LAC 61:I.3303 — Collection and Payment of Tax

A. The tax levied by R.S. 47:802(A) shall be collected and/or paid by suppliers or wholesalers on all special fuels sold or delivered by them when sold to a dealer, service station, garage, truck stop, or retail outlet. A supplier or wholesaler may be exempted from collecting and/or paying the tax on sales or deliveries to retail outlets that have tax-free storage used to fuel off-highway vehicles or drums; however, before such deliveries or sales can be made, the following conditions must be met:
1. the retail outlet shall have a storage tank no larger than 3,000 gallons;
2. the tank must be separate from the tax-paid storage tank;
3. all fuel pumped from the tax-free storage tank shall be metered and the meter shall have a totalizer;
4. the pump shall have a rate of flow no faster than
15 gallons per minute;
5. the pump shall be in a location separate and away from any tax paid pumps; tax-paid and tax-free pumps shall not be located on the same service isle;
6. the pump shall be marked “not for highway use” in letters of not less than 2 1/2 inches high; and
7. all tax-free sales shall be recorded with the following information:
a. name and address of purchaser;
b. number of gallons sold;
c. date of sale;
d. how the fuel will be used;
e. total cost of fuel sold.
B. If the wholesaler makes any tax free sales or deliveries to retail outlets not meeting the above requirements, then the wholesaler shall be held liable for all taxes, penalty, and interest that are due.