As used in the Motor Fuel Tax Code:
1. "Act" or "this act" means the Motor Fuel Tax Code;
2. "Agricultural purposes" means clearing, terracing or
otherwise preparing the ground on a farm; preparing soil for
planting and fertilizing, cultivating, raising and harvesting crops;
raising and feeding livestock and poultry; building fences; pumping
water for any and all uses on the farm, including irrigation;
building roads upon any farm by the owner or person farming same;
operating milking machines; sawing wood for use on a farm; producing
electricity for use on a farm; movement of tractors, farm implements
and equipment from one field to another and use of farm tractors to
move farm products from farm to market;
3. "Biodiesel" means a fuel comprised of mono-alkyl esters of
long chain fatty acids generally derived from vegetable oils or
animal fats, commonly known as "B100", that is commonly and
commercially known or sold as a fuel that is suitable for use in a
highway vehicle. The fuel meets this requirement if, without
further processing or blending, the fuel is a fluid and has
practical and commercial fitness for use in the propulsion of a
highway vehicle;
4. "Biodiesel blend" means a blend of biodiesel fuel with
petroleum-based diesel fuel, commonly designated as "Bxx", where
"xx" represents the volume percentage of biodiesel fuel in the
blend, and that is commonly and commercially known or sold as a fuel
that is suitable for use in a highway vehicle. The fuel meets this
requirement if, without further processing or blending, the fuel is
a fluid and has practical and commercial fitness for use in the
propulsion of a highway vehicle;
5. "Blend stock" means any petroleum product component of
gasoline, such as naphtha, reformate, or toluene, that can be
blended for use in a motor fuel without further processing.
However, the term does not include any substance that:
a. will be ultimately used for consumer nonmotor-fuel
use, and
b. is sold or removed in drum quantities (55 gallons) or
less at the time of the removal or sale;
6. "Blended fuel" means a mixture composed of gasoline or
diesel fuel and another liquid, other than a de minimis amount of a
product such as carburetor detergent or oxidation inhibitor, that
can be used as a fuel in a highway vehicle. This term includes
gasohol, ethanol and fuel grade ethanol;
7. "Blender" means any person that produces blended motor fuel
outside the bulk transfer/terminal system;
8. "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 capable of use or otherwise sold for use in the
generation of power for the propulsion of a motor vehicle, an
airplane, or a motorboat. The term does not include that blending
that occurs in the process of refining by the original refiner of
crude petroleum or the blending or products known as lubricating oil
and greases;
9. "Bulk end user" means a person who receives into the
person's own storage facilities in transport truck lots of motor
fuel for the person's own consumption;
10. "Bulk plant" means a motor fuel storage and distribution
facility that is not a terminal and from which motor fuel may be
removed at a rack;
11. "Bulk transfer" means any transfer of motor fuel from one
location to another by pipeline tender or marine delivery within the
bulk transfer/terminal system;
12. "Bulk transfer/terminal system" means the motor fuel
distribution system consisting of refineries, pipelines, vessels,
and terminals. Gasoline in a refinery, pipeline, vessel, or
terminal is in the bulk transfer/terminal system. Motor fuel in the
fuel supply tank of any engine, or in any tank car, rail car,
trailer, truck, or other equipment suitable for ground
transportation is not in the bulk transfer/terminal system;
13. "Tax Commission" or "Commission" means the Oklahoma Tax
Commission;
14. "Compressed natural gas" means a volume of natural gas
consisting primarily of methane which has been reduced to
approximately one percent (1%) of its original volume for purposes
of storage and for use as a fuel in motor vehicles;
15. "Consumer" means the user of the motor fuel on the public
highways of this state;
16. "Dead storage" means the amount of motor fuel that will not
be pumped out of a storage tank because the motor fuel is below the
mouth of the draw pipe. For purposes of Section 500.1 et seq. of
this title, a dealer may assume that the amount of motor fuel in
dead storage is two hundred (200) gallons for a tank with a capacity
of less than ten thousand (10,000) gallons and four hundred (400)
gallons for a tank with a capacity of ten thousand (10,000) gallons
or more;
17. "Delivery" means the placing of motor fuel or any liquid
into the fuel tank of a motor vehicle;
18. "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;
19. "Diesel fuel" means any liquid, including but not limited
to, biodiesel, biodiesel blend or other diesel blended fuel, that is
commonly or commercially known or sold as a fuel that is suitable
for use in a diesel-powered highway vehicle. A liquid meets this
requirement if, without further processing or blending, the liquid
has practical and commercial fitness for use in the propulsion
engine of a diesel-powered highway vehicle. Except as provided in
subsection B of Section 500.4 of this title, "diesel fuel" does not
include jet fuel sold to a buyer who is registered with and
certified by the Internal Revenue Service to purchase jet fuel
subject to the Internal Revenue Service;
20. "Diesel-powered highway vehicle" means a motor vehicle
operated on a highway that is propelled by a diesel-powered engine;
21. "Distributor" means a person who acquires motor fuel from a
supplier or from another distributor for subsequent sale or use;
22. "Dyed diesel fuel" means diesel fuel that is required to be
dyed pursuant to United States Environmental Protection Agency rules
or is dyed pursuant to Internal Revenue Service rules or pursuant to
any other requirements subsequently set by the United States
Environmental Protection Agency or Internal Revenue Service
including any invisible marker requirements;
23. "Eligible purchaser" means a person who has been authorized
by the Commission pursuant to Section 500.23 of this title to make
the election pursuant to Section 500.22 of this title;
24. "Enterer" includes any person who is the importer of
record, pursuant to federal customs law, with respect to motor fuel.
