Effective March 1, 2005, certain fuel purchases using Wright Express fuel cards will no longer
be exempt from federal excise tax. Due to changes made to federal law in the American Jobs Creation
Act, beginning March 1, 2005, entities eligible to request refunds of federal excise taxes paid
on certain fuel purchases are limited to either the Ultimate Vendor or the Ultimate Purchaser
as defined in Sections 6421 and 6427 of the IRS regulations. Wright Express does not qualify
as either the Ultimate Vendor or the Ultimate Purchaser and must rely on the participating merchants
some of which will continue to offer tax exemption on State purchases and some will not. A list
of the participating merchants is provided by Wright Express on their website - www.wexnews.com/tax.asp.
This list identifies which participating merchants will continue to offer tax exemption and those
that will not.
The Wright Express Vehicle Analysis Reports received beginning with March fuel purchases will show exempt and non-exempt purchases. Agencies will make payments to Wright Express as usual. Agency payments to Wright Express will appear on the quarterly Federal Excise Tax Report - DAIRSTAX - along with other purchases made during the quarter. This report is distributed by the Division of Accounts and Reports following the end of each calendar quarter. It will be the responsibility of each agency to identify federal excise tax paid to Wright Express or to any other vendor for which a refund is due the agency. Division of Accounts and Reports will aggregate all agency requests for refund and file one refund request of excise taxes paid for all state agencies. As with the current process, upon receipt of the refund from the IRS, a distribution will be made via SOKI journal voucher back to agency funds. More information about Federal Excise Tax is available at www.da.ks.gov/fm/cmp/information/vehicle.htm under the topic Federal Excise Tax. DB:aw
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