Neb. Admin. Code § 316-73-001 — Nature of the Nebraska Tax

001.01 The Nebraska fuels tax is an excise tax imposed upon the ultimate consumer of fuels used, distributed, sold or delivered in Nebraska. The tax is precollected from licensed producers, suppliers, distributors, wholesalers, and importers of fuels as agents of the state based on the number of gallons of fuels purchased in Nebraska, imported, produced, refined, manufactured, compounded, or blended each month. Fuels can be sold exempt from tax only under the situations reflected in Reg-73-003 or as indicated in Reg-73-001.04 below. 001.01A When dealing with compressed fuels, the Nebraska fuels tax is an excise tax imposed upon the ultimate consumer of compressed fuel distributed, sold, delivered or used in motor vehicles registered or required to be registered. The tax is precollected from licensed compressed fuel retailers as agents of the state based on the number of gallons or gallon equivalents of compressed fuel sold each period depending upon the retailers’ filing requirements. 001.02 In the case of a licensed producer of ethanol, there is an excise tax of two and one-half cents per gallon imposed upon the producer based on the purchase of natural gasoline used as a denaturant by the producer at an ethanol facility. This rate of tax is in effect through December 31, 2009. On January 1, 2010, the rate changes to one and one-quarter cents per gallon. 001.03 The Petroleum Release Remedial Action Fee is imposed upon the producer, refiner, importer, distributor, wholesaler or supplier who engages in the sale, distribution, delivery and use of petroleum in Nebraska and is administered in a manner similar to the motor fuels tax discussed in Reg-73-001.01. 001.04 A licensed producer or supplier may maintain tax-free storage of fuels in a Nebraska barge line or pipeline terminal storage facility or in an ethanol or biodiesel facility. The producer or supplier may sell fuels from these facilities tax free to a licensed fuels distributor or exporter. The first distributor or importer of fuels in Nebraska may transfer the tax liability to the first purchaser of such fuel if the purchaser is a licensed fuels distributor or wholesaler. The tax liability may only be transferred one time. (Sections 3-148 through 3-152, R.R.S. 1997, 66-669, 66-6,109 and 66-6,113, R.R.S. 2003, 66-486, 66-496, 66-4,105, 66-4,140, 66-4,145, 66-4,146, 66-698, 66-6,100, 66-6,107 and 66-1521, R.S.Supp. 2004, 66-482, 66-6,103 and 66-1510, R.S.Supp. 2005, 66-489, Laws 2006, LB 1003. January 8, 2007.)