2010 North Carolina Code
Chapter 105 Taxation.
Article 36C - Gasoline, Diesel, and Blends.
105-449.107. Annual refunds for off-highway use and use by certain vehicles with power attachments.

105‑449.107. Annual refunds for off‑highway use and use by certain vehicles with power attachments.

(a) Off‑Highway. A person who purchases and uses motor fuel for a purpose other than to operate a licensed highway vehicle may receive an annual refund for the excise tax the person paid on fuel used during the preceding calendar year. The amount of refund allowed is the amount of the flat cents‑per‑gallon rate in effect during the year for which the refund is claimed plus the average of the two variable cents‑per‑gallon rates in effect during that year, less the amount of sales and use tax or privilege tax due on the fuel under this Chapter. An application for a refund allowed under this section must be made in accordance with this Part.

(b) Certain Vehicles. A person who purchases and uses motor fuel in one of the vehicles listed below may receive an annual refund for the amount of fuel consumed by the vehicle:

(1) A concrete mixing vehicle.

(2) A solid waste compacting vehicle.

(3) A bulk feed vehicle that delivers feed to poultry or livestock and uses a power takeoff to unload the feed.

(4) A vehicle that delivers lime or fertilizer in bulk to farms and uses a power takeoff to unload the lime or fertilizer.

(5) A tank wagon that delivers alternative fuel, as defined in G.S. 105‑449.130, or motor fuel or another type of liquid fuel into storage tanks and uses a power takeoff to make the delivery.

(6) A commercial vehicle that delivers and spreads mulch, soils, composts, sand, sawdust, and similar materials and that uses a power takeoff to unload, blow, and spread the materials.

(7) A commercial vehicle that uses a power takeoff to remove and dispose of septage and for which an annual fee is required to be paid to the Department of Environment and Natural Resources under G.S. 130A‑291.1.

(8) A sweeper.

The amount of refund allowed is thirty‑three and one‑third percent (33 1/3%) of the following: the sum of the flat cents‑per‑gallon rate in effect during the year for which the refund is claimed and the average of the two variable cents‑per‑gallon rates in effect during that year, less the amount of sales and use tax or privilege tax due on the fuel under this Chapter. An application for a refund allowed under this section must be made in accordance with this Part. This refund is allowed for the amount of fuel consumed by the vehicle in its mixing, compacting, or unloading operations, as distinguished from propelling the vehicle, which amount is considered to be one‑third of the amount of fuel consumed by the vehicle.

(c) Sales Tax Amount. Article 5 of this Chapter determines the amount of sales and use tax to be deducted under this section from a motor fuel excise tax refund. Article 5F of this Chapter determines the amount of privilege tax to be deducted under this section from a motor fuel excise tax refund. The sales price and the cost price of motor fuel to be used in determining the amount to deduct is the average of the wholesale prices used under G.S. 105‑449.80 to determine the excise tax rates in effect for the two six‑month periods of the year for which the refund is claimed. (1995, c. 390, s. 3; 1997‑6, s. 14; 1997‑423, s. 4; 2001‑408, s. 1; 2005‑377, s. 1; 2006‑162, s. 16(b).)