2016 -- S 2989 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES - MOTOR FUEL TAX

     Introduced By: Senators P Fogarty, Nesselbush, Miller, Morgan, and Kettle

     Date Introduced: May 10, 2016

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 31-36-1 of the General Laws in Chapter 31-36 entitled "Motor Fuel

Tax" is hereby amended to read as follows:

     31-36-1. Definitions. -- Terms in this chapter and chapter 37 of this title are construed as

follows:

      (1) "Administrator" means the tax administrator.

      (2) "Distributor" includes any person, association of persons, firm, or corporation,

wherever resident or located, who shall import or cause to be imported into this state, for use or

for sale, fuels, and also any person, association of persons, firm or corporation who shall produce,

refine, manufacture, or compound fuels within this state.

      (3) "Filling station" includes any place, location, or station where fuels are offered for

sale at retail.

      (4) "Fuels" includes gasoline, benzol, naphtha, and other volatile and inflammable

liquids (other than lubricating oils, diesel fuel for the propulsion of marine craft, fuels used for the

propulsion of airplanes, oils used for heating purposes, manufactured biodiesel fuel as defined in

subdivision (14) of this section), used or suitable for use for operating or propelling motor

vehicles with internal combustion engines. This does not include benzol and naphtha sold or used

for a purpose other than for the operation or propulsion of motor vehicles or propane used for the

generation of electricity. Any article or product represented as gasoline for use in internal

combustion type engines, used in motor vehicles, shall be equal to or better in quality and

specification than that known as "United States government motor gasoline."

      (5) "Investigator and examiner" means any person appointed by the tax administrator to

act as an investigator and examiner.

      (6) "Owner" includes any person, association of persons, firm, or corporation offering

fuels for sale at retail.

      (7) "Peddlers" means any person, association of persons, firm or corporation, except a

distributor as defined in this chapter, who shall distribute gasoline by tank wagon in this state.

      (8) "Public highways" includes any state or other highway and any public street, avenue,

alley, park, parkway, driveway, or public place in any city or town.

      (9) "Pump" includes any apparatus or machine for raising, driving, exhausting, or

compressing fluids, and used in the sale and distribution of fuels.

      (10) "Purchaser" includes any person, association of persons, firm, or corporation,

wherever resident or located, who purchases fuels from a distributor, for use or resale, and any

person, association of persons, firm or corporation who purchases from a distributor, gasoline or

other volatile and inflammable liquids (other than lubricating oils and oils used for heating

purposes) for use other than for propelling motor vehicles.

      (11) "Retail dealer" means any person, association of persons, firm, or corporation

operating a filling station as herein defined in this chapter for the sale or dispensing of motor fuel

by delivery into service tank or tanks of any highway motor vehicle which is propelled by an

internal combustion motor, other than the highway motor vehicle belonging to the person owning

or operating the place of business; provided, however, that sales by a manufacturer or distributor

shall not constitute them retail dealers.

      (12) "State highways" includes only those public highways or those parts of them that

shall be constructed or maintained by the department of transportation.

      (13) "United States government motor gasoline" means that gasoline which is or may be

prescribed by the federal specification board of the United States government for use as a fuel for

motor vehicle, motor boat, and similar engines.

      (14) "Manufactured biodiesel fuel" means: (i) Mono-alkyl esters of long chain fatty acids

derived from vegetable oils or animal fats which conform to ASTM D6751 specifications for use

in diesel engines; (ii) That results in employment at a fixed location at a manufacturing facility

for biodiesel fuel; and (iii) Any volume of biodiesel fuel that is subsequently blended with other

fuels and is used for heating purposes or for operating or propelling motor vehicles

notwithstanding the portion of biodiesel blended into any fuel, only the biodiesel portion of the

fuel shall be exempt from taxation under chapter 31-36.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES - MOTOR FUEL TAX

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     This act would exclude propane used for the generation of electricity from the definition

of fuels for tax purposes applied pursuant to the motor fuel tax.

     This act would take effect upon passage.

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