FTA Motor Fuel Tax Section Annual Meeting 2005

Summary

The 2005 Annual FTA Motor Fuel Tax Section Meeting was held September 25-28, 2005, in Omaha, Nebraska. This bulletin summarizes the presentations and lists the papers available from the conference. It also summarizes the Motor Fuel Section Annual Business Meeting. Copies of the Resolutions approved at the Business Meeting are attached.

Presiding over the conference was Christy Dixon, Tax Auditor from the State of Oklahoma and the Motor Fuel Tax Section National Chair. Janet Lake, Administrator of the Nebraska Motor Fuels Division and past National Chair, introduced Mary Jane Egr Edson, Tax Commissioner of the State of Nebraska, who welcomed participants to Omaha, Nebraska.

The Offutt Air Force Base Honor Guard presented the colors. Then, the Omaha Central High School Singers performed the United States Anthem and Canadian Anthem, followed by a song entitled, “Beautiful Nebraska.”

Mary Jane Egr Edson, the State of Nebraska Tax Commissioner, welcomed everyone to Nebraska and gave a brief overview of interesting facts about the State. She thanked the participants for attending and for their dedication to the administration of motor fuel taxes.

Christy Dixon, Tax Auditor from the State of Oklahoma and the Motor Fuel Tax Section National Chair, performed roll call of the states and introduced the chairs of the uniformity subcommittees.

An update on the Federal Highway Administration was given by Sheri Alston of the FHwA Office of Transportation Policy Studies.

Rich Little, Senior Program Analyst of the Internal Revenue Service, gave an IRS update. Topics included an overview of the structure of the IRS excise tax section, as well as ExSTARS and laws/regulations impacting states.

Tim Keigher, of the Nebraska Petroleum Marketers, gave an update on the Petroleum Marketers Association of America. Topics addressed included the implementation of ultra-low sulfur diesel fuel regulations, retail station drive-offs and fluctuating gasoline prices.

An update on Uniformity from the Canadian Fuel Tax Council was given by Charles Greenough, the Project Manager. This was followed by an update on the United States Uniformity Project by Patricia Platt of the Kansas Department of Revenue and Uniformity Committee State Co-Chair, and Bob Donnellan of Global Companies LLC and Uniformity Committee Industry Co-Chair. They discussed their eleven point plan as well as the achievements of the subcommittees over the past year. The State of Nebraska was the recipient of an award for improving and combating tax evasion.

CONCURRENT SESSIONS – MONDAY
Two concurrent sessions were repeated in the afternoon.

Bob Bray, Administrator of the Enforcement Division of the Ohio Department of Taxation, was the moderator of this session. The panel included: Martin Cano of the State of Texas, Paul Johnson of the State of Washington and Guy Ste Marie of the Province of Quebec. The panel discussed old and new tax schemes with the high price of fuel.

Carol Player, Tax Auditor for the State of South Carolina and National Vice-Chair of the FTA Motor Fuel Tax Section, was the moderator of this session. The panel included: Lou Feletto of the State of California, Barbara Gluck of the State of Texas, Trent Pelham of the State of Florida, Louise Talstad of the State of South Dakota and Chuck Zwettler of the State of Wisconsin. The panel discussed their respective states’ processes and techniques for auditing tax at the rack.

REGIONAL MEETINGS – MONDAY
The four regions (Midwestern, Northeastern, Pacific and Southern) conducted their separate meetings to review the 2005 activities and plan the 2006 activities.

GENERAL SESSION – TUESDAY

Update on the Motor Fuel Tax Evasion Study for FHwA was given by Linda Morris of the Federal Highway Administration. The Update on the Motor Fuel Tax Evasion Study by AASHTO were given by Joe O’Gorman, Chief of Audit Services for the State of New Jersey Division of Taxation and past National Chair of the Motor Fuel Tax Section, Bob Turner, State of Montana and Debra Hillmer, State of South Dakota.

Dar Walters, Fuels Tax Manager of the Idaho State Tax Commission, discussed a court case between the State of Idaho and a Native American Tribe that was going before the Unites States Supreme Court.

Bob Crawford, the Assistant Director of the Maryland Motor Fuel Tax Division, gave a presentation detailing Maryland’s process for fuel forfeitures and seizures.

Anne Price Warhola, Tax Counsel for the American Petroleum Institute, gave an update on the API. Topics discussed were setting gasoline prices, including price gouging, regulations regarding dye injection systems and what is next for the API.

Retail fuel temperature compensation issues were discussed by John Siebert, the Project Leader for the Owner-Operator Independent Drivers Association (OOIDA) Foundation. He encouraged everyone to support temperature compensation regulations.

Linda Palmer, Audit Bureau Chief of the New Mexico Department of Taxation and Revenue, extended an invitation to the 2006 FTA Motor Fuel Tax Section Annual Meeting. The meeting will be held on October 8-11 in Albuquerque, New Mexico.

Peter Steffens of the Florida Department of Revenue and past National Chair of the FTA Motor Fuel Tax Section presented the Robert Beck Award to Michael Robb of the State of Wyoming.

