03.03.01.08

.08 Gains—Losses.

A. Stock gains and losses shall be reported on forms and in accordance with instructions provided by the Comptroller.

B. Losses or gains shall be established upon products metered or physically inventoried as received in the State. Losses which occur in inventory after the receipt shall be supported by gauger's reports or other acceptable documentation.

C. Transportation gains or losses incurred enroute for delivery into the State shall be recorded for audit purposes.

D. Losses of motor fuel resulting from theft, faulty equipment, or any other cause except temperature correction shall be reported to the Comptroller upon discovery or by the first business day thereafter.

E. Allowable losses incurred in the storage of motor fuel shall be prorated on the percentage of tax exempt sales to total sales. Direct shipments from supplier to customer are not allowed in the proration calculation. Direct shipments shall be deducted from total sales and from either taxable or nontaxable sales, as applicable.