Current through Register Vol. 30, No. 38, September 20, 2024
A. Under the
provisions of this Article, the Department shall refund the Arizona motor fuel
tax imposed on the motor fuel consumed by a claimant's vehicle while in idle
status.
B. A complete application
for refund, as prescribed under
R17-8-601, shall include the
following documentation to verify the quantity of motor fuel consumed by a
vehicle while in idle status:
1. Documentation
that proves the total quantity of motor fuel purchased by the claimant in
Arizona during refund period:
a. An invoice
that contains the following information:
i.
Date of purchase,
ii. Seller's
name,
iii. Physical address where
motor fuel was purchased,
iv.
Number of gallons of motor fuel purchased,
v. Type of motor fuel purchased,
and
vi. Price per gallon of motor
fuel.
b. A fuel log
shall be maintained that contains the following information:
i. The date that the motor fuel was placed in
the fuel tank of a motor vehicle,
ii. The identification number of the
equipment or vehicle in which the motor fuel was placed, and
iii. The number of gallons of motor fuel
placed in the fuel tank.
c. In lieu of subsections (B)(1)(a) and (b),
a licensee may submit a summary of the fuel purchases made by the claimant for
the vehicle during the refund period. The summary shall contain the same
information required to be on a fuel invoice under subsection
(B)(1)(a).
2.
Documentation that proves that the claimant's vehicle was located in Arizona,
off-highway, at the time it was in idle status, and the length of time the
vehicle was in idle status, using one or more of the following methods:
a. Nonscheduled route:
i. A logbook, approved by the Department,
maintained for each vehicle that identifies the date and time when the idle
status started, the date and time when the idle status ended, and a physical
description of the location of the vehicle during the idle status that
establishes that the vehicle was in Arizona, but located off-highway.
ii. The driver shall make an affirmative
statement in the driver's daily log that the engine was operating during the
idle status and shall prepare the logbook entries simultaneously with the idle
status.
iii. The claimant shall
retain trip schedules or bills of lading to support the logbook
entries.
b. Scheduled
route:
i. Published schedule which includes
arrival at and departure from fixed locations at prescribed times; or
ii. A record of average wait times recorded
in a daily log consisting of arrival at and departure from fixed locations at
prescribed times, approved by the Department; and
iii. The claimant shall document that the
engine remained running during the scheduled stops.
c. Global Positioning System:
i. A report from a GPS, approved pursuant to
subsection (C).
ii. The claimant
shall maintain trip schedules or bills of lading to support GPS
reports.
3.
Documentation that proves the quantity of motor fuel consumed by the claimant's
vehicle while in idle status:
a. The claimant
shall document the number of the gallons of motor fuel consumed per hour to
maintain idle status by one or more of the following methods:
i. Engine manufacturer's standard
specifications that establish the quantity of motor fuel consumed per hour
while the vehicle is in idle status.
ii. Computerized system that computes the
quantity of motor fuel consumed per hour while in idle status.
iii. A study or test that determines motor
fuel consumption per hour while in idle status, prior to the period covered by
the refund claim.
b. A
study under this Section shall meet the following specifications:
i. The study shall be conducted at the
claimant's expense,
ii. The
methodology shall be approved by the Department prior to conducting the study
under subsection (C),
iii. The fuel
consumption characteristics of the vehicles and their operation during the
period of the refund shall not vary significantly from the conditions that
existed during the study, and
iv.
The results of the study shall be approved by the Department prior to the time
period covered under the refund claim.
C. The Department shall review and
approve the method used and the data captured by a GPS or manual report prior
to the initial claim for refund and the report shall include the following
components:
1. A description of the
methodology used to determine the percentage of exempt use fuel
consumption;
2. A list of all
equipment consuming use fuel;
3. A
description of all of the vehicle operations where use fuel is
consumed;
4. Whether vehicles are
traveling scheduled routes, and whether seasonal or cyclical events affect use
fuel;
5. Testing and study
components shall be a true representation of operation of business as follows:
a. Vehicles shall be grouped into similar
categories based on similar units and similar gross vehicle weight.
b. Each vehicle category must be tested
individually to determine the idle time fuel consumption.
c. Vehicles selected for testing shall be
representative of the category as to age, make, model, and engine
size.
6. Study
components under
R17-8-604(C)(2)(d)(iv);
7. Explanation of the measuring method used
to determine fuel consumption by vehicles, equipment, and machinery, which
shall include manufacturer specifications;
8. Study results under this subsection shall
include periods covering cyclical or seasonal impacts which captures low and
high points of fuel usage for exempt or non-exempt purposes;
9. Results from a test or study shall be of
duration of at least two weeks; and
10. The approved idle time study may then be
used for three years or shall be updated as requested by the
Department.
D. A
claimant shall submit technical documentation that details the operating system
of any system or manual study used including, but not limited to, the
following:
1. Identification of the computer
system, including the name of the manufacturer, name of the software, and
software version number;
2.
Identification of vehicle engines on which the software will be used by the
claimant, including makes, models, years, and fuel types;
3. Description of the methodology used by
computer system to determine idle status;
4. Description of the methodology used to
determine fuel consumption while in idle status;
5. Description of the methodology used to
determine the location of the vehicle during idle status; and
6. Operating policies and procedures for the
systems that are used in the claimant's business operations.
E. The claimant shall provide
additional supporting documentation if there is any update to the system study
for which documentation was initially submitted and approved.
1. A claimant shall submit to the Department
an updated study under this Section three years from the date of Department
approval or at the Department's request.
2. A study under this Section shall be
conducted at the claimant's expense.
3. The methodology used in support of a study
under these rules shall be approved by the Department prior to conducting the
study under subsection (C).
4. If
the Department rejects the results of a study, a claimant may request a hearing
under A.R.S. §
28-5924.