If the importer of record is acting as an agent, the person for whom
the agent is acting is the enterer. If there is no importer of
record of motor fuel entered into this state, the owner of the motor
fuel at the time it is brought into this state is the enterer;
25. "Entry" means the importing of motor fuel into this state.
Motor fuel brought into this state in the fuel tank of a motor
vehicle shall not be deemed to be an "entry" if not removed from the
fuel tank except as used for the propulsion of that motor vehicle,
except to the extent that motor fuel was acquired tax free for
export or a refund of tax was claimed as a result of exportation
from the state from which that motor fuel was transported into this
state;
26. "Export" means to obtain motor fuel in this state for sale
or other distribution in another state. In applying this
definition, motor fuel delivered out of state by or for the seller
constitutes an export by the seller and motor fuel delivered out of
state by or for the purchaser constitutes an export by the
purchaser;
27. "Exporter" means any person, other than a supplier, who
purchases motor fuel in this state for the purpose of transporting
or delivering the fuel to another state or country;
28. "Farm tractor" means all tractor-type, motorized farm
implements and equipment but shall not include motor vehicles of the
truck-type, pickup truck-type, automobiles, and other motor vehicles
required to be registered and licensed each year pursuant to the
provisions of the motor vehicle license and registration laws of
this state;
29. "Fuel transportation vehicle" means any vehicle designed
for highway use which is also designed or used to transport motor
fuels and includes transport trucks and tank wagons;
30. "Gasoline" means all products, including but not limited
to, gasoline blend stocks, commonly or commercially known or sold as
gasoline that are suitable for use as a motor fuel. Gasoline does
not include products that have an American Society for Testing
Materials ("A.S.T.M.") octane number of less than seventy-five (75)
as determined by the "motor method". Except as provided in
subsection B of Section 500.4 of this title, "gasoline" does not
include aviation gasoline provided that the buyer is registered to
purchase aviation gasoline free of tax and the seller obtains
certification of such fact satisfactory to the Commission prior to
making the sale;
31. "Gasoline blend stocks" includes any petroleum product
component of gasoline, such as naphtha, reformate, or toluene, that
can be blended for use in a motor fuel. The term shall not include
any substance that will be ultimately used for consumer nonmotor-
fuel use and is sold or removed in drum quantities of 55 gallons or
less at the time of the removal or sale;
32. "Gross gallons" means the total measured motor fuel,
exclusive of any temperature or pressure adjustments, in U.S.
