HLS 15RS-8 ENGROSSED
2015 Regular Session
HOUSE BILL NO. 736
BY REPRESENTATIVE ORTEGO
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/FUELS, SPECIAL: Provides relative to the state excise tax levied on special fuels and
for the administration and collection of the tax
1 AN ACT
2To amend and reenact R.S. 3:4602(12.1) and 4684 and R.S. 47:818.2(18), (43), (44), (58),
3 and (63), 818.101 through 818.104 and to enact R.S. 47:818.105 through 818.121,
4 relative to state excise taxes on certain motor fuels; to provide with respect to the
5 levy and collection of the excise tax levied on special fuels; to provide for the
6 calculation of the rate of the tax; to provide for collection and administration of the
7 tax; to require issuance of certain licenses; to provide for certain requirements and
8 limitations; to provide for certain fees, penalties, and sanctions; to provide for search,
9 seizure, and sale of certain property; to authorize certain actions by the secretary of
10 the Department of Revenue; to provide for an effective date; and to provide for
11 related matters.
12Be it enacted by the Legislature of Louisiana:
13 Section 1. R.S. 3:4602(12.1) and 4684 are hereby amended and reenacted to read as
14follows:
15 §4602. Definitions
16 As used in this Chapter, the following terms shall have the following
17 meanings:
18 * * *
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1 (12.1) "Petroleum product" means any refined hydrocarbon mixture
2 including motor oil, kerosene, gasoline, gasohol, diesel fuel, aviation fuel, heating
3 kerosene, and any blend of two or more refined hydrocarbon mixtures except
4 liquefied petroleum gas and natural gas. However, for purposes of enforcement of
5 the provisions of R.S. 47:818.101 et seq., with respect to the taxes on special fuels,
6 the term "petroleum product" shall include compressed natural gas, liquefied natural
7 gas, and liquefied petroleum gas as those terms are defined in R.S. 47:818.2.
8 * * *
9 §4684. Fee to be collected for testing, etc.
10 A. For the purpose of defraying the expenses connected with the inspection,
11 testing, and analyzing of petroleum products in this state and enforcement of this
12 Chapter, there shall be collected by the secretary of the Department of Revenue a fee
13 of four thirty-seconds of one cent per gallon on all petroleum products, except
14 compressed natural gas and liquefied natural gas, distributed, sold, or offered or
15 exposed for sale or use or consumption in the state or used or consumed in the state
16 which shall be paid before delivery to agents, dealers, or consumers in the state. The
17 fee does not include liquefied petroleum gas, natural gas, or bulk sale or transfers.
18 Excluding bulk sales or transfers, the fee will be imposed upon the removal from an
19 Internal Revenue Service approved terminal using the terminal rack. The position
20 holder shall collect the fee imposed from the person who orders the withdrawal at the
21 terminal rack. Exports out of the state shall not be subject to the fee. A fee is also
22 imposed on the above-referenced fuel upon import to the state excluding bulk sale
23 or transfer for delivery within the state. This fee shall be paid by the first importer.
24 However, no fee shall be due on fuels that are eligible for tax refunds under the
25 provisions of R.S. 47:818.15(A)(5) or that are sold for use in or distributed to
26 seagoing vessels as defined in R.S. 3:4602.
27 B. The fee imposed by the secretary of the Department of Revenue to defray
28 expenses connected with the inspection, testing, and analyzing of compressed natural
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1 gas and liquefied natural gas in this state and enforcement of this Chapter, shall be
2 four thirty-seconds of one cent per gallon delivered into the supply tank of a motor
3 vehicle. The fee shall be remitted to the department when the tax on the fuel is
4 remitted to the department.
5 C. The secretary of the Department of Revenue is authorized to seize and
6 hold these products on which the fee has not been paid until such time as the fee has
7 been paid. Any expense incurred in the seizure and holding of any product so seized
8 shall be assessed in addition to the fee and collected at the same time the fee is
9 collected.
10 Section 2. R.S. 47:818.2(18), (43), (44), (58), and (63) and 818.101 through 818.104
11are hereby amended and reenacted and R.S. 47:818.105 through 818.121 are hereby enacted
12to read as follows:
13 §818.2. Definitions
14 As used in this Part, unless the context requires otherwise, the following
15 terms have the meaning ascribed herein:
16 * * *
17 (18) "Compressed natural gas" means natural gas that has been compressed
18 and dispensed into motor fuel storage containers and is advertised, offered for sale,
19 sold, suitable for use, or used as an engine motor fuel.
20 * * *
21 (43) "Liquefied natural gas" means natural gas that has been cooled to about
22 a negative 160 degrees Celsius for storage or shipment as a liquid in high-pressure
23 cryogenic containers a liquid state and is advertised, offered for sale, sold, suitable
24 for use, or used as an engine motor fuel.
25 (44) "Liquefied petroleum gas" means the gas derived from petroleum or
26 natural gas which is in a gaseous state at normal atmospheric temperature and
27 pressure and maintained in the liquid state at normal atmospheric temperature by
28 means of suitable pressure and which is dispensed into motor fuel storage containers
29 and is advertised, offered for sale, sold, suitable for use, or used as an engine motor
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1 fuel. The term "liquified petroleum gas" or "LPG" as used in this Part means
2 propane.
3 * * *
4 (58) "Retail dealer or dealer" means a person who sells motor fuel at retail
5 or dispenses motor fuel at a retail location to the ultimate consumer.
6 * * *
7 (63) "Special fuel decal user" means the owner or operator of a motor
8 vehicle that is propelled by an internal combustion engine or motor capable of using
9 liquefied natural gas, liquefied petroleum gas, or compressed natural gas as fuel.
10 "Special fuel fleet dealer" shall mean a person who produces or purchases
11 compressed natural gas, liquefied natural gas, or liquefied petroleum gas, or
12 maintains storage facilities for such fuels, and delivers all or part of the fuel
13 produced or stored into the fuel supply tank of a motor vehicle.
14 * * *
15 §818.101. Taxes levied; rates; unit of measurement
16 A. There is hereby levied a tax of sixteen cents per gallon on all special fuels
17 including compressed natural gas as defined by R.S. 47:818.2(18), and liquefied
18 natural gas as defined by R.S. 47:818.2(42) R.S. 47:818.2(43), and liquefied
19 petroleum gas as defined by R.S. 47:818.2(43) R.S. 47:818.2(44) sold, used, or
20 consumed in the state of Louisiana for the operation of motor vehicles licensed or
21 required to be licensed for highway use.
22 B. The taxes herein levied are in addition to the tax levied in R.S. 47:820.1
23 as provided in Part VI of this Chapter.
24 C. The tax is to be computed, collected, reported, and paid as hereafter set
25 forth, except when compressed natural gas, liquefied natural gas, or liquefied
26 petroleum gas is sold to, delivered to, or used by any person who pays the annual
27 fuel tax levied under the provisions of R.S. 47:818.102, the imposition of the tax
28 levied shall not apply in this Subpart.
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1 D. From July 1, 2015, through December 31, 2015, the Department of
2 Revenue shall continue to issue decals to persons operating a motor vehicle on the
3 highways of this state which use or are capable of using liquefied natural gas,
4 liquefied petroleum gas, or compressed natural gas as motor fuel in order for the
5 taxes due on such fuel to be paid by the motor vehicle operator. However, the
6 amount of the decal shall be calculated at a rate of one-twelfth of the total annual
7 decal amount for each month the decal is valid.
8 E. Beginning January 1, 2016, the tax levied on special fuels including
9 compressed natural gas, liquefied natural gas, and liquified petroleum gas shall be
10 converted from a tax levied per gallon on such fuel to a tax levied based on the
11 special fuel's energy content as follows:
12 (1) Diesel gallon equivalent for liquefied natural gas. The diesel gallon
13 equivalent for liquefied natural gas shall be equal to 6.060 pounds of liquefied
14 natural gas and shall be the unit of measurement of the tax levied pursuant to the
15 provisions of this Section if the natural gas dispenser lists the price in diesel gallon
16 equivalents and the natural gas is supplied to the dispenser from a liquefied source.
17 (2) Diesel gallon equivalent for liquefied petroleum gas. The diesel gallon
18 equivalent for liquefied petroleum gas shall be equal to 3.066 pounds of liquefied
19 petroleum gas and shall be the unit of measurement of the tax levied pursuant to the
20 provisions of this Section if the petroleum gas dispenser lists the price in diesel
21 gallon equivalents and the petroleum gas is supplied to the dispenser from a liquefied
22 source.
23 (3) Gasoline gallon equivalent for compressed natural gas. The gasoline
24 gallon equivalent for compressed natural gas shall be equal to 5.660 pounds of
25 compressed natural gas and shall be the unit of measurement of the tax levied
26 pursuant to the provisions of this Section if the natural gas dispenser lists the price
27 in gasoline gallon equivalents and the natural gas is supplied to the dispenser.
