Kansas Department of Administration

05-a-014 - Federal Excise Tax Exemption Changes (February 11, 2005) (Superseded by 05-a-017)

Posted on October 21, 2021 at 12:49 PM by Kansas Department of Administration

INFORMATIONAL CIRCULAR NO. 05-A-014
DATE: February 11, 2005
SUBJECT: Federal Excise Tax Exemption Changes
EFFECTIVE DATE: March 1, 2005
A & R CONTACT: Bernie Kahler (785) 296-2101 (bernard.kahler@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Certain fuel purchases using Wright Express fuel cards will no longer be exempt from federal excise taxes


Effective March 1, 2005, certain fuel purchases using Wright Express fuel cards will no longer be exempt from federal excise tax. Due to changes made to federal law in the American Jobs Creation Act, beginning March 1, 2005, entities eligible to request refunds of federal excise taxes paid on certain fuel purchases are limited to either the Ultimate Vendor or the Ultimate Purchaser as defined in Sections 6421 and 6427 of the IRS regulations. Wright Express does not qualify as either the Ultimate Vendor or the Ultimate Purchaser and must rely on the participating merchants some of which will continue to offer tax exemption on State purchases and some will not. A list of the participating merchants is provided by Wright Express on their website - www.wexnews.com/tax.asp. This list identifies which participating merchants will continue to offer tax exemption and those that will not.

The Wright Express Vehicle Analysis Reports received beginning with March fuel purchases will show exempt and non-exempt purchases. Agencies will make payments to Wright Express as usual. Agency payments to Wright Express will appear on the quarterly Federal Excise Tax Report - DAIRSTAX - along with other purchases made during the quarter. This report is distributed by the Division of Accounts and Reports following the end of each calendar quarter. It will be the responsibility of each agency to identify federal excise tax paid to Wright Express or to any other vendor for which a refund is due the agency. Division of Accounts and Reports will aggregate all agency requests for refund and file one refund request of excise taxes paid for all state agencies. As with the current process, upon receipt of the refund from the IRS, a distribution will be made via SOKI journal voucher back to agency funds. More information about Federal Excise Tax is available at www.da.ks.gov/fm/cmp/information/vehicle.htm under the topic Federal Excise Tax.

DB:aw

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