Refund to dealer of uncollectible taxes; rules

(1) Upon application to the Department of Transportation, a motor vehicle fuel dealer may obtain a refund of the tax paid to the department on sales of motor vehicle fuel if: (a) The dealer has received less than full consideration for the fuel from or on behalf of a purchaser; (b) The account has been declared by the dealer to be an uncollectible account receivable and meets all applicable standards for deductibility for federal income tax purposes pursuant to the Internal Revenue Code; and (c) The dealer has not previously received a refund from the department for motor vehicle fuel taxes not paid by the same purchaser. (2) For purposes of determining the amount of a refund due under this section, the amount of consideration received by the motor vehicle fuel dealer shall be apportioned between the charges for the motor vehicle fuel and the tax for the fuel. The amount of the tax refunded may not exceed the amount of tax paid under ORS 319.020. (3) If the motor vehicle fuel dealer who receives a refund under this section subsequently collects any amount from any source for the account declared uncollectible, the amount collected shall be apportioned between the charges for the motor vehicle fuel and the corresponding tax for the fuel. The motor vehicle fuel tax collected shall be returned to the department. (4) The department shall adopt rules governing the process of applying for and receiving refunds under this section.