1. (a) A licensed dealer or licensed special fuel seller shall deduct 0.5% of the 1st 10 cents of the motor fuel tax on each gallon of motor fuel, as a discount:

   1. (1) instead of an allowance for evaporation, shrinkage, and handling; and

   2. (2) to reimburse the licensed dealer or licensed special fuel seller for expenses incurred for the State in:

      1. (i) keeping records;
      2. (ii) collecting and paying the tax; and
      3. (iii) preparing reports.

2. (b)

   1. (1) This subsection does not apply to:

      1. (i) any aviation gasoline; or
      2. (ii) any other motor fuel on which the motor fuel tax has not been paid.

   2. (2) From the discount under subsection (a) of this section:

      1. (i) a licensed dealer who sells gasoline to a retail service station dealer shall deduct on the bill ½ of the discount;
      2. (ii) a licensed dealer who sells gasoline to a licensed distributor or licensed special fuel seller shall deduct on the bill ²/₃ of the discount;
      3. (iii) a licensed distributor who sells motor fuel to a retail service station dealer shall deduct on the bill ⅓ of the discount;
      4. (iv) a licensed special fuel seller who sells special fuel to a retail service station dealer shall deduct on the bill ½ of the discount;
      5. (v) a licensed special fuel seller who sells special fuel to a licensed distributor shall deduct on the bill ²/₃ of the discount; and
      6. (vi) a licensed special fuel seller who sells gasoline to a licensed distributor shall deduct on the bill ⅓ of the discount.

Added by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Amended by Acts 1988, c. 564, § 2; Acts 1996, c. 10, § 1, eff. April 9, 1996; Acts 2002, c. 440, § 14, eff. July 1, 2002.

Formerly Art. 56, § 137.