Okla. Stat. tit. 68, § 68-500.3

Oklahoma Statutes - Title 68. Revenue and Taxation Page 254

As used in the Motor Fuel Tax Code:

1. "Act" or "this act" means the Motor Fuel Tax Code;

2. "Agricultural purposes" means clearing, terracing or

otherwise preparing the ground on a farm; preparing soil for

planting and fertilizing, cultivating, raising and harvesting crops;

raising and feeding livestock and poultry; building fences; pumping

water for any and all uses on the farm, including irrigation;

building roads upon any farm by the owner or person farming same;

operating milking machines; sawing wood for use on a farm; producing

electricity for use on a farm; movement of tractors, farm implements

and equipment from one field to another and use of farm tractors to

move farm products from farm to market;

3. "Biodiesel" means a fuel comprised of mono-alkyl esters of

long chain fatty acids generally derived from vegetable oils or

animal fats, commonly known as "B100", that is commonly and

commercially known or sold as a fuel that is suitable for use in a

highway vehicle. The fuel meets this requirement if, without

further processing or blending, the fuel is a fluid and has

practical and commercial fitness for use in the propulsion of a

highway vehicle;

4. "Biodiesel blend" means a blend of biodiesel fuel with

petroleum-based diesel fuel, commonly designated as "Bxx", where

"xx" represents the volume percentage of biodiesel fuel in the

blend, and that is commonly and commercially known or sold as a fuel

that is suitable for use in a highway vehicle. The fuel meets this

requirement if, without further processing or blending, the fuel is

a fluid and has practical and commercial fitness for use in the

propulsion of a highway vehicle;

5. "Blend stock" means any petroleum product component of

gasoline, such as naphtha, reformate, or toluene, that can be

blended for use in a motor fuel without further processing.

However, the term does not include any substance that:

a. will be ultimately used for consumer nonmotor-fuel

use, and

b. is sold or removed in drum quantities (55 gallons) or

less at the time of the removal or sale;

6. "Blended fuel" means a mixture composed of gasoline or

diesel fuel and another liquid, other than a de minimis amount of a

product such as carburetor detergent or oxidation inhibitor, that

can be used as a fuel in a highway vehicle. This term includes

gasohol, ethanol and fuel grade ethanol;

7. "Blender" means any person that produces blended motor fuel

outside the bulk transfer/terminal system;

8. "Blending" means the mixing of one or more petroleum

products, with or without another product, regardless of the

original character of the product blended, if the product obtained

by the blending is capable of use or otherwise sold for use in the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 255

generation of power for the propulsion of a motor vehicle, an

airplane, or a motorboat. The term does not include that blending

that occurs in the process of refining by the original refiner of

crude petroleum or the blending or products known as lubricating oil

and greases;

9. "Bulk end user" means a person who receives into the

person's own storage facilities in transport truck lots of motor

fuel for the person's own consumption;

10. "Bulk plant" means a motor fuel storage and distribution

facility that is not a terminal and from which motor fuel may be

removed at a rack;

11. "Bulk transfer" means any transfer of motor fuel from one

location to another by pipeline tender or marine delivery within the

bulk transfer/terminal system;

12. "Bulk transfer/terminal system" means the motor fuel

distribution system consisting of refineries, pipelines, vessels,

and terminals. Gasoline in a refinery, pipeline, vessel, or

terminal is in the bulk transfer/terminal system. Motor fuel in the

fuel supply tank of any engine, or in any tank car, rail car,
r by pipeline tender or marine delivery within the

bulk transfer/terminal system;

12. "Bulk transfer/terminal system" means the motor fuel

distribution system consisting of refineries, pipelines, vessels,

and terminals. Gasoline in a refinery, pipeline, vessel, or

terminal is in the bulk transfer/terminal system. Motor fuel in the

fuel supply tank of any engine, or in any tank car, rail car,

trailer, truck, or other equipment suitable for ground

transportation is not in the bulk transfer/terminal system;

13. "Tax Commission" or "Commission" means the Oklahoma Tax

Commission;

