Session Laws

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to immediately provide fiscal relief to certain cities and towns, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 16 of chapter 62C of the General Laws, as appearing in the 1984 Official Edition, is hereby amended by striking out subsection (j) and inserting in place thereof the following two subsections:-

(j) Every person licensed under chapter sixty-four J shall, on or before the twentieth day of each month file with the commissioner a return stating the number of gallons of aircraft fuel sold or used by him in the commonwealth during the preceding calendar month, and such further information as the commissioner may deem necessary, including information relative to the cost and gross receipts from the purchase and sale of such fuel.

(k) Every person subject to taxation under section twenty-one of chapter one hundred and thirty-eight shall file a return with the commissioner for each calendar month covering his sales of all alcoholic beverages or alcohol and all malt beverages imported into the commonwealth by him. Every such return shall be filed within twenty days after the expiration of the period covered thereby.

SECTION 2. Section 25 of said chapter 62C, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- Every distributor, unclassified importer, unclassified exporter or purchaser referred to in section one of chapter sixty-four A, every stamper appointed under section thirty of chapter sixty-four C, every user-seller or supplier of special fuels, as defined in section one of chapter sixty-four E, every motor carrier required to be licensed under chapter sixty-four F, every operator required to register under chapter sixty-four G, every vendor required to register under chapter sixty-four H or sixty-four I, every user-seller or supplier of aircraft fuel, as defined in section one of chapter sixty-four J and every licensee referred to in section twenty-one of chapter one hundred and thirty-eight shall keep and preserve suitable records of taxable charges and such other books, papers, records, and data as the commissioner may require to determine the amount of the tax due under the provisions of those respective chapters.

SECTION 3. Section 66 of said chapter 62C, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

The commissioner may require any person required to be licensed or registered by any provision of chapters sixty-four A to sixty-four C, inclusive, or chapters sixty-four E to sixty-four J, inclusive, or subject to taxation under section twenty-one of chapter one hundred and thirty-eight, to file with him a bond, satisfactory to the commissioner, in such amount as the commissioner may determine, with a surety company authorized to transact business in the commonwealth as surety, to secure the payment of any tax, including any interest or penalty thereon, due or which may become due from such person under said chapters; provided, however, that the amount of such bond required from a vendor under chapter sixty-four H or sixty-four I shall not exceed the amount which the commissioner shall determine to be such vendor's average tax liability for a six month period.

SECTION 4. Section 67 of said chapter 62C, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

Each vendor, as defined in chapter sixty-four H or sixty-four I, and each operator as defined in chapter sixty-four G who desires to obtain a certificate of registration as required by those chapters, and each person who desires to obtain a license as a distributor, unclassified importer, or unclassified exporter, as defined in chapter sixty-four A, as a manufacturer, wholesaler, vending machine operator, unclassified acquirer, transportation company, or retailer, as defined in chapter sixty-four C, as a user-seller, supplier, or user of special fuels, as defined in chapter sixty-four E, or as a motor carrier, as defined in chapter sixty-four F or as a user-seller or supplier of aircraft fuel as defined in chapter sixty-four J shall file with the commissioner an application in such form as the commissioner prescribes, giving such information as the commissioner requires; provided, however, that in the instance of an application for a wholesaler's license, as defined in chapter sixty-four C, the commissioner shall require, in addition to such other information as may be deemed necessary, the filing of affidavits from three licensed manufacturers, as defined in said chapter sixty-four C, stating that the manufacturer will supply the wholesaler if the applicant is granted a license.

SECTION 5. Section 8A of chapter 64A of the General Laws, as appearing in the 1984 Official Edition, is hereby amended by adding the following sentence:- For the purposes of this section, aviation fuel shall not include aircraft fuel as defined in section one of chapter sixty-four J.

