BULLETIN

B-42/00
November 20, 2000

To State Tax Administrators:

SUMMARY The 2000 Annual FTA Motor Fuel Tax Section Meeting was held September 24 through September 27, 2000, in Rochester, New York. This bulletin summarizes the presentations and lists the papers available from the conference. It also summarizes the Motor Fuel Tax Section Annual Business Meeting. Copies of the Resolutions approved at the Business Meeting are attached.

Presiding over the conference was Steven Miller from the Idaho State Tax Commission. Welcoming the participants to Rochester, New York, was Arthur Roth, Commissioner of the New York State Department of Taxation and Finance

General Session - Monday
Harley Duncan, Executive Director, Federation of Tax Administrators, gave an update on state and local taxation and ways that the Motor Fuel Tax Section can improve on the current administration of taxes. He briefly discussed sales, corporation, individual income, and property taxes and how the administration of these taxes is changing. He also complimented the Advanced Training Program, and the ExTOLE and ExSTARS projects.

Arthur Roth welcomed everyone to New York State and offered advice on what to see and eat (apple pie). He also discussed the improvements to New York State, including $40 billion in cumulative tax relief, since Governor Pataki took office. He discussed New York State becoming a magnet for business because of recent tax relief. He also talked of efforts the state government is making to make its agencies more accessible to the public. He commended the Motor Fuel Tax Section for its efforts in uniformity and for partnering with industry for the good of everyone involved.

Sherrie Alston, Director of the Office of Transportation Policy Studies, Federal Highway Administration, gave a brief presentation on the TEA-21 (Transportation Equity Act) legislation. She encouraged the states to apply for the available funds in the Surface Transportation Project (STP Funds) included in TEA-21.

Rich Little, from Fuel Compliance, IRS, discussed the IRS reorganization taking place. He also gave a demonstration of the new Acoustic Inspection Device. It is an ultrasonic, non-intrusive device used to determine what product is contained in tankers.

Ken Duggan, Project Manager, Canadian Fuel Tax Project, gave an overview of uniformity updates occurring in Canada. Joe O'Gorman discussed uniformity updates for the U.S. and introduced each of his co-chairs. Each co-chair gave a brief description of their sub-committee and what they've worked on during the past year.

Concurrent Sessions - Monday
Two concurrent sessions were repeated throughout the afternoon.

ExSTARS
One session was an Industry and Government perspective on the ExSTARS Project. Ron Miller, Manager of Motor Fuel Tax from Ashland Petroleum LLC, gave an overview on why the ExSTARS project was needed and how it was created. Industry and government officials came together to determine the best way to report and verify Motor Fuel Tax. It benefits industry because it allows all the companies to operate on a level playing field by reducing tax leakage, providing a single point of filing, protects federal revenues, and eliminates the need to tax two party exchanges.

Dave Skinner from the Florida Department of Revenue, discussed the current status of the ExSTARS program. He discussed how the information will be distributed to the states and how they can use this information. The program will be tested beginning 10/2000 and should be implemented fully in the first or second quarter of 2001.

ExTOLE
The session on the ExTOLE Project was presented by Peter Steffens (state of Florida), Dan Gostage (state of California), Patricia Platt (state of Kansas), and Gene Williams (state of New York). Due to unforeseen circumstances, the scheduled mediator, Julian Fitzgerald (Director, Motor Fuels Tax Division of North Carolina Department of Revenue) was not in attendance.

A handout was available for all attendees which listed the seven areas of the program and their major functions. Peter, Dan, Patricia and Gene also further elaborated on the expectations of each area of the program. Samples of some of the computer screens were also presented. It was noted that a manual is available which provides additional information on the program, including "required" fields for each area. This is available in hard copy format or through E-mail. A future plan is to have it also available on the FTA Web site. Training is scheduled for February, March, and April 2001. It is recommended that at least three people from a government agency attend the training. The attendees should encompass the departments of audit, compliance/enforcement, management, and information management.

Regional Meetings - Monday

The four regions; Midwestern, Northeastern, Pacific, and Southern, conducted their separate meetings to review the 2000 activities and to plan 2001 activities.