14. "Compressed natural gas" means a volume of natural gas

consisting primarily of methane which has been reduced to

approximately one percent (1%) of its original volume for purposes

of storage and for use as a fuel in motor vehicles;

15. "Consumer" means the user of the motor fuel on the public

highways of this state;

16. "Dead storage" means the amount of motor fuel that will not

be pumped out of a storage tank because the motor fuel is below the

mouth of the draw pipe. For purposes of Section 500.1 et seq. of

this title, a dealer may assume that the amount of motor fuel in

dead storage is two hundred (200) gallons for a tank with a capacity

of less than ten thousand (10,000) gallons and four hundred (400)

gallons for a tank with a capacity of ten thousand (10,000) gallons

or more;

17. "Delivery" means the placing of motor fuel or any liquid

into the fuel tank of a motor vehicle;

18. "Destination state" means the state, territory, or foreign

country to which motor fuel is directed for delivery into a storage

facility, a receptacle, a container, or a type of transportation

equipment for the purpose of resale or use;

19. "Diesel fuel" means any liquid, including but not limited

to, biodiesel, biodiesel blend or other diesel blended fuel, that is

commonly or commercially known or sold as a fuel that is suitable

for use in a diesel-powered highway vehicle. A liquid meets this

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requirement if, without further processing or blending, the liquid

has practical and commercial fitness for use in the propulsion

engine of a diesel-powered highway vehicle. Except as provided in

subsection B of Section 500.4 of this title, "diesel fuel" does not

include jet fuel sold to a buyer who is registered with and

certified by the Internal Revenue Service to purchase jet fuel

subject to the Internal Revenue Service;

20. "Diesel-powered highway vehicle" means a motor vehicle

operated on a highway that is propelled by a diesel-powered engine;

21. "Distributor" means a person who acquires motor fuel from a

supplier or from another distributor for subsequent sale or use;

22. "Dyed diesel fuel" means diesel fuel that is required to be

dyed pursuant to United States Environmental Protection Agency rules

or is dyed pursuant to Internal Revenue Service rules or pursuant to

any other requirements subsequently set by the United States

Environmental Protection Agency or Internal Revenue Service

including any invisible marker requirements;

23. "Eligible purchaser" means a person who has been authorized

by the Commission pursuant to Section 500.23 of this title to make

the election pursuant to Section 500.22 of this title;

24. "Enterer" includes any person who is the importer of

record, pursuant to federal customs law, with respect to motor fuel.

If the importer of record is acting as an agent, the person for whom

the agent is acting is the enterer. If there is no importer of

record of motor fuel entered into this state, the owner of the motor

fuel at the time it is brought into this state is the enterer;

25. "Entry" means the importing of motor fuel into this state.

Motor fuel brought into this state in the fuel tank of a motor

vehicle shall not be deemed to be an "entry" if not removed from the

fuel tank except as used for the propulsion of that motor vehicle,
record of motor fuel entered into this state, the owner of the motor

fuel at the time it is brought into this state is the enterer;

25. "Entry" means the importing of motor fuel into this state.

Motor fuel brought into this state in the fuel tank of a motor

vehicle shall not be deemed to be an "entry" if not removed from the

fuel tank except as used for the propulsion of that motor vehicle,

except to the extent that motor fuel was acquired tax free for

export or a refund of tax was claimed as a result of exportation

from the state from which that motor fuel was transported into this

state;

26. "Export" means to obtain motor fuel in this state for sale

or other distribution in another state. In applying this

definition, motor fuel delivered out of state by or for the seller

constitutes an export by the seller and motor fuel delivered out of

state by or for the purchaser constitutes an export by the

purchaser;

27. "Exporter" means any person, other than a supplier, who

purchases motor fuel in this state for the purpose of transporting

or delivering the fuel to another state or country;

28. "Farm tractor" means all tractor-type, motorized farm

implements and equipment but shall not include motor vehicles of the

truck-type, pickup truck-type, automobiles, and other motor vehicles

required to be registered and licensed each year pursuant to the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 257

provisions of the motor vehicle license and registration laws of

this state;