SECTION 6. Chapter 64G of the General Laws, as appearing in the 1984 Official Edition, is hereby amended by inserting after section 3 the following section:-

Section 3A. Any city or town which accepts the provisions of this section shall be authorized to impose a local excise tax upon the transfer of occupancy of any room or rooms in a hotel, lodging house, or motel located within such city or town by any operator at a rate up to but not exceeding four per cent of the total amount of rent for each such occupancy. No excise shall be imposed if the total amount of rent is less than fifteen dollars per day or its equivalent or if the accommodation is exempt under the provisions of section two of this chapter. The operator shall pay the local excise tax imposed under the provisions of this section to the commissioner at the same time and in the same manner as the excise tax due the commonwealth. All sums received by the commissioner under this section as excise, penalties or forfeitures, interest, costs of suit and fines shall at least semi-annually be distributed, credited and paid by the state treasurer upon certification of the commissioner to each city or town that has adopted the provisions of this section in proportion to the amount of such sums received from the transfer of occupancy in each such city or town. This section shall only take effect in a city or town accepting the provisions of this section by a majority vote of the city council with the approval of the mayor, in the case of a city with a Plan A, Plan B, or Plan F charter; by a majority vote of the city council, in the case of a city with a Plan C, Plan D, or Plan E charter; by a majority vote of the annual town meeting or a special meeting called for the purpose, in the case of a municipality with a town meeting form of government; or by a majority vote of the town council, in the case of a municipality with a town council form of government. The provisions of this section shall take effect on the first day of the first calendar month following such acceptance; provided, however, that such day is at least fifteen days after such acceptance; and, provided further, that if such day is less than fifteen days after such acceptance it shall take effect on the first day of the second calendar month following such acceptance.

The commissioner of the department of revenue shall make available to any city or town requesting such information the total amount of room occupancy tax collected in the preceding fiscal year in the city or town requesting the information.

SECTION 7. The General Laws are hereby amended by inserting after chapter 64I the following chapter:- `tuc CHAPTER 64J. `tuc TAXATION OF FUELS USED IN THE PROPULSION OF AIRCRAFT.

Section 1. As used in this chapter, the following words shall, unless the context otherwise requires, have the following meanings:-

(a) "Aircraft", any machine or device, including airplanes and helicopters, capable of atmospheric flight.

(b) "Aircraft fuel", all combustible gases and liquids, used or sold for use in propelling turbine-propellor jet, turbojet and jet driven aircraft and jet aircraft engines.

(c) "Average price", the weighted average selling price per gallon of aircraft fuel exclusive of any federal and state aircraft fuel taxes imposed thereon sold by licensees, as determined by the commissioner on a consistent basis from information furnished by suppliers and user-sellers with their monthly returns and from other statistical data reflecting the average level of such prices at the time such determination is made.

(d) "Commissioner", the commissioner of revenue.

(e) "Fuel", shall mean "Fuel" as defined in paragraph (d) of section one of chapter sixty-four A or "Special Fuel" as defined in paragraph (c) of section one of chapter sixty-four E.

(f) "Purchaser", shall include, but not be limited to, in addition to its usual meaning, a person who transfers aircraft fuel into an aircraft, or into a receptacle from which aircraft fuel is supplied by him to his own or other aircraft.

(g) "Sale", shall include, in addition to its usual meaning, the transfer of aircraft fuel by a supplier into an aircraft or into a receptacle from which aircraft fuel is supplied by him to his own or other aircraft, and all sales shall be deemed to occur at the place in the commonwealth where the fuel is transferred into the aircraft by which it is to be used.

(h) "Supplier", any person who sells or delivers fuel to a user-seller and any person who imports fuel into the commonwealth other than in the usual tank or receptacle connected with the engine of the aircraft in the operation of which the aircraft fuel is to be consumed, and resells or uses the same in an aircraft owned or operated by such person, and any person who otherwise would be a user-seller and who has elected instead to qualify and be licensed as a supplier.

(i) "Tax per gallon", five per cent of the average price, as determined by the commissioner for each calendar quarter, computed to the nearest tenth of a cent per gallon; provided, however, that such tax shall not be less than five cents per gallon.

(j) "Use", shall mean and include, in addition to its usual meaning, the receipt of aircraft fuel by any person into a fuel supply tank of an aircraft or into a receptacle from which aircraft fuel is supplied by any person to his own or other aircraft, and all uses shall be deemed to occur at the place in the commonwealth where the fuel is transferred into the aircraft by which it is to be used.

(k) "User-seller", any person, not licensed as a supplier, who dispenses aircraft fuel into the fuel tanks of, or attached to, aircraft or including any such person who so dispenses aircraft fuel for consumption in such aircraft owned, leased or operated by him. Any user-seller may, with the permission of the commissioner, elect instead to qualify and be licensed as a supplier.

Section 2. The commissioner may grant licenses to persons as user-sellers or suppliers of aircraft fuel in accordance with section sixty-seven of chapter sixty-two C.

