Fuel exported in fuel tanks

From the 2024 DOR Tax Exemption Study

Det. No. 03-0224E, 24 WTD 36 (February 23, 2005) 41 Copies of monthly invoices specifying reimbursement of taxes, if any beyond the base price, were not supplied.3 The taxpayer has a letter from one of its exchange partners indicating, upon knowledge and belief, that “all appropriate taxes that are due on petroleum products” were paid by that partner on products exchanged with the taxpayer. According to the taxpayer, this exchange partner does not receive any product through the pipeline from Canada and, accordingly, the partner’s product was previously subject to the OST. 2. HST and OST Export Credit for fuel Sold in Tanks. Under schedule 12 of the Oil Spill Tax audit, the Department disallowed export credits taken on sales of bunker fuel for which the taxpayer did not provide documentation to show that this fuel was placed into the export stream. Some of the transactions listed in this schedule were for fuel that was placed aboard vessels or barges at the taxpayer’s marine terminals for shipment to other marine terminals in this state. Such transactions are not at issue (the taxpayer has not disputed this portion of the assessment), only transactions where the taxpayer alleges ex