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number of gallons of gasoline or diesel fuel purchased in 1991
for use in the dump truck.
It is clear from petitioner’s testimony that he drove his
dump truck on the highway from its storage yard to various
project sites for which he had hauling contracts. He also would
haul materials from the project sites to other locations,
provided such destinations were within a 50-mile radius. In so
doing, petitioner used public highways. He has failed to prove
that the dump truck was not a highway vehicle, or that it was not
registered or required to be registered for highway use.3
3 See sec. 48.4061(a)-1(d)(1), Manufacturers & Retailers
Excise Tax Regs., for a definition of "highway vehicle" and its
use. See also sec. 48.6421-4(b) of the regulations with respect
to the meaning of "qualified business use" for claiming the fuel
tax credit, and particularly subparagraph (5) which contains the
following example illustrating its application:
M corporation, a logging company, files its income tax
return on the basis of the calendar year. During 1982, the
company used 20,000 gallons of gasoline in its logging
business. Of this amount, 12,000 gallons were used as fuel
in registered highway vehicles which were operated both on
the public highways and on the company's private roads. Of
the remaining 8,000 gallons, 6,000 were used in nonhighway
vehicles, such as tractors and bulldozers, and 2,000 gallons
were used in highway vehicles such as heavy trucks which, at
the time of use, were neither registered nor required to be
registered under state law for highway use by reason of
being operated entirely on the company's property. As the
ultimate purchaser, M may take a credit on its income tax
return for 1982 under this section in respect of the 6,000
gallons used in the nonhighway vehicles and the 2,000
gallons used in the unregistered highway vehicles. However,
no credit may be allowed with respect to the 12,000 gallons
used in the registered highway vehicles even though a
portion of this gasoline was used in operating the vehicles
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