28-5612. Refund procedure; violation

A. A person who is seeking a refund and who is not licensed as a supplier, interstate user, restricted distributor or use fuel vendor shall:

1. File an application with the director within six months after the date of sale.

2. Submit proof satisfactory to the director of the following:

(a) The purpose for which the fuel was used.

(b) The tax paid purchase.

3. Make an application in a form prescribed by the department that requests the following information:

(a) Name and address of the claimant.

(b) Period covered by the claim showing dates.

(c) Location of equipment, if applicable.

(d) Gallons on which a refund is claimed.

(e) Amount of the refund claimed.

(f) Other information required by the director.

B. The claim shall not be under oath but shall contain or be accompanied by a written declaration that it is made under penalties of perjury and, if it is for motor vehicle fuel, that it complies in all respects with section 28-5611 relating to refunds.

C. The original invoice or a duplicate that is satisfactory to the director and that includes the following information shall accompany the application:

1. The date of purchase.

2. The seller's name and address.

3. The number of gallons purchased.

4. The type of fuel purchased.

5. The price per gallon of the fuel.

6. Other information required by the director.

D. If a person files a claim for a refund pursuant to this section for motor fuel exported, the person shall make satisfactory proof of export to the director and file the claim within three months after the date of export in the form and containing the information required by the director. The original invoice or an acceptable duplicate shall accompany the claim.

E. The director shall accept only one application for refund of motor fuel taxes for any one person within a six month period if the aggregate total of all motor fuel taxes paid and for which a refund is claimed does not equal at least ten dollars.

F. If a person who is exempt from use fuel taxes pursuant to section 28-5610 submits a claim for a refund pursuant to this section for use fuel taxes, the department shall not pay the refund until the department determines the difference between the amount of the refund and the amount of the use tax that is imposed under title 42, chapter 5, article 4 on the fuel exempt from use fuel taxes if owed by the person. If the department determines that the amount of the refund is greater than the amount owed for the use tax, the department shall deposit the amount owed for the use tax pursuant to subsection M of this section and refund the amount of the difference to the person. If the department determines that the amount of the refund is less than the amount owed for the use tax, the department shall forward any balance due information to the department of revenue for collection.

G. Except as provided in subsection F of this section, if the director does not issue a refund within sixty days after a complete application for refund is filed as prescribed in this article, the director shall pay interest at the rate of eleven per cent per year from the date the complete application for refund is filed until the date on which the refund is made.

H. If the director denies a refund, the director shall notify the claimant that the refund is denied. The director's denial is final unless the applicant makes a written request for a hearing as prescribed in section 28-5924.

I. It is unlawful for a person to knowingly operate a motor vehicle on the highways or a watercraft on the waterways using motor vehicle fuel or use fuel that has been sold to a person making a claim pursuant to this section.

J. In addition to other penalties prescribed by law, the director shall not give a person who violates this section a refund on motor fuel purchased during the six months succeeding the date the director advises the person by mail of the director's discovery of the violation.

K. A person whose right to a refund is suspended may bring an action in superior court in Maricopa County to set aside the suspension.

L. The director may recover excess refunds from the person to whom the refund was made. The director shall assess the claimant the amount of the excess refund and interest. The director shall compute interest at one per cent per month of the amount of excess refund due beginning on the date of refund and until the date the assessment is paid.

M. The department of transportation shall deposit, pursuant to sections 35-146 and 35-147, use tax revenues collected pursuant to subsection F of this section in the state general fund by the end of each month and notify the department of revenue of the amount of use tax collected each month.