gallons;
33. "Heating oil" means a motor fuel that is burned in a
boiler, furnace, or stove for heating or industrial processing
purposes;
34. "Highway vehicle" means a self-propelled vehicle that is
designed for use on a highway;
35. "Import" means to bring motor fuel into this state by any
means of conveyance other than in the fuel supply tank of a motor
vehicle. In applying this definition, motor fuel delivered into
this state from out of state by or for the seller constitutes an
import by the seller, and motor fuel delivered into this state from
out of state by or for the purchaser constitutes an import by the
purchaser;
36. "Import verification number" means the number assigned by
the Commission with respect to a single transport truck delivery
into this state from another state upon request for an assigned
number by an importer or the transporter carrying motor fuel into
this state for the account of an importer;
37. "In this state" means the area within the border of this
state, including all land within the borders of this state owned by
the United States of America;
38. "Indian country" means:
a. land held in trust by the United States of America for
the benefit of a federally recognized Indian tribe or
nation,
b. all land within the limits of any Indian reservation
under the jurisdiction of the United States
Government, notwithstanding the issuance of any
patent, and including rights-of-way running through
the reservation,
c. all dependent Indian communities within the borders of
the United States whether within the original or
subsequently acquired territory thereof, and whether
within or without the limits of a state, and
d. all Indian allotments, the Indian titles to which have
not been extinguished, including individual allotments
held in trust by the United States or allotments owned
in fee by individual Indians subject to federal law
restrictions regarding disposition of said allotments
and including rights-of-way running through the same.
The term shall also include the definition of Indian country as
found in 18 U.S.C., Section 1151;
39. "Indian tribe", "tribes", or "federally recognized Indian
tribe or nation" means an Indian tribal entity which is recognized
by the United States Bureau of Indian Affairs as having a special
relationship with the United States. The term shall also include
the definition of a tribe as defined in 25 U.S.C., Section 479a;
40. "Invoiced gallons" means the gallons actually billed on an
invoice in payment to a supplier;
41. "K-1 kerosene" means a petroleum product having an A.P.I.
gravity of not less than forty degrees (40°), at a temperature of
sixty degrees (60°) Fahrenheit and a minimum flash point of one
hundred degrees (100°) Fahrenheit with a sulphur content not
exceeding five one-hundredths percent (0.05%) by weight;
42. "Liquefied natural gas" means a volume of natural gas
consisting primarily of methane which has been cooled to
approximately negative two hundred sixty (-260) degrees Fahrenheit
in order to convert it to a liquid state for purposes of storage and
use as a fuel in motor vehicles;
43. "Liquid" means any substance that is liquid in excess of
sixty degrees (60°) Fahrenheit and a pressure of fourteen and seven-
tenths (14.7) pounds per square inch absolute;
44. "Motor fuel" means gasoline, diesel fuel and blended fuel;
45. "Motor fuel transporter" means a person who transports
motor fuel outside the bulk terminal/transfer system by transport
truck or railroad tank car;
46. "Motor vehicle" means every automobile, truck, truck-
tractor or any motor bus or self-propelled vehicle not operated or
driven upon fixed rails or tracks. The term does not include:
a. farm tractors or machinery including tractors and
machinery designed for off-road use but capable of
movement on roads at low speeds,
b. a vehicle operated on rails, or
c. machinery designed principally for off-road use;
47. "Net gallons" means the motor fuel, measured in U.S.
gallons, when corrected to a temperature of sixty degrees (60°)
Fahrenheit (13° Celsius) and a pressure of fourteen and seven-tenths
(14.7) pounds per square inch (psi);
48. "Permissive supplier" means an out-of-state supplier that
elects, but is not required, to have a supplier's license pursuant
to Section 500.1 et seq. of this title;
49. "Person" means natural persons, individuals, partnerships,
firms, associations, corporations, estates, trustees, business
trusts, syndicates, this state, any county, city, municipality,
school district or other political subdivision of the state,
federally recognized Indian tribe, or any corporation or combination
acting as a unit or any receiver appointed by any state or federal
court;
50. "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 fuel at the terminal. The term includes a terminal operator who
owns fuel in the terminal;
51. "Public highway" means every road, toll road, highway,
street, way or place generally open to the use of the public as a
matter of right for the purposes of vehicular travel, including
streets and alleys of any town or city notwithstanding that the same
may be temporarily closed for construction, reconstruction,
maintenance or repair;
52. "Qualified terminal" means a terminal designated as a
qualified terminal pursuant to the Internal Revenue Code, regulation
and practices and which has been assigned a terminal control number
("tcn") by the Internal Revenue Service;
53. "Rack" means a mechanism for delivering motor fuel from a
refinery, a terminal, or a bulk plant into a railroad tank car, a
transport truck or other means of bulk transfer outside of the bulk
transfer/terminal system;
54. "Refiner" means any person that owns, operates, or
otherwise controls a refinery within the United States;
55. "Refinery" means a facility used to produce motor fuel from
crude oil, unfinished oils, natural gas liquids, or other
hydrocarbons and from which motor fuel may be removed by pipeline,
by vessel, or at a rack;
56. "Removal" means any physical transfer other than by
evaporation, loss, or destruction of motor fuel from a terminal,
manufacturing plant, customs custody, pipeline, marine vessel such
as a barge or tanker, refinery or any receptacle that stores motor
fuel;
57. "Retailer" means a person that engages in the business of
selling or distributing to the consumer within this state;
58. "Supplier" means a person that is:
a. registered pursuant to Section 4101 of the Internal
Revenue Code for transactions in motor fuels in the
bulk transfer/terminal distribution system, and
b. one of the following:
(1) the position holder in a terminal or refinery in
this state,
(2) imports motor fuel into this state from a foreign
country,
(3) acquires motor fuel from a terminal or refinery
in this state from a position holder pursuant to
a two-party exchange, or
(4) the position holder in a terminal or refinery
outside this state with respect to motor fuel
which that person imports into this state on the
account of that person.
