Which fuel sales counted as aviation gasoline whose South Carolina sales and use tax was credited to the State Aviation Fund?

Plain-English summary

South Carolina Revenue Ruling 05-3 defined the aviation-fuel sales whose sales and use tax receipts were credited to the State Aviation Fund for sales on or after January 13, 2005.

The qualifying category included aviation gasoline meeting ASTM D 910 and civil aviation turbine fuels meeting ASTM D 1655. The ruling identified avgas grades 80, 100, and 100LL and civil turbine fuels Jet A, Jet A-1, and Jet B.

Meeting a fuel specification was not enough. The fuel also had to be sold for use in an airplane. Automotive gasoline burned in an airplane did not qualify for the fund credit because it was not manufactured exclusively for airplane use.

The ruling modified RR 97-12 because the 2005 statutory definition expanded aviation gasoline to include qualifying aviation jet fuel while retaining the airplane-use requirement.

What this means for you

Aviation fuel sellers

Fuel classification and the documented intended use both mattered when determining whether the associated tax receipts belonged in the State Aviation Fund.

Aircraft operators

Using ordinary automotive gasoline in an airplane did not turn it into qualifying aviation gasoline under this ruling.

Common questions

Q: Did qualifying jet fuel count?
A: Yes. The amended definition included aviation turbine fuels meeting ASTM D 1655 and sold for airplane use.

Q: Did any gasoline used in an airplane qualify?
A: No. Automotive gasoline was excluded because it was not manufactured exclusively for airplanes.

Q: Did the ruling exempt aviation fuel from tax?
A: No. It addressed where the sales and use tax receipts were credited.

Citations and references

• S.C. Code Ann. §§ 55-5-20(12) and 55-5-280 — aviation gasoline definition and State Aviation Fund
• House Bill 4537 of 2004 — amendments effective January 13, 2005
• ASTM D 910 and ASTM D 1655 — fuel specifications used by the ruling

Source

• Landing page: SC Advisory Opinion Search
• Original PDF: RR05-3.pdf

Original ruling text

State of South Carolina

Department of Revenue
301 Gervais Street, P. O. Box 125, Columbia, South Carolina 29214
Website Address: http://www.sctax.org

SC REVENUE RULING # 05-3

SUBJECT:

Aviation Gasoline
(Sales and Use)

EFFECTIVE DATE:

Applies to all periods open under the statute.

SUPERSEDES:

All previous documents and any oral directives in conflict
herewith.

MODIFIES:

SC Revenue Ruling #97-12

REFERENCES:

S. C. Code Ann. Section 55-5-280 (House Bill 4537 of 2004)
S. C. Code Ann. Section 55-5-20(12) (House Bill 4537 of 2004)

AUTHORITY:

S. C. Code Ann. Section 12-4-320 (2000)
S. C. Code Ann. Section 1-23-10(4) (Supp. 2003)
SC Revenue Procedure #03-1

SCOPE:

The purpose of a Revenue Ruling is to provide guidance to the
public and to Department personnel. It is a written statement
issued to apply principles of tax law to a specific set of facts or a
general category of taxpayers. A Revenue Ruling does not have
the force or effect of law, and is not binding on the public. It is,
however, the Department’s position and is binding on agency
personnel until superseded or modified by a change in statute,
regulation, court decision, or advisory opinion.

Question:
What is “aviation gasoline” for purposes of crediting the “tax on aviation gasoline” to the State
Aviation Fund under Code Section 55-5-280?
Conclusion:
It is the opinion of the Department that, for sales made on or after January 13, 2005, “aviation
gasoline” for purposes of crediting the “tax on aviation gasoline” to the State Aviation Fund
under Code Section 55-5-280 is:

(1) gasoline meeting the definition and specifications contained in the “Standard
Specification for Aviation Gasoline” (D 910) in the “Annual Book of ASTM Standards,
Section 5, Volume 05.01” published by the American Society for Testing and Materials
(“ASTM”); and,
(2) aviation turbine fuels meeting the definition and specifications contained in the
“Standard Specification for Aviation Turbine Fuels” (D 1655) in the “Annual Book of
ASTM Standards, Section 5, Volume 05.01” published by the American Society for
Testing and Materials (“ASTM”).
However, in order for the sales and use tax on aviation gasoline, as defined above, to be credited
the State Aviation Fund under Code Section 55-5-280 such aviation gasoline must have been
sold for use in an airplane.
Note: Since automotive gasoline is not “manufactured exclusively for use in airplanes,”
automotive gasoline used in an airplane is not to be credited the State Aviation Fund under Code
Section 55-5-280.
Law and Discussion:
Effective January 13, 2005, several provisions of “The Uniform State Aeronautical Regulatory
Act” (Chapter 5 of Title 55) were amended when House Bill 4537 of 2004 became law without
the Governor’s signature.
Code Section 55-5-280 now reads:
All moneys received from licensing of airports, landing fields or air schools,
funds appropriated for aviation grants, the tax on aviation gasoline and fees for
other licenses issued under this chapter shall be paid into the State Treasury and
credited to the fund known as the ‘State aviation fund.’ (Emphasis added.)
Code Section 55-5-20(12) now reads:
Notwithstanding any other provisions of law, ‘aviation gasoline’ means gasoline
and aviation jet fuel manufactured exclusively for use in airplanes and sold for
such purposes.
In SC Revenue Ruling #97-12, it was determined that the “tax on aviations gasoline” is the sales
or use tax and that automotive gasoline used in airplanes is not to be credited to the “State
Aviation Fund” since it is not manufactured exclusively for use in airplanes. The above
amendments do not change these conclusions.
However, House Bill 4537 of 2004 did change the definition of “aviation gasoline.” Prior to
January 13, 2004, Code Section 55-5-20(12) defined “aviation gasoline as “gasoline
manufactured exclusively for use in airplanes and sold for such purposes” and therefore did not
include aviation jet fuel.

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Effective January 13, 2005, Code Section 55-5-20(12) now defines “aviation gasoline” to also
include “aviation jet fuel manufactured exclusively for use in airplanes and sold for such
purposes” as well as “gasoline … manufactured exclusively for use in airplanes and sold for such
purposes”
The “Annual Book of ASTM Standards, Section 5, Volume 05.01” published by the American
Society for Testing and Materials (“ASTM”) provides the “Standard Specification for Aviation
Gasoline” (D 910) and the “Standard Specification for Aviation Turbine Fuels” (D 1655).
Under these provisions (D 910), “aviation gasoline,” also known as “Avgas,” is defined as
“gasoline possessing specific properties for fueling aircraft powered by reciprocating spark
ignition engines.” It further states that the three grades of aviation gasoline are known as “Grade
80,” “Grade 100,” and “Grade 100LL.”
Under the provisions concerning jet fuel (D1655), it notes that there are three types of aviation
turbine fuels for civil use – “Jet A,” “Jet A-1,” and “Jet B.” With respect to these fuels, it states
that “Jet A” and “Jet A-1” are a “[r]elatively high flash point distillate of the kerosene type” and
that “Jet B” is a “relatively wide boiling range volatile distillate.” (Note: Since sales to the
federal government are exempt from the sales and use tax, this advisory opinion does not need to
discuss the various types of jet fuel manufactured for military purposes.)
Based on the above, it is the opinion of the Department that “aviation gasoline” for purposes of
crediting the “tax on aviation gasoline” to the State Aviation Fund under Code Section 55-5-280
is:
(1) gasoline meeting the definition and specifications contained in the “Standard
Specification for Aviation Gasoline” (D 910) in the “Annual Book of ASTM Standards,
Section 5, Volume 05.01” published by the American Society for Testing and Materials
(“ASTM”); and,
(2) aviation turbine fuels meeting the definition and specifications contained in the
“Standard Specification for Aviation Turbine Fuels” (D 1655) in the “Annual