.13 Inventory.

A. Dealers, special fuel sellers, special fuel users, and turbine fuel sellers shall have at their bulk plants, marine terminals, and tank farms, calibration charts for each tank containing motor fuel. These charts shall show the tank number, capacity, dimensions, and gallons corresponding to measurements in feet, inches, and fractions that indicate the amount of fuel in the tank or tanks.

B. Dealers, special fuel sellers, special fuel users, and turbine fuel sellers shall have gauge sticks, tapes, or electronic measurement devices. The devices shall correspond to the calibration charts for each tank and shall be capable of determining the gallonage contained in each tank.

C. Inventory Records.

(1) Dealers, special fuel sellers, special fuel users, and turbine fuel sellers shall keep a monthly physical inventory record which shall show the quantity of each product on hand at the close of each month's business which shall be the result of actual measurements taken physically on that date.

(2) At locations where multiple ownership of inventories are maintained, segregated or commingled, whether called throughput, terminal, or other identification, a reconciliation of ownership of each product shall be presented to each owner by the entity having control of the inventory. The physical inventory reconciliation schedule shall be reflective of the same date and time for all parties.

(3) Tax liability accrues on special fuel upon delivery to a retail service station unless that retail service station recipient is the holder of a valid exemption certificate for that specific type of fuel. Inventories of motor fuel that are the property of the supplier, but in the care of a service station dealer, are taxable upon delivery as are deliveries to supplier operated retail service stations. Kerosene, dyed fuel, and propane at supplier operated service stations are excluded, provided they are not sold for taxable use.

D. Dealers, special fuel sellers, special fuel users, and turbine fuel sellers having inventories in their custody for another party, shall report all receipts and disbursements from that inventory as sales to and receipts from participants maintaining multiple ownership of the commingled inventory. The custodian shall report, as his inventory, all products in his care and control.

E. Dealers, special fuel sellers, special fuel users, and turbine fuel sellers, who are participants in commingled inventories, shall obtain authorization from the Comptroller before beginning this activity. The request for permission shall be in writing, indicate the names and addresses of all participants involved, and the terms and duration of the arrangements. Authorization is not required when the commingled inventory results from a sale to a purchaser, the terms of which include the total withdrawal from sellers inventory within 60 days of the date of sale. All other requirements of this chapter are applicable to fuels involved in this type of transaction.

F. Inventories stored at locations operated by persons other than a licensed dealer, special fuel seller, special fuel user, or turbine fuel seller shall be reported by each individual licensee that owns the fuel.