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1 F. Beginning January 1, 2016, the tax levied pursuant to the provisions of
2 this Section shall be levied and collected in the manner set forth in this Subpart and
3 shall not be levied or collected pursuant to a decal program or on an annual basis.
4 §818.102. Users of liquefied natural gas, liquefied petroleum gas, or compressed
5 natural gas annual fuel tax; certain vehicles excepted Point of imposition of
6 the tax
7 A.(1) The owner or operator of a motor vehicle having a gross weight of ten
8 thousand pounds or less which is propelled by an internal combustion engine or
9 motor capable of using liquefied natural gas, liquefied petroleum gas, or compressed
10 natural gas as fuel shall pay the special fuels tax by paying either the annual flat rate
11 in the amount of eighty percent of one hundred fifty dollars, based on a sixteen cent-
12 per-gallon special fuels tax rate or a variable rate of eighty percent of the current
13 special fuels tax rate. The variable tax computation shall be based on estimated fuel
14 efficiency of twelve miles per gallon, but not to exceed the annual flat rate. In the
15 event of an increase or reduction of the special fuels tax, the annual flat rate shall
16 increase or decrease based on one hundred fifty dollars at a sixteen cent-per-gallon
17 special fuels tax rate rounded to the nearest dollar, and the variable rate shall be
18 based on eighty percent of the per-gallon special fuels tax in effect.
19 B. The owner or operator of a motor vehicle having a gross weight of more
20 than ten thousand pounds and which is propelled by an internal combustion engine
21 or motor capable of using liquefied natural gas, liquefied petroleum gas, or
22 compressed natural gas shall pay the special fuels tax by paying the rate of eighty
23 percent of the special fuels tax rate in effect on all such fuel so used. The aggregate
24 annual tax paid by such person shall not be less than eighty percent of one hundred
25 fifty dollars based on a sixteen cent-per-gallon special fuels tax per motor vehicle.
26 For the purpose of determining the amount of the tax and enforcing this Subsection,
27 the number of gallons of liquefied natural gas, liquefied petroleum gas, or
28 compressed natural gas used the previous year on the highways of this state shall be
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1 determined by using the following schedule for calculating the number of miles per
2 gallon:
3 TYPE OF VEHICLE MILES PER GALLON
4 (1)Any motor vehicle with two axles that has a gross
5 license tag weight classification of 10,000 pounds to
6 20,000 pounds 9
7 (2)Any motor vehicle with two axles that has a gross license
8 tag weight classification in excess of 20,000 pounds 7
9 (3)Any motor vehicle or motor vehicles with a combination
10 of three axles 6
11 (4)Any motor vehicle or motor vehicles with a combination
12 of four axles 5
13 (5)Any motor vehicle or motor vehicles with a combination
14 of five axles 4
15 C. Nothing in this Section shall be construed to apply to nonresident private
16 carriers of passengers temporarily located in or operated on the highways of this state
17 for a period of not more than thirty days nor shall this Section apply to motor
18 vehicles which are owned and operated by persons who have furnished a bond as
19 required by R.S. 47:818.40 and which are domiciled in a state other than Louisiana.
20 D. The owner of any school bus, including school board owned buses, which
21 transports Louisiana students and which is propelled by an internal combustion
22 engine or motor capable of using liquefied natural gas, liquefied petroleum gas, or
23 compressed natural gas as fuel shall pay the special fuels tax by paying an annual flat
24 rate in the amount of one-half of the regular flat rate. In the event of an increase or
25 reduction of the sixteen cent-per-gallon special fuels tax, the annual flat rate shall be
26 based on one-half of the flat rate levied under the provisions of Subsection A of this
27 Section.
28 E. In order to enforce the provisions of this Section as applicable to motor
29 vehicles which are propelled by an internal combustion engine or motor capable of
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1 using liquefied natural gas, liquefied petroleum gas, or compressed natural gas, no
2 such vehicle shall be issued a motor vehicle inspection certificate, as required by
3 R.S. 32:1304, without a current decal as evidence of tax payment.
4 A tax is imposed on the sale of compressed natural gas, liquefied natural gas,
5 or liquefied petroleum gas delivered into the fuel supply tank of a motor vehicle in
6 connection with a sale of the compressed natural gas, liquefied natural gas, or
7 liquefied petroleum gas. The person or entity possessing a compressed natural gas,
8 liquefied natural gas, or liquefied petroleum gas license shall be considered a retail
9 dealer for purposes of imposition of the tax levied on such fuels and shall be the
10 party liable for the tax imposed in this Subpart. The retail dealer shall add the
11 amount of the tax to the selling price of the fuel so that the tax is paid by the ultimate
12 consumer or purchaser of the fuel. The amount of the tax shall become part of the
13 sales price of the fuel, it shall be considered a debt of the purchaser to the retail
14 dealer, and, if unpaid, shall be recoverable at law in the same manner as the original
15 sales price. The retail dealer shall provide an invoice or receipt to the purchaser that
16 states the rate and amount of tax added to the selling price or that indicates that no
17 tax was added to the selling price.
18 (2) Notwithstanding the provisions of Paragraph (1) of this Subsection, no
19 person or entity shall deliver compressed natural gas, liquefied natural gas, or
20 liquefied petroleum gas into the fuel supply tank of a motor vehicle in connection
21 with a sale unless the person or entity obtains a license as required in this Subpart.
22 B. A tax is imposed on the delivery of compressed natural gas, liquefied
23 natural gas, or liquefied petroleum gas into the fuel supply tank of a motor vehicle
24 by a special fuel fleet dealer or other retail dealer not in connection with a sale of the
25 compressed natural gas, liquefied natural gas, or liquefied petroleum gas. The
26 special fuel fleet dealer or other retail dealer shall be liable for the tax imposed under
27 this Subpart.
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1 §818.103. Records and reports required by installers of liquefied natural gas,
2 liquefied petroleum gas, and compressed natural gas carburetion equipment
3 Presumption of use; backup tax
4 A. Any person who installs or alters liquefied natural gas, liquefied
5 petroleum gas, or compressed natural gas carburetion equipment shall file with the
6 secretary a written report, on forms prescribed by the secretary, whenever he installs
7 or alters such equipment. This report shall be filed not later than fifteen days after
8 the installation or alteration of the equipment. This person shall maintain records of
9 every installation or alteration for a period of three years, which records shall be
10 open to inspection at all reasonable times by the secretary or his authorized designee.
11 B. Any person who fails to file the report required in this Section shall be
12 subject to a penalty of one hundred dollars. This penalty shall be multiplied times
13 the number of vehicles on which installation or alterations were performed.
14 All compressed natural gas, liquefied natural gas, and liquefied petroleum gas
15 sold by a dealer and delivered into the fuel supply tank of a motor vehicle is
16 presumed to be subject to tax, and the retail dealer is liable for the tax unless the
17 retail dealer maintains adequate records to establish that the fuel was exempt from
18 tax.
19 B. All compressed natural gas, liquefied natural gas, and liquefied petroleum
20 gas delivered into the fuel supply tank of a motor vehicle by a special fuel fleet
21 dealer or other special fuels retail dealer not in connection with a sale is presumed
22 to be subject to tax, and the special fuel fleet dealer or other retail dealer is liable for
23 the tax unless the special fuel fleet dealer or other retail dealer maintains adequate
24 records to establish that the fuel was exempt from the tax.
25 C. The tax levied pursuant to the provisions of this Subpart shall be due in
26 all of the following circumstances:
27 (1) A person who obtains a refund of tax on compressed natural gas,
28 liquefied natural gas, or liquefied petroleum gas by claiming the fuel was used for
29 an exempt purpose, but actually uses the fuel for a taxable purpose.
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1 (2) A person who sells or delivers compressed natural gas, liquefied natural
2 gas, or liquefied petroleum gas that is delivered into the fuel supply tank of a motor
3 vehicle, on which tax was not paid, and the person knew or had reason to know that
4 the fuel would be used for a taxable purpose. The tax imposed in accordance with
5 the provisions of this Paragraph shall also be imposed on the ultimate consumer.
6 C. The tax liability imposed by this Subpart shall be in addition to any other
7 penalty imposed under this Subpart.
8 §818.104. Application, payment of tax, decals; penalties Dealer's license;
9 application procedure
10 A. Any person who wishes to operate, upon the highways of this state, a
11 motor vehicle which uses or is capable of using liquefied natural gas, liquefied
12 petroleum gas, or compressed natural gas as motor fuel shall make application, on
13 or before July thirty-first of each year, to the secretary for permission to operate the
14 motor vehicle on the highways of this state. The application shall be made on a form
15 furnished and prescribed by the secretary and shall contain any information which
16 the secretary may reasonably require.
