(a) (1) The Director of the Department of Finance and Administration upon finding a motor vehicle using or utilizing dyed distillate special fuel for the purpose of operating that motor vehicle not excepted in § 26-56-225, shall:
(A) Assess all taxes due the state at the total per-gallon tax rates set out in this chapter upon all fuel that could be contained in the fuel supply tank or tanks of that motor vehicle, if filled to capacity; and
(B) Assess a penalty of ten dollars ($10.00) per gallon on all the fuel that could be contained in the fuel supply tank or tanks of the motor vehicle, if filled to capacity.
(2) Further, if any dyed distillate special fuel is found in any fuel storage tank or fuel storage facility outside of the terminal utilized by the operator of that motor vehicle, or any other person, for the purpose of fueling that motor vehicle, the director shall:
(A) For taxation purposes, make an assessment based on the entire amount of the fuel that could be contained in the fuel storage tank or fuel storage facility, if filled to capacity, at the total per-gallon tax rates set out in this chapter; and
(B) Assess a penalty of ten dollars ($10.00) per gallon on all the fuels that could be contained in the fuel storage tank or fuel storage facility, if filled to capacity, if the fuels are utilized by the operator of that motor vehicle, or are utilized by any other person, for the purpose of fueling that motor vehicle.
(b) (1) (A) The presence of any amount of dyed distillate special fuel in the fuel supply tank of any motor vehicle not excepted in § 26-56-225, or in a fuel storage tank or fuel storage facility outside of the terminal utilized by the operator of the motor vehicle, or any other person, for the purpose of fueling that motor vehicle shall create a rebuttable presumption that the entire amount of fuel that could be contained in the fuel supply tank of the motor vehicle, or that could be contained in the fuel storage tank or fuel storage facility, has been, or is being, used or utilized for taxable purposes.
(B) Thus the entire amount of the fuel that could be contained in the tank and facility, if filled to capacity, shall be susceptible to full distillate special fuel taxation.
(2) The assessments shall be made against the operator or any other person the director deems responsible for the usage or utilization of the dyed distillate special fuel in that motor vehicle.
(c) All penalties authorized by this section shall be in addition to all other penalties provided in this chapter and in the Arkansas Tax Procedure Act, § 26-18-101 et seq.
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