No person other than a licensed supplier shall maintain storage facilities for aircraft fuel and dispense aircraft fuel therefrom into any fuel tank attached to an aircraft unless such person is the holder of an uncancelled license as a user-seller issued by the commissioner.

No person shall sell or deliver aircraft fuel within this commonwealth to a licensed user-seller unless such person is the holder of an uncancelled license as a supplier issued by the commissioner.

Section 3. Each licensee shall keep a complete and accurate record of all purchases, sales and use of aircraft fuel, including the name and address of the person accepting delivery of said aircraft fuel to be used in an aircraft in the commonwealth, its place and date of delivery, the gross sales price or cost and the number of gallons of aircraft fuel purchased, sold and used and the complete and accurate record of the number of gallons imported, produced, refined, manufactured or compounded and the date of the importation, production, refining, manufacturing or compounding.

Every licensee shall also present with every consignment of aircraft fuel or delivery of the same to any person other than himself a written statement containing the date of the sale or use within the commonwealth, the date of delivery, the name of the person making the delivery and the name of the person receiving the same, the gross sales price and the number of gallons of aircraft fuel delivered and shall retain a duplicate of each such statement. In the case of use of aircraft fuel by the licensee himself, he shall keep an accurate record of all the deliveries received by him and the names and addresses of the persons from whom he received the same, giving the dates of deliveries, the cost of the aircraft fuel delivered and the number of gallons of such fuel involved in each delivery. Such records and written statements shall be is such form as the commissioner shall prescribe and shall be preserved by said licensees for a period of three years and shall be offered for inspection at any time upon oral or written demand by the commissioner or his duly authorized agent.

Section 4. At the time of filing a return required by section sixteen of chapter sixty-two C, every licensee shall pay to the commissioner an excise at the tax per gallon determined by the commissioner upon each gallon of aircraft fuel sold or used by him in any city or town within the commonwealth that has adopted the provisions of this chapter in accordance with section thirteen.

Section 5. Any person who shall buy any aircraft fuel on which an excise has been paid or is chargeable under this chapter, and shall consume the same in any manner except in the operation of an aircraft, shall be reimbursed the amount of said excise in the manner and subject to the conditions hereinafter set forth. All claims for reimbursement shall be for not less than one dollar, shall be made by affidavit in such form and containing such information as the commissioner shall prescribe, and shall be accompanied by original invoices or sales receipts of aircraft fuel. The commissioner may require such further information as he shall deem necessary for the determination of such claims, and shall transmit all claims approved by him to the comptroller for certification; and the amount approved by the commissioner and certified as aforesaid shall be paid forthwith from the proceeds of the excise tax levied under this chapter, without specific appropriation.

Section 6. Except as otherwise provided in section five, the tax in every instance shall be borne by the purchaser, and no person offering aircraft fuel for sale shall sell, advertise or offer for sale said aircraft fuel separately from the tax imposed by this chapter. For any violation of this section, the license to keep and sell crude petroleum or any of its products, issued by the licensing authority under chapter one hundred and forty-eight, shall be suspended by the said authority on request of the commissioner for such time as said commissioner deems proper.

Section 7. Any person who violates any provision of this chapter for which a penalty is not otherwise provided shall be punished by a fine of not more than one thousand dollars or by imprisonment for one year, or both such fine and imprisonment.

Section 8. Whenever any licensee ceases to be a supplier or user-seller within the commonwealth by reason of the discontinuance, sale or transfer of the business of such licensee, he shall give notice thereof in writing to the commissioner. Such notice shall contain the date of discontinuance, and, in the event of a sale or transfer of the business, the date thereof and the name and address of the purchaser or transferee thereof. All taxes, penalties and interest due and payable under this chapter and current taxes shall, notwithstanding such provisions, become due and payable concurrently with such discontinuance, sale or transfer, and any such licensee shall make a return and pay all such taxes, interest and penalties, and shall surrender to the commissioner his license.

Unless such notice is given to the commissioner, the purchaser or transferee shall be liable to the commonwealth for the amount of all taxes, penalties and interest accrued under this chapter on the date of such sale or transfer against any such licensee, but only to the extent of the value of the property thereby acquired from such licensee.