29. "Fuel transportation vehicle" means any vehicle designed

for highway use which is also designed or used to transport motor

fuels and includes transport trucks and tank wagons;

30. "Gasoline" means all products, including but not limited

to, gasoline blend stocks, commonly or commercially known or sold as

gasoline that are suitable for use as a motor fuel. Gasoline does

not include products that have an American Society for Testing

Materials ("A.S.T.M.") octane number of less than seventy-five (75)

as determined by the "motor method". Except as provided in

subsection B of Section 500.4 of this title, "gasoline" does not

include aviation gasoline provided that the buyer is registered to

purchase aviation gasoline free of tax and the seller obtains

certification of such fact satisfactory to the Commission prior to

making the sale;

31. "Gasoline blend stocks" includes any petroleum product

component of gasoline, such as naphtha, reformate, or toluene, that

can be blended for use in a motor fuel. The term shall not include

any substance that will be ultimately used for consumer nonmotor-

fuel use and is sold or removed in drum quantities of 55 gallons or

less at the time of the removal or sale;

32. "Gross gallons" means the total measured motor fuel,

exclusive of any temperature or pressure adjustments, in U.S.

gallons;

33. "Heating oil" means a motor fuel that is burned in a

boiler, furnace, or stove for heating or industrial processing

purposes;

34. "Highway vehicle" means a self-propelled vehicle that is

designed for use on a highway;

35. "Import" means to bring motor fuel into this state by any

means of conveyance other than in the fuel supply tank of a motor

vehicle. In applying this definition, motor fuel delivered into

this state from out of state by or for the seller constitutes an

import by the seller, and motor fuel delivered into this state from

out of state by or for the purchaser constitutes an import by the

purchaser;

36. "Import verification number" means the number assigned by

the Commission with respect to a single transport truck delivery

into this state from another state upon request for an assigned

number by an importer or the transporter carrying motor fuel into

this state for the account of an importer;

37. "In this state" means the area within the border of this

state, including all land within the borders of this state owned by

the United States of America;
e Commission with respect to a single transport truck delivery

into this state from another state upon request for an assigned

number by an importer or the transporter carrying motor fuel into

this state for the account of an importer;

37. "In this state" means the area within the border of this

state, including all land within the borders of this state owned by

the United States of America;

38. "Indian country" means:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 258

a. land held in trust by the United States of America for

the benefit of a federally recognized Indian tribe or

nation,

b. all land within the limits of any Indian reservation

under the jurisdiction of the United States

Government, notwithstanding the issuance of any

patent, and including rights-of-way running through

the reservation,

c. all dependent Indian communities within the borders of

the United States whether within the original or

subsequently acquired territory thereof, and whether

within or without the limits of a state, and

d. all Indian allotments, the Indian titles to which have

not been extinguished, including individual allotments

held in trust by the United States or allotments owned

in fee by individual Indians subject to federal law

restrictions regarding disposition of said allotments

and including rights-of-way running through the same.

The term shall also include the definition of Indian country as

found in 18 U.S.C., Section 1151;

39. "Indian tribe", "tribes", or "federally recognized Indian

tribe or nation" means an Indian tribal entity which is recognized

by the United States Bureau of Indian Affairs as having a special

relationship with the United States. The term shall also include

the definition of a tribe as defined in 25 U.S.C., Section 479a;

40. "Invoiced gallons" means the gallons actually billed on an

invoice in payment to a supplier;

41. "K-1 kerosene" means a petroleum product having an A.P.I.

gravity of not less than forty degrees (40°), at a temperature of

sixty degrees (60°) Fahrenheit and a minimum flash point of one

hundred degrees (100°) Fahrenheit with a sulphur content not

exceeding five one-hundredths percent (0.05%) by weight;

42. "Liquefied natural gas" means a volume of natural gas

consisting primarily of methane which has been cooled to

approximately negative two hundred sixty (-260) degrees Fahrenheit

in order to convert it to a liquid state for purposes of storage and

use as a fuel in motor vehicles;

