Tax Season Is Approaching, Product Transfer Document Reminders

With tax season upon us, PMCI wants to remind members of Iowa’s product transfer document (PTD) requirements. Iowa’s requirements for documentation accompanying the sale of motor fuel differ depending on the type of parties participating in the sale of product. Providing customers with an accurate description of the motor fuel subject to the sale is critical in Iowa. Iowa’s motor fuel tax credit program requires customers to have a clear accounting of the products received and ultimately sold.

Iowa’s PTD requirements differ between wholesale transactions and retail transactions. Let’s start by focusing in on the requirements associated with wholesale transactions. Wholesale transactions are easily distinguished from retail transactions in the state of Iowa. Stated simply, wholesale transactions include any transaction which does not involve the sale of motor fuel to an end-user. Conversely, retail transactions are defined as sales to an end-user. Retail sales include sales to end-users made from transports, tankwagons, and traditional brick and mortar retail locations.

The Iowa Department of Revenue requires the following information to be included on product transfer document:

1. The name and address of the refinery, terminal, ethanol or biodiesel plant.
2. Contain the date of withdrawal or import.
3. Contain the name of the shipper-supplier-consignor.
4. Contain the name of the purchaser-consignee.
5. Contain the place of actual destination.
6. Contain the name of the transporter.
7. Contain the gross gallons by fuel type.
8. Contain the designation for ethanol blended gasoline or biodiesel blended fuel as provided in Iowa Code section 214A.2.
9. Contain a statement designating whether diesel fuel is dyed or undyed.
10. Have machine printed thereon a serial number of not less than four digits.

In reference to item 8 above, the Iowa Department of Agriculture and Land Stewardship requires a wholesale dealer selling ethanol blended gasoline or biodiesel fuel to a purchaser to provide the purchaser with a statement indicating the actual volume percentage present. The statement may be on the sales slip provided or a similar document such as a bill of lading or invoice. This statement shall include the specific amount of biodiesel, even if the amount of renewable fuel is 5 percent or less. This rule was implemented at the request of PMCI to help facilitate the accurate reporting of motor fuel gallons for tax credit purposes. Most states do not require the disclosure of biodiesel blends containing 5 percent or less.

For retail sales where the customer receives a receipt generated by the dispensing device, the receipt shall contain the product identity by name, symbol, abbreviation, or code number. Additionally, the total volume of the delivery, the unit price, and the total computed price of the fuel sale prior to post-delivery discounts being applied. In the case of a printed ticket, typically involving a tankwagon sale to an end-use customer, the total price, the total volume of the delivery and the price per liter or gallon shall be shown. The printed ticket should be in clear hand script if applicable.