Ruling Request No. 92-02

Re: Request for Declaratory Ruling Relating to Certain Purchases Under Hard-to-Dispose Materials Law

Facts

A company purchases petroleum-based or synthetic lubricating oils which have been recycled and/or re-refined. The Department of Environmental Management has informed the company that a tax is due to the State under Chapter 44-44 when said materials are used for lubricating purposes.

Ruling Requested

Whether or not a tax is due on petroleum-based or synthetic lubricating oil which is recycled and/or re-refined if such oil is used for lubricating purposes.

Discussion

R.I.G.L. 37-15.1-3 and Regulation LIT 90-2 Section I, define "Hard-to-dispose material" as follows:

"Hard-to-dispose material" means and encompasses the following materials: petroleum-based or synthetic lubricating oils, including, but not limited to, lubricants in internal combustion engines; tires used on motorized vehicles and trailers, including cars; trucks, buses, and heavy construction equipment; glycol-based antifreeze and organic solvents. A petroleum-based or synthetic lubricating oil which is recycled and/or re-refined is not, nor shall it be considered, a hard-to-dispose material.(emphasis added)

Both the law and the regulation specifically exclude from the definition of hard-to-dispose materials petroleum-based or synthetic lubricating oil which is recycled and/or re-refined. The law and regulation are clear and unambiguous. There is no further language in the law relating to a subsequent use as a lubricant.

Ruling

Petroleum-based or synthetic lubricating oil which is recycled and/or re-refined is not a hard-to-dispose material subject to tax under Chapter 44-44.

This ruling may be relied upon by this taxpayer and shall be valid until the applicable statutory provisions are amended in a manner requiring a different result or until the underlying factual presentation changes.

R. Gary Clark

Tax Administrator

February 18, 1992