43. "Liquid" means any substance that is liquid in excess of

sixty degrees (60°) Fahrenheit and a pressure of fourteen and seven-

tenths (14.7) pounds per square inch absolute;

44. "Motor fuel" means gasoline, diesel fuel and blended fuel;

45. "Motor fuel transporter" means a person who transports

motor fuel outside the bulk terminal/transfer system by transport

truck or railroad tank car;

46. "Motor vehicle" means every automobile, truck, truck-

tractor or any motor bus or self-propelled vehicle not operated or

driven upon fixed rails or tracks. The term does not include:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 259

a. farm tractors or machinery including tractors and

machinery designed for off-road use but capable of

movement on roads at low speeds,

b. a vehicle operated on rails, or

c. machinery designed principally for off-road use;

47. "Net gallons" means the motor fuel, measured in U.S.

gallons, when corrected to a temperature of sixty degrees (60°)

Fahrenheit (13° Celsius) and a pressure of fourteen and seven-tenths

(14.7) pounds per square inch (psi);

48. "Permissive supplier" means an out-of-state supplier that

elects, but is not required, to have a supplier's license pursuant

to Section 500.1 et seq. of this title;

49. "Person" means natural persons, individuals, partnerships,

firms, associations, corporations, estates, trustees, business

trusts, syndicates, this state, any county, city, municipality,
14.7) pounds per square inch (psi);

48. "Permissive supplier" means an out-of-state supplier that

elects, but is not required, to have a supplier's license pursuant

to Section 500.1 et seq. of this title;

49. "Person" means natural persons, individuals, partnerships,

firms, associations, corporations, estates, trustees, business

trusts, syndicates, this state, any county, city, municipality,

school district or other political subdivision of the state,

federally recognized Indian tribe, or any corporation or combination

acting as a unit or any receiver appointed by any state or federal

court;

50. "Position holder" means the person who holds the inventory

position in motor fuel in a terminal, as reflected on the records of

the terminal operator. A person holds the inventory position in

motor fuel when that person has a contract with the terminal

operator for the use of storage facilities and terminaling services

for fuel at the terminal. The term includes a terminal operator who

owns fuel in the terminal;

51. "Public highway" means every road, toll road, highway,

street, way or place generally open to the use of the public as a

matter of right for the purposes of vehicular travel, including

streets and alleys of any town or city notwithstanding that the same

may be temporarily closed for construction, reconstruction,

maintenance or repair;

52. "Qualified terminal" means a terminal designated as a

qualified terminal pursuant to the Internal Revenue Code, regulation

and practices and which has been assigned a terminal control number

("tcn") by the Internal Revenue Service;

53. "Rack" means a mechanism for delivering motor fuel from a

refinery, a terminal, or a bulk plant into a railroad tank car, a

transport truck or other means of bulk transfer outside of the bulk

transfer/terminal system;

54. "Refiner" means any person that owns, operates, or

otherwise controls a refinery within the United States;

55. "Refinery" means a facility used to produce motor fuel from

crude oil, unfinished oils, natural gas liquids, or other

hydrocarbons and from which motor fuel may be removed by pipeline,

by vessel, or at a rack;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 260

56. "Removal" means any physical transfer other than by

evaporation, loss, or destruction of motor fuel from a terminal,

manufacturing plant, customs custody, pipeline, marine vessel such

as a barge or tanker, refinery or any receptacle that stores motor

fuel;

57. "Retailer" means a person that engages in the business of

selling or distributing to the consumer within this state;

58. "Supplier" means a person that is:

a. registered pursuant to Section 4101 of the Internal

Revenue Code for transactions in motor fuels in the

bulk transfer/terminal distribution system, and

b. one of the following:

(1) the position holder in a terminal or refinery in

this state,

(2) imports motor fuel into this state from a foreign

country,

(3) acquires motor fuel from a terminal or refinery

in this state from a position holder pursuant to

a two-party exchange, or
he Internal

Revenue Code for transactions in motor fuels in the

bulk transfer/terminal distribution system, and

b. one of the following:

(1) the position holder in a terminal or refinery in

this state,

(2) imports motor fuel into this state from a foreign

country,

(3) acquires motor fuel from a terminal or refinery

in this state from a position holder pursuant to

a two-party exchange, or

(4) the position holder in a terminal or refinery

outside this state with respect to motor fuel

which that person imports into this state on the

account of that person.