General Session - Tuesday
Steven Miller reminded everyone to please complete a critique sheet for this year's conference. In addition, he added that some of the resolutions had been changed as a result of the regional meetings held on Monday. He suggested reviewing them before today's business meeting.

Ken Duggan, Project Manager of the Canadian Fuel Tax Project, spoke about the Canadian Motor Fuel Distribution System. He discussed each aspect that comprises the system (refineries, terminals, bulk dealers, retail stations, and card locks). Also discussed were sales volumes, point of fuel taxation and consumption graphs.

Tim Turgeon, Excise Tax Manager of Cenex Harvest States, spoke on the "Smart Site" Fuel Delivery System. The two areas of discussion were refined fuel distribution (truck) and Smart Site (tank monitors and controllers). The area of refined fuel distribution included reasons "why" and "what is it." Discussion on the Smart Site system included active states that currently participate, how it works, the benefits of such a system, and the role of the Co-op's.

Jim Declaire, Excise Tax Manager of Chevron, made a presentation on Internet Purchasing of Fuel. He supplied a handout, which showed the four models currently being used through the Internet -- Web site for advertising, vouchers - priceline.com, marketplace, and storefront. The use of the Internet creates no new fuel tax issues. However, there is more opportunity for them to arise because of the increase in the number of players and transactions.

A welcome and invitation to the 2001 Annual Meeting was made by Debra Hillmer and Alana Gournea with the state of South Dakota. The meeting is scheduled to be held September 23-26, 2001, at the Rushmore Plaza Holiday Inn in Rapid City, SD.

Ron Raven, Ph.D., Counselor of Law and Government Relations, Atlanta, GA, spoke on his publication "Deliver Us From Evil, Governmental Responses to Reports of Fuel Tax Evasion." He discussed the evolution of the subject matter and the steps he followed in completing the publication. He expressed his belief that more work could be done on this subject matter and hopes that his publication is just the beginning.

Steven Miller concluded the general session with the presentation of several awards and certificates of appreciation.

Concurrent Sessions - Tuesday
Two concurrent sessions were repeated throughout the afternoon.

Industry Perspective
Doug Burdick, Excise Tax Manager for TransMontaigne Product Services Inc., gave the Industry perspective on Electronic Funds Transfer (ACH Debit and Credit system). He also discussed uniformity issues with regard to EFT. The following issues are currently being addressed: calculations, dollars and cents inputting, filing period dates and payment dates, data collection service, and warehousing (5 states still do not offer warehousing).

Beverly Rudy talked about issues of concern to all traders in the Bulk Transfer System. The four main topics she presented were licensing, pipelining, term definitions, and access to information.

Eldon Andrus, from Exxon Mobil, Inc., talked about ease of data transmission, uniformity, data transmittal methods, EDI transmissions, the number of different taxes involved in motor fuel, and the ExSTARS and ExTOLE programs.

David Wright, from BP Amoco, Inc., talked about the states giving industry the ability to make prior month changes, tax exempt organizations and getting refunds on the tax paid, and the fact that state laws differ regarding points of sale reporting requirements.

Ron Raven, Counselor of Law and Government Relations, Atlanta, GA, talked briefly about the tax situation with Indians. States need to look at their laws to be certain that they can collect tax without violating the Constitution.

Enforcement Efforts
This session was moderated by Joe O'Gorman, Assistant Chief of the New Jersey Department of Treasury, Division of Taxation. Other speakers included Paul Sload of the state of Pennsylvania, Butch Jerrell of the state of Indiana, Lee Williams of the state of Maryland, and Bob Bray of the state of Ohio.

Joe first invited Suzanne Heidenreich to speak briefly about the uniformity committee. She discussed the objectives of the committee and invited all to attend the next meetings.

Paul, Butch, and Lee each spoke about their own state's dyed fuel program including tax and penalty issues. Questions were elicited from the audience and there was a good exchange.

