PURPOSE: Section 142.896, RSMo, creates the Motor Fuel Bond Trust Fund as an alternative to posting a surety bond, cash bond, certificate of deposit, or letter of credit for qualifying distributors. This rule sets the rate for contributions made to the fund and the minimum/maximum amount the fund may contain.

1. (1) In general, all distributors must post a bond with the department. In lieu of posting a surety bond, cash bond, certificate of deposit or letter of credit, a qualifying distributor may contribute to the Motor Fuel Bond Trust Fund, at the rate prescribed by this rule.

2. (2) Definition of Terms.

   1. (A) Distributor—any person required by section 142.893, RSMo, to obtain a distributor’s license.
   2. (B) Qualifying distributor—a distributor that met all the requirements for participating in the Motor Fuel Bond Trust Fund prior to the effective date of this rule, or that completes three (3) consecutive years of satisfactory tax compliance.
   3. (C) Satisfactory tax compliance—the act of filing all reports and making all payments in the time and manner prescribed by Chapter 142, RSMo.

3. (3) Basic Application of Tax.

   1. (A) Effective July 1, 2006, the contribution rate to the Motor Fuel Bond Trust Fund is $.0024 per gallon for motor fuel and $.0013 per gallon for aviation gasoline.
   2. (B) The rate per gallon applies to all gallons purchased from Missouri licensed suppliers and all gallons imported during the month subject to taxes and/or fees.
   3. (C) Qualifying distributors that choose to participate in the fund must make contribu- 12 CSR 10-6

tions until the fund reaches a maximum of one (1) million dollars, except as noted in subsection (3)(E) below.

1. (D) When the fund reaches the maximum, participating distributors are not required to make additional contributions to the fund until the fund is reduced to five hundred thousand dollars ($500,000), at which time the contributions will be reinstated.
2. (E) A qualifying distributor must pay into the fund for a minimum of one (1) year after it elects to participate even if the fund has reached the one (1)-million dollar cap.

1. (4) Examples.

   1. (A) A qualifying distributor imports 500,000 gallons of gasoline into Missouri on a monthly basis. Instead of purchasing a surety bond for three times the monthly liability, the distributor chooses to contribute to the Motor Fuel Bond Trust Fund. The monthly contribution required is $1,200 (500,000 × $.0024).
   2. (B) A qualifying distributor purchases 100,000 gallons of aviation gasoline for sale in Missouri on a monthly basis. Instead of providing a letter of credit for three times the monthly liability, the distributor chose to contribute to the Motor Fuel Bond Trust Fund. The monthly contribution required is $130 (100,000 × $.0013).
   3. (C) A qualifying distributor that has previously posted a cash bond chooses to participate in the Motor Fuel Bond Trust Fund. At the time the distributor makes the election to participate in the fund, the fund contains one million dollars and participating distributors are not making contributions. As a newly participating distributor, the distributor must make contributions for at least one year even though the fund has reached the maximum.

AUTHORITY: sections 142.896.3 and 142.953, RSMo 2000.* Original rule filed Oct. 31, 2005, effective May 30, 2006. *Original authority: 142.896, RSMo 1998, amended 1999 and 142.953, RSMo 1998.