PURPOSE: This rule sets forth the responsibility for tax in situations involving leased motor vehicles.

1. (1) Special fuel used for propulsion of owned or leased vehicles is subject to tax. A lessee may deduct the mileage and the tax on the special fuel from their report on leased vehicles only if the vehicles have been leased from a lessor holding a valid permit as a special fuel user in Missouri for the period in which the motor vehicles are operated and all other conditions are met as required in Chapter 142, RSMo (1986), including the payment of tax on the fuel used in the vehicles by the lessor. The director may require that copies of the lease agreement accompany the tax report. If this request is made, it shall be made in writing and shall only be made when s/he deems it necessary to better clarify the tax reports. True copies of both the lease agreements and licenses shall be carried in each vehicle and presented on demand to authorized personnel with Missouri Department of Revenue and the Missouri State Highway Patrol.
2. (2) The allowance made for the deduction of tax on leased vehicles on which the lessor pays the amount of tax due shall not be construed as permitting the omission of the listing of any vehicle from the report nor designating the name and address of the lessor from whom each vehicle is leased. If more than one (1) lessor is involved during the tax reporting period, a complete list of the names and addresses shall accompany the report, separating the vehicles belonging to each lessor and listing their Missouri special fuel license numbers.

AUTHORITY: section 142.621, RSMo 1986. Regulation 6 was filed July 17, 1972, effective July 27, 1972.