28-5601

28-5601. Definitions

In this article and articles 2 and 5 of this chapter, unless the context otherwise
requires:

1. "Blending":

(a) Means the mixing of one or more products, regardless of the original character
of the product blended, if the product obtained by the blending is capable of use or
otherwise sold for use in the generation of power for the propulsion of a motor vehicle,
aircraft or watercraft.

(b) Does not include blending that occurs in the process of refining by the
original refiner of crude petroleum or the blending of products known as lubricating oil
and greases.

2. "Bulk end user" means a person who receives into the person's own storage
facilities in transport truck lots motor fuel for the person's own consumption.

3. "Bulk plant" means a motor fuel storage and distribution facility that is not a
terminal and from which motor fuel may be removed at a rack.

4. "Bulk transfer" means any transfer of motor fuel from one location to another by
pipeline tender or marine delivery within the bulk transfer terminal system.

5. "Bulk transfer terminal system" means the motor fuel distribution system
consisting of refineries, pipelines, marine vessels and terminals. Motor fuel in a
refinery, pipeline, vessel or terminal is in the bulk transfer terminal system. Motor
fuel in the fuel supply tank of any engine, or in any tank car, rail car, trailer, truck
or other equipment suitable for ground transportation, is not in the bulk transfer
terminal system.

6. "Consumer" means the end purchaser of motor vehicle fuel for use on the highways
in this state, the end purchaser of motor vehicle fuel for use in watercraft on waterways
of this state or the end purchaser of aviation fuel for use in aircraft.

7. "Destination state" means the state, territory or foreign country to which motor
fuel is directed for delivery into a storage facility, a receptacle, a container or a
type of transportation equipment for the purpose of resale or use.

8. "Distributor" means a person who acquires motor fuel from a supplier or another
distributor for subsequent sale or use and who may blend or import into or export from
this state motor fuel in the original package or container or otherwise but excluding a
person who imports motor fuel in the fuel tank of a motor vehicle or aircraft.

9. "Dyed diesel fuel" means diesel fuel that is dyed pursuant to United States
internal revenue service regulations or requirements, including any invisible marker
requirements.

10. "Fuel tank" means a receptacle on a motor vehicle, watercraft or aircraft from
which fuel is supplied for the propulsion of the motor vehicle, watercraft or aircraft,
excluding a cargo tank but including a separate compartment of a cargo tank used as a
fuel tank and an auxiliary tank or receptacle of any kind from which fuel is supplied for
the propulsion of the motor vehicle, watercraft or aircraft, whether or not the tank or
receptacle is directly connected to the fuel supply line of the motor vehicle, watercraft
or aircraft.

11. "Highway" means any way or place in this state of whatever nature that is
maintained by public monies and that is open to the use of the public for purposes of
vehicular travel, including a highway under construction.

12. "In this state" means any way or place within the exterior limits of the state
of Arizona that is maintained by public monies, including any such way or place that is
owned by or ceded to the United States of America.

13. "Indian reservation" means all lands that are within the limits of areas set
aside by the United States for the exclusive use and occupancy of Indian tribes by
treaty, law or executive order and that are currently recognized as Indian reservations
by the United States department of the interior.

14. "Indian tribe" means any organized nation, tribe, band or community recognized
as an Indian tribe by the United States department of the interior.

15. "Interstate user" means a person registering a use class motor vehicle under
chapter 7, article 7 or 8 of this title or section 28-2321 or 28-2324.

16. "Invoiced gallons" means the gallons actually billed on an invoice in payment to
a supplier.

17. "Light class motor vehicle" means a motor vehicle that uses use fuel on the
highways in this state but excludes a road tractor, truck tractor, truck or passenger
carrying vehicle having a declared gross vehicle weight of more than twenty-six thousand
pounds or having more than two axles.

18. "Motor fuel" means motor vehicle fuel, use fuel and aviation fuel.

19. "Motor vehicle" means a self-propelled vehicle required to be licensed or
subject to licensing for operation on a highway.

20. "Permissive supplier" means an out-of-state supplier that elects, but is not
required, to have a supplier's license pursuant to this article.

21. "Person" means an individual, firm, partnership, joint venture, association,
corporation, estate, trust, business trust, receiver or syndicate, this state, any
county, city, town, district or other subdivision of this state, an Indian tribe, or any
other group or combination acting as a unit.

22. "Position holder":

(a) Means the person who holds the inventory position in motor fuel in a terminal,
as reflected on the records of the terminal operator. For the purposes of this
subdivision, "a person who holds the inventory position in motor fuel" means a person who
has a contract with the terminal operator for the use of storage facilities and
terminaling services for fuel at the terminal.

