Okla. Admin. Code § 710:55-7-5

Current through Vol. 42, No. 4, November 1, 2024

Section 710:55-7-5 - Credits; refunds

(a) Where, in any given tax reporting period, a Special Fuel Dealer or Special Fuel User has paid Oklahoma Special Fuel Tax on an amount of special fuel part of which was subsequently and actually consumed in motor vehicles outside the State of Oklahoma, such Dealer or User shall be allowed a "credit" in an amount equal to the special fuel tax rate per gallon times the number of gallons used outside of Oklahoma. The burden is upon the Taxpayer to claim the credit and to furnish sufficient evidence to support this claim.

(b) The credit may be carried over and applied to any month following the month in which the credit arose.

EXAMPLE: X Consumes one thousand (1,000) gallons of special fuel in Oklahoma in January 1988. X purchased special fuel tax paid in Oklahoma in the amount of one thousand five hundred (1,500) gallons in the same month. Assume that X can show that all one thousand five hundred (1,500) gallons were used in January 1988 but that five hundred (500) gallons were consumed outside Oklahoma. X would be entitled to a credit equivalent to the special fuel tax rate times five hundred (500) gallons on the January 1988 monthly report. [See: 68 O.S. § 722 ]

(c) Instead of carrying the credit over to succeeding months, the Taxpayer is also entitled to claim a refund. Such refund is computed on the same basis as the credit. However, the claim for refund must be made within one (1) year from the first day of the calendar month in which the special fuel was use. Upon the expiration of one (1) year, computed from the first day of the calendar month in which the special fuel was used, the right to claim the refund as to any and all of the amount still remaining, shall be deemed extinguished.

(d) If special fuel is purchased in one month but the use outside Oklahoma, giving rise to a credit or claim for refund under this section, occurs in more than one month, the allowable credit shall be apportioned to each of the months in which the use occurred, based on the actual use and consumption for the month.

EXAMPLE: X purchased five hundred (500) gallons in Oklahoma of special fuel tax paid on September 30,1988. On that same day X uses fifty (50) gallons in Oklahoma and two hundred (200) gallons outside Oklahoma. The next day, October 1, 1988, X uses the remaining two hundred fifty (250) gallons outside Oklahoma.

As X used two hundred (200) gallons outside Oklahoma on September 30, 1988, he is entitled to claim a credit or refund on that amount on his report for September, 1988. The last month in which he can claim refund attributable to the two hundred (200) gallons is August, 1989.

As to the two hundred fifty (250) gallons, he cannot claim that credit or refund until he submits his October report. Likewise, the last month in which he can claim refund on the two hundred fifty (250) gallons is September, 1989.

Okla. Admin. Code § 710:55-7-5