PURPOSE: This rule clarifies the reporting and payment procedures for special fuel in inventory pursuant to section 142.372, RSMo.

1. (1) A report of all special fuel inventory is due covering any month in which any increase in the rate of tax first becomes effective or in which the point of collection of the tax changes. This report shall contain the number of gallons of fuel that has been received or is on hand at the opening for business on the date the increase is first effective or the point of tax collection changes. The additional tax shall be paid with the report for that month.

   1. (A) Example: Effective January 1, 1989 (or the close of business on December 31, 1988), the point of collection for special fuel is changed from the retail or user level to the distributor level. Distributors, special fuel dealers and users are required to take inventory prior to January 1, 1989 and remit to the state the tax on the number of gallons in inventory. The inventory and tax shall be submitted with the December 1988 monthly report, due January 31, 1989. All fuel in inventory prior to January 1, 1989 must be reported on the inventory form. However, 12 CSR 10-7

fuel purchased by tax exempt organizations for nontaxable purposes prior to January 1, 1989 or fuel which was purchased tax-paid may be deducted from total gallons in inventory.

AUTHORITY: sections 142.372, RSMo Supp. 1989 and 142.621, RSMo 1986. Original rule filed March 22, 1989, effective Sept. 11, 1989.