17 B. The applicant shall pay to the secretary, at the time that application is
18 made, the tax levied under this Subpart. Upon payment of the tax and approval of
19 the application, the secretary shall issue to the taxpayer a decal to operate that motor
20 vehicle upon the highways of this state for the period from July first to June thirtieth.
21 If a person makes an application for a vehicle acquired, altered, or converted after
22 July first of the current year, the amount of the tax due shall be reduced by one-
23 twelfth for each month that has elapsed since July first.
24 C. Any person who operates more than one motor vehicle using or capable
25 of using liquefied natural gas, liquefied petroleum gas, or compressed natural gas
26 shall pay the tax and obtain a decal for each motor vehicle which he wishes to
27 operate upon the highways of this state. Each decal shall be affixed to the motor
28 vehicle in the manner prescribed by the secretary so that the decal is clearly visible.
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1 D. The secretary shall provide a procedure for the payment of the tax and the
2 issuance on an annual basis.
3 E. Any person who sells or transfers title of a motor vehicle which is
4 propelled by an internal combustion engine or motor capable of using liquefied
5 natural gas, liquefied petroleum gas, or compressed natural gas as fuel shall transfer
6 the decal at the time of the transfer of the vehicle. The secretary shall prescribe a
7 procedure for such transfer of decals and the Department of Revenue shall be
8 notified at the time of any such transfer.
9 F. It shall be a violation of this Subpart for any person to operate or cause to
10 be operated a motor vehicle upon the highways of this state which is subject to the
11 requirements of this Subpart upon which the tax has not been paid or for which no
12 permit has been issued or to which no decal is attached. In addition to all other
13 liability, such person shall be liable for a penalty of fifty dollars for the first violation
14 and a penalty of one hundred dollars for each subsequent violation.
15 A person may not sell or deliver compressed natural gas, liquefied natural
16 gas, or liquefied petroleum gas that is delivered into the fuel supply tank of a motor
17 vehicle and on which tax is imposed unless the person holds a compressed natural
18 gas, liquefied natural gas, or liquefied petroleum gas dealer's license issued by the
19 secretary.
20 B. In order to apply for a dealer's license, an applicant shall submit an
21 application to the Department of Revenue on a form provided by the secretary and
22 shall furnish a bond as required in R.S. 47:818.107 in an amount applicable to the
23 license in which the applicant is applying. Applications shall include all of the
24 following:
25 (1) The legal name and name under which the applicant transacts or intends
26 to transact business.
27 (2) The mailing and physical address of the applicant's principal office,
28 residence, or place of business in this state, and the address of any other location in
29 this state in which the applicant operates.
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1 (3) The applicant's federal employer identification number or, if an
2 individual, the social security number in the absence of the federal employer
3 identification number.
4 (4) The applicant's Louisiana revenue account number, if already assigned.
5 (5) If the applicant is not an individual, the names and social security
6 numbers of the principal officers of an applicant corporation or the members of an
7 applicant partnership or limited liability company, the managers of the facility, and
8 the office, street, and post office box addresses of each.
9 (6) Any other information required by the secretary.
10 C. Upon approval of the bond required in R.S. 47:818.107, the secretary
11 shall issue the appropriate license or licenses to the applicant.
12 D. A dealer's license for compressed natural gas, liquefied natural gas, or
13 liquefied petroleum gas is not transferable and unless as otherwise provided in this
14 Subpart shall remain in effect until surrendered, canceled, or revoked. The license
15 must be posted in a conspicuous place or kept available for inspection at the principal
16 place of business of the license holder. A copy of the license must be kept at each
17 place of business or other place of storage from which compressed natural gas,
18 liquefied natural gas, or liquefied petroleum gas is sold, distributed, or used and in
19 each motor vehicle used by the license holder to transport compressed natural gas,
20 liquefied natural gas, or liquefied petroleum gas purchased by the license holder for
21 resale, distribution, or use.
22 E. A compressed natural gas, liquefied natural gas, or liquefied petroleum
23 gas dealer's license is permanent and shall be valid during the period the license
24 holder has in force and effect the required bond or security and furnishes timely
25 reports and supplements as required by the secretary, or until the license is
26 surrendered by the license holder or canceled by the secretary. The secretary shall
27 cancel a license if the license holder has not reported a delivery of compressed
28 natural gas, liquefied natural gas, or liquefied petroleum gas during the previous
29 nine months.
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1 F. The secretary shall maintain a record of all persons to whom a license has
2 been issued under this Subpart and all persons holding a current license issued under
3 this Subpart by license category.
4 §818.105. License application procedure; grounds for denial of a license
5 A. In order to obtain a license under this Subpart an applicant shall file an
6 application with the secretary on forms provided by the secretary and shall furnish
7 a bond as required in R.S. 47:818.107 in an amount applicable to the license in which
8 the applicant is applying. Applications shall include all of the following information:
9 (1) The legal name and name under which the applicant transacts or intends
10 to transact business.
11 (2) The mailing and physical address of the applicant's principal office or
12 place of business in this state, the applicant's residence, and the address of any other
13 location in this state in which the applicant operates.
14 (3) The applicant's federal employer identification number or, if an
15 individual, the applicant's social security number in the absence of a federal
16 employer identification number.
17 (4) The applicant's Louisiana revenue account number, if already assigned.
18 (5) If the applicant is not an individual, the names and social security
19 numbers of the principal officers of the applicant's corporation or the members of an
20 applicant's partnership or limited liability company, the managers of the facility, and
21 the office, street, and post office box addresses of each.
22 (6) Any other information required by the secretary.
23 B. Upon approval of the bond required in R.S. 47:818.107, the secretary
24 shall issue the appropriate license or licenses to an applicant.
25 C. The secretary may refuse to issue a license under this Subpart if any of the
26 following conditions apply to the applicant or any principal of the applicant:
27 (1) A license or registration issued under this Subpart was canceled by the
28 secretary for any reason set forth in R.S. 47:818.42 or 818.106.
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1 (2) A license or registration issued by another state was revoked, denied, or
2 canceled for cause.
3 (3) A federal certificate of registry issued under 26 U.S.C. 4101 and the
4 regulations adopted thereunder, or a similar federal authorization, was revoked.
5 (4) The applicant or any principal of the applicant has been convicted of any
6 offense involving fraud or misrepresentation or has been convicted of any other
7 offense that indicates that the applicant or any principal of the applicant may not
8 comply with this Subpart if issued a license.
9 (5) The applicant or any principal of the applicant is in arrears to the state
10 for any taxes.
11 (6) The applicant or any principal of the applicant is determined to not be the
12 real party in interest.
13 (7) The applicant or any principal of the applicant's agents, officers, or
14 employees have a prior conviction for motor fuel tax evasion in this state or in any
15 state, federal, or foreign jurisdiction.
16 (8) For good cause as determined by the secretary.
17 D. The secretary shall be prohibited from issuing a license when an applicant
18 or anyone connected with the applicant's business has been previously convicted of
19 any violation of this Subpart or of any felony under the laws of this state or of the
20 United States.
21 §818.106. License revocation; cancellation
22 A. The secretary may revoke the license of any person licensed under this
23 Subpart, upon written notice sent by certified mail to the licensee's last known
24 address, for any of the following reasons:
25 (1) Filing by the licensee of a false return, report of the data or information
26 required by this Subpart.
27 (2) Failure, refusal, or neglect of the licensee to file a return, report, or
28 information required by this Subpart.
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1 (3) Failure of the licensee to pay the full amount of all taxes due or pay any
2 penalties or interest due required to be paid by the licensee.
3 (4) Failure of the licensee to keep accurate records of the quantities of
4 compressed natural gas, liquefied natural gas, or liquefied petroleum gas received,
5 produced, refined, manufactured, compounded, sold, or used in Louisiana.
6 (5) Failure to file a new, larger, or additional surety bond as required by the
7 secretary pursuant to R.S. 47:818.107 of this Subpart.
8 (6) Conviction of the licensee, licensee's agents, officers or employees, or
9 a principal of the licensee for any act prohibited under this Subpart.
10 (7) Failure, refusal, or neglect of a licensee to comply with any other
11 provision of this Subpart or any rule promulgated pursuant to this Subpart.
12 (8) Having a license or registration issued by another state canceled for
13 cause.
14 (9) The licensee is determined to not be the real party in interest.
15 (10) Any prior license of the real party in interest has been revoked for
16 cause.
17 (11) The licensee, or any of the licensee's agents, officers, or employees, has
18 a prior conviction for motor fuel tax evasion in this state or any state, federal, or
19 foreign jurisdiction and the conviction was not disclosed on the application.
