(a) General. Any person acting as a supplier or user-seller of aircraft (jet) fuel in one or more cities or towns which have accepted the provisions of M.G.L. c. 64J must be licensed under M.G.L. c. 64J.
(b) Supplier License. Any person who sells or delivers aircraft (jet) fuel within Massachusetts to any person who dispenses aircraft (jet) fuel into fuel tanks of, or attached to, aircraft; and any person who imports such fuel into Massachusetts, (other than in the usual tank of an aircraft to be consumed in the operation of such aircraft) and resells or uses such fuel in aircraft owned or operated by such person, must be licensed under M.G.L. c. 64J and will generally qualify for status as and be licensed as a supplier of aircraft (jet) fuel. No person may sell or deliver aircraft (jet) fuel within Massachusetts to any other person including a licensed user-seller of aircraft (jet) fuel unless such person is a licensed supplier. A person who primarily sells or delivers aircraft (jet) fuel to a user-seller and who customarily dispenses aircraft (jet) fuel from bulk storage tank facilities located and maintained outside airport property will generally qualify for status as and be licensed as a supplier of aircraft (jet) fuel.
(c) User-seller License.
1. Any person, not licensed as a supplier, who dispenses aircraft (jet) fuel into the fuel tanks of, or attached to, aircraft, including aircraft such person owns, leases or operates must be licensed as a user-seller of aircraft (jet) fuel.
2. A person who dispenses aircraft (jet) fuel from receptacles (fuel farms) owned, leased or maintained by such person within the airport property, into fuel tanks of, or attached to, aircraft including aircraft such person owns, leases or operates is generally licensed as a user-seller of aircraft (jet) fuel. Such person must be licensed as user-seller if such person is not licensed as a supplier. No person may maintain a storage facility for aircraft (jet) fuel and dispense such fuel therefrom into any fuel tank attached to aircraft unless such person is licensed as a supplier or user-seller by the Commissioner.
3. A person not licensed as a supplier who owns, leases or otherwise maintains a storage facility for aircraft (jet) fuel within airport property who hires outside personnel, or contracts out for fueling labor and/or equipment, is a user-seller of aircraft (jet) fuel and must be licensed as such.
4. A person who dispenses aircraft (jet) fuel into the fuel tanks of or attached to aircraft who does not own, lease or otherwise maintain an aircraft (jet) fuel storage facility but who merely acts on behalf of a user-seller is not required to be licensed as a user-seller of aircraft (jet) fuel.
5. Any person licensed as a user-seller who seeks licensing as a supplier may request such change in status by filing a new license application form with the Commissioner. (Form JFT-1). The granting of the change in status and new license is in the Commissioner's discretion.
Example 1: ACME Oil Company owns a 500,000 gallon fuel tank located in Chelsea, Massachusetts. ACME customarily sells aircraft (jet) fuel to Fly Wright, a major air carrier doing business at Logan Airport. ACME delivers the fuel by tank truck to Fly Wright's storage facilities at Logan. Fly Wright owns storage facilities consisting of four 50,000 gallon buried steel tanks. Fly Wright delivers fuel into its own planes through the use of hydrant carts; and pursuant to a contract with DBA, an international air carrier, delivers fuel into refueler trucks owned by Jackson, a Fixed Base Operator, who in turn dispenses fuel into the aircraft of DBA.
In the above fact situation the companies mentioned are characterized as follows:
ACME is a supplier and must be licensed and bonded as such because it primarily sells and delivers aircraft (jet) fuel to a user-seller, maintains bulk storage tank facilities located outside airport property, and does not own or operate a fleet of its own aircraft.
Fly Wright is a user-seller and must be so licensed because it maintains storage facilities within airport property, takes title to and possession of fuel it purchases, and dispenses aircraft (jet) fuel into its own or other aircraft.
DBA is a user and is not required to be licensed or to file returns. Jackson is merely performing a service for DBA and is not required to be licensed as either a supplier or user-seller of aircraft (jet) fuel. However, if Jackson otherwise maintains fuel storage facilities at Logan in connection with its business as a Fixed Base Operator, it generally will be required to be licensed as a user-seller and to pay aircraft (jet) fuel tax at the time it purchases fuel.
(d) License Not Required. Any person who maintains storage facilities for aircraft (jet) fuel and dispenses aircraft (jet) fuel therefrom into any fuel tank attached to an aircraft, or any person who sells or delivers aircraft (jet) fuel within Massachusetts to any person who dispenses aircraft (jet) fuel into fuel tanks of, or attached to, aircraft, exclusively in cities or towns that have not accepted the provisions of M.G.L. c. 64J is not required to obtain a license as a user-seller or supplier. Such person must obtain a user-seller or supplier license if one or more cities or towns in which such person engages in the above mentioned activities, subsequently accepts the provisions of M.G.L. c. 64J.
(e) License Denial.
1. Every person applying to the Commissioner for a license as a supplier or user-seller of aircraft (jet) fuel must certify upon such application, under penalties of perjury, that he, to the best of his knowledge and belief, has filed all state tax returns and paid all state taxes required under law. No license will be issued unless such certification is made. See M.G.L. c. 62C, § 49A.
2. Pursuant to M.G.L. c. 62C, § 47A and 830 CMR 64J.4.1 the Commissioner will not issue or renew an aircraft (jet) fuel supplier or user-seller license if the Commissioner determines that the applicant has neglected or refused to file any returns or pay any state tax due.
3. The Commissioner may deny an application for a license or renewal of a license if the applicant does not supply all information requested on the application form and any information that the Commissioner may determine is necessary to decide on an applicant's application.
(f) Date of Licensing. Any person acting as a supplier or user-seller of aircraft (jet) fuel, as defined by 830 CMR 64J.4.1, and M.G.L. c. 64J, is required to be licensed by the Commissioner no later than the date on which the provisions of M.G.L. c. 64J become effective in any city or town where such person acts as a supplier or user-seller of aircraft (jet) fuel.
(g) Expiration of License. All aircraft (jet) fuel supplier and user-seller licenses expire each year on the thirty-first day of December. See M.G.L. c. 62C, § 67. All licensees seeking license renewal must file an application for license renewal with the Commissioner sufficiently in advance of the license expiration date so that the application may be processed and license sent to the applicant prior to January first of the next year.
(h) License Fee. The fee for licenses and each renewal thereof will be determined annually by the Secretary of Administration under M.G.L. c. 7, § 3B. The Secretary of Administration has not determined a license fee for 1985 licenses; therefore, no fee is required for aircraft (jet) fuel supplier or user-seller 1985 licenses.
(i) Penalties for Failure to Obtain License. Any person not licensed who is required to be licensed under M.G.L. c. 64J may be restrained from acting as a supplier or user-seller of aircraft (jet) fuel in Massachusetts. See M.G.L. c. 64J, § 2. Violators of M.G.L. c. 64J shall be subject to a fine of not more than one thousand dollars or by imprisonment for one year, or both. See M.G.L. c. 64J, § 7. These penalties are in addition to any other penalties established by law.
(j) Assignability of License. Aircraft (jet) fuel supplier and user-seller licenses are not assignable. See M.G.L. c. 62C, § 67.
(k) Discontinuance, Sale or Transfer. When a business for which a supplier or user-seller license was granted is discontinued, sold or transferred, the licensee must give written notice to the Commissioner of discontinuance, sale or transfer. Taxes become due and payable concurrently with such discontinuance, sale or transfer. If notice is not given, the purchaser or transferee in addition to the licensee will be liable for taxes due. For specific rules relative to discontinuance, sale or transfer see Discontinuance, Sale or Transfer, 830 CMR 64J.4.1(9).