SEC. 27-59-12. Exemptions.
There shall not be included in the measure of the tax levied in this chapter any compressed gas:
(a) Sold or delivered by a permitted distributor of compressed gas to a second permitted distributor of compressed gas, who shall become liable for the tax unless said compressed gas is sold by the second permitted distributor to a third permitted distributor. The third permitted distributor of compressed gas shall be liable for the tax.
(b) Which as an unfinished product, is used by a refinery in the manufacturing or refining of petroleum products.
(c) Sold to the United States government for use of the armed forces only, and delivered in quantities of not less than four thousand (4,000) gallons.
(d) Delivered to a bonded warehouse for storage within this state for the United States Department of Interior.
(e) Exported to a destination beyond the boundaries of this state by a permitted distributor of compressed gas, when the tax on such compressed gas has been paid or on which the tax liability imposed by this chapter has accrued against said permitted distributor.
(f) Exported by any person to a destination beyond the borders of this state in quantities of not less than three thousand (3,000) gallons by ship, vessel, barge, railroad tank car, or pipeline, or by tank truck if such tank truck is operated by a common or contract carrier.
(g) Sold or delivered to any person within this state to be used in a commercial process where it becomes a component part of any manufactured product or where used as a processing agent in the treatment of raw material in any manufacturing process.
(h) Sold or delivered to be used for test purposes at any regularly established testing laboratory in this state.
(i) Sold or delivered to be used for the purpose of generating electricity.
When compressed gas is excluded from the tax levied in this chapter by one or more of the exemptions provided, the deduction for the exemption may be taken, without the prior approval of the commission, on the monthly tax report of the distributor of compressed gas importing, selling, delivering or exporting such compressed gas. The commission may require such proof as is reasonably necessary for the administration of this chapter.
Any person who has delivered or sold compressed gas on which the tax has been paid by him to the vendor may, if the compressed gas is subject to exemption under this chapter, assign his claim for exemption to any permitted distributor of compressed gas in this state. Such distributor may deduct the amount of the tax exemption from his next compressed gas tax report, provided the distributor furnishes evidence satisfactory to the commission that the claim for exemption is valid.
In order to claim exemptions provided for under this chapter, the distributor of compressed gas must file claims therefor within three (3) years from the date of sale or delivery; otherwise, claims for such exemptions shall be disallowed.
SOURCES: Laws, 1982, ch. 410, Sec. 8; 1989, ch. 518, Sec. 8, eff from and after July 1, 1989.