The four regions reported on their regional meetings for 2000 and announced the locations for their 2001 meetings. The MFTS Time and Place Committee announced the following upcoming meetings:

2001 Rapid City, South Dakota 9/23-26/01
2002 Anchorage, Alaska 9/22-25/02
2003 North Carolina (city not yet determined)
2004 Massachusetts (tentative)

The MFTS Resolutions Committee offered eleven resolutions, all of which were adopted. The MFTS Nominations Committee nominated Roland Marr, Manager of Motor Fuel Tax Division, state of Illinois, for 2001 MFTS Chair, and Edward McCormick, Manager, Tennessee Department of Revenue, for 2001 MFTS Vice Chair. Both nominations were accepted and approved.

General Session - Wednesday
Sandra Ferance from the state of Michigan, discussed the legislation behind the fact that Michigan seems so "tight-fisted" with their information. She also discussed what was available to other states and how to go about getting the information they needed. She explained that Michigan has very strict confidentiality laws with criminal prosecution being the result of any violation.

Dave Skinner from the state of Florida, discussed Disclosure Issues relating to the ExSTARS program. He wanted to make sure that industry understands that they have some difficult decisions to make with regard to disclosure when filing through the ExSTARS program. Industry determines which states will receive their information free of the federal disclosure regulations. He also wanted the states to be aware that they will still get information that is subject to federal disclosure regulations.

Dan Gostage from the state of California, discussed disclosure legislation that affects California, and the ExTOLE project. Originally, they thought that they would be able to share information with all states. However, with the variety of disclosure agreements between government and industry, they have found that that is not true. He stated that when the states download from the ExTOLE program, it would be very clear which records are subject to federal regulations.

Larry Hecksher, FTA Liaison, IRS, talked about IRS kerosene regulations. He presented the exceptions to kerosene tax, and discussed kerosene tax refunds.

Larry also talked about refund fraud. There are four mechanisms to apply for a refund: 8849 (file a claim), 4136 (credit on Income Tax), Line 4 adjustments on company's 720, and blind credit on the 720.

Peter Steffens state of Florida, discussed slip tank tax evasion issues. He described a station owner in Florida using a slip tank to carry gasoline from Georgia ($.18 less tax per gallon) to another station that he owns in Florida. Based on auditing cash businesses without invoices, they cannot prove he's doing this.

Al Howard, of Al Howard Consultants, talked about the history of motor fuel and price control. He then encouraged all of the states and the federal government to make a proactive effort for enforcement on imports. The U.S. refineries cannot meet the demand for gasoline; consequently, we will be importing more and more. We need to create an enforcement system that will be able to handle this increase before we lose billions of tax dollars.

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Motor Fuel Tax Section Uniformity Updates

• 2000 Motor Fuel Tax Section Uniformity Project Booklet
• 2000 North American Combined Reporting Methods EDI Implementation Guide
• September 2000 --Uniformer Newsletter

Ken Duggan, Project Manager, Canadian Fuel Tax Project

• Canadian Risk Management Program/Function -- Fuel Tax Collectors
  

Tim Turgeon, Excise Tax Supervisor, Cenex Harvest States

• Reinventing Delivery of Fuel to Farms

Jim DeClair, Excise Tax Manager, Chevron

• Tax Issues Relating to Sales of Fuel on the Internet

Sandra Ferance, state of Michigan

• State of Michigan Disclosure Guidelines

The Federation of Tax Administrators

• Motor Fuel Tax 2000 History Booklet
• Fuel Tax Hijacking, How State Governments are Responding
• IRS 637 Group Directory

Dave Skinner, Revenue Program Administrator; and Ron Miller, Manager, Motor Fuel Tax, Marathon Ashland Petroleum LLC

• ExSTARS Status Report from a State Perspective
• ExSTARS Status Report from an Industry Perspective

Patricia Platt, state of Kansas; Peter Steffens, state of Florida; Gene Williams, state of New York; and Dan Gostage, state of California

• ExTOLE Program

Ms. Beverly Rudy, Esq., Partner, Sutherland, Abill and Brennan

• Issues of Concern to Oil Traders Who Deal Within the Bulk Transfer/Terminal System

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WHEREAS, this the seventy-fourth annual meeting of the Federation of Tax Administrators Motor Fuel Tax Section held at the Crowne Plaza Hotel in Rochester, New York, will be remembered as informative and enjoyable, and

WHEREAS, the success of the meeting has been due in large part to the excellent arrangements made, informative program presented, and the generous hospitality provided,

