade ethanol or methanol, excluding denaturant and water that is a minimum of ninety-eight percent ethanol or methanol by volume.

(2) "Aviation fuel" means aviation gasoline or aviation jet fuel.

(3) "Aviation fuel dealer" means a person who is the operator of an aircraft servicing facility, delivers aviation fuel exclusively into the fuel supply tanks of aircraft or into equipment used solely for servicing aircraft and used exclusively off-highway.

(4) "Aviation gasoline" means any gasoline that is intended for or primarily used for propelling aircraft, which is invoiced as aviation gasoline or is received, sold, stored, or withdrawn from storage by any person for the purpose of propelling aircraft. Aviation gasoline shall not mean motor fuel intended for and primarily used for propelling motor vehicles.

(5) "Aviation jet fuel" means motor fuel designed for use in the operation of jet or turbo-prop aircraft, and sold or used for that purpose.

(6) "Biodiesel fuel" means any motor fuel or mixture of motor fuels that is derived, in whole or in part, from agricultural products or animal fats, or the wastes of such products or fats, and is advertised or offered for sale as suitable for use or used in an internal combustion engine.

(7) "Blended fuel" means a mixture composed of gasoline or diesel fuel and another liquid, including but not limited to gasoline blend stocks, gasohol, ethanol, methanol, fuel grade alcohol, diesel fuel enhancers and resulting blends, other than a de minimus amount of a product such as carburetor detergent or oxidation inhibitor, that can be used in an internal combustion engine.

(8) "Blender" means a person who produces blended motor fuel outside the bulk transfer/terminal system.

(9) "Blending" means the mixing of one or more petroleum products, with or without another product, regardless of the original character of the product blended, if the product obtained by the blending is suitable for use in an internal combustion engine. Blending does not include mixing that occurs in the process of refining by the original refiner of crude petroleum or the blending of products known as lubricating oil in the production of lubricating oils and greases.

(10) "Bulk consumer" means a person who receives into the person's own storage facilities, by transport truck or tank wagon, motor fuel for the person's own consumption.

(11) "Bulk plant" means a motor fuel storage and distribution facility other than a retail service station that is not a terminal approved by the Internal Revenue Service and from which motor fuel may be removed at a rack.

(12) "Bulk transfer" means any transfer of motor fuel from one location to another by pipeline tender or marine delivery within a bulk transfer/terminal system, including but not limited to the following:

(a) A marine vessel movement of motor fuel from a refinery or terminal to a terminal.

(b) Pipeline movements of motor fuel from a refinery or terminal to a terminal.

(c) Book transfer of motor fuel within a terminal between licensed suppliers prior to completion of removal across the rack.

(d) Two-party exchange between licensed suppliers or between licensed suppliers and permissive suppliers.

(13) "Bulk transfer/terminal system" means a motor fuel distribution system consisting of refineries, pipelines, marine vessels, and terminals approved and licensed as required by the Internal Revenue Service. Motor fuel in a refinery, a pipeline, a terminal, or a marine vessel transporting motor fuel to a refinery or terminal is in the bulk transfer/terminal system provided all operators are licensed and registered as required by the Internal Revenue Service. Motor fuel not in the bulk transfer/terminal system includes motor fuel in a motor fuel storage facility including but not limited to a bulk plant that is not part of a refinery or terminal, in the motor fuel supply tank of any engine or motor vehicle, in a marine vessel transporting motor fuel to a motor fuel storage facility that is not in the bulk transfer/terminal system, or in any tank car, rail car, trailer, truck, or other equipment suitable for ground transportation or any movement by pipeline or vessel whose operators are not licensed and registered as required by the Internal Revenue Service.

(14) "Cargo tank" means an assembly that is used to transport, haul, or deliver liquids and that consists of a tank having one or more compartments mounted on a wagon, automobile, truck, trailer, or wheels. The term includes accessory piping, valves, and meters, but does not include a fuel supply tank connected to the carburetor or fuel injector of a motor vehicle.

(15) "Carrier" means an operator of a pipeline or marine vessel engaged in the business of transporting motor fuel above the terminal rack.

(16) "Commercial fisherman" means a fisherman licensed as such by the Louisiana Department of Wildlife and Fisheries and registered as such with the Department of Revenue.