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. "Supplier" also means a person
that produces alcohol or alcohol derivative substances in this
state, produces alcohol or alcohol derivative substances for import
to this state into a terminal, or acquires upon import by truck,
railcar or barge into a terminal or refinery, alcohol or alcohol
derivative substances. "Supplier" includes a permissive supplier
unless specifically provided otherwise;
59. "Tank wagon" means a straight truck having multiple
compartments designed or used to carry motor fuel;
60. "Terminal" means a storage and distribution facility for
motor fuel, supplied by pipeline or marine vessel which is
registered as a qualified terminal by the Internal Revenue Service
and from which motor fuel may be removed at a rack;
61. "Terminal bulk transfers" include but are not limited to
the following:
a. a marine barge movement of fuel from a refinery or
terminal to a terminal,
b. pipeline movements of fuel from a refinery or terminal
to a terminal,
c. book transfers of product within a terminal between
suppliers prior to completion of removal across the
rack, and
d. two-party exchanges between licensed suppliers;
62. "Terminal operator" means any person that owns, operates,
or otherwise controls a terminal, and does not use a substantial
portion of the motor fuel that is transferred through or stored in
the terminal for its own use or consumption or in the manufacture of
products other than motor fuel. A terminal operator may own the
motor fuel that is transferred through or stored in the terminal;
63. "Throughputter" means any person that:
a. receives transfer of motor fuel from refiners,
importers, terminal operators, or other
throughputters,
b. stores the motor fuel in a terminal, and
c. owns the motor fuel or holds the inventory position to
the motor fuel, as reflected on the records of the
terminal operator, at the time of removal or sale from
a terminal;
64. "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;
65. "Transport truck" means a semitrailer combination rig
designed or used for the purpose of transporting motor fuel over the
highways;
66. "Transporter" means any operator of a pipeline, barge,
railroad or transport truck engaged in the business of transporting
motor fuels;
67. "Two-party exchange" means a transaction in which the motor
fuel is transferred from one licensed supplier or licensed
permissive supplier to another licensed supplier or licensed
permissive supplier and:
a. which transaction includes a transfer from the person
that holds the original inventory position for motor
fuel in the terminal as reflected on the records of
the terminal operator, and
b. the exchange transaction is simultaneous with removal
from the terminal by the receiving exchange partner.
However, in any event, the terminal operator in the books and
records of such terminal operator treats the receiving exchange
party as the supplier which removes the product across a terminal
rack for purposes of reporting such events to this state;
68. "Ultimate vendor" means a person that sells motor fuel to
the consumer;
69. "Undyed diesel fuel" means diesel fuel that is not subject
to the United States Environmental Projection Agency dyeing
requirements, or has not been dyed in accordance with Internal
Revenue Service fuel dyeing provisions;
70. "Vehicle fuel tank" means any receptacle on a motor vehicle
from which fuel is supplied for the propulsion of the motor vehicle;
and
71. "Wholesaler" means a person that acquires motor fuel from a
supplier or from another wholesaler for subsequent sale and
distribution at wholesale.
Added by Laws 1996, c. 345, § 3, eff. Oct. 1, 1996. Amended by Laws
2006, c. 327, § 2, eff. July 1, 2006; Laws 2011, c. 163, § 2, eff.
Jan. 1, 2012; Laws 2013, c. 375, § 2, eff. Jan. 1, 2014.‹ Prev All Oklahoma sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.