Section 9. Any person not licensed under this chapter who delivers to any person other than a licensee under this chapter aircraft fuel upon which the tax due hereunder has not been paid, knowing, or who reasonably should know, that such aircraft fuel is to be used or sold for the purpose of propelling aircraft, shall be liable for the tax imposed by this chapter.

Any user who shall acquire aircraft fuel in the commonwealth for the purpose of propelling aircraft owned or leased by him upon which aircraft fuel the tax due hereunder has not been paid shall be liable for the tax imposed by this chapter, and the commissioner may collect said tax either from the seller thereof or from said user of aircraft fuel.

Section 10. No provision of this chapter shall apply or be construed to apply to foreign or interstate commerce, except in so far as the same may be permitted under the provisions of the constitution and laws of the United States.

Section 11. The supreme judicial or the superior court shall have jurisdiction to restrain the collection, upon any sale exempted by the constitution and laws of the United States, of the excise imposed by this chapter. The complaint shall be brought against the commissioner, whether the question of the collection of the excise is in the hands of the attorney general or pending before the appellate tax board or is still in the hands of the commissioner.

Section 12. All sums received under this chapter as excise, penalties or forfeitures, interest, costs of suit and fines shall be paid to the commissioner at the time required for filing required by section sixteen of chapter sixty-two C, and shall at least semi-annually, be distributed, credited and paid by the state treasurer upon certification of the commissioner to each city or town that has adopted the provisions of this chapter in accordance with section thirteen in proportion to the amount of such sums received from the sale or use of aircraft fuel in each such city or town.

Section 13. The provisions of this chapter relative to the imposition, payment, collection and distribution of an excise tax on the sale or use of aircraft fuel shall apply in a city after acceptance by a majority vote of the city council with the approval of the mayor, in the case of a city with a Plan A, Plan B, or Plan F charter; by a majority vote of the city council, in the case of a city with a Plan C, Plan D or Plan E charter; by a majority vote of the annual town meeting or a special meeting called for the purpose, in the case of a municipality with a town meeting form of government; or by a majority vote of the town council, in the case of a municipality with a town council form of government. The provisions of this chapter shall take effect on the first day of the first calendar month following such acceptance; provided, however, that such day is at least fifteen days after such acceptance; and, provided further, that if such day is less than fifteen days after such acceptance it shall take effect on the first day of the second calendar month following such acceptance.

Section 14. Any city or town accepting the provisions of this chapter pursuant to section thirteen shall also establish a reserve to provide for extraordinary and unforeseen expenditures. Prior to the date when the tax rate for a fiscal year is fixed each city or town shall include in the appropriations for such fiscal year as a segregated reserve fund a sum not less than one per cent nor more than five per cent of the tax levy of the then current fiscal year; provided, however, that the amount required to be appropriated for such reserve fund in any fiscal year may be reduced by the amount, if any, remaining in the reserve fund established for the preceding fiscal year after all transfers have been made therefrom as hereinafter authorized, and such remaining amount shall be retained in the reserve fund provided for such fiscal year. Any direct draft or transfer against this fund shall be made by the mayor only with the approval of the city council, and in a city having a Plan D or Plan E form of charter only after approval by the city council with the consent of the city manager, or by the appropriating authority as specified in the charter of the city or town. Each draft or transfer made by the mayor, manager or board of selectmen shall be accompanied by written documentation detailing the amount of such draft or transfer and an explanation of the reason for the draft or transfer. If the reserve fund for a fiscal year beginning on or after July first, nineteen hundred and eighty-seven, is exhausted through transfers and the city incurs an appropriation or revenue deficit in such fiscal year, the reserve fund appropriation requirement shall increase by fifty per cent for the fiscal year following such fiscal year up to an amount no greater than five per cent of the tax levy of the current fiscal year. Notwithstanding the provisions of any general or special law to the contrary, the reserve fund established pursuant to this section shall become effective for the fiscal year beginning July first, nineteen hundred and eighty-six. For the purpose of this section, a city or town shall be defined as a community with a population in excess of one hundred and fifty thousand inhabitants.

SECTION 8. Notwithstanding the provisions of section twenty-two of chapter five hundred and forty-six of the acts of nineteen hundred and sixty-nine, the additional tax imposed by such section shall not apply to any tax imposed by section three A of chapter sixty-four G of the General Laws.

SECTION 9. This act shall take effect as of July first, nineteen hundred and eighty-five.