Any person who is engaged in business as a Class A distributor or who acts as a Class A distributor as defined in this article, shall pay for the privilege of engaging in such business or acting as such Class A distributor, an excise tax of Two cents (2¢) per quart (Eight cents (8¢) per gallon) upon lubricating oil (1) sold to Class B distributors; (2) sold to retailers; (3) sold directly to a consumer; (4) used in any motor vehicle owned or operated by such person in this state. Provided that the tax herein imposed and assessed shall be collected and paid to the State of Mississippi but once in respect to any lubricating oil.

Provided that any person or concern who holds a permit as a distributor of lubricating oil, issued under prior law, who applies for and receives a permit as a Class B distributor, as defined in this article, shall upon the issuance of such Class B distributor’s permit take an actual physical inventory of all lubricating oil on hand. A tax, at the rate provided above, shall immediately accrue upon the amount of lubricating oil on hand and shall be payable to the comptroller on or before the twentieth of the month following the month in which such inventory is made. All such inventories shall be made under the supervision of a representative of the comptroller. After the issuance of Class B permits, holders thereof shall be required to pay the tax, provided for in this section, to Class A distributors on all lubricating oil purchased or otherwise acquired.