The Florida Senate

206.416  Change in state destination.--

(1)(a)  A terminal supplier or person who is receiving fuel pursuant to an exchange agreement who sells fuel destined for sale or use in this state may change the destination state designated on the original shipping paper upon notification by the purchaser of the fuel by the 10th day of the month following the date of the transaction. The terminal supplier or position holder shall document a timely change in destination state by issuing a new invoice bearing the corrected destination state. Each terminal supplier and position holder shall report monthly to the department all changes in the state of destination issued, including the name of purchaser, date, number of gallons of fuel, and the basis for the change.

(b)  A terminal supplier or position holder who issues a change in the state of destination on the invoice to this state from another state shall collect and remit to the department the tax levied pursuant to this part on such fuel. A terminal supplier or position holder who issues a change in the state of destination from this state to another state shall be entitled to a credit or refund of any tax levied pursuant to this part on such fuel which it has collected and remitted to the department.

(c)  A terminal supplier or position holder may sell motor or diesel fuel, other than by bulk transfer, a portion of which fuel is destined for sale or use in this state and a portion of which fuel is destined for sale or use in another state or states. However, such sale shall be documented by the terminal supplier or position holder by issuing shipping papers designating the state of destination for each portion of the fuel.

(d)  A licensed wholesaler, importer, or exporter who intends to sell or use motor fuel in this state which was purchased pursuant to shipping papers bearing an out-of-state destination shall obtain a diversion number issued by the department which shall be manually recorded by the wholesaler, importer, or exporter on the shipping paper prior to importing the fuel into this state. If the licensed wholesaler, importer, or exporter fails to timely notify the terminal supplier or position holder pursuant to paragraph (a) to obtain a corrected invoice, the licensed wholesaler, importer, or exporter shall be liable to report and remit all applicable taxes on said fuel with the return required pursuant to s. 206.43

(2)(a)  Any person who owns or possesses motor fuel in this state bearing an out-of-state destination on the shipping paper as to which a diversion number has not been issued by the department and manually recorded on the shipping paper, and who cannot prove that the tax imposed under the part has been paid, shall be subject to a specific penalty of $1 per gallon based on the maximum capacity of the product storage tank of the vehicle, plus all applicable taxes, penalties, and interest otherwise imposed under this part on said fuel.

(b)  In order to seek relief from any penalty assessed under this subsection, a person may, through the informal protest procedure established under s. 213.21 and the rules of the department, provide the department with evidence that the error was made despite a good faith effort to properly account for and report fuel shipments and taxes. Evidence may include proof of a written or standing order documenting the correct destination placed prior to the shipment, or evidence that demonstrates that the error is not a continuing event.

History.--s. 42, ch. 95-417.