Oregon Administrative Rules
Chapter 735 - DEPARTMENT OF TRANSPORTATION, DRIVER AND MOTOR VEHICLE SERVICES DIVISION
Division 170 - FUEL LICENSES AND RECORDS
Section 735-170-0100 - Fuel Lost or Destroyed - Tax Exemption Requirements

(1) Motor vehicle fuel or aircraft fuel lost by a carrier or other person in this state must be included in the taxable distribution section of the monthly tax report. When a carrier or person responsible for lost motor vehicle or aircraft fuel furnishes acceptable documentation of actual loss, credit for the Oregon tax may be taken. Acceptable documentation of the loss, as described in section (2) of this rule, must be submitted to the Department for approval. After approval by the Department, the documents must be filed with the accounting records in the dealer's office where the tax audit is to be made. Credits for approved losses must be reported as prescribed by the Department.

(2) Acceptable documentary proof of loss will include the following:

(3) Losses that occur through accident or mishap to the dealer's own equipment must be supported by a signed statement made by the driver of the vehicle or person directly in charge of the equipment at the time of the accident. The statement must include the details required by subsection (2)(a) of this rule. This statement must be filed in the dealer's office where the tax audit is to be made.

(4) A tax exemption cannot be allowed when motor vehicle fuel is lost under the following conditions:

(5) In all cases where employers, agents, carriers, or other persons fail to account satisfactorily or completely for motor vehicle fuel and are charged by the dealer with the value of the product, such transactions must be included in the computation of the license tax.