Christy Dixon, Tax Auditor of the State of Oklahoma and National Chair of the FTA Motor Fuel Tax Section, concluded the general session with the National Chairs report and the presentation of the National Chair Awards. Awards were given to Robin Wilson, Herman Wisneski, Rich Little, Sharon Templin, Pat Whalen, Bob Crawford, David Ribs and Dale Sherman for their dedication and contributions to the Motor Fuels Tax Section and Uniformity project.

CONCURRENT SESSIONS – TUESDAY
Two concurrent sessions were repeated in the afternoon.

Steve Malone of the Weights and Measures Division of the Nebraska Department of Agriculture, and Karen Rowley, Audit Manager of the Nebraska Department of Revenue, along with Bill Gray, Excise Tax Manager of Sinclair Oil Corporation, gave a presentation addressing gains and losses at retail stations. Bob Donellan, of Global Companies LLC and Uniformity Committee Industry Co-Chair, was the moderator.

Patricia Platt, Public Service Administrator II of the Kansas Department of Revenue and Uniformity Committee State Co-Chair, was the moderator of a panel that consisted of George Higdon, Director of the Petroleum Tax Division of the Mississippi State Tax Commission, Carol Player, Tax Auditor of the State of South Carolina and National Vice-Chair of the FTA Motor Fuel Tax Section, and Vicki Haydon, Senior External Auditor of the Arkansas State Highway and Transportation Department. Each member of the panel discussed his/her states’ process of changing to electronic filing and gave an overview of their respective systems.

The business meeting started with the roll call of States. 35 States were present. Christy Dixon, Motor Fuel Tax Section Chair presided over the meeting.

The four regional meeting updates were given as follows:
Edie Martin- Midwest Regional Meeting was held in Topeka, Kansas
Michael Harrell – Northeast Regional Meeting was held in Saratoga, New York
Andy Coffman – Pacific Regional Meeting was held in Seattle, Washington
Randy Winkler – Southern Regional Meeting was held in Tampa, Florida

Time and Place Committee, Dale Thede, State of Iowa announced the locations for the upcoming annual meetings:

2006 - Albuquerque, New Mexico - October 8-11, 2006
2007 - Louisiana (city not yet determined) - (date not final)
2008 - Connecticut (city not yet determined) - (date not final)

Resolutions Committee, Marc Papandrea, State of Connecticut sought approval to the Thirteen Resolutions. All resolutions were approved.

Nominations Committee, Bob Bray, State of Ohio announced the nominations for 2006.
Carol Player, South Carolina, was nominated and approved as the 2006 Motor Fuel
Tax Section Chair and Michael Harrell, Delaware, was nominated and approved as the 2006 Motor Fuel Tax Section Vice Chair. The Uniformity Co-Chairs for 2006 are Donna Alderman, North Carolina, and Bob Donnellan, Global Companies, LLC.

Carol Player, Tax Auditor of the State of South Carolina and National Vice-Chair of the FTA Motor Fuel Tax Section, discussed the National Diversion Registry.

Dan Farish, Excise/Sales Tax Manager of Murphy Oil USA Inc., and Mike Ward, Supervisor of Product Services for Magellan Pipeline Company LP, discussed security standards for mechanical dye injection systems.

Darel Capps, Fuel Tax Audit Manager for the State of Oregon, gave a presentation detailing the State of Oregon’s pilot program that would tax on miles traveled vs. fuel tax (not weight distance tax).

Dietrich Bohmer of the United States Department of Transportation gave a presentation on fuel theft/conspiracy investigations conducted by his office.

FTA 2005 Motor Fuel Tax
Papers Currently Available from FTA Section Annual Meeting

General Session

Motor Fuel Tax Section
·          Motor Fuel Tax 2005 history booklet
·          Agenda for the Motor Fuel Tax 2005 Annual Meeting in Omaha, Nebraska
·          Attendees of the 2005 Annual Meeting in Omaha, Nebraska

IRS
            ·          National Fuel Territory Geographical Footprint
                        Fuel Forfeitures and Seizures
            ·          Bob Crawford, State of Maryland
                        Retail Fuel Temperature Compensation Issues
            ·          John Siebert, OOIDA Foundation Inc
                        Security Standards for Mechanical Dye Injection Systems
            ·          Dan Farish, Murphy Oil USA Inc and Mike Ward, Magellan Pipeline Co LP
                        Invitation to the 2006 Annual Meeting

Concurrent Breakout Session

Tax at the Rack Auditing
            ·          Lou Feletto, CA Board of Equalization
            ·          Chuck Zwettler, State of Wisconsin

Retailers Selling More Fuel than Received
· Karen Rowley, Nebraska Department of Revenue, Motor Fuel Tax
· Steve Malone, Nebraska Department of Agriculture

Moving to Electronic Filing
· George Higdon, State of Mississippi
· Vicki Haydon, State of Arkansas

2005 FTA Motor Fuel Tax Section Annual Meeting! Omaha, Nebraska September 25-28, 2005

GENERAL SESSION – TUESDAY

General Session

Concurrent Breakout Session

2005 FTA Motor Fuel Tax Section Annual Meeting!
Omaha, Nebraska
September 25-28, 2005