Tax refund to supplier if purchaser fails to pay for product and taxes--Application--Limitations

Any licensed supplier or out - of - state supplier may apply for and obtain a refund for taxes paid to this state on any gallons of motor fuel or undyed special fuel withdrawn from a terminal at the rack and sold to a party who fails to pay the supplier or out - of - state supplier for the product and the taxes owed to this state. Application for this refund shall be made within sixty days of the occurrence of the delinquency. Upon application, all unpaid taxes of the delinquent party become due and owing. The application for refund may include all taxes credited to the delinquent party since the occurrence of the delinquency. To qualify for a refund, a supplier or out - of - state supplier shall supply the department sufficient evidence and testimony to enforce any tax collection action by the department. Upon application of this refund, the department may make an assessment and take collection action against the purchaser of the fuel in accordance with the provisions of chapter 10-59 . The supplier or out - of - state supplier is only eligible for a refund for the taxes not paid by a customer once every three years. The supplier or out - of - state supplier is responsible for the tax on all sales that take place after the application for refund is made and are not eligible for further refunds. Upon application for a refund under this provision, a delinquent purchaser is no longer entitled to delay the payment of tax to a supplier or out - of - state supplier as set forth in § 10-47B-32 for a period of three years. The department shall notify all licensed suppliers, out - of - state suppliers, and marketers that the party has been delinquent in the payment of tax and is not entitled to the delayed payment of tax as set forth in § 10-47B-32 for a three - year period and that no further refunds will be paid for sales made to the party during the next three - year period. Once notified of a delinquent purchaser, no supplier, out - of - state supplier, or marketer may make a refund for tax under this section arising from a sale to the party during the three - year period.