Iowa Admin. Code r. 701—261.11(452A) — L

P.G. sold to the state of Iowa, its political subdivisions, contract carriers under contract with public schools to transport pupils or regional transit systems. 261.11(1) Exempt sales. a. If L.P.G. is sold to the state of Iowa, its agencies, a political subdivision of the state, or a regional transit system for public use, or a use specified in Iowa Code section 452A.57(11), and placed in storage, it may be sold tax-free. b. Fuel sold by a dealer and delivered directly into the fuel supply tank of a motor vehicle must be sold tax-paid. c. Since the L.P.G. delivered into storage is not subject to tax, the governmental unit or regional transit system need not be licensed as a special fuel user. However, if the L.P.G. is used by a governmental unit or regional transit system for other than “public purposes,” it must obtain a user’s license and pay the tax on all highway L.P.G. used from the storage. 261.11(2) L.P .G. sold to a contract carrier under contract with public schools to transport pupils. a. When special fuel is sold directly to contract carriers who have a contract with a public school under Iowa Code section 285.5 for the transportation of pupils of an approved public or nonpublic school, the fuel shall be sold tax-paid. b. If the contract carrier is licensed as an L.P.G. fuel dealer or user, the licensee may buy the fuel tax- free, but the tax must be remitted on the monthly dealer or user return. c. Any contract carrier who has paid the tax is entitled to a refund. (1) A refund requested by contract carriers will be reduced by the applicable sales tax, unless otherwise exempt. (2) All contract carriers must apply to the department for a refund registration even if they currently hold a motor fuel tax license. (3) 701—subrule 260.8(4) provides more information about this refund type.