Frequently Asked Questions
Can tax free transactions occur in the pipeline?
Yes, a tax free transaction can only occur in the pipeline if all parties involved in the transaction have a valid Louisiana Supplier or Permissive Supplier license as long as the transfer of the product does not “break bulk”, otherwise, the tax is to be collected from the person ordering the sale or transfer in the bulk transfer/terminal system.
Examples of when Motor fuel is not considered to be in the bulk transfer/terminal system includes the following:
- When in a motor fuel storage facility including but not limited to a bulk plant that is not part of a refinery or terminal;
- When in the motor fuel supply tank of any engine or motor vehicle;
- When in a marine vessel transporting motor fuel to a motor fuel storage facility that is not in the bulk transfer/terminal system;
- or when in any tank car, rail car, trailer, truck, or other equipment suitable for ground transportation or any movement by pipeline or vessel whose operators are not licensed and registered as required by the Internal Revenue Service.