NOW, THEREFORE, BE IT RESOLVED, that the delegates and guests at the seventy-fourth annual meeting of the Federation of Tax Administrators Motor Fuel Tax Section express their thanks and appreciation to their hosts, Commissioner Arthur J. Roth, of the New York State Department of Taxation and Finance, Mr. Larry Keeley, Director, of the Transaction and Transfer Tax Bureau, Susan Brown, Cindy Calabrese, Alicia Gagnon, Ted Lackner, Karen Lee, Carrie Lipfeld, Lynn Mullin, Peter Ramo, Wanda Whitney, Gene Williams, Marvin Rosenfeld, Peg Gardner, Donna Gentile, Tammy Redding, Sarah Robinson, Richard Effinger & staff at the Rochester District Office of the New York Department of Taxation and Finance.

WHEREAS, the proceedings of the formal sessions of this seventy-fourth annual meeting of the Federation of Tax Administrators Motor Fuel Tax Section, have featured the presentation of timely, interesting and well prepared papers, and

WHEREAS, the exchange of technical and administrative information that has been accomplished in our breakout sessions is one of the principal functions of the meeting,

NOW, THEREFORE, BE IT RESOLVED, that the members of the Federation of Tax Administrators Motor Fuel Tax Section, express their thanks and appreciation to Steven Miller from the Idaho Tax Commission, Chair of the Motor Fuel Tax Section, who presided at the sessions, and to the speakers and moderators at the seventy-fourth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section for their contributions to the success of the program.

WHEREAS, the Federation of Tax Administrators Motor Fuel Tax Section established an Executive Board, and

WHEREAS, the Executive Board of the Federation of Tax Administrators Motor Fuel Tax Section is comprised of the following positions:

WHEREAS, the Motor Fuel Tax Section has established a partnership with the Petroleum Industry to combat Fuel Tax Evasion, and

WHEREAS, to foster this partnership, the executive board recommends to eliminate the Chair and Vice Chair's positions of the Uniformity Committee and replace the positions with Co-Chairs, with one of the Co-Chairs being a State Representative and the other Co-Chair an Industry Representative with the State Co-Chair being the lead Co-Chair.

WHEREAS, in the absence of the state Co-Chair, the National Vice-Chair of the Motor Fuel Tax Section shall act as the lead Co-Chair,

NOW, THEREFORE, BE IT RESOLVED, that the delegates of the seventy-fourth annual meeting of the Federation of Tax Administrators Motor Fuel Tax Section, endorse the change in the Uniformity Chair and Vice Chair positions.

WHEREAS, the petroleum industry and state tax agencies desire to operate in the most effective and efficient manner, and

WHEREAS, the states employ different requirements for the reporting of motor fuel tax information, and

WHEREAS, the Motor Fuel Uniformity Committee, Federation of Tax Administrators Motor Fuel Tax Section, has adopted uniform schedules for the reporting of motor fuel tax information, and

WHEREAS, the Motor Fuel Uniformity Committee, Federation of Tax Administrators Motor Fuel Tax Section, realizes that in a summary situation on the schedules, the mode of transportation could be various ways, in this situation CE-Summary shall be used,

NOW, THEREFORE, BE IT RESOLVED, that CE-Summary be adopted as an additional mode of transportation.

WHEREAS, the petroleum industry and state tax agencies desire to operate in the most effective and efficient manner, and

WHEREAS, the states employ different requirements for the reporting of motor fuel tax information, and

WHEREAS, the Motor Fuel Tax Uniformity Committee, Federation of Tax Administrators Motor Fuel Tax Section, has adopted uniform schedules for reporting of motor fuel tax information,

NOW, THEREFORE, BE IT RESOLVED, that the following product codes be amended or adopted:
Undefined (other) products 092
Blending Components (other) 122
Excluded liquid (mineral oil) 077
Diesel Fuel #4 dyed 153
Diesel Fuel #4 undyed 154
E75 078
E85 079

WHEREAS, the petroleum industry and state tax agencies desire to operate in the most effective and efficient manner, and

WHEREAS, the states employ different definitions for various terms that are used consistently throughout the motor fuel industry and in state motor fuel tax administration, and

