1. A. Arrangements for the transfer of ownership of motor fuel by dealers, special fuel sellers, special fuel users, turbine fuel sellers, and distributors, for future delivery, whether called sales, loans, exchanges, or otherwise, shall be recognized only when such arrangements are reflected in sales agreements or contracts. They shall be reported as “sales” only when:

   1. (1) The “fuels” sold move physically from the possession of the vendor to that of the vendee; or
   2. (2) The “fuels” sold remain in the storage of the vendor, the full quantity being immediately available to the vendee for disposition.
2. B. When a sales agreement or contract is made on temperature corrected gallons, the invoices or delivery ticket required for audit purposes shall show the volumetric gallonage and the temperature adjusted gallonage.

3. C. Sales of motor fuel for exportation, under such circumstances that title passes to the purchaser in Maryland, may be sold tax exempt for immediate exportation under the following conditions:

   1. (1) To purchasers of gasoline possessing a valid Class A or D license;
   2. (2) To purchasers of gasoline possessing a valid Class C license and a letter of special permission issued by the Motor Fuel Tax Bureau for the product to be acquired and exported;
   3. (3) To purchasers of special fuels possessing a currently valid exemption certificate for type of special fuel being acquired;
   4. (4) The transportation of motor fuel shall be accomplished by vehicles owned and operated by a petroleum transporter registered under Business Regulation Article, Title 10, Subtitle 4, Annotated Code of Maryland.
4. D. Documentation (a bill of lading, meter ticket, or loading ticket) shall accompany each vehicle transporting motor fuel and shall conform to COMAR 03.03.03.05.
5. E. Whenever diesel fuel is modified or created by blending kerosene and fuel oil, metered loading tickets shall be attached to sales invoices, bills of lading, or delivery tickets showing the quantity of each product blended. These documents shall be available at the time of the audit or inspection.
6. F. Dealers, special fuel sellers, special fuel users, and turbine fuel sellers importing motor fuel into the State shall maintain on file a shipping and receiving document indicating specifications of the product received.
7. G. Records, receiving documents, delivery tickets, sales invoices, and bills of lading shall be maintained for audit purposes by all dealers that blend casinghead or natural gasoline, benzene, naphtha, gas, oil, kerosene, heating oil, butane, alcohol, or any combination of these or other items into a motor fuel within the State, or create motor fuel within the State. These records shall indicate the name and address of each customer to whom sales have been made.
8. H. All vehicles used to make metered sales of motor fuel shall utilize a meter calibrated to meet the accuracy requirements set forth in the current edition of the National Institute of Standards and Technology Handbook 44, as specified by Agriculture Article, §11-203(c), Annotated Code of Maryland.

Authority: Tax-General Article, §2-103, Annotated Code of Maryland

Effective date: April 1, 1973

Regulations .01—.04; .07C, E, F; .08C, D; .09A, D, F; .12A, C; .13C;

.14C; .15A; .17 amended effective November 22, 1982 (9:23 Md. R. 2255)

Regulations .02, .07F, and .13C amended, and .03G adopted

effective October 8, 1984 (11:20 Md. R. 1740)

Regulation .07F amended effective September 14, 1981 (8:18 Md. R. 1476)

Regulation .18 adopted effective November 22, 1982 (9:23 Md. R.

2255); repealed effective October 8, 1984 (11:20 Md. R. 1740)

Chapter repealed effective August 26, 1985 (12:17 Md. R. 1698)

Regulations .01—.20 adopted effective August 26, 1985 (12:17 Md. R. 1698)

Regulation .21 adopted as an emergency provision effective May 21,

1987 (14:12 Md. R. 1348); emergency status expired August 30, 1987

(Emergency provisions are temporary and not printed in COMAR)

Chapter revised effective January 23, 1989 (16:1 Md. R. 66)

Regulation .20 repealed effective August 6, 1990 (17:15 Md. R. 1853)

Chapter revised effective August 20, 1990 (17:16 Md. R. 1987)

Regulations .01, .02, .04—.06, and .17 amended, and new Regulation .21

adopted effective September 28, 1992 (19:19 Md. R. 1703)

Regulation .05E amended effective January 14, 1999 (26:1 Md. R. 19)

Regulation .06C amended effective January 14, 1999 (26:1 Md. R. 19)

Regulation .07A amended effective January 14, 1999 (26:1 Md. R. 19)

Regulation .09B amended effective January 14, 1999 (26:1 Md. R. 19)

Regulation .10A amended effective January 14, 1999 (26:1 Md. R. 19)

Regulation .11B amended effective January 14, 1999 (26:1 Md. R. 19)

Regulations .13C amended effective May 16, 2022 (49:10 Md. R. 562)

Regulations .16E, F amended effective May 16, 2022 (49:10 Md. R. 562)

Regulation .17A amended effective January 14, 1999 (26:1 Md. R. 19); May 16, 2022 (49:10 Md. R. 562)

Regulation .18C adopted effective January 14, 1999 (26:1 Md. R. 19)

Regulation .20A amended effective May 8, 1995 (22:9 Md. R. 644); January 14, 1999 (26:1 Md. R.19)

Regulation .21 amended effective January 14, 1999 (26:1 Md. R. 19)