B-25/02
October 25, 2002

Summary of Proceedings 2002 FTA Motor Fuel Tax Section Annual Meeting

To State Tax Administrators:

The 2002 Annual FTA Motor Fuel Tax Section Meeting was held September 22-25, 2002, in Anchorage, Alaska. Presiding over the conference was Eddie McCormack from the Tennessee Department of Revenue. Welcoming the participants to Anchorage, Alaska, was Wilson Condon, Commissioner of the Alaska Department of Revenue.

General Session - Monday

Wilson Condon, Commissioner of the Alaska Department of Revenue, welcomed everyone to Alaska and gave advice on what the great state of Alaska has to offer. He commended all of us for our dedication to the administration of motor fuel taxes.

David Retz, Tax Counsel, Chevron/Texaco, API Excise Tax Chair gave the API update which included the industry’s perception of the ExSTARS Program.

Ken Duggan, Project Manager, Canadian Fuel Tax Project, gave an overview of uniformity updates occurring in Canada. Steve Miller, state of Idaho, discussed uniformity updates for the U.S. and the accomplishments of each subcommittee for the past year.

Cindy Anders-Robb, Motor Fuel Tax Associate, Federation of Tax Administrators, gave an update on the Motor Fuel Tax Section activities during the past year. She also released the dates of the regional meetings and the training courses for 2003.

Joe Jobe, Executive Director, Bio Diesel Board, reviewed the development of bio diesel and provided an overview of where this alternative is currently and its future. He also talked about possibilities relative to tax administration and bio diesel.

Concurrent Sessions - Monday

Two concurrent sessions -- one on Enforcement and the other on Evasion Schemes -- were repeated throughout the afternoon.

Enforcement

In this session, states talked about recent enforcement efforts. Joe O’Gorman, Assistant Chief, Audit Services, New Jersey Division of Taxation and also Motor Fuel Tax Section Vice-Chair, was the moderator of a panel consisting of Bob Bray, state of Ohio; Bob Crawford, state of Maryland; and Martin Cano, state of Texas. The panel members’ discussion covered cooperation with other law enforcement agencies, dyed fuel investigations, non-uniformity state problems, and enforcement information.

Evasion Schemes

In this session, the discussion centered on opportunities for evasion, and various schemes to take advantage of those opportunities. The panel was moderated by Steve Miller, Administrator, Revenue Operations Division, Idaho State Tax Commission and also Motor Fuel Tax Section Past Chair. Panel participants were Wilda Ice, state of West Virginia; Carol Player, state of South Carolina; and Peter Steffens, state of Florida. Topics covered by the panel members included evasion 101, dyed fuel and aviation schemes.

Eddie McCormack, presented Ron Miller, Marathon-Ashland, (recently retired) the Robert E. Beck award.

Regional Meetings - Monday

The four regions -- Midwestern, Northeastern, Pacific, and Southern -- conducted their separate meetings to review the 2002 activities and to plan 2003 activities.

General Session - Tuesday

Sherri Alston, Director, Transportation Policy Studies, Federal Highway Administration, gave an update on the future of FHwA money and the ability to access STP funds.

Ron Travis, Excise Tax Planning & Appeals, BP Corp. North America, made a presentation on the Federal Energy Bill from the industry’s perspective.

Ron Travis of BP Corp., and Carol Player of the state of North Carolina, presented the industry and state perspectives, respectively, on outsourcing motor fuel functions.

A panel discussing the use of ExTOLE and its benefits was presented by Pat Platt, state of Kansas; Janet Lake, state of Nebraska; and George Higdon, state of Mississippi.

A welcome and invitation to the 2003 annual Meeting was given by Julian Fitzgerald Sr., Director, Motor Fuel Tax Division, North Carolina Department of Revenue. The meeting is scheduled for September 21-24, 2003, at the Hilton Charlotte University Place in Charlotte, North Carolina.

Eddie McCormack concluded the general session with the National Chair’s report and the presentation of the National Chair Awards to Tim Blevins (Kansas), Bill Gray (Sinclair Oil) for their dedication and contributions to the Motor Fuel Tax Section Uniformity Committee and Dave Skinner (Florida) for his dedication and contributions to the Motor Fuel Tax Section, ExSTARS Project and the ExSTARS/ExTOLE training series.

Concurrent Sessions - Tuesday

Two concurrent sessions on IRS Updates and Technology were repeated throughout the afternoon.

IRS Updates

Joe O’Gorman, Assistant Chief, Audit Services, New Jersey Division of Taxation and also Motor Fuel Tax Section Vice-Chair, moderated the panel consisting of Ricky Stiff, Dr. Bob Wright, Dean Brockman and Tim Torri. The panel members’ discussion covered the ExSTARS system, fingerprinting and the ray gun, which are all tools for enforcement.