A terminal operator shall not be considered a supplier based

solely on the fact that the terminal operator handles motor fuel

consigned to it within a terminal. "Supplier" also means a person

that produces alcohol or alcohol derivative substances in this

state, produces alcohol or alcohol derivative substances for import

to this state into a terminal, or acquires upon import by truck,

railcar or barge into a terminal or refinery, alcohol or alcohol

derivative substances. "Supplier" includes a permissive supplier

unless specifically provided otherwise;

59. "Tank wagon" means a straight truck having multiple

compartments designed or used to carry motor fuel;

60. "Terminal" means a storage and distribution facility for

motor fuel, supplied by pipeline or marine vessel which is

registered as a qualified terminal by the Internal Revenue Service

and from which motor fuel may be removed at a rack;

61. "Terminal bulk transfers" include but are not limited to

the following:

a. a marine barge movement of fuel from a refinery or

terminal to a terminal,

b. pipeline movements of fuel from a refinery or terminal

to a terminal,

c. book transfers of product within a terminal between

suppliers prior to completion of removal across the

rack, and

Oklahoma Statutes - Title 68. Revenue and Taxation Page 261

d. two-party exchanges between licensed suppliers;

62. "Terminal operator" means any person that owns, operates,

or otherwise controls a terminal, and does not use a substantial

portion of the motor fuel that is transferred through or stored in

the terminal for its own use or consumption or in the manufacture of

products other than motor fuel. A terminal operator may own the

motor fuel that is transferred through or stored in the terminal;

63. "Throughputter" means any person that:

a. receives transfer of motor fuel from refiners,

importers, terminal operators, or other

throughputters,

b. stores the motor fuel in a terminal, and

c. owns the motor fuel or holds the inventory position to

the motor fuel, as reflected on the records of the

terminal operator, at the time of removal or sale from

a terminal;

64. "Transmix" means the buffer or interface between two

different products in a pipeline shipment, or a mix of two different

products within a refinery or terminal that results in an off-grade

mixture;

65. "Transport truck" means a semitrailer combination rig

designed or used for the purpose of transporting motor fuel over the

highways;

66. "Transporter" means any operator of a pipeline, barge,

railroad or transport truck engaged in the business of transporting

motor fuels;

67. "Two-party exchange" means a transaction in which the motor

fuel is transferred from one licensed supplier or licensed

permissive supplier to another licensed supplier or licensed

permissive supplier and:

a. which transaction includes a transfer from the person

that holds the original inventory position for motor

fuel in the terminal as reflected on the records of

the terminal operator, and

b. the exchange transaction is simultaneous with removal

from the terminal by the receiving exchange partner.

However, in any event, the terminal operator in the books and

records of such terminal operator treats the receiving exchange

party as the supplier which removes the product across a terminal

rack for purposes of reporting such events to this state;
rds of

the terminal operator, and

b. the exchange transaction is simultaneous with removal

from the terminal by the receiving exchange partner.

However, in any event, the terminal operator in the books and

records of such terminal operator treats the receiving exchange

party as the supplier which removes the product across a terminal

rack for purposes of reporting such events to this state;

68. "Ultimate vendor" means a person that sells motor fuel to

the consumer;

69. "Undyed diesel fuel" means diesel fuel that is not subject

to the United States Environmental Projection Agency dyeing

requirements, or has not been dyed in accordance with Internal

Revenue Service fuel dyeing provisions;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 262

70. "Vehicle fuel tank" means any receptacle on a motor vehicle

from which fuel is supplied for the propulsion of the motor vehicle;

and

71. "Wholesaler" means a person that acquires motor fuel from a

supplier or from another wholesaler for subsequent sale and

distribution at wholesale.