WHEREAS, the Motor Fuel Tax Uniformity Committee, Federation of Tax Administrators Motor Fuel Tax Section, has met and adopted uniform definitions which the Committee recommends to assist states in the exchange of information and to relieve the burden on industry of dealing with multiple definitions for similar terms,

NOW, THEREFORE, BE IT RESOLVED, that the "Procedure for adding, deleting, or modifying a definition be adopted as follows:

WHEREAS, the petroleum industry and state tax agencies desire to operate in the most effective and efficient manner, and

WHEREAS, the evasion of motor fuel taxes has become a problem over the years that has greatly affected the tax revenue of the states and the ability of the industry to effectively conduct its business, and

WHEREAS, the Motor Fuel Tax Uniformity Committee, FTA Motor Fuel Tax Section, has met and adopted the checklist for racing fuel, clear/dyed kerosene and alternative fuels to offer a resource to all taxing jurisdictions who are interested in strengthening their motor fuel tax laws to combat motor fuel tax evasion, and

NOW, THERERORE, BE IT RESOLVED, that the following checklist for racing fuel, clear/dyed kerosene and alternative fuels be adopted as a resource to all taxing jurisdictions who are interested in strengthening their motor fuel tax laws.

When considering the taxation or exempt status of racing fuel, the following items should be addressed.

1. Definition of racing fuel. The definition is typically based on the octane level. Refer to the uniform definition for guidance.
2. Determine the status of the product, exempt or taxable. If racing fuel is deemed to be exempt, is it exempt:
   1. Based on the product, regardless of use, or
   2. By its use

   If racing fuel is deemed to be taxable, are there refund provisions for off-highway use.

3. Determine if exemptions should be separated by leaded and unleaded product.
4. Determine if the exemptions are to be exempt at the time of purchase or refundable.
5. Licensing and bonding of persons distributing and/or using racing fuel. Racing fuel is usually shipped outside the normal fuel distribution chain. The product may be shipped long distances in prepackaged 55-gallon drums.
6. Enforcement -- whether taxable or exempt there are areas for evasion. If taxable, registering a taxpayer that is not a typical fuel dealer in the state and registering carriers that are not typical in the state. Also storage is not common. If exempt, blending racing fuel for highway use or diversion to highway use.
7. Nexus issues on remote dealers vs. registration of users. The state may need a backup tax to enforce a user tax if fuel is otherwise exempt by use or as a result of no nexus on seller.
8. If exempt from motor fuels tax, is racing fuel then subject to sales or use tax?
9. If subject to refund are you going to offset motor fuels refund by sales or use taxes due?

When considering the taxation or exempt status of kerosene, the following items should be addressed:

1. Definition of Kerosene. The federal government classifies kerosene as kerosene but follows the diesel guidelines for taxation (dyed -- for off-highway use, undyed -- taxable).
2. Determine the status of the product, exempt or taxable. If kerosene is deemed to be exempt, is it exempt:
   1. Based on the product, regardless of use, or
   2. By its use
      

   If undyed kerosene is deemed to be taxable, are there refund provisions for off-highway use?

3. Determine if the exemptions are to be exempt at the time of purchase or refundable.
4. If refundable, determine who files for the refund (i.e., distributor, retail or user), the filing frequency and documentation required.
5. Requirements for invoice markings.
6. Requirements for tank marking and blocking/locking.
7. Determine the taxability of the prepackaged kerosene sold at locations such as hardware stores, convenience stores, etc.
8. Enforcement -- Regardless of the exempt or taxable status of the product, kerosene can be used in evasion schemes. If taxed at the rack, evasion may stem from refunds. If taxed below the rack, the typical evasion found in other fuels taxed below the rack can occur. Untaxed, untracked kerosene is susceptible to conversion to taxable use. Procedures should be established to address these issues.
9. Be sure that dyed kerosene is not recognized as nontaxable. If the product is used for a taxable purpose a state would want to tax under backup tax provisions.
10. If exempt from motor fuels tax, is kerosene then subject to sales or use tax?
11. If subject to refund are you going to offset motor fuels refund by sales or use taxes due?

