28-5606

28-5606. Imposition of motor fuel
taxes

A. In addition to all other taxes provided by law, a tax of eighteen cents per
gallon is imposed on motor vehicle fuel possessed, used or consumed in this state.

B. To partially compensate this state for the use of its highways:

1. A use fuel tax is imposed on use fuel used in the propulsion of a light class
motor vehicle on a highway in this state at the same rate per gallon as the motor vehicle
fuel tax prescribed in subsection A of this section, except that there is no use fuel tax
on alternative fuels.

2. A use fuel tax is imposed on use fuel used in the propulsion of a use class
motor vehicle on a highway in this state at the rate of twenty-six cents for each gallon,
except that there is no use fuel tax on alternative fuels and use class vehicles that are
exempt pursuant to section 28-5432 from the weight fee prescribed in section 28-5433 are
subject to the use fuel tax imposed by paragraph 1 of this subsection.

3. Beginning from and after August 31, 2005 through December 31, 2010, a use fuel
tax is imposed on use fuel used in the propulsion of a motor vehicle transporting forest
products in compliance with the requirements of section 41-1516 on a highway in this
state at the rate of thirteen cents for each gallon, except that there is no use fuel tax
on alternative fuels.

C. The motor vehicle fuel and use fuel taxes imposed pursuant to this section and
the aviation fuel taxes imposed pursuant to section 28-8344 are conclusively presumed to
be direct taxes on the consumer or user but shall be collected and remitted to the
department by suppliers for the purpose of convenience and facility only. Motor vehicle
fuel, use fuel and aviation fuel taxes that are collected and paid to the department by a
supplier are considered to be advance payments, shall be added to the price of motor
vehicle fuel, use fuel or aviation fuel and shall be recovered from the consumer or user.

D. Motor vehicle fuel and use fuel taxes imposed pursuant to this section on the
use of motor vehicle fuel and use fuel and the aviation fuel taxes imposed pursuant to
section 28-8344 on the use of aviation fuel, other than by bulk transfer, arise at the
time the motor vehicle, use or aviation fuel either:

1. Is imported into this state and is measured by invoiced gallons received outside
this state at a refinery, terminal or bulk plant for delivery to a destination in this
state.

2. Is removed, as measured by invoiced gallons, from the bulk transfer terminal
system or from a qualified terminal in this state.

3. Is removed, as measured by invoiced gallons, from the bulk transfer terminal
system or from a qualified terminal or refinery outside this state for delivery to a
destination in this state as represented on the shipping papers if a supplier imports the
motor vehicle, use or aviation fuel for the account of the supplier or the supplier has
made a tax precollection election pursuant to section 28-5636.

E. If motor fuel is removed from the bulk transfer terminal system or from a
qualified terminal or is imported into this state, the original removal, transfer or
importation of the motor fuel is subject to the collection of the tax. If this motor fuel
is transported to another qualified terminal or reenters the bulk transfer terminal
system, the subsequent sale of the motor fuel on which tax has been collected is not
subject to collection of an additional tax if proper documentation is retained to support
the transaction.