Transportation of special fuel; requirements and procedures;
violations
Sec. 40. (a) Each person operating a refinery, terminal, or bulk
plant in Indiana shall prepare and provide to the driver of every
vehicle receiving special fuel at the facility a shipping document
setting out on its face the destination state as represented to the
terminal operator by the shipper or the shipper's agent, except that an
operator of a bulk plant in Indiana delivering special fuel into a
vehicle with a capacity of not more than five thousand four hundred
(5,400) gallons for subsequent delivery to an end consumer in
Indiana is exempt from this requirement.
(b) Every person transporting special fuel in vehicles upon the
Indiana public highways shall carry on board a shipping paper issued
by the terminal operator or the bulk plant operator of the facility
where the special fuel was obtained, which shipping paper shall set
out on its face the state of destination of the special fuel transported
in the vehicle, except that operators of vehicles with a capacity of not
more than five thousand four hundred (5,400) gallons that have
received special fuel at a bulk plant in Indiana for delivery to an end
consumer in Indiana are exempt from this provision with respect to
the special fuel. A person who violates this subsection commits a
Class A infraction (as defined in IC 34-28-5-4).
(c) Every person transporting special fuel in vehicles upon the
public highways of Indiana shall provide the original or a copy of the
terminal issued shipping document accompanying the shipment to
the operator of the retail outlet or bulk plant to which delivery of the
shipment was made. A person who knowingly violates or knowingly
aids and abets another person in violating this subsection commits a
Class D felony.
(d) Each operator of a special fuel retail outlet or bulk plant shall
receive, examine, and retain for a period of thirty (30) days at the
delivery location the terminal issued shipping document received
from the transporter for every shipment of special fuel that is
delivered to that location, with record retention of the shipping paper
of three (3) years required offsite. A person who knowingly violates
or knowingly aids and abets another person in violating this
subsection commits a Class D felony.
(e) No bulk end user, retail dealer, bulk plant operator, or
wholesale distributor shall knowingly accept delivery of special fuel
into storage facilities in Indiana if that delivery is not accompanied
by a shipping paper issued by the terminal operator or bulk plant
operator, that sets out on its face Indiana as the state of destination
of the special fuel. A person who knowingly violates or knowingly
aids and abets another person in violating this subsection commits a
Class D felony.
(f) The department shall provide for relief in a case where a
shipment of special fuel is legitimately diverted from the represented
destination state after the shipping paper has been issued by the
terminal operator or where the terminal operator failed to cause
proper information to be printed on the shipping paper. These relief
provisions shall include a provision requiring that the shipper or its
agent provide notification before the diversion or correction to the
department if an intended diversion or correction is to occur, and the
relief provision shall be consistent with the refund provisions of this
chapter.
(g) The supplier and the terminal operator shall be entitled to rely
for all purposes of this chapter on the representation by the shipper
or the shipper's agent as to the shipper's intended state of destination
or tax exempt use. The shipper, the importer, the transporter, the
shipper's agent, and any purchaser, not the supplier or terminal
operator, shall be jointly liable for any tax otherwise due to the state
as a result of a diversion of the special fuel from the represented
destination state.
As added by P.L.277-1993(ss), SEC.44. Amended by P.L.18-1994,
SEC.29; P.L.85-1995, SEC.24; P.L.1-1998, SEC.80.
Last modified: May 28, 2006