As defined in the glossary, alternative fuels are typically products other than gasoline, gasohol, diesel or kerosene. This section therefore provides cross-references to other sections or separate provisions as necessary for successful administration.

1. Taxpayer Options
   When enacting changes to motor fuel laws, taxing authorities need to consider taxation of alternative fuels and at what level of taxation. There are three common points of taxation for alternative fuels.
   1. Tax at the wholesale level
      Sales of alternative fuels are typically exempt at the terminal level. The nature of the fuel is for heating purposes therefore not conducive to taxing at the terminal. A state may license and/or bond an alternative fuels dealer who makes sales to retailer dealers or to the end user for highway purposes.
   2. Tax at the retail or user level
      A tax may be imposed on retailer dealers or end-users of alternative fuels that deliver or place alternative fuels into the fuel supply tank or other device of a vehicle for highway purposes. Fuel sold to each licensee is sold tax-free and the licensee who places the alternative fuels into the supply tank or other device of a highway vehicle becomes the taxpayer. It is left up to each state to determine how and who should be licensed.
   3. Registration Fee
      In lieu of licensing and reporting sales of alternative fuels, a state may elect to issue a decal and/or license the registration fee of a vehicle when that vehicle is registered annually for license plates. The state determines the fee.
      
2. II. Collection and Payment of Tax/Fee
   The point of taxation or fee collection will determine who and how many remitters a jurisdiction will have. Other items that may need to be addressed are:
   1. Collection of monies to be held in trust
   2. Cross border movements
   3. Bad debt allowance
   4. Collection allowance
   5. Exempt entities
   6. Refunds
   7. Conversion rates keeping IFTA requirements in mind
      
3. Exempt Uses and Refunds
   When considering exempt use and refund provisions, the following are some items to be addressed:
   1. U.S. Government
   2. State Government and political subdivisions
   3. Other states and their political subdivisions
   4. Non-profit organizations
   5. Exports
   6. Farm Use
   7. Heating Fuel or other non-highway use
   8. School buses
   9. Local or Inter-city buses
   10. Erroneous payment refund
   11. Refund claim procedures, in general
   12. Interest on refunds
   13. Penalty and/or interest on over-refunded tax
       
4. Licensing and Bond Requirements
   Effective licensing and bonding of alternative fuels taxpayers helps ensure financial responsibility and protects the tax liability with which licensees are entrusted each month. Taxpayers are likely to become more trustworthy and reliable when the licensing body performs thorough background checks on potential licensees and require surety for tax liabilities.
   
   The following licenses should be considered:
   1. Alternative Fuels Provider or Dealer
   2. Retailer of Alternative Fuels or Fuel Vendor
   3. Bulk-end User of Alternative Fuels
      

   Other licensing requirements that should be considered are:

   1. Licensing application forms
   2. Thorough investigation of a person or persons applying for a license
   3. License application fees
   4. License denial hearings
   5. How long is the license valid (one year; three years; or until suspended, revoked or cancelled)
   6. License nontransferable notice
   7. How the license should be displayed
   8. License surrender upon discontinuance of a business
   9. Publishing and distribution of a license listing to all licensees within the state
      

   Surety bonds protect the taxing authorities from major tax dollar losses resulting from bankruptcy or tax evasion. The following bonding requirements and issues should be considered when bonding provisions are written:

   1. Dollar amount of the bond
   2. Issued by a surety company approved by the taxing authority
   3. Bond must name the applicant as the principal and the taxing authority as the obliged.
   4. Be on forms approved by the taxing authority
   5. New or increase in bond requirements if the liability on the previous bond is discharged or reduced by a judgment rendered, payment made, or any surety on the previous bond becomes unsatisfactory.
   6. Provision to release existing surety bonds
   7. Allowance for cash deposits or an irrevocable letter of credit to be used in lieu of a surety bond.
   8. Taxpayer's prior filing, payment and audit history

    