(17) "Commercial watercraft" means a watercraft used in the business of commercial fishing, transporting persons or property for compensation or hire, or used in any other trade or business.

(18) "Compressed natural gas" means natural gas that has been compressed and is advertised, offered for sale, suitable for use, sold, or used as an engine motor fuel.

(19) "Designated inspection site" means any state highway inspection station, weigh station, agricultural inspection station, mobile station, or other location designated by the secretary to be used as a motor fuel inspection site.

(20) "Destination state" means the state, territory, or foreign country to which motor fuel is directed for delivery into a storage facility, a receptacle, a container, or a type of transportation equipment for the purpose of resale or use.

(21) "Diesel fuel" means any liquid or a combination of liquids blended together that is suitable for or used for the propulsion of diesel-powered engines. The term includes products commonly referred to as but not limited to kerosene, jet fuel, light cycle oil, #1 diesel fuel, #2 diesel fuel, dyed or undyed diesel fuel, biodiesel, distillate fuel, transmix, or heating oil, but does not include gasoline, aviation gasoline, liquefied natural gas, liquefied petroleum gas, or compressed natural gas.

(22) "Distributor" means any person who purchases motor fuel from a supplier, permissive supplier, or licensed distributor in this state for subsequent sale and distribution at wholesale to a licensed distributor, retail dealer, or bulk consumer.

(23) "Diversion" means the accidental or deliberate transporting of motor fuel from the source to a destination other than the original destination state printed on the shipping document.

(24) "Diversion number" means the number assigned by a party authorized to assign the number that relates to a single cargo tank delivery of motor fuel that is diverted from the original destination state printed on the shipping document.

(25) "Dyed diesel fuel" means diesel fuel that is required to be dyed pursuant to the requirements of the Internal Revenue Service.

(26) "Dyed gasoline" means gasoline that is required to be dyed pursuant to R.S. 47:1681 et seq. and is destined for uses subject to refund as provided therein.

(27) "Export" means to obtain motor fuel in Louisiana for sale or other distribution in another state, territory, or foreign country.

(28) "Exporter" means a person that exports motor fuel from this state. The seller is the exporter of motor fuel delivered out-of-state by or for the seller, and the purchaser is the exporter of motor fuel delivered out-of-state by or for the purchaser.

(29) "Fuel grade ethanol" means the ASTM standard in effect on the effective date of this Chapter as the D-4806 specification for denatured motor fuel grade ethanol for blending with gasoline.

(30) "Fuel supply tank" means any receptacle on a motor vehicle from which motor fuel is supplied for the propulsion of the motor vehicle.

(31) "Gasohol" means a blended motor fuel composed of gasoline and fuel grade alcohol.

(32) "Gasoline" means any liquid or combination of liquids blended together, offered for sale, sold, or used as the fuel for a gasoline-powered engine. The term includes but is not limited to gasohol, aviation gasoline, and blend stocks, but does not include racing gasoline, diesel fuel, aviation jet fuel, liquefied natural gas, liquefied petroleum gas, or compressed natural gas.

(33) "Gasoline blend stocks" means any petroleum product component of gasoline, including naphtha, reformate, or toluene, listed in Treasury Regulation Section 48.4081-1(c)(3), that can be blended for use in a motor fuel. The term does not include a substance that will be ultimately used for consumer nonmotor fuel.

(34) "Gross gallons" means the total measured product, exclusive of any temperature or pressure adjustments, considerations, or deductions, in United States gallons.

(35) "Highway" means every way or place of whatever nature, open to use for purposes of vehicular travel in this state, including the streets and alleys in towns and cities.

(36) "Highway vehicle" means any self-propelled vehicle, trailer, or semitrailer that is designed or used for transporting persons or property over the highway, and includes all vehicles subject to registration for highway use.

(37) "Import" means to bring motor fuel into this state by motor vehicle, marine vessel, pipeline, or any other means other than in the fuel supply tank of motor vehicles.

(38) "Importer" means a person that imports motor fuel into this state. The seller is the importer for motor fuel delivered into this state from outside of this state by or for the seller, and the purchaser is the importer for motor fuel delivered into this state from outside of this state by or for the purchaser.

(39) "Industrial user" means any person that receives gasoline blend stocks for its own use in the manufacture of any product other than finished gasoline.