(b) Includes a terminal operator who owns fuel in the terminal.

23. "Public monies" means those monies that are received by this state and that are
derived all or in part from tax revenues or other funding sources.

24. "Qualified terminal" means a terminal that is designated as a qualified terminal
pursuant to the United States internal revenue code, regulation and practices and that
has been assigned a terminal control number by the United States internal revenue
service.

25. "Rack" means a mechanism for delivering motor fuel from a refinery, a terminal
or a bulk plant into a railroad tank car, a transport truck or other means of transfer
that is outside the bulk transfer terminal system.

26. "Refiner" means any person who owns, operates or otherwise controls a refinery
within the United States.

27. "Refinery" means a facility that is used to produce motor fuel from crude oil,
unfinished oils, natural gas liquids, transmix or other hydrocarbons or by blending and
from which motor fuel may be removed by pipeline, by vessel or at a rack.

28. "Road tractor" means a motor vehicle that is designed and used for drawing other
vehicles and that is not constructed to carry either a load independently or any part of
the weight of a vehicle or load so drawn.

29. "Sell" includes a transfer of title or possession, exchange or barter in any
manner or by any means.

30. "Supplier":

(a) Means a person who is registered pursuant to section 4101 of the United States
internal revenue code for transactions in motor fuels in the bulk transfer terminal
distribution system and who is one of the following:

(i) The position holder in a terminal or refinery in this state.

(ii) A person who imports motor fuel into this state from a foreign country.

(iii) A person who acquires motor fuel from a terminal or refinery in this state
from a position holder pursuant to a two party exchange.

(iv) The position holder in a terminal or refinery outside this state with respect
to motor fuel that that person imports into this state on the account of that person.

(b) Includes a permissive supplier unless specifically provided otherwise.
Supplier does not include a terminal operator merely because the terminal operator
handles motor fuel consigned to the terminal operator within a terminal.

31. "Terminal" means a storage and distribution facility for motor fuel, which is
supplied by pipeline or marine vessel, that is registered as a qualified terminal by the
United States internal revenue service and from which motor fuel may be removed at a
rack.

32. "Terminal bulk transfer" includes the following:

(a) A marine barge movement of motor fuel from a refinery or terminal to a
terminal.

(b) Pipeline movements of motor fuel from a refinery or terminal to a terminal.

33. "Terminal operator" means any person who owns, operates or otherwise controls a
terminal and who does not use a substantial portion of the motor fuel that is transferred
through or stored in the terminal for the person's own use or consumption or in the
manufacture of products other than motor fuel. A terminal operator may own the motor
fuel that is transferred through or stored in the terminal.

34. "Transmix" means the buffer or interface between two different products in a
pipeline shipment or a mix of two different products within a refinery or terminal that
results in an off-grade mixture that is not usable or salable as motor fuel.

35. "Two party exchange" means a transaction:

(a) In which motor fuel is transferred from one licensed supplier or licensed
permissive supplier to another licensed supplier or licensed permissive supplier.

(b) That includes a transfer from the person that holds the original inventory
position for motor fuel in the terminal as reflected on the records of the terminal
operator.

(d) In which the terminal operator in the terminal operator's books and records
treats the receiving exchange party as the supplier that removes the product across a
terminal rack for purposes of reporting the events to the department.

36. "Use" includes the placing of fuel into any receptacle on a motor vehicle from
which fuel is supplied for the propulsion of the vehicle unless the operator of the
vehicle establishes to the satisfaction of the director that the fuel was consumed for a
purpose other than to propel a motor vehicle on a highway in this state and, with respect
to fuel brought into this state in any such receptacle on a use class motor vehicle, the
consumption of the fuel in this state. A person who places fuel in a receptacle on a use
class motor vehicle of another is not deemed to have used the fuel.

37. "Use class motor vehicle" means a motor vehicle that uses use fuel on a highway
in this state and that is a road tractor, truck tractor, truck or passenger carrying
vehicle having a declared gross vehicle weight of more than twenty-six thousand pounds or
having more than two axles.

38. "Use fuel" includes all gases and liquids used or suitable for use to propel
motor vehicles, except fuels that are subject to the motor vehicle fuel tax imposed by
this article.

39. "User" includes a person who, within the meaning of the term use as defined in
this section, uses fuel in a use class motor vehicle.

40. "Vendor" includes a person who sells use fuel in this state and who places the
fuel or causes the fuel to be placed into any receptacle on a motor vehicle from which
receptacle fuel is supplied for the propulsion, including a service station dealer, a
broker and a user who sells use fuel to others.