5. Fuel Tax Fraud Penalties
   See Section 8 of the Model Legislation Checklist
   
6. Enforcement
   See Section 9 of the Model Legislation Checklist.
   
7. Refunds and Credits for Bad Debts
   Each state needs to determine if a refund or credit will be given to the Provider/Dealer or Retailer/Vendor if it is determined that the tax is uncollectible from the customer. Areas of concern should be:
   1. Deferred collection on taxes
   2. Handling allowance
   3. Requesting refund for bad debts
   4. Requesting credit for bad debts
   5. The factors used to determine the uncollectible status
   6. Consideration and collection for proration of product and tax
   7. Recapture provision for write-offs
      
8. License Listing
   Each state needs to determine if a detailed listing of all alternative fuel licensees should be made available. The listing should include, but not be limited to:
   1. Account Number
   2. Legal Name
   3. Trade Name
   4. Address
   5. License Type
   6. FEIN (if not part of the account number)
   7. Effective date
   8. Closed date
   9. Change to license (update listing only)

   Some jurisdictions consider these listings confidential and, if this is the case, the legislation should address this concern and make it legal to distribute these license listings both to licensees and on the Internet.

WHEREAS, the petroleum industry and state tax agencies desire to operate in the most effective and efficient manner, and

WHEREAS, the states employ different requirements for the reporting of motor fuel tax information, and

WHEREAS, the Motor Fuel Tax Electronic Commerce Subcommittee of the FTA Motor Fuel Tax Section has adopted a uniform EDI Implementation Guide for the reporting of motor fuel tax information,

NOW, THEREFORE BE IT RESOLVED, North American Combined Reporting Methods, EDI Implementation Guide, ANSI ASC X.12 V4030 be adopted as approved by the Motor Fuel Uniformity Committee on June 24, 2000.

WHEREAS, the petroleum industry and state tax agencies desire to operate in the most effective and efficient manner, and

WHEREAS, the states employ different requirements for the reporting of motor fuel tax information, and

WHEREAS, the Motor Fuel Tax Electronic Commerce Subcommittee of the FTA Motor Fuel Tax Section has adopted a uniform EDI Implementation Guide for the reporting of motor fuel tax information,

NOW, THEREFORE BE IT RESOLVED, ANSI ASC X.12 V4010 and prior versions TIA Code list be adopted as approved by the Motor Fuel Uniformity Committee on June 24, 2000.

WHEREAS, the delegates of this the seventy-fourth annual meeting of the Federation of Tax Administrators Motor Fuel Tax Section, recognize the potential importance to both industry and the states of the development of the IRS ExFIRS Project, and

WHEREAS, both the ExSTARS and ExTOLE components of the project will potentially provide state specific data on a more timely basis and more efficiently through electronic submissions,

NOW, THEREFORE, BE IT RESOLVED, that the states fully support the efficiencies that will result from ExFIRS/ExSTARS/ExTOLE electronic filing by industry, and pledge, to the extent possible, to eliminate a separate duplicate paper filing of that same data by industry to any state.

WHEREAS, the success of the Federation of Tax Administrators Motor Fuel Tax Section depends on the dedication of many State, Federal and Industry participants, and

WHEREAS, several of these individuals, who have contributed to the success of the Federation of Tax Administrators Motor Fuel Tax Section during the previous years, have recently retired or moved on,

NOW, THEREFORE, BE IT RESOLVED, that the members of the Federation of Tax Administrators Motor Fuel Tax Section express their thanks and appreciation to Lloyd Wicke, state of Colorado, Jennifer (JJ) Hastings, state of Wyoming, Lyman Spencer, Chevron USA, Jim Emmet, Amoco, Spyros Pappas, Arco, Tracy Halubka, state of Montana, John Aikman, state of Indiana, Mel Hickman, state of Iowa, Rich Anthony, state of Ohio, Tom Snyder, state of Ohio, Floyd Atkins, state of Alabama, Harvey Brooks, state of New Jersey, Barbara Bush, American Petroleum Institute (API), Jan Zahn, ExxonMobil, Ray Grimm, state of Wisconsin, and wish them luck in their future endeavors, and

BE IT FUTHER RESOLVED, that a copy of this resolution be forwarded to these individuals.

The eleven resolutions have been read and have been adopted by the voting membership present at the seventy-fourth annual meeting of the Federation of Tax Administrators Motor Fuel Tax Section, held in Rochester, New York, on September 26, 2000.

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