Motor Fuels Tax Minute, Episode 76: Storing Fuel

In this week’s episode of Motor Fuels Tax Minute, our hosts talk about storing fuel.

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Detailed Description of Weaver’s Motor Fuels Tax Minute, Episode 76

00:00:00
Kelly: Welcome to our Motor Fuels Tax Minute, where we talk all things motor fuels. Today we will be talking about storing fuel, tax implications and some other things to think about that actually came up when Leanne was talking to one of our fellow Weaver colleagues.

00:00:14
Leanne: That’s right Kelly, I was having a conversation a few weeks ago with one of our colleagues in fixed assets and property tax services. We work in fuel, obviously, and they work a little bit in fuel and plenty of other areas with merchandising. We were talking about storing fuel and storing fuel in terminals. And it came up in the context of purchasing terminals, or acquiring land to put up a terminal, and what do you need to consider.

For us, from a tax perspective, if you’re going to be a terminal operator, you need that 637S and the TO (Terminal Operator) and the TCN (Terminal Control Number). And then, you have your state registrations as well. If you’re the person storing inventory, whether you’re a terminal operator or not, you need those licenses with the exception of the TO. You want to consider if it’s in a registered terminal, we’re talking about licenses, there should be no tax if everyone’s registered. If it’s a facility that’s not registered, you’re likely to have tax-paid fuel.

So, I was telling them about that and then it came up with inventory. There might be some property tax issues. If you’re looking to acquire another terminal and then kit it out or build something new, maybe there’s some cost segregation and some fixed assets.

It got me to thinking that we talk about this small world of motor fuel tax, but there’s so much else to consider, and I think it would be great to maybe get these colleagues on and talk about that a little bit more. But I just wanted to give a flavor of some of the things that we might not be thinking about when we’re asking the question of what registration do I need if I’m acquiring this terminal.

00:01:53
Kelly: I love that, and it’s one of the things that I love about Weaver. It really is a full-service firm. We all communicate with each other. Obviously, we hit these fun topics, and we find different ways to help our clients to really make sure everything is covered because sometimes you get in that fuel tax bubble, and you forget about all these other things that need to happen in order for things to run smoothly and we’re able to offer that.

00:02:15
Leanne: Yeah, absolutely. And I love that we had that conversation as well. It just gave some food for thought for everybody.

00:02:22
Kelly: I agree, I agree. Well, that was this week’s Motor Fuels Tax Minute. Hopefully, we can bring in some of those professionals from Weaver to give you guys a little more information. But for now, we look forward to you talking to everyone next week. Thank you.

00:02:35
Leanne: Thank you.