20 B. The secretary shall be prohibited from granting a license or shall be
21 required to suspend any license previously granted for a period of at least thirty days,
22 or until such time as the applicant supplies the secretary with evidence to the
23 contrary, where there is prima facie evidence that the applicant, in the discretion of
24 the secretary, is not a person of good moral character, or has violated the provisions
25 of this Subpart or any rules, regulations, or instructions issued in connection with
26 issuance of a license. The period of suspension set forth in this Section shall not
27 exceed ninety calendar days from the date of suspension, unless at the end of the
28 ninety-day period the secretary determines that the reason for the suspension still
29 exists. In such instances, the secretary may continue the period of suspension until
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1 sufficient evidence has been provided by the licensee that the reason for suspension
2 no longer exists.
3 C. The secretary shall cancel any license upon the written request of the
4 licensee or upon a change in ownership or control of the licensed business.
5 D. Upon revocation or cancellation of a license, the license shall be
6 surrendered to the secretary and the tax levied in accordance with the provisions of
7 this Subpart shall become due and payable within fifteen days on all untaxed
8 compressed natural gas, liquefied natural gas, and liquefied petroleum gas held in
9 storage or otherwise in the possession of the licensee and all compressed natural gas,
10 liquefied natural gas, and liquefied petroleum gas sold, delivered, or used prior to the
11 revocation or cancellation on which the tax has not been paid.
12 E. If the secretary revokes a license, the secretary shall be prohibited from
13 issuing a new license to the same applicant for a period of three years from the date
14 of revocation.
15 §818.107. Bond requirements; amounts
16 A. Upon approval of the application by the secretary, the applicant shall file
17 a surety bond executed in favor of the secretary in the amount as follows:
18 (1) For a compressed natural gas retail dealer, liquefied natural gas retail
19 dealer, or liquefied petroleum retail dealer, the amount of the bond shall be a
20 minimum of fifty thousand dollars or an amount equal to three months tax liability,
21 whichever is greater. Only one surety bond shall be required for a person requiring
22 multiple licenses.
23 (2) For any person requiring multiple licenses, the minimum bond shall be
24 equal to the highest bond level required.
25 B. The secretary may require an additional bond amount from the licensee
26 when liability upon the previous bond is discharged or reduced by a judgment
27 rendered, payment made, or is otherwise disposed of, the licensee no longer meets
28 the conditions for waiver of bond as set forth in Subsection F of this Section, or if ,
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1 in the opinion of the secretary, any surety on the previous bond becomes
2 unsatisfactory.
3 C. The licensee must file the additional bond amount within thirty days from
4 the date such notice is mailed by the secretary. The secretary may immediately
5 revoke the licensee's license upon the expiration of the thirty-day period if the
6 licensee fails to provide the additional bond amount requested.
7 D. The surety must be authorized to engage in business within this state. The
8 surety bond shall be conditioned upon faithful compliance with the provisions of this
9 Part, including the filing of the returns and payment of all tax prescribed by this
10 Subpart. The surety bond shall be approved by the secretary as to sufficiency and
11 form and shall indemnify the state against any loss arising from the failure of the
12 licensee to pay for any cause the tax levied by this Subpart.
13 E. Any surety on an existing bond furnished by a person required to be
14 licensed may notify the secretary in writing of its intent to cancel the bond. The
15 secretary shall immediately notify the licensee of the intent of the surety to cancel,
16 and the licensee shall have thirty days from the date of receipt of such notice to
17 provide a sufficient replacement bond. The secretary may immediately cancel the
18 licensee's license upon expiration of the thirty-day period set out above if the
19 licensee fails to provide a new replacement bond. The surety requesting cancellation
20 shall remain liable for any liability already accrued or which shall accrue during the
21 thirty-day period set out above, but shall not be responsible for any liability which
22 accrues after said thirty-day period.
23 F. The secretary is authorized to waive the furnishing of this surety bond by
24 any licensee who meets all the following:
25 (1) Has and agrees to maintain assets in Louisiana of a net value of not less
26 than one and one-fourth times the amount of the bond which would otherwise be
27 required.
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1 (2) Has not been delinquent in remitting taxes accrued or accruing under this
2 Subpart during the three-year period immediately preceding the filing of an
3 application for waiver of the bond.
4 G. If any licensee whose bond has been waived by the secretary becomes
5 delinquent in remitting taxes due under this Subpart, the secretary may require that
6 the licensee furnish a bond in the amount required in this Section, and such licensee
7 shall not be eligible for a waiver of the bond for a period of three years from the date
8 the bond is furnished.
9 §818.108. Duties of persons holding tax payments as trustees
10 A. A person who receives or collects tax due in accordance with the
11 provisions of this Subpart shall hold the amount received or collected in trust for the
12 benefit of the state and shall have a fiduciary duty to remit the amount of taxes
13 received or collected to the secretary in the manner required pursuant to the
14 provisions of this Subpart.
15 B. A retail dealer who receives a payment of tax under this Subpart may not
16 apply the payment of tax to a debt that the person making the payment owes for
17 compressed natural gas, liquefied natural gas, or liquefied petroleum purchased from
18 the retail dealer.
19 C. A person required to receive or collect a tax under this Subpart is liable
20 for and shall pay the tax in the manner provided by this Subpart.
21 §818.109. Returns and payments; discounts; penalties for failure to file
22 A. A licensed retail dealer shall file a monthly return no later than the
23 twentieth day of the month following the end of the reporting period. If a licensed
24 retail dealer files a return and remits the tax due on or before the due date, one
25 percent of the tax due is allocated to the licensed retail dealer for the expense of
26 collecting, accounting for, reporting, and timely remitting the taxes collected and for
27 keeping the records. The licensed retail dealer shall deduct the allocated amount
28 from the tax due when paying the tax to this state. A licensed retail dealer who has
29 not made taxable deliveries during the reporting period shall file a return with the
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1 secretary that includes those facts. A return shall be filed with the secretary on forms
2 provided for that purpose and must contain the total gallons sold and used and other
3 information required by the secretary.
4 B. A licensed retail dealer may take a credit on a filed return if the retail
5 dealer paid the taxes imposed by this Subpart on compressed natural gas, liquefied
6 natural gas, or liquefied petroleum sold on account and the retail dealer determines
7 that the account is uncollectible and worthless. The credit authorized by this Section
8 shall only be applicable if the licensed retail dealer writes-off the account as a bad
9 debt on the retail dealer's accounting books. The return on which the credit shall be
10 taken shall state, if applicable, the name of the person whose account has been
11 written-off as a bad debt and any other information required by the secretary. The
12 amount of the credit may equal, but shall not exceed the amount of taxes paid on the
13 compressed natural gas, liquefied natural gas, or liquefied petroleum gas attributable
14 to the written-off account. If, after a credit is taken, the account on which the credit
15 was based is paid, or if the secretary otherwise determines that the credit was not
16 authorized, the retail dealer who took the credit shall pay the unpaid taxes plus a
17 penalty of ten percent of the amount of the unpaid taxes and interest. Interest shall
18 accrue beginning on the day the return showing the credit was filed and ending on
19 the date the taxes and penalty are paid.
20 C. The provisions of this Section shall not apply to a sale of compressed
21 natural gas, liquefied natural gas, or liquefied petroleum gas for which payment is
22 made through the use and acceptance of a credit card. The credit granted pursuant
23 to the provisions of this Section shall be taken at the time the account is written-off
24 as a bad debt but before the tax reporting period prescribes. The secretary may take
25 action against a person in relation to whom a retail dealer has taken a credit for
26 collection of the tax owed and for penalty and interest.
27 D. Failure to file any informational report or return within thirty days of the
28 due date of the report or return shall result in a penalty of one hundred dollars and
29 may result in a revocation of the license.
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1 §818.110. School bus operators
2 A. The owner of any school bus, including school board owned buses, which
3 transports Louisiana students and which is propelled by an internal combustion
4 engine or motor capable of using liquefied natural gas, liquefied petroleum gas, or
5 compressed natural gas as fuel shall pay the tax levied on such fuel but shall be
6 entitled to a credit equal to fifty percent of the taxes paid. The credit provided for
7 in this Section shall be claimed on a return filed for the period in which a fuel
8 purchase occurred.
9 B. The right to claim a credit pursuant to the provisions of this Section shall
10 not be assignable.
11 C. Claims for refund by school bus owners shall be submitted annually by
12 the first day of August of each year on forms provided by the secretary and shall list
13 the taxes paid during the academic school year ending no later than June thirtieth of
14 the year for which the credit is being filed. The reimbursement provided for in this
15 Subsection shall be paid from the Parish Transportation Fund allocable to the parish
16 from which the credit is claimed if the credit is from a public school district in this
17 state and the fuel was delivered into the fuel supply tank of a school bus operated
18 exclusively by the district.
19 D. The secretary may promulgate rules and regulations in accordance with
20 the provisions of the Administrative Procedure Act specifying procedures and
21 requirements that shall be required in order to file for and receive the credit.
