[Code of Federal Regulations]
[Title 26, Volume 15]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR48.4082-5]

[Page 135-136]
 
                       TITLE 26--INTERNAL REVENUE
 
                  CHAPTER I--INTERNAL REVENUE SERVICE,
                       DEPARTMENT OF THE TREASURY
                               (Continued)
 
PART 48--MANUFACTURERS AND RETAILERS EXCISE TAXES--Table of Contents
 
 Subpart H--Motor Vehicles, Tires, Tubes, Tread Rubber, and Taxable Fuel
 
Sec. 48.4082-5  Diesel fuel and kerosene; Alaska.

    (a) Application. This section applies to diesel fuel or kerosene 
removed, entered, or sold in Alaska for ultimate sale or use in an 
exempt area of Alaska.
    (b) Definitions.
    Exempt area of Alaska means the area of Alaska in which the sulfur 
content requirements for diesel fuel (see section 211(i) of the Clean 
Air Act (42 U.S.C. 7545(i))) do not apply because the Administrator of 
the Environmental Protection Agency has granted an exemption under 
section 211(i)(4) of that Act.
    Nontaxable use means a use described in section 4082(b).
    Qualified dealer means any person that holds a qualified dealer 
license from the state of Alaska or has been registered by the district 
director as a qualified retailer. The district director will register a 
person as a qualified retailer only if the district director--
    (1) Determines that the person, in the course of its trade or 
business, regularly sells diesel fuel or kerosene for use by its buyer 
in a nontaxable use; and
    (2) Is satisfied with the filing, deposit, payment, and claim 
history for all federal taxes of the person and any related person.
    (c) Tax-free removals and entries. Notwithstanding Sec. 48.4082-1, 
tax is not imposed by section 4081 on the removal or entry of any diesel 
fuel or kerosene in an exempt area of Alaska if--
    (1) The person that would be liable for tax under Sec. 48.4081-2 or 
48.4081-3 is a taxable fuel registrant and satisfies the requirements of 
paragraph (e) of this section;
    (2) In the case of a removal from a terminal, the terminal is an 
approved terminal; and
    (3) The owner of the diesel fuel or kerosene immediately after the 
removal or entry holds the fuel for its own use in a nontaxable use or 
is a qualified dealer.
    (d) Sales after removals and entries--(1) In general. Paragraph (c) 
of this section does not apply with respect to diesel fuel or kerosene 
that is subsequently sold by a qualified dealer unless--
    (i) The fuel is sold in an exempt area of Alaska;
    (ii) The buyer purchases the fuel for its own use in a nontaxable 
use or is a qualified dealer; and
    (iii) The seller satisfies the requirements of paragraph (e) of this 
section.
    (2) Tax imposed at time of sale; liability for tax. Notwithstanding 
Secs. 48.4081-2 and 48.4081-3, in any case in which paragraph (c) of 
this section does not apply with respect to diesel fuel or kerosene 
because of a subsequent sale by a qualified dealer, the tax with respect 
to that fuel is imposed at the time of the subsequent sale and the 
qualified dealer is liable for the tax.
    (3) Rate of tax. For the rate of tax, see section 4081.
    (e) Evidence of tax-free transactions. The requirements of section 
4082(c)(2) (relating to certification) and this paragraph (e) are 
satisfied if the person otherwise liable for tax is able to show the 
district director satisfactory evidence of the exempt nature of the 
transaction and has no reason to believe that the evidence is false. 
Satisfactory evidence may include copies of qualified dealer licenses or 
exemption certificates obtained for state tax purposes.
    (f) Registration. With respect to each person that has been 
registered as a qualified retailer by the district director, the rules 
of Sec. 48.4101-1(g), (h), and (i) apply.
    (g) Cross reference. For the tax on previously untaxed diesel fuel 
or kerosene that is used for a taxable purpose, see Sec. 48.4082-4.
    (h) Effective date. This section is applicable with respect to 
diesel fuel removed or entered after December 31, 1996, and with respect 
to kerosene removed or entered after June 30, 1998. A

[[Page 136]]

person registered by the district director as a qualified retailer 
before April 2, 1998 may be treated, to the extent the district director 
determines appropriate, as a qualified dealer for the period before that 
date.

[T.D. 8693, 61 FR 66216, Dec. 17, 1996. Redesignated and amended by T.D. 
8748, 63 FR 25, Jan. 2, 1998; T.D. 8879, 65 FR 17157, Mar. 31, 2000]