December 22, 1982

You inquire whether ********** ("Company") is subject to the Massachusetts motor carrier tax and licensing and reporting requirements under Massachusetts General Laws Chapters 62C and 64F. You state that for the last several years the Company has obtained a license as a user of special fuels under Chapter 64E, Section 1(f).

The Company primarily operates bus routes in [a contiguous state] and the majority of its revenue is generated by these bus routes. However, four of its but routes enter Massachusetts on a regular basis and terminate in Massachusetts. The Company maintains no permanent base of operations in Massachusetts. Its buses are garaged and serviced outside Massachusetts. You state that all special fuels, used by the Company within Massachusetts and acquired outside Massachusetts, are contained within the supply tanks of its vehicles.

General Laws Chapter 64F, Section 3 provides that an excise on fuel or special fuels applies to "[a]ny person who, having acquired fuel or special fuels outside the commonwealth, shall use the same for the propulsion of motor vehicles upon or over the highways of the commonwealth, or who has in his possession fuel or special fuels so acquired for such use, including persons who although not residents of the commonwealth shall regularly or habitually use and operate motor vehicles over the highways of the commonwealth…" The excise does not apply to persons who, as transients operate motor carriers into or through Massachusetts, using therein fuel or special fuels acquired outside Massachusetts, provided that such fuel or special fuels are wholly contained within the supply tanks of such vehicle. (G.L. c. 64F, s. 3).

Persons subject to the excise under Chapter 64F must obtain a motor carrier license and a license for each motor vehicle operated in Massachusetts (G.L. c. 64F, s. 2; c. 62, s. 67). Chapter 62C, Section 16(f) provides that every person licensed under Chapter 64F must file quarterly returns and pay a tax on the number of gallons of fuel and special fuels used by him in Massachusetts.

Under Chapter 64F, Section 5, the Commissioner may enter into reciprocal agreements with appropriate officials of any other state under which he may waive all or any part of the requirements imposed by Chapter 64F and fuel or special fuel licensing requirements imposed by Chapter 62C. The requirements may be waived for those persons who use fuel or special fuels in Massachusetts upon which the tax has been paid to such other state. However, the laws of such other state must grant equivalent privileges with respect to fuel or special fuels used in such other state upon which a tax has been paid to Massachusetts.

The Massachusetts Commissioner of Revenue had a reciprocal agreement with the appropriate officials of ********** until that agreement was rescinded effective June 1, 1981. ********** Presently, the Commissioner has no reciprocal agreement with the appropriate officials of

Chapter 64E, Section 2 provides that:

"[n]o person owning or leasing a motor vehicle propelled by special fuels shall use the highways of this commonwealth with said motor vehicle unless such person is the holder of an uncancelled license as a user of special fuels issued by the commissioner for each such motor vehicle."

Based on the foregoing, the Company which regularly operates buses on the highways of Massachusetts and acquires fuel or special fuels outside Massachusetts, is subject to the motor carrier tax and the licensing and reporting requirements of Chapters 62C, 64E and 64F. Therefore, the Company must obtain a motor carrier tax license (Form MF-VA) and a motor carrier tax vehicle and user of special fuels license (Form MF-VA) for each vehicle operated in Massachusetts; it must also file quarterly returns and pay the motor carrier tax on each gallon of fuel or special fuels acquired outside Massachusetts and used in Massachusetts.

Very truly yours,

/s/L. Joyce Hampers

L. Joyce Hampers
Commissioner of Revenue

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LR 82-125