Sec. 1. 36 MRSA §3204-A, sub-§7, as amended by PL 1997, c. 738, §11, is further amended to read:

7. Kerosene for retail sale. Kerosene delivered into a separate tank for retail sale, in which case the excise tax must be remitted by licensed users pursuant to section 3207, rather than by the supplier; and

Sec. 2. 36 MRSA §3204-A, sub-§8, as enacted by PL 1997, c. 738, §11, is amended to read:

8. Dyed fuel. Dyed fuel.; and

Sec. 3. 36 MRSA §3204-A, sub-§9 is enacted to read:

9.__Propane and liquefied petroleum gas not sold or used as special fuel.__All unaccounted-for or lost propane and liquefied petroleum gas, all propane and liquefied petroleum gas not sold and all propane and liquefied petroleum not delivered into a motor vehicle designed for highway use may not be assessed as the special fuel tax.

SUMMARY

This bill amends the Special Fuel Tax Act and clarifies the point of application of the excise tax on low-energy fuels, such as propane and natural gas. The bill prohibits the State from assuming that unaccounted-for gallons of liquefied petroleum gas and propane were used on the road and thus prohibits the State from assessing the excise tax on low-energy fuel that was not used for a taxable purpose.