Technology

Eddie McCormack, Audit Manager, Audit Division, Tennessee Department of Revenue and also Chair of the FTA Motor Fuel Tax Section, made a presentation on Electronic Auditing. Bill Gray of Sinclair Oil gave a presentation on the do’s and don’ts of implementing electronic reporting/payment.

Annual Business Meeting - Tuesday

The four regions reported on their regional meetings for 2002 and announced the locations for their 2003 meetings. The Time and Place Committee announced the following upcoming meetings:

2003 Charlotte, North Carolina September 21-24

2004 Boston, Massachusetts (date not final yet)

2005 Nebraska (date not final yet)

The Resolutions Committee offered 14 resolutions, all of which were adopted. The Nominations Committee nominated Joe O’Gorman, state of New Jersey, for 2003 Motor Fuel Tax Section Chair and Robynn Wilson, Manager, Motor Fuel Tax Program, state of Alaska, for 2003 Motor Fuel Tax Section Vice Chair. Both nominations were accepted and approved. The Uniformity co-Chairs for 2003 are Christy Dixon, state of Oklahoma and Bill Gray, Sinclair Oil.

General Session - Wednesday

Linda Morris, Transportation Specialist, Federal Highway Administration, gave an update on the Fed/State Imports Working Group that was established in April 2001 to evaluate U.S. imports of foreign refined products.

Dave Skinner, Fuel Tax Compliance Coordinator, state of Florida, gave an update on the SeaPorts Imports Working Group.

David Retz, Tax Counsel, Chevron/Texaco, gave a presentation on the history of FTZ’s/Bonded Warehouse and the industry’s perspective of both facilities while Robynn Wilson, Manager, Motor Fuel Tax Program, state of Alaska, gave the state’s perspective on FTZ’s/Bonded Warehouse.

Dennis Gauster, Assistant Area Port Director, Trade Operations, Alaska U.S. Customs, gave a presentation on the paperwork Customs requires for goods entering the U.S.

Thomas Williams, BP Exploration (Alaska) Inc. gave a presentation on the future of fossil fuels.

Return to FTA Meetings Page

FTA 2002 Motor Fuel Tax Section Annual Meeting Papers Currently Available from FTA

Motor Fuel Tax Section

· Motor Fuel Tax 2002 History booklet

· Agenda for the Motor Fuel Tax 2002 Annual Meeting in Anchorage, Alaska

· Attendees of the 2002 Annual Meeting in Anchorage, Alaska

· Motor Fuel Tax Section Update

· Survey of Native American Issues, 2002

Motor Fuel Tax Section Uniformity Updates

· 2002 Motor Fuel Tax Section Uniformity Project booklet

· 2002 North American Combined Reporting Methods

· September 2002 -- Uniformer Newsletter

· Uniformity Meetings for 2003

Canadian Fuel Tax Project

· Update of the Canadian Fuel Tax Project

Federal Highway Administration

Joe Jobe, Bio Diesel Board

Bio Diesel presentation

David Retz, Chevron/Texaco

Pat Platt, state of Kansas; Janet Lake, state of Nebraska; George Higdon, state of Mississippi

ExTOLE Benefits presentation

IRS Updates

ExSTARS, State User Functions

Bill Gray, Sinclair Oil

Do’s and Don’ts of Implementing Electronic Report/Payments

Eddie McCormack, state of Tennessee

Electronic Petroleum Tax Audits

Return to FTA Meetings Page

RESOLUTIONS ADOPTED

AT THE ANNUAL BUSINESS MEETING

OF THE FTA MOTOR FUEL TAX SECTION

September 24, 2002 -- Anchorage, Alaska

32 States plus the District of Columbia were present

(Adopted by all members present)

WHEREAS, this the seventy-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section held at the Sheraton Anchorage hotel in Anchorage, Alaska, 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-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section, express their thanks and appreciation to their hosts, Commissioner Condon, Alaska Department of Revenue, Robynn Wilson, Connie Bamburg, Denise Hawes, Brian Timblin, Jenny Rogers, Cecilee McPheeters, Mike Williams, and Linda Schwass.

(Adopted by all members present)

WHEREAS, the proceedings of the formal sessions of this seventy-sixth 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 Eddie McCormack from Tennessee Department of Revenue, Chair of the Motor Fuel Tax Section, who presided at the sessions, and to the speakers and moderators at the seventy-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section, for their contributions to the success of the program.

