OAR 735-174-0020: Records and Invoice Requirements

(1) A tax refund claimant must retain records to substantiate a claim. Failure of the claimant to maintain required records and provide them for examination by the Department constitutes a waiver of all rights to the refund. (2) The following rules shall govern records maintained to support refund claims and apply to all fuel maintained in storage other than a fuel can with a capacity of five gallons or less: (a) The fuel storage tank must be equipped with a properly working metering device or have a consistent method for determining the amount of fuel withdrawn from storage for fuel to be considered for refund. For storage tanks equipped with a metering device, meter readings must be taken and documented each time fuel is dispensed. (b) If more than one storage tank is maintained, tanks must be named or labeled and the invoices must be marked, by the supplier, at the time of delivery to identify the storage tank into which the fuel was delivered and indicate the accurate amount of fuel placed in each tank. (c) Consumption records must be maintained for all bulk storage tanks regardless of the fuel use. All fuel purchases and distributions must be fully accounted for by detailed withdrawal records, to accurately show the manner in which it was used. This includes monthly meter readings and inventory readings. (A) Consumption records must be made available upon request by the Department when fuel is used from a bulk storage tank. (B) The separate storage method is not a sufficient means to determine refundable and non-refundable usage without the support of consumption records. (d) Any fuel on hand (by actual measurement) should be deducted from a claim and should be reported as an opening inventory on the next claim. Credit for the inventory will be allowed on the next claim if it is filed within fifteen months from the filing date of the claim that established the inventory. (e) Fuel Purchased for Other than Bulk Storage. Motor vehicle fuel purchased in small containers for non-highway use only, should be so identified on the purchase invoice as to the type of container or equipment fueled and include the name or signature of the purchaser. (f) Fuel purchased at a cardlock. When fuel is purchased at a cardlock and a portion of that fuel is refundable the following conditions must be met: (A) Cards must be assigned to a specific vehicle and the vehicle plate number, unit number, or description must be included on the cardlock statement at the time the statement is produced. (B) Cards must be assigned to a piece of equipment or group of equipment and that must be indicated on the cardlock statement at the time the statement is produced. (C) Cards must be assigned to a mobile fuel storage tank that is designated to contain gasoline to fill a group of equipment, and this must be indicated on the cardlock statement at the time the statement is produced. A mobile tank that is fueled at a cardlock is considered to be bulk storage. (g) Proof of Highway Use. When minimal or no non-refundable use deduction, as determined by the Department, is made from invoices attached to the claim, the claimant should be prepared to show additional invoices or other proof of purchase of public road fuel upon request of the Department. (A) Proof of non-refundable use includes all fuel purchases for all vehicles registered to the claimant. (B) Proof of non-refundable use does not eliminate the requirements to keep and provide, upon request of the Department, consumption records for fuel used from a bulk storage tank that includes fuel used only in a refundable manner. (h) Persons claiming a tax refund on motor vehicle fuel exported to another state in the fuel supply tank of a motor vehicle are required to provide the following: (A) Evidence of payment of tax to another state and information for each vehicle showing the source of all motor vehicle fuel used, the total number of miles traveled, and the miles traveled in each state; and (B) Evidence satisfactory to the Department of the amount of motor vehicle fuel that was exported (i) A person or agency who operates a licensed motor vehicle on and off public highways may claim a refund of the Oregon tax on the fuel used to operate the vehicle as designated in ORS 319.320(1) and 319.320(4). The refund can be approved only if the claimant has maintained and provided the following records: (A) The total miles operated as established by a working odometer for each licensed motor vehicle, including private passenger cars during the entire claim period; and (B) The total gallons of fuel used in the vehicle to include both refundable and non-refundable use; (C) The source of the fuel used in the vehicle to include purchase invoices supporting all fuel handled through bulk storage, as well as all fuel purchased at service stations, or received from other sources; and (D) Calculation of highway fuel used for each vehicle, determined by calculating the total miles driven divided by the total gallons of fuel used and applying the resulting miles per gallon to total off road miles. (j) Claims covering the operation of unlicensed motor vehicles entirely over roads or property subject to refund are required to establish the source and number of gallons of motor vehicle fuel used by consumption records. (k) The claimant must be able to establish to the satisfaction of the Department the amount of fuel used in a refundable manner. (3) Requirements covering invoices submitted in support of fuel tax refund claims: (a) Each invoice, or reasonable facsimile approved by the Department, submitted with a claim must be the original either physical or electronic form, as issued at the time of purchase or initial billing. (b) Each invoice must show the following: (A) Month, day, and year of sale; (B) Name and complete address of seller (city and state); (C) Purchaser’s name (Cash, boat number, etc., will not qualify); (D) Kind of fuel and number of gallons purchased; (E) Price per gallon purchased and dollar amount extended.