22 §818.111. Refund Claims
23 A. All claims for a refund shall be filed on a form provided by the secretary,
24 shall be supported by the original invoice issued by the retail dealer, and shall
25 contain all of the following:
26 (1) The stamped or preprinted name and address of the retail dealer.
27 (2) The name of the purchaser or person who received the delivery of the
28 fuel.
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1 (3) The date of delivery of the fuel or the date the invoice was issued, if
2 different from the date the fuel was delivered.
3 (4) The number of gasoline or diesel gallon equivalents of compressed
4 natural gas, liquefied natural gas, or liquefied petroleum gas delivered.
5 (5) The rate and amount of tax, separately stated from the selling price.
6 (6) The type of vehicle or equipment into which the fuel is delivered.
7 B. The purchaser or person who received the delivery of compressed natural
8 gas, liquefied natural gas, or liquefied petroleum gas shall obtain the original invoice
9 from the retail dealer not later than the thirtieth day after the date the fuel was
10 delivered. If the purchase or delivery of fuel is made through an automated method
11 in which the purchase or delivery is automatically applied to the purchaser or
12 recipient's account, one invoice may be issued at the time of billing that covers
13 multiple purchases or deliveries made during a thirty-day billing cycle.
14 C. The secretary shall pay a refund to a person who files a valid refund
15 claim. After examining the refund claim and before issuing the refund to a dealer,
16 the secretary shall deduct from the amount of the refund, the one percent originally
17 deducted by the retail dealer.
18 D. A person who files a claim for a tax refund on compressed natural gas,
19 liquefied natural gas, or liquefied petroleum gas used for a purpose for which a tax
20 refund is not authorized or who files an invoice supporting a refund claim on which
21 the date, figures, or any material information has been falsified or altered, shall
22 forfeit his right to the entire amount of the refund claim filed unless the claimant
23 provides satisfactory proof to the secretary that the incorrect refund claim filed was
24 due to a clerical or mathematical calculation error.
25 §818.112. Records required to be maintained; inspection by the secretary
26 A. A retail dealer shall keep a record of all of the following:
27 (1) Compressed natural gas, liquefied natural gas, and liquefied petroleum
28 gas inventories at the first of each month.
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1 (2) The amount of natural gas compressed by the retail dealer, the amount
2 of natural gas liquefied by the retail dealer, and the amount of petroleum gas
3 liquefied by the retail dealer.
4 (3) All compressed natural gas, liquefied natural gas, and liquefied
5 petroleum gas purchased or received, showing the name of the seller and the date of
6 each purchase or receipt.
7 (4) All compressed natural gas, liquefied natural gas, and liquefied
8 petroleum gas sold and delivered into the fuel supply tank of a motor vehicle,
9 including the date of each sale.
10 (5) All compressed natural gas, liquefied natural gas, and liquefied
11 petroleum gas sold but not delivered into the fuel supply tank of a motor vehicle,
12 including the date of each sale.
13 (6) All compressed natural gas, liquefied natural gas, and liquefied
14 petroleum gas delivered into the fuel supply tank of a motor vehicle not in
15 connection with a sale, including the date of each delivery.
16 (7) All compressed natural gas, liquefied natural gas, and liquefied
17 petroleum gas delivered into the fuel supply tank of a motor vehicle or other
18 equipment exempt from tax or sold to the operator of a motor vehicle or owner of
19 equipment exempt from the tax, including the name of the operator of the vehicle or
20 the owner of the equipment and the date of the delivery or sale.
21 (8) All compressed natural gas, liquefied natural gas, and liquefied
22 petroleum gas lost by fire, theft, or accident.
23 B. The records required to be kept pursuant to the provisions of this Section
24 shall be kept until the fourth anniversary of the date they were created and shall be
25 open to inspection at all times by the secretary or his designee. In addition to the
26 records specifically required by this Section, a licensee or a person required to hold
27 a license shall keep any other records required by the secretary.
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1 §818.113. Notice of discontinuance, sale, or transfer of business
2 A. Prior to discontinuing any business issued a license pursuant to the
3 provisions of this Subpart, the licensee shall notify the secretary in writing at least
4 thirty days prior to the time the discontinuance, sale, or transfer takes effect and shall
5 surrender the license to the secretary. The notice shall state the effective date of the
6 discontinuance and, if the licensee has transferred the business or otherwise
7 relinquished control to another person by sale or otherwise, the date of the sale or
8 transfer and the name and address of the person to whom the business was
9 transferred or relinquished. The notice shall also include any other information
10 required by the secretary.
11 B. If a licensee liable for any tax, interest, or penalty levied in accordance
12 with this Subpart sells or transfers the business or quits the business, the licensee
13 shall make a final return and payment within fifteen days after the date of selling,
14 transferring, or quitting the business. The successor, successors, or assigns, if any,
15 shall withhold sufficient amounts of the purchase monies to cover the amount of
16 taxes, interest, and penalties due and unpaid until such time as the former owner shall
17 produce a receipt from the secretary showing that all taxes, interest, and penalties
18 have been paid, or a certificate stating that no taxes, interest, or penalties are due. If
19 the purchaser of a business fails to withhold purchase money, the purchaser shall be
20 personally liable for the payment of the taxes, interest, and penalties accrued and
21 unpaid on the account of the operation of the business by any former owner, owners,
22 or assigns.
23 C. In the case of a licensee who has quit a business but who subsequently
24 opens another similar business under the same ownership, whether that ownership
25 is individual, partnership, corporation, or other, that licensee shall be liable for any
26 tax, interest, or penalty owed by the original business.
27 §818.114. Engaging in business without a license; penalty
28 Any person who engages in or does any business activity for which a license
29 is required by this Subpart without having first obtained and subsequently retain a
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1 valid license shall be subject to a penalty of ten thousand dollars for a first violation.
2 For each subsequent violation, the penalty shall be multiplied by the sum of the
3 current violation plus all prior violations. Penalties prescribed under this Section
4 shall be assessed, collected, and paid in the same manner as the tax.
5 §818.115. Failure to pay tax or furnish bond; subject to attachment; suit to enjoin
6 further pursuit of business
7 A. Failure to pay any tax levied in this Subpart or any interest, penalties, or
8 applicable costs or failure to furnish bond as provided in this Subpart shall ipso facto
9 and without demand or putting in default, make the tax, penalties, and interest
10 delinquent and shall be construed as an attempt to avoid the payment of the tax,
11 penalties, and interest, which shall be sufficient grounds for attachment of the
12 compressed natural gas, liquefied natural gas, or liquefied petroleum gas, wherever
13 the same may be located or found, whether the delinquent taxpayer is a resident or
14 nonresident of this state and whether the compressed natural gas, liquefied natural
15 gas, or liquefied petroleum gas is in the possession of the delinquent taxpayer or in
16 the possession of other persons. The compressed natural gas, liquefied natural gas,
17 or liquefied petroleum gas licensees shall be made responsible for the payment of the
18 applicable tax levied in this Subpart, together with any interest, penalties, and costs
19 accruing thereon, and the secretary may attach, seize, or sequester any compressed
20 natural gas, liquefied natural gas, or liquefied petroleum gas subject to tax under this
21 Subpart when the tax is not paid when it was due and payable. The procedure
22 prescribed by law shall be followed except that the secretary shall not be required to
23 provide a bond.
24 B. When a licensee fails to pay any tax levied under this Subpart, interest,
25 penalties, or applicable costs or fails to furnish bond as provided in this Subpart, the
26 secretary may file for a rule on the licensee, by motion in a court of competent
27 jurisdiction, to show cause as to why the licensee should not be ordered to cease
28 from further pursuit of business as a licensee. The rule shall be heard by the court
29 not less than two days nor more than ten days, exclusive of holidays, after service of
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1 the rule on the licensee. Furthermore, the rule may be tried out of term and in
2 chambers, and shall be tried by preference. If the rule is made absolute, the order
3 rendered by the court shall be considered a judgment in favor of the state prohibiting
4 the licensee from the further pursuit of the business until the licensee has paid the
5 delinquent tax, penalties, and interest and, has furnished the bond required by this
6 Subpart. Every violation of the injunction shall be considered a contempt of court
7 and shall be punishable in accordance with law.
8 C. When a bond has been furnished by the licensee, the surety on the bond
9 may be joined in the rule with the licensee and held liable in solido for the amount
10 of tax, interest, penalties, attorney fees, and costs.
11 §818.116. Power to stop and investigate vehicles; fines, collection, and enforcement
12 A. The secretary, his authorized designee, any weights and standards police
13 officer, or any motor carrier safety police officer shall be empowered to stop any
14 commercial motor vehicle which appears to be operating with compressed natural
15 gas, liquefied natural gas, or liquefied petroleum gas for the purpose of examining
16 the invoices and other investigative purposes reasonably necessary to determine
17 whether the taxes imposed by this Subpart have been paid or whether the vehicle is
18 being operated in compliance with the provisions of this Subpart.