(Forms Management Subcommittee)

(Adopted by all members present)

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

WHEREAS, the Uniformity Committee, being a part of this effort, has reviewed and approved the following schedules for use by the states for continued uniform administration of motor fuel taxes:

Schedule 12 Vendor Schedule

Schedule 13 Schedule of credits and refunds

NOW, THEREFORE, BE IT RESOLVED, that the delegates of the seventy-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section, held in Anchorage, Alaska, adopt these schedules to enable continued compliance among states for uniform reporting purposes.

(Forms Management Subcommittee)

(Adopted by all members present)

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

WHEREAS, the Uniformity Committee, being a part of this effort, has reviewed and approved the following sub-schedules for use by the states for continued uniform administration of motor fuel taxes:

13A Tax-paid fuel exported.

13C Tax-paid fuel sold to the United States government.

13D Tax-paid fuel sold for use on farms.

13E Tax-paid fuel sold to exempt bus operators.

13G Tax-paid fuel sold to train operators.

NOW, THEREFORE, BE IT RESOLVED, that the delegates of the seventy-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section, held in Anchorage, Alaska, adopt these schedules and sub-schedules to enable continued compliance among states for uniform reporting purposes.

(Forms Management Subcommittee)

(Adopted by all members present)

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

WHEREAS, the Uniformity Committee, being a part of this effort, has reviewed and approved the verbiage change on the following sub-schedules:

NOW, THEREFORE, BE IT RESOLVED, that the delegates of the seventy-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section, held in Anchorage, Alaska, adopt the sub-schedules wording change to enable continued compliance among states for uniform reporting purposes.

(Forms Management Subcommittee)

(Adopted by all members present

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

WHEREAS, the Uniformity Committee, being a part of this effort, has reviewed and approved the deletion of the following sub-schedules:

NOW, THEREFORE, BE IT RESOLVED, that the delegates of the seventy-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section, held in Anchorage, Alaska, adopt the sub-schedules deletion to continued compliance among states for uniform reporting purposes.

(Forms Management Subcommittee)

(Adopted by all members present)

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

WHEREAS, the Uniformity Committee, being a part of this effort, has reviewed and approved the new design of the FTA Uniformity Subschedules to be printed in the FTA Motor Fuel Tax Project Book,

NOW, THEREFORE, BE IT RESOLVED, that the delegates of the seventy-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section, held in Anchorage, Alaska, adopt the new design of the FTA Uniformity Subschedules to be printed in the FTA Motor Fuel Tax Project Book.

(Forms Management Subcommittee)

(Adopted by all members present)

WHEREAS, the Federation of Tax Administrators strives to promote uniformity of motor fuel tax administration, and

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

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

NOW, THEREFORE, BE IT RESOLVED, that the delegates of the seventy-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section held in Anchorage, Alaska, adopt the following product codes:

1. Undyed Bio Diesel
2. Soy Oil

(Communication and Coordination Subcommittee)

(Adopted by all members present)

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

WHEREAS, the Federation of Tax Administrators strives to promote uniformity of motor fuel tax administration, and

WHEREAS, the Uniformity Committee, being a part of this effort, has expanded the Uniformity goals to reflect the following:

1. Implement all aspects of the 11-Point Plan
2. Foster communication between and among all levels of government, industry and related associations and interest groups and their representatives.
3. Encourage coordination of efforts among stakeholders in audit and enforcement efforts.
4. Encourage sharing of information among enforcement, revenue and transportation agencies in areas related to motor fuels and motor fuels revenue.
5. Educate the motor fuel community in areas of audit and enforcement techniques, reporting requirements, how to identify actual and potential evasion schemes.
7. Encourage active participation by stakeholders in Uniformity meetings. Inform stakeholders on how the goals of Uniformity are designed to work for all members of the motor fuel community.
8. Encourage uniformity in reporting, definitions and forms.
9. Prepare for change; by staying informed on emerging topics and trends; by assuring personnel are fully informed to allow for ease of transition; and by being open to new ideas and methods for revenue reporting and remittance.

NOW, THERERORE, BE IT RESOLVED, that the delegates of the seventy-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section, held in Anchorage, Alaska, adopt the following Uniformity Committee expanded goals.

(Electronic Commerce Subcommittee)

(Adopted by all members present)

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 Uniformity Committee Electronic Commerce Subcommittee, FTA Motor Fuel Tax Section, has adopted new verbiage for Point Six of the 11-point plan,

NOW, THEREFORE BE IT RESOLVED, that the delegates of the seventy-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section, held in Anchorage, Alaska, adopt the new verbiage for Point Six of the 11-point plan.

