28-5703. Cooperative agreements; definitions

A. To comply with the intermodal surface transportation efficiency act of 1991, the director may enter into a cooperative agreement with other jurisdictions for the administration of motor fuel taxes imposed by article 1 of this chapter or section 28-8344. An agreement is not effective until signed by the director and filed with the department.

B. The agreement shall include:

1. The base jurisdiction concept. This concept allows a licensee to report and pay motor fuel use taxes to a base jurisdiction for distribution to other member jurisdictions in which the licensee traveled and incurred motor fuel use tax liability.

2. Retention of each jurisdiction's sovereign authority to determine tax rates and exemptions and exercise other substantive tax authority.

3. A uniform definition of the vehicles to which the agreement applies.

C. The agreement may provide for:

1. Determining the base jurisdiction for users.

2. Users records requirements.

3. Audit procedures.

4. Exchange of information.

5. Persons eligible for tax licensing.

6. Defining qualified motor vehicles.

7. Determining if bonding is required.

8. Specifying reporting requirements and periods, including defining uniform penalty and interest rates for late reporting.

9. Determining methods for collecting and forwarding motor fuel taxes and penalties to another jurisdiction.

10. Other provisions to facilitate the administration of the agreement.

11. Each jurisdiction to audit the records of persons based in the jurisdiction to determine if the motor fuel taxes due each jurisdiction are properly reported and paid.

D. Each jurisdiction shall forward the findings of the audits performed on persons based in the jurisdiction to each jurisdiction in which the person has taxable use of motor fuels. As required by the agreement, the director may forward to officers of another member jurisdiction any information in the director's possession relative to the manufacture, receipt, sale, use, transportation or shipment of motor fuels by any person. The director may disclose to officers of another member jurisdiction the location of offices, motor vehicles and other real and personal property of users of motor fuels.

E. Member jurisdictions may enforce this chapter against persons who are not based in this state and who have taxable use of motor fuel in this state.

F. An agreement entered into under this section does not preclude the director or the director's appointed representatives from auditing the records of a person covered by this article and article 1 of this chapter.

G. The legal remedies for a person served with an order or assessment under this section are as prescribed in article 5 of this chapter.

H. For the purposes of this section:

1. " Jurisdiction" means a state of the United States, the District of Columbia or a province or territory of the Dominion of Canada.

2. " Motor fuels" includes motor vehicle fuel, aviation fuel and use fuel.

3. " Qualified motor vehicle" means a use class motor vehicle.