19 B. If, after examination or investigation, it is determined that the tax imposed
20 by this Subpart has not been paid with respect to the compressed natural gas,
21 liquefied natural gas, or liquefied petroleum gas being used in the vehicle, the
22 secretary, his authorized designee, weights and standards police officer, or the motor
23 carrier safety police officer may assess the tax due together with the applicable
24 penalty provided in this Subpart, to the owner or driver of the vehicle.
25 C. The secretary, his authorized designee, weights and standards police
26 officer, or motor carrier safety police officer may impound any vehicle found to be
27 operating in violation of this Subpart or any vehicle for which inspection has been
28 refused until such time as an inspection has been completed or any tax, interest,
29 penalties, and other charges assessed as provided in this Subpart have been paid.
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1 §818.117. Authorization to search; seizure of equipment for evidence
2 A. The secretary may search and examine any warehouse, boat, store,
3 storeroom, automobile, truck, conveyance, vehicle, or any and all places of storage,
4 or any and all means of transportation, where there is probable cause to believe the
5 terms of this Subpart have been, or are being violated.
6 B. Any automobile, truck, boat, conveyance, vehicle, or other means of
7 transportation caught or detected transporting compressed natural gas, liquefied
8 natural gas, or liquefied petroleum gas on which the tax levied pursuant to this
9 Subpart has not been paid shall be prohibited and the means used in the
10 transportation of the compressed natural gas, liquefied natural gas, or liquefied
11 petroleum shall be subject to seizure by the collection and forfeiture and sale as
12 provided in this Subpart.
13 §818.118. Inspection of records, storage facilities; penalty
14 A. The secretary may examine the books, records, and other documents of
15 all companies, agencies, or firms operating in this state, whether these companies,
16 agencies, or firms conduct their business by rail, water, or otherwise, in order to
17 determine licensees that are importing or otherwise shipping compressed natural gas,
18 liquefied natural gas, or liquefied petroleum which are liable for tax under this Part.
19 The examination by the secretary authorized by this Section shall be conducted
20 during reasonable business hours of the licensee.
21 B. Any person who refuses to permit an inspection of records or storage
22 facilities or refuses to permit an audit shall be subject to a penalty of five thousand
23 dollars in addition to any other penalty imposed in accordance with provisions of this
24 Subtitle.
25 §818.119. Unlawful importing, transportation, delivery, storage, or sale of
26 compressed natural gas, liquefied natural gas, or liquefied petroleum; sale to
27 enforce assessment
28 A. Upon the discovery of any compressed natural gas, liquefied natural gas,
29 or liquefied petroleum gas illegally imported into or illegally transported, delivered,
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1 stored, or sold in this state, the secretary shall order the tank or other storage
2 receptacle in which the compressed natural gas, liquefied natural gas, or liquefied
3 petroleum gas is located to be seized and locked or sealed until the tax, interest, and
4 penalties levied or imposed in accordance with the provisions of this Subpart are
5 assessed and paid.
6 B. If the tax is not paid within thirty days of the assessment, the secretary
7 may, in addition to other remedies authorized in this Subpart, sell the compressed
8 natural gas, liquefied natural gas, or liquefied petroleum gas and use the proceeds of
9 the sale to satisfy the assessment due. Any funds collected from the sale that exceed
10 the assessment and costs of the sale shall be returned to the owner of the compressed
11 natural gas, liquefied natural gas, or liquefied petroleum gas.
12 C. All compressed natural gas, liquefied natural gas, or liquefied petroleum
13 gas, and any property, tangible or intangible, found on the person or in any vehicle
14 that the person is using, including the vehicle itself, to aid in the transportation or
15 sale of illegally transported, delivered, stored, sold, imported, or acquired
16 compressed natural gas, liquefied natural gas, or liquefied petroleum gas, and any
17 property found in the immediate vicinity of any place where the illegally transported,
18 delivered, stored, sold, imported, or acquired compressed natural gas, liquefied
19 natural gas, or liquefied petroleum gas is located, including motor vehicles, tanks,
20 and other storage devices, used to aid in the illegal transportation or sale of
21 compressed natural gas, liquefied natural gas, or liquefied petroleum gas shall be
22 subject to seizure, forfeiture, and sale by the secretary in the manner provided for in
23 this Subpart.
24 §818.120. Procedure for forfeiture and sale
25 A. The secretary may, in a summary proceeding or by an action against the
26 owner or operator of any automobile, truck, boat, conveyance, vehicle, or other
27 means of transportation used in the transportation, of any compressed natural gas,
28 liquefied natural gas, or liquefied petroleum on which a tax is levied by this Subpart,
29 and on which the tax has not been paid in the manner therein provided, to demand
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1 the forfeiture and sale of the automobile, truck, boat, conveyance, vehicle, or other
2 means of transportation used in the illegal transportation.
3 B. In all cases where it is made to appear by affidavit, that the residence of
4 the owner of the automobile, truck, boat, conveyance, vehicle, or other means of
5 transportation is out of state or is unknown to the secretary, the court having
6 jurisdiction of the proceeding shall appoint an attorney to represent the absent owner,
7 against whom the rule shall be tried contradictorily within ten days after the filing
8 of the rule. The affidavit may be made by the secretary, one of his assistants, or the
9 attorney representing the secretary, if it is not convenient to obtain the affidavit from
10 the secretary. The attorney appointed to represent the absent owner may waive
11 service and citation of the petition or rule, but shall not waive time or any legal
12 defense.
13 C. If it is established during the trial that the automobile, truck, boat,
14 conveyance, vehicle, or other means of transportation was used to transport
15 compressed natural gas, liquefied natural gas, or liquefied petroleum on which the
16 tax had not been paid, then the court shall order the forfeiture of the automobile,
17 truck, boat, conveyance, vehicle, or other means of transportation. The court shall
18 also order the sale of the vessel subject to forfeiture after ten days notice by
19 advertisement in the official parish paper where the seizure was made. The sale shall
20 be made by the civil sheriff of the parish of Orleans, or by the sheriff of the parish
21 in which the seizure is made, at public auction at the courthouse to the highest bidder
22 for cash and without appraisal. It is the intent and purpose of this Section to afford
23 the owner of the automobile, truck, boat, conveyance, vehicle, or other means of
24 transportation a fair opportunity for a court hearing and that the forfeiture and sale
25 of the automobile, truck, boat, conveyance, vehicle, or other means of transportation
26 shall operate as a penalty for the violation of this Subpart by illegal transportation.
27 The payment of the tax due at the moment of the seizure or thereafter shall not
28 prevent, abate, discontinue, or defeat the forfeiture and sale of the seized property.
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1 D. All funds collected from the seized and forfeited property shall be paid
2 into the state treasury and credited to the same fund or funds that would have
3 received credit for the tax on the product illegally transported.
4 E. The court shall fix the fee of the attorney representing the owner when
5 appointed by the court, at a nominal sum not to exceed ten percent. The attorney
6 fees shall be taxed as costs and shall be paid out of the proceeds of the sale of the
7 property.
8 §818.121. Commission of prohibited acts; misdemeanors; felonies; penalties
9 A. Any person who commits any of the following offenses is guilty of a
10 misdemeanor, and upon conviction, shall be fined not less than one thousand dollars
11 nor more than five thousand dollars or imprisoned not more than two years, or both:
12 (1) Fails to maintain any record required by this Subpart.
13 (2) Makes a tax-free sale or delivery of compressed natural gas, liquefied
14 natural gas, or liquefied petroleum gas into the fuel supply tank of a motor vehicle.
15 (3) Makes a false statement in a license application, return, invoice,
16 statement, or any other document required under this Subpart.
17 (4) Makes a false statement in an application for a refund.
18 (5) Fails to make a required disclosure of the correct amount of compressed
19 natural gas, liquefied natural gas, or liquefied petroleum gas sold or used in this
20 state.
21 (6) Fails to file a new, replacement, larger, or additional surety bond as
22 required under this Subpart.
23 (7) Interferes with or refuses to permit seizures authorized by this Subpart.
24 (8) Operates a liquefied gas-propelled motor vehicle that is required to be
25 licensed in this state, including a motor vehicle equipped with dual carburetion, and
26 does not display a multistate fuels tax agreement decal.
27 (9) Refuses to permit the secretary or his designee or the Louisiana Liquefied
28 Gas Commission or his designee to measure or gauge the contents of or take samples
29 from a storage tank or container on premises where compressed natural gas, liquefied
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1 natural gas, or liquefied petroleum gas is produced, processed, stored, sold,
2 delivered, or used.