(Electronic Commerce Subcommittee)

(Adopted by all members present)

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 Uniformity Committee Electronic Commerce Subcommittee, FTA Motor Fuel Tax Section, has adopted a North American Combined Reporting Methods for the reporting of motor fuel tax information, and

WHEREAS, the Uniformity Committee has adopted the code S03C -- Allowance and changed the verbiage on summary code S05D to Product Delivered,

NOW, THEREFORE BE IT RESOLVED, that the delegates of the seventy-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section, held in Anchorage, Alaska, adopt the Summary Code S03C and the verbiage change for S05D.

(Electronic Commerce Subcommittee)

(Adopted by all members present)

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 Uniformity Committee Electronic Commerce Subcommittee, FTA Motor Fuel Tax Section, has adopted a Web Page Standard,

NOW, THEREFORE BE IT RESOLVED, that the delegates of the seventy-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section, held in Anchorage, Alaska, adopt the Web Page Standard.

Introduction

The Motor Fuel Tax EC Subcommittee recommends that state tax administrators adopt a standard Internet interface for motor fuel taxpayers. A standard interface will help taxpayers to access the forms and information they need, regardless of the number of states in which they do business. Such access will also be helpful to other states as they look for comparable information. Each state motor fuel tax Web site will include a predictable number of links and a standard set of informational categories, although the precise look and feel of each site will remain specific to the state. This will also help states to build Web sites that include all the information taxpayers need, by providing a map to Web developers.

Guidelines

The standard interface will consist of a recommended set of links to pertinent motor fuel tax information, forms, and frequently asked questions. This set of links, or Standard Categories, with suggested subcategories, is:

Frequently Asked Questions (FAQs)

Forms and Publications

Fuel Tax Rates

Laws, Regulations and Notices

Current Laws

Legislation

Current Regulations

Proposed Regulations

Departmental Notices or Newsletters

Licenses

Distributors (or suppliers)

Carriers

Retailers

How to obtain a license

Electronic Filing & Payment

EDI Guide

EFT

FAQs

Contact Us

Email us

Write us

Call us

Templates for the standard interface are available in a text-only format, or in a drop-down (combo) box format. States may adopt either or both formats, in accordance with their own laws and guidelines, but the EC Subcommittee recommends that these categories be standard across the board.

Under each of the category headings, states may place links to whatever types of information they require. For example, under FAQs, a state may wish to link to FAQ pages for IFTA, for motor fuel tax, or for registration. The links will vary by state, but the category headings should remain standard. Taxpayers would then have the benefit of always knowing where to find certain types of information, no matter what state page they are using.

Taxpayers and administrators may have different sets of needs. Therefore, the EC Subcommittee also includes this list of suggested Categories, which will contain additional links. States may adopt and include whatever Optional Categories they wish, but the EC Subcommittee recommends that the Optional categories be placed after the set of Standard categories.

The Optional Categories are:

IFTA

Fuel Tax Statistics

Other Links

Marketers’ Associations

IRS -- Forms and Publications

IRS -- Excise

When each state develops its Motor Fuel Tax Web Interface, it should forward the URL of the interface page to Jonathan Lyon of the FTA at jonathan.lyon@taxadmin.org so that the link may be included on the FTA’s motor fuel tax links to the states. If you already have such a Web page, please forward the URL to FTA even though you may be changing the content.

(Adopted by all members present)

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 Alan Stuckey, State of California, Monte Williams, State of California, Ben Bivens, ExxonMobil, Tim Blevins, State of Kansas, Marie Beagles, State of Montana, Ron Miller, Marathon Ashland Petroleum LLC, Cheryl Cook, State of Massachusetts, Allan Stresemann, State of Colorado and Sam Losavio, State of Louisiana and wish them luck in their future endeavors, and

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

(Adopted -- 18 States For; 14 States Against)

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

WHEREAS, the success of the Federation of Tax Administrators, Motor Fuel Tax Section, the states and industry depend upon the amount of compliance with the motor fuel laws,

NOW, THEREFORE, BE IT RESOLVED, that the delegates of the seventy-sixth annual meeting of the Federation of Tax Administrators, Motor Fuel Tax Section, held in Anchorage, Alaska, encourage the proposal to commission a study by the AASHTO National Cooperative Highway Research Program that would analyze the current levels of motor fuel tax evasion.

Resolution Committee

2002

Carol Player, Chair -- State of South Carolina Steve Miller, State of Idaho

(Southern Region) (Pacific Region)

Christy Dixon, State of Oklahoma Paul Sload, State of Pennsylvania

(Midwestern Region) (Northeastern Region)