Texas Comptroller of Public Accounts    STAR System


200107377L



July 23, 2001

**************

Dear **************:

Thank you for your questions concerning sales of automotive oil and 
transmission fluid by COMPANY to your organization. You stated that your 
supplier is a certified automotive oil distributor and is licensed as a used 
oil collection center.

A name search did not find an COMPANY in the CITY area, but I did locate an 
DISTRIBUTOR, which has an automotive oil sales fee permit.  If DISTRIBUTOR 
maintains a used oil collection center registered by the Texas Natural Resource 
Conservation Commission (TNRCC) at a location where automotive oil is resold, 
then it is not liable for the fee on sales of new automotive oil to your 
organization.

Section 371.062(b) of the Health and Safety Code provides that only oil 
manufacturers or distributors that make a first sale of automotive oil 
(including transmission fluid) are responsible for paying the fee.  A sale to a 
used oil collection center registered with the TNRCC is specifically excluded 
from the "first sale" definition in Section 371.062(a)(2)(C).  Since "first 
sales" can only be made by manufacturers or distributors, all automotive oil 
sold by a registered used oil collection center is fee free.

DISTRIBUTOR has reported zero sales and zero payments for the automotive oil 
sales fee over the past four years (the statute of limitations).

You may access a copy of Section 371.062 of the Health and Safety Code on the 
Texas Legislature Online's Web site at 
http://www.capitol.state.tx.us/statutes/hstoc.html.  Additional information on 
the fee's reporting requirements can be found in Rule 3.701.  Rules may be 
accessed under "Index to Rules by Tax" on the Comptroller's Web site at 
http://window.state.tx.us/taxinfo/rulendx/ruleindex.html.

Again, thank you for your inquiry.  If you have further questions, please 
e-mail me at donald.dillard@cpa.state.tx.us or call me toll free at 
1-800-531-5441, extension 6-6171.

Sincerely,


Donald S. Dillard
Tax Policy Division




On Tue, 17 Jul 2001 11:47:13 <**************> wrote:

My organization purchases new automotive oil and transmission fluid from 
COMPANY in CITY.  COMPANY is a certified automotive oil distributor and a 
licensed used oil collection center.  My organization conducts all of its 
activities in Texas and is not a manufacturer or distributor of new automotive 
oil or a collection center for used oil.

Given these facts, we would appreciate answers to the following questions:

1.  Is COMPANY liable for Automotive Oil Sales Fees on sales of new automotive 
oil to my organization?

2.  Has COMPANY made payments for Automotive Oil Sales Fees to the 
Comptroller's office during the period from 1994 through 2000?

3.  Are licensed used oil collection centers exempt from liability for 
Automotive Oil Sales Fees on sales of new automotive oil and transmission fluid 
to entities which are not manufacturers or distributors of new automotive oil 
or collection centers for used oil?

4.  Which code section contains the provisions that exempt licensed used oil 
collection centers from liability for Automotive Oil Sales Fees on sales of new 
automotive oil and transmission fluid to entities which are not manufacturers 
or distributors of new automotive oil or collection centers for used oil?

Thank you for your assistance.

**************
**************




ACCESSION NUMBER: 200107377L   
SUPERSEDED: N  
DOCUMENT TYPE: L  
DATE: 07/23/2001   
TAX TYPE: FEE