North Dakota Century Code Title 57. Taxation § 57-43.3-26. Inventory gains--Losses

1. A supplier or distributor shall take a physical inventory reading of all aviation fuel located in a terminal, underground tank, aboveground tank, railcar, storage tank of a truck, and the storage tank of a bulk delivery truck on a monthly basis and shall report the physical readings, inventory gains, and inventory losses to the commissioner. The inventory reconciliation must include aviation fuel at retail locations and aviation fuel stored in a barrel, drum, or other receptacle. The supplier or distributor with retail locations is exempt from the provisions of subsection 2.

2. When sold or used by a supplier or distributor, a gain in aviation fuel inventories is subject to the tax imposed by this chapter in the same manner as aviation fuel purchased, imported, or otherwise acquired.

3. A supplier or distributor is not responsible for the tax imposed by section 57-43.3-02 on any actual loss due to shrinkage or evaporation.

4. The commissioner may allow a tax credit to a supplier or distributor for actual inventory losses due to casualty loss, subject to the discretion of the commissioner and based on proof of the loss as required by the commissioner.