3 (10) Transports compressed natural gas, liquefied natural gas, or liquefied
4 petroleum gas under a false cargo manifest or shipping document, or transports
5 compressed natural gas, liquefied natural gas, or liquefied petroleum gas to a
6 location without delivering a shipping document relating to that shipment.
7 B. Any person who commits any of the following offenses with the intent
8 either to evade or circumvent the tax levied by this Subpart or to assist any other
9 person in efforts to evade or circumvent the tax levied by this Subpart shall be guilty
10 of a felony, and upon conviction, shall be fined not less than five thousand dollars
11 nor more than an amount commensurate to the amount of tax combined with interest
12 and penalties lost to the state due to the illegal actions or imprisoned with or without
13 hard labor for not less than two nor more than ten years, or both:
14 (1) Alters, manipulates, replaces, or in any other manner tampers or
15 interferes with, or causes to be altered, manipulated, replaced, tampered, or
16 interfered with, a totalizer attached to compressed natural gas, liquefied natural gas,
17 or liquefied petroleum gas to measure the dispensing of compressed natural gas,
18 liquefied natural gas, or liquefied petroleum gas.
19 (2) Fails to pay compressed natural gas, liquefied natural gas, or liquefied
20 petroleum gas taxes and diverts the tax proceeds for other purposes.
21 (3) As a licensee or the agent or representative of a licensee, converts or
22 attempts to convert compressed natural gas, liquefied natural gas, or liquefied
23 petroleum gas tax proceeds for the use of the licensee or the licensee's agent or
24 representative with the intent to defraud the state.
25 (4) Collects compressed natural gas, liquefied natural gas, or liquefied
26 petroleum gas taxes when not authorized or licensed by the secretary to do so.
27 (5) Makes a sale or delivery of compressed natural gas, liquefied natural gas,
28 or liquefied petroleum gas on which the person knows the tax is required to be
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1 collected, if at the time the sale is made the person does not hold a valid retail
2 dealer's license.
3 (6) Imports compressed natural gas, liquefied natural gas, or liquefied
4 petroleum gas into this state in contravention of this Subpart.
5 (7) Conspires with any person or persons to engage in an act, plan, or
6 scheme to defraud this state of compressed natural gas, liquefied natural gas, or
7 liquefied petroleum gas tax proceeds.
8 (8) Conceals compressed natural gas, liquefied natural gas, or liquefied
9 petroleum gas with the intent of engaging in any conduct prohibited by this Subpart.
10 (9) Refuses to make sales of compressed natural gas, liquefied natural gas,
11 or liquefied petroleum on the volume-corrected basis prescribed by this Subpart.
12 (10) Fails to remit any tax levied pursuant to this Subpart to the secretary,
13 if the person has added or represented that the tax was added to the sales price of the
14 compressed natural gas, liquefied natural gas, or liquefied petroleum gas and has
15 collected the amount of the tax.
16 C. Each offense shall be subject to a separate penalty.
17 Section 2. This Act shall become effective on July 1, 2015; if vetoed by the governor
18and subsequently approved by the legislature, this Act shall become effective on July 1,
192015, or on the day following such approval by the legislature, whichever is later.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 736 Engrossed 2015 Regular Session Ortego
Abstract: Provides relative to the state excise tax levied on special fuels and provides for
the administration and collection of the tax.
Present law provides for the levy of a tax of 16¢ per gallon on all special fuels including
compressed natural gas, liquefied natural gas, and liquefied petroleum gas (hereinafter
"special fuel") sold, used, or consumed in the state for the operation of motor vehicles
licensed or required to be licensed for highway use. Present law levies an additional tax of
4¢ dedicated to the Transportation Infrastructure Model for Economic Development
(TIMED) Program.
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HB NO. 736
Present law requires owners and operators of motor vehicles with a gross weight of 10,000
pounds or less to pay the tax levied pursuant to present law for special fuels in accordance
with an annual flat rate equal to 80% of $150, based on a 16¢ per gallon special fuels tax rate
or a variable rate of 80% of the current special fuels tax rate. The owner or operator of a
motor vehicle having a gross weight of more than 10,000 pounds shall pay the special fuels
tax by paying the rate of 80% of the special fuels tax rate in effect on the fuel used. The
aggregate annual tax paid for these vehicles shall not be less than 80% of $150 based on a
16¢ per gallon special fuels tax per motor vehicle. Present law provides for a schedule for
determining the amount of special fuel used the previous year based on the gross weight of
the vehicle and the miles per gallon
Proposed law changes present law in that, beginning Jan. 1, 2016, the tax levied on special
fuels shall not be collected pursuant to the annual decal but rather the amount of the tax shall
be converted from a tax levied per gallon on such special fuel to a tax levied per gallon but
based on the special fuel's energy content as follows:
(1)Diesel gallon equivalent for liquefied natural gas (LNG) shall be equal to 6.060
pounds of LNG and shall be the unit of measurement of the tax levied pursuant to the
provisions of proposed law.
(2)Diesel gallon equivalent for liquefied petroleum gas (LPG) shall be equal to 3.066
pounds of LPG and shall be the unit of measurement of the tax levied pursuant to
proposed law.
(3)Gasoline gallon equivalent for compressed natural gas (CNG) shall be equal to 5.660
pounds of CNG and shall be the unit of measurement of the tax levied pursuant to
proposed law.
Present law requires owners of school buses propelled by a special fuel that are used to
transport La. students to pay one-half of the annual flat rate. Further authorizes a credit for
the owner of any school bus which operates on special fuel which transports La students to
pay the tax levied on the fuel. School bus owners shall be entitled to a credit equal to 50%
of the taxes paid. The credit shall be claimed on a return filed for the period in which a fuel
purchase occurred.
Proposed law retains present law.
Proposed law provides that the person or entity possessing a special fuels license shall be
considered a retail dealer or dealer for purposes of imposition of the tax levied on special
fuels and shall be the party liable for the tax. The dealer shall add the tax to the selling price
of the fuel so that the tax is paid by the ultimate consumer or purchaser of the fuel. The tax
shall become part of the sales price of the special fuel and shall be considered a debt of the
purchaser. If unpaid, the tax shall be recoverable in the same manner as the original sales
price. The dealer shall provide an invoice or receipt to the purchaser that states the rate and
amount of tax added to the selling price or that indicates that no tax was added to the selling
price.
Proposed law provides that the special fuels tax is imposed on the delivery of special fuels
into the fuel supply tank of a motor vehicle by a special fuel fleet dealer or other retail dealer
not in connection with a sale of the special fuel. The special fuel fleet dealer or other retail
dealer shall be the liable party for the tax.
Present law requires persons who install or alter special fuel carburetion equipment to file
a written report, on forms prescribed by the secretary, not later than 15 days after the
installation or alteration of the equipment. Failure to file the report shall subject the person
to a penalty of $100. The penalty shall be multiplied by the number of vehicles on which
installation or alterations were performed.
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HB NO. 736
Proposed law repeals present law.
Proposed law provides that all special fuel sold by a dealer and delivered into the fuel supply
tank of a motor vehicle is presumed to be subject to tax, and the dealer is liable for the tax
unless the dealer maintains adequate records to establish that the fuel was exempt from tax.
Further provides that all special fuel delivered into the fuel supply tank of a motor vehicle
by a special fuel fleet dealer or other special fuels retail dealer not in connection with a sale
is presumed to be subject to tax, and the special fuel fleet dealer or other retail dealer is
liable for the tax unless the dealer maintains adequate records to establish that the fuel was
exempt from the tax.
Present law requires persons who operate a motor vehicle powered by a special fuel on the
highways of this state to apply for permission to operate on the highways of this state. The
application shall be on a form prescribed by the secretary. When the applicant pays the
annual flat rate for the tax, the secretary shall issue the applicant a decal which signifies that
the special fuel tax has been paid. Present law requires the secretary to provide for a
procedure for the annual payment of the tax and issuance of the decal. Failure to obtain an
annual decal shall result in a penalty to be assessed of $50 for a first violation and a penalty
of $100 for each subsequent violation.
Proposed law repeals present law as it relates to issuance of an annual decal. However,
proposed law adds a transitional provision for the department to continue issuing decals from
July 1, 2015, through Dec. 31, 2015, for the operation of vehicles which use LNG, LPG, or
CNG in order for the taxes due on this fuel to be paid. The amount of the decal shall be
calculated at a rate of one-twelfth of the total annual decal amount for each month the decal
is valid.
Proposed law prohibits a person from selling or delivering special fuel into the fuel supply
tank of a motor vehicle and on which tax is imposed unless the person holds a dealer's
license. Proposed law provides for requirements for the application for a dealer's license
including the form provided by the secretary and the amount of the bond required to be
provided. A dealer’s license is not transferable and shall remain in effect until surrendered,
canceled, or revoked. The license must be posted in a conspicuous place or kept available
for inspection at the principal place of business of the license holder.
Proposed law provides that a dealer's license shall be permanent and valid during the period
the license holder has in force and effect the required bond or security and furnishes timely
reports and supplements as required by the secretary, or until the license is surrendered by
the license holder or canceled by the secretary. Proposed law requires the secretary to cancel
a license if the license holder has not reported a delivery of special fuel during the previous
nine months.
Proposed law requires the secretary to maintain a record of all persons to whom a license has
been issued and all persons holding a current license by license category.
Proposed law provides for general requirements regarding license applications, form
requirements, and bond requirements. Upon approval of the bond required pursuant to
proposed law, the secretary is required to issue the appropriate license or licenses to an
applicant. Proposed law includes specific conditions in which the secretary may refuse to
issue a license to the applicant or any principal of the applicant, such as if a license or
registration issued by another state was revoked, denied, or canceled for cause or if a federal
certificate of registry was revoked, and if the applicant or any principal of the applicant has
been convicted of any offense involving fraud or misrepresentation or has been convicted
of any other offense that indicates that the applicant or any principal of the applicant may
not comply with proposed law.
Proposed law prohibits the secretary from issuing a license if an applicant or anyone
connected with the applicant's business has been convicted of a felony.
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HB NO. 736
Proposed law authorizes the secretary to revoke a license after sending written notice by
certified mail to the licensee's last known address for certain specific reasons including the
licensee filing a false return, report of data, or the failure, refusal, or neglect of the licensee
to file a return or report.
Proposed law prohibits the secretary from granting a license or requires the secretary to
suspend a license previously granted for a period of at least 30 days, or until such time as the
applicant supplies the secretary with evidence to the contrary, where there is prima facie
evidence, at the discretion of the secretary, that the applicant is not a person of good moral
character, or has violated the provisions of proposed law. The period of suspension shall not
exceed 90 calendar days from the date of suspension, unless at the end of the 90 day period,
the secretary determines that the reason for the suspension has not been resolved.
Proposed law provides for the cancellation, revocation, or surrender of a license in specific
circumstances.
Proposed law requires license applicants to file surety bonds executed in favor of the
secretary when the secretary approves an application. The amount of the bond varies
depending on the license the applicant is applying for. The secretary is authorized to waive
the surety bond requirements when a licensee agrees to maintain assets in La. of a net value
of not less than one and one-fourth times the amount of the bond which would otherwise be
required or when a licensee has not been delinquent in remitting taxes accrued or accruing
during the three-year period immediately preceding the filing of an application for waiver
of the bond.
Proposed law requires a person who receives or collects special fuel taxes to hold the amount
received or collected in trust for the benefit of the state and shall have a fiduciary duty to
remit the amount of taxes received or collected to the secretary. A dealer who receives a
payment of tax may not apply the payment of tax to a debt that the person making the
payment owes for special fuel purchased from the dealer.
Proposed law requires a licensed dealer to file a monthly return no later than the 20
th
day of
the month following the end of the reporting period. If a licensed retail dealer files a return
and remits the tax due on or before the due date, 1% of the tax due is allocated to the
licensed retail dealer for the expense of collecting, accounting for, reporting, and timely
remitting the taxes collected and for keeping the records.
Proposed law provides generally for claims for refunds of special fuel taxes paid on forms
provided by the secretary and documentation which must accompany claims for refund.
Proposed law requires dealers to maintain certain records until the fourth anniversary of the
date they were created. Records shall be open to inspection at all times by the secretary.
Proposed law requires a licensee to notify the secretary in writing at least 30 days prior to
the discontinuance, sale, or transfer of a business and to surrender the license to the
secretary. Provides for information which shall be included in the notice of discontinuance.
If a licensee liable for any tax, interest, or penalty sells or transfers the business or quits the
business, the licensee shall make a final return and payment within 15 days after the date of
selling, transferring, or quitting the business. The successor or assigns, if any, shall withhold
sufficient amounts of the purchase monies to cover the amount of taxes, interest, and
penalties due and unpaid until such time as the former owner shall produce a receipt from
the secretary showing that all taxes, interest, and penalties have been paid, or a certificate
stating that no taxes, interest, or penalties are due.
Proposed law prohibits a person from engaging in any business activity for which a license
is required without first obtaining and subsequently retaining a valid license. Failure to
obtain a valid license shall result in the levy of a penalty of $10,000 for a first violation. For
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HB NO. 736
each subsequent violation, the penalty shall be multiplied by the sum of the current violation
plus all prior violations.
Proposed law provides for remedies for the Dept. of Revenue to enforce collection and
remittance of the special fuels tax, interest, penalties, or applicable costs or failure to furnish
bond. Further authorizes the secretary and other law enforcement officers to stop any
commercial motor vehicle which appears to be operating with special fuels for the purpose
of examining the invoices to determine whether the taxes imposed by present law have been
paid. If it is determined that the tax has not been paid, the secretary or law enforcement
officer may assess the tax due together with the applicable penalty to the owner or driver of
the vehicle. Proposed law authorizes the impoundment of any vehicle found to be operating
in violation of proposed law or any vehicle for which inspection has been refused until an
inspection has been completed or any tax, interest, penalties, and other charges have been
paid.
Proposed law authorizes the secretary to search and examine any warehouse, boat, store,
storeroom, vehicle, or any and all means of transportation, where there is probable cause to
believe proposed law is being violated. The secretary may examine the books and records
of companies or firms operating in this state in order to determine licensees that are
importing or otherwise shipping special fuel which is subject to the tax. Failure of a person
to allow an inspection of records or storage facilities or refuses to permit an audit shall result
in a penalty of $5,000 in addition to any other penalty imposed by law.
Proposed law provides for the seizure of special fuel when it is discovered that special fuel
is illegally imported into or illegally transported, delivered, stored, or sold in this state until
the tax, interest, and penalties levied or imposed are assessed and paid. Proposed law further
authorizes the secretary to take action in a summary proceeding against the owner of any
automobile or truck used in the illegal transportation of special fuels to demand the forfeiture
and sale of the automobile or truck used in the illegal transportation. All funds collected
from the seized and forfeited property shall be paid into the state treasury. Requires the
court to fix attorney fees representing the owner when appointed by the court at a rate not
to exceed 10%.
Proposed law provides for a listing of offenses that constitute a misdemeanor, and upon
conviction, shall be fined not less than $1,000 nor more than $5,000 or imprisoned not more
than two years, or both. Proposed law provides for a listing of offenses which, if committed
with the intent of evading tax, and upon conviction, shall be fined not less than $5,000 nor
more than an amount commensurate to the amount of tax combined with interest and
penalties lost to the state due to the illegal actions or imprisoned with or without hard labor
for not less than two nor more than 10 years, or both.
Present law authorizes the Dept. of Revenue to collect a fee of 4/32 of 1¢ per gallon on all
petroleum products distributed or sold in the state to defray the expenses connected with the
inspection, testing, and analyzing of petroleum products in this state. The fee does not
include liquefied petroleum gas, natural gas, or bulk sale or transfers.
Proposed law changes present law to specifically provide that the fee imposed by the Dept.
of Revenue shall apply to CNG and LNG and that the fee shall be remitted to the department
when the tax on the fuel is remitted to the department. Proposed law retains present law as
it relates to fees on LPG.
Effective July 1, 2015.
(Amends R.S. 3:4602(12.1) and 4684 and R.S. 47:818.2(18), (43), (44), (54), (58), and (63),
and 818.101 through 818.104; Adds R.S. 47:818.105 through 818.121)
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HB NO. 736
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Change the diesel gallon equivalent for LPG from 4.2 pounds to 3.066 pounds.
2. Delete provisions relative to an interstate trucker's license which authorizes a
person who commercially operates certain motor vehicles fueled by special fuel
to report and pay the tax and take a credit or claim a refund as provided in
proposed law. Further delete all requirements and limitations for interstate
trucker's licenses, including bond provisions.
3. Add transitional provisions for the issuance of decals from July 1, 2015, through
Dec. 31, 2015, to persons operating vehicles which use or are capable of using
LNG, LPG, or CNG in order to continue collecting the excise tax due on the fuel.
Further provide for a reduced amount for the decal since it will only be valid for
six months.
4. Change reporting requirements for returns from a licensed dealer from filing
returns quarterly no later than the 25
th
day of the month following the end of the
reporting period to filing returns monthly no later than the 20
th
day of the month
following the end of the reporting period.
5. Clarify that the fee imposed by the Dept. of Revenue for the inspection, testing,
and analyzing of special fuels shall apply to CNG and LNG and requires the fee
to be remitted to the department when the tax on the fuel is remitted to the
department.
6. Delete LPG from the provisions of proposed law as it relates to fees.
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