Motor Fuels Tax Section

The 11-Point Plan was created as an overall strategy for combating fuel tax evasion. The general theme behind the Plan is the total accountability of fuel (tracking ownership of the

fuel to the point of collection of the tax) and sharing of information.

Point 1 – State adoption/implementation of the uniform reporting guidelines

Point 2 – State adoption/implementation of the uniform definitions for imports and exports. Require licensing of and reporting by importers and exporters.

Point 3 – Incorporate the Federal Employers Identification Number (FEIN), Social Security Number (SSN), or Canadian Federal Business Number (BN) as a reference for reporting information between jurisdictions.

Point 4 – Require licensing of all resellers or entities that obtain tax-free inventory for ultimate resale.

Point 5 – State adoption/implementation of procedures to achieve total accountability of fuel.

Point 6 – Allow for uniform electronic reporting systems by adopting the FTA Motor Fuel Electronic Commerce Committee standards for all electronic data exchange.

Point 7 – Regional workshops for audit and investigative techniques to identify tax evasion schemes.

Point 8 – Review states’ confidentiality laws. Implement steps necessary, at a minimum, for States to provide licensing number information to industry and to provide licensing and tax information to other governmental jurisdictions.

Point 9 – Require third party reporting on the movement of fuel.

Point 10 – Establishment of a fuel tax Advisory Group in each State to be comprised of State and Industry representatives.

Point 11 – Encourage States to establish and adequately maintain a compliance staff dedicated to fuel tax enforcement.

The 11-Point Plan offers the best method for achieving uniformity, reducing inefficiencies in State fuel tax administration, and combating fuel tax evasion.