(40) "International Fuel Tax Agreement" or "IFTA" means the international fuel tax agreement required by the Intermodal Surface Transportation Efficiency Act of 1991, Public Law 102-240, 105 Stat. 1914, and referred to in 49 USC 31701, including subsequent amendments to that agreement.

(41) "Interstate motor fuel user" means a person who imports motor fuel into this state in the fuel supply tanks of motor vehicles, other than automobiles, owned or operated by him.

(42) "Kerosene" means the petroleum fraction containing hydrocarbons that are slightly heavier than those found in gasoline and naphtha, with a boiling range of 180 to 300 degrees Celsius.

(43) "Liquefied natural gas" means natural gas that has been cooled to a liquid state and is advertised, offered for sale, sold, suitable for use, or used as an engine motor fuel.

(44) "Liquefied petroleum gas" means the gas derived from petroleum or natural gas which is in a gaseous state at normal atmospheric temperature and pressure and maintained in the liquid state at normal atmospheric temperature by means of suitable pressure and is advertised, offered for sale, sold, suitable for use, or used as an engine motor fuel. The term "liquified petroleum gas" or "LPG" as used in this Part means propane.

(45) "Motor fuel" means gasoline, diesel fuel, and special fuels that can be used to propel a motor vehicle.

(46) "Motor fuel transporter" means a person who transports motor fuel outside the bulk transfer/terminal system by means of a transport truck, railroad tank car, barge, or marine vessel.

(47) "Net gallons" means the amount of motor fuel measured in gallons when adjusted to a temperature of sixty degrees Fahrenheit and a pressure of fourteen and seven-tenths pounds of pressure per square inch.

(48) "Permissive supplier" means a person who may not be subject to the taxing jurisdiction of this state, but who is registered under Section 4101 of the Internal Revenue Code for transactions in motor fuel in the bulk transfer/terminal system, and is a position holder in motor fuel located only in another state or a person who only receives motor fuel in another state pursuant to a two-party exchange.

(49) "Person" means and includes, in addition to the definition contained in R.S. 47:2, all cities, municipalities, and other subdivisions, departments, agencies, boards, and instrumentalities of a state.

(50) "Pipeline operator" is any person that operates a pipeline within the bulk transfer/terminal system and is registered under Section 4101 of the Internal Revenue Code.

(51) "Position holder" means the person who holds the inventory position in motor fuel in a terminal, as reflected on the records of the terminal operator. A person holds the inventory position in motor fuel when that person has a contract with the terminal operator for the use of storage facilities and terminaling services for motor fuel at the terminal. The term includes a terminal operator who owns motor fuel in the terminal.

(52) "Principal" means an individual; if a partnership, all its partners; if a corporation, all its officers, directors, and controlling direct or indirect owners; or if a limited liability company, all its members.

(53) "Racing gasoline" means gasoline that contains lead, has an octane rating of 110 or higher, does not have detergent additives, and is not suitable for use as a motor fuel in a motor vehicle used on a public highway.

(54) "Rack" means a mechanism for delivering motor fuel from a refinery, terminal, marine vessel, or bulk plant into a transport vehicle, railroad tank car, or other means of transfer that is outside the bulk transfer/terminal system.

(55) "Real party in interest" means a person, known or unknown to the secretary, who will receive financial benefits as a result of a gasoline or diesel fuel license being issued to the applicant or licensee.

(56) "Refinery" means a facility for the manufacturing or reprocessing of finished or unfinished products usable as motor fuel and from which motor fuel may be removed by pipeline or marine vessel or at a rack.

(57) "Removal" means a physical transfer other than by evaporation, loss, or destruction. A physical transfer to a transport vehicle or other means of conveyance outside the bulk transfer/terminal system is complete upon delivery into the means of conveyance. "Removal" may also be referred to as "breaking bulk".

(58) "Retail dealer" or "dealer" means a person who sells motor fuel at retail or dispenses motor fuel at a retail location to the ultimate consumer.

(59) "Sale" means a transfer of title, exchange, or barter of motor fuel.

(60) "Secretary" means the secretary of the Department of Revenue or an authorized designee.

(61) "Shipping document" means a delivery document issued by a terminal or bulk plant operator in conjunction with the sale, transfer, or removal of motor fuel from the terminal or bulk plant that discloses the destination state.

(62) "Small refinery" means a refinery for which the average aggregate daily crude oil throughput for a calendar year, as determined by dividing the aggregate throughput for the calendar year by the number of days in the calendar year, does not exceed seventy-five thousand barrels.

(63) "Special fuel" means any gas or liquid, other than gasoline or diesel fuel, used or suitable for use as motor fuel in an internal combustion engine or motor to propel any form of vehicle, machine, or mechanical contrivance. The term includes but is not limited to compressed natural gas, liquefied natural gas, and liquefied petroleum gas.

(64) "Special fuel fleet dealer" means a person who produces or purchases compressed natural gas, liquefied natural gas, or liquefied petroleum gas and who maintains storage facilities for those fuels and delivers all or part of the fuel produced or stored into the fuel supply tank of a motor vehicle.

(65) "Suitable for use" means the functional use of any liquid to power a vehicle irrespective of the liquid not being within the ASTM and/or Environmental Protection Agency specifications.

(66) "Supplier" means a person who is either of the following:

(a) Subject to the general taxing jurisdiction of this state and is registered under 26 U.S.C. 4101 for transactions in motor fuel in the bulk transfer/terminal distribution system, and meets any of the following requirements:

(i) A position holder in motor fuel in a terminal or refinery in this state and may concurrently also be a position holder in motor fuel in another state;

(ii) A person who receives motor fuel in this state pursuant to a two-party exchange;

(iii) A person who has transactions in this state in a pipeline or terminal with no physical removal;

(iv) May also be a terminal operator, provided that a terminal operator shall not be considered a supplier based solely on the fact that the terminal operator handles motor fuel consigned to it within a terminal.

(b) Subject to the general taxing jurisdiction of this state and is registered under 26 U.S.C. 4101 as a producer of agri-biodiesel, biodiesel, or alcohol.

(67) "Terminal" means a motor fuel storage and distribution facility to which a terminal control number has been assigned by the Internal Revenue Service, to which motor fuel is supplied by pipeline or marine vessel, and from which motor fuel may be removed at a rack.

(68) "Terminal operator" means a person who owns, operates, or otherwise controls a terminal.

(69) "Transmix" means the buffer or interface between two different products in a pipeline shipment or a mix of two different products within a refinery or terminal that results in an off-grade mixture.

(70) "Transport vehicle" means a tank truck vehicle designed or used to carry motor fuel over the highway and includes but is not limited to a straight truck, a straight truck/trailer combination, or a semitrailer combination rig.

(71) "Trustee" means a person who is licensed as a supplier or a permissive supplier and receives tax payments from and on behalf of another pursuant to provisions of this Part.

(72) "Two-party exchange" means a transaction in which motor fuel is transferred from one licensed supplier or permissive supplier to another licensed supplier or permissive supplier pursuant to an exchange agreement, including a transfer from the person who holds the inventory position in taxable motor fuel in the terminal as reflected on the records of the terminal operator, and

(a) Is completed prior to removal of the product from the terminal by the receiving exchange partner, and

(b) Is recorded on the terminal operator's books and records with the receiving exchange partner as the supplier/permissive supplier that removes the motor fuel across the terminal rack for purposes of reporting the transaction to this state.

(73) "Vessel" means and includes every description of watercraft used, or capable of being used, as a means of transportation on water.

(74) "Vessel operator" is any person that operates a vessel within the bulk transfer/terminal system and is registered as required under 26 USC 4101 of the Internal Revenue Code and the regulations adopted thereunder.

La. Revenue and Taxation § 47:818.2

Acts 2005, No. 252, §1, eff. July 1, 2006; Acts 2007, No. 303, §1, eff. July 9, 2007; Acts 2015, No. 147, §1, eff. July 1, 2015; Acts 2017, No. 145, §1, eff. July 1, 2017; Acts 2022, No. 72, §2.

Amended by Acts 2022, No. 72,s. 2, eff. 8/1/2022.

Amended by Acts 2017, No. 145,s. 1, eff. 7/1/2017.

Amended by Acts 2015, No. 147,s. 1, eff. 7/1/2015.

Acts 2005, No. 252, §1, eff. 7/1/2006; Acts 2007, No. 303, §1, eff. 7/9/2007.