§721. Tax collectible from dealers

A. The taxes levied in this Part shall be collectible from all persons engaged as dealers in the handling, sale, use or distribution of gasoline or motor fuel.

It is the purpose of this Part to centralize the collection of the tax herein levied in the hands of those who originally dispose of gasoline or motor fuel for distribution, use and consumption within this state as far as practicable, but if for any reason the dealer who first handles, sells, distributes, uses, etc., the gasoline or motor fuel shall have escaped payment of the taxes herein levied, payment of the taxes may be required of any dealer in whose hands the aforsaid taxable commodities may be found, where it is evident the taxes have not previously been paid or guaranteed by bond.

Any person who sells, offers for sale, or has in his possession for sale, use, consumption or distribution gasoline or motor fuel, the tax on which he cannot prove has been previously paid, or that the payment of said tax has been guaranteed by a bond which has been furnished and accepted, shall be liable for the tax thereon, as levied by this Part and he must qualify as a dealer before engaging in the said business.

In no case, however, shall there be a duplication of the collection of the tax levied in this Part.

B. Any jobber of gasoline or other motor fuels whose principal business is selling gasoline and other motor fuels for resale, and who:

(1)(a) Maintains in this state facilities for the storage of gasoline or other motor fuels in the amount of thirty thousand gallons or more;

(b) Has complied with the requirements of R.S. 47:725 by furnishing a satisfactory surety bond as a gasoline dealer to the secretary to guarantee payment of taxes levied by this Part;

(c) Has, during the preceding six calendar months, purchased gasoline or other motor fuels in an amount in excess of three hundred thousand gallons;

(d) Has obtained from the secretary written permission to make use of the provisions of this Subsection; and

(e) Is a bona fide jobber of gasoline or other motor fuels,

may, at his option, request and require that a bonded manufacturer of such products deliver such products to him without the payment of all but one cent per gallon of the taxes levied by R.S. 47:711 under the following conditions:

(2)(a) Any jobber who accepts delivery of gasoline or other motor fuels from the manufacturer upon which the tax has not been paid, on or before the twentieth day of the month following the month in which such delivery is accepted, shall file a report with the secretary furnishing such information as the secretary by regulation may require, and shall with such report pay the tax on total purchases of gasoline or other motor fuels during the preceding calendar month.

(b) Any jobber who avails himself of this Subsection shall fully comply with the provisions hereof and in the event of noncompliance the secretary shall notify such jobber that he will no longer be permitted to purchase gasoline or other motor fuels without payment of the tax to the manufacturer.

(c) Any jobber who pays the taxes on his purchases directly to the secretary as permitted by this Subsection shall be entitled to the allowance for losses in handling as provided in R.S. 47:719(A).

C. The secretary shall prepare and furnish to all manufacturers who request it a list of all jobbers who are qualified to make use of the provisions of Subsection B and, in sales to jobbers on this list, the manufacturer shall be relieved of all but one cent per gallon of the liability for the payment of taxes accrued or accruing under R.S. 47:711 for which the manufacturer otherwise might be responsible.

D. Nothing in Subsection B shall be construed as being applicable to consignees or commission agents or to those whose principal business is retailing gasoline or other motor fuels through the medium of service stations owned or operated by themselves on a salary or commission basis, or to any persons, firms, corporations, or associations of persons formed so as to have the effect of circumventing the intent and purpose of this Part. The sole meaning and intent is to permit bona fide jobbers of gasoline or other motor fuels who maintain and actually use the facilities of a bulk plant in this state to pay, under the enumerated conditions, all but one cent per gallon of the taxes levied by R.S. 47:711 directly to the secretary of revenue instead of to the bonded manufacturer.

Amended by Acts 1964, No. 463, §1; Acts 1968, Ex.Sess., No. 7, §2; Acts 1972, No. 221, §1, eff. Aug. 1, 1972; Acts 1974, No. 193, §1; Acts 1975, No. 503, §1; Acts 1984, 1st Ex. Sess., No. 11, §1, eff. July 1, 1984.

{{NOTE: SEE ACTS 1984, 1ST EX. SESS., NO. 11, §3, EFF. MARCH 27, 1984.}}