Section R17-8-604. Off-Highway

A.       The Division shall refund the Arizona motor fuel tax paid on the motor fuel consumed in Arizona while the vehicle is off- highway.

B.       An application for refund shall include the following support- ing documentation:

1.        System or manual motor fuel log summary by VIN which includes the following:

a.         Items under subsection (C)(1)(a), and

b.        Mileage consumed off-highway.

2.        Equipment and vehicle listing which includes year, make, model, gallon capacity, and

3.        Proof of fuel purchase which may include:

a.         Motor fuel invoices,

b.        Motor fuel purchase receipts,

c.         Computerized fuel purchase statement, and

d.        International Fuel Tax Agreement reports.

C.       A Claimant shall provide the following documentation to the Division for the identified refund types:

1.        Refrigeration unit:

a.         Fuel log summary consisting of, at a minimum, the following information:

i.         Fuel type,

ii.        Date fuel dispensed,

iii.      Number of gallons dispensed, and

iv.       Identification number of equipment or vehicle into which the fuel was dispensed.

b.        Equipment or vehicle identification number.

2.        Power take-off: A motor fuel consumption study under this Section shall be conducted at the Claimant’s expense, and shall be approved by the Division prior to the initial

application for refund, and shall include the following information:

a.         A description of the methodology used to determine the percentage of exempt motor fuel consumed by the power-take-off;

b.        A list of all equipment using motor fuel;

c.         All operations where motor fuel is consumed;

d.        Testing and study components shall be a true repre- sentation of the operation of business as follows:

i.         Vehicles shall be grouped into similar catego- ries based on similar power-take-off units and similar gross vehicle weight.

ii.        Vehicles selected shall be representative of the category as to age, make, model, and engine size.

iii.      Each vehicle category shall be tested individu- ally to determine the amount of motor fuel con- sumed by the power-take-off unit.

iv.       If a vehicle category contains:

(1)       Less than four vehicles, all vehicles must be included in the test study.

(2)       Thirty or fewer vehicles, then at least three vehicles must be included in the test sam- ple.

(3)       More than 30 and fewer than 151 vehicles, then at least 10 percent of the vehicles must be included in the test sample.

(4)       More than 151 vehicles, then at least 15 vehicles must be included in the test sam- ple.

e.         Explanation of the measuring method used to deter- mine fuel consumption by vehicles, equipment, and machinery, which shall include manufacturer speci- fications;

f.         Results of a period of a study which shall include a period covering cyclical or seasonal impacts which includes low and high points of fuel usage for exempt or non-exempt purposes;

g.        Results from a test or study shall be a duration of at least two weeks; and

h.        The approved power-take-off percentage may then be used for three years or shall be updated as requested by the Division.

3.        Idle time under R17-8-605.

Historical Note

New Section made by final rulemaking at 14 A.A.R. 399, effective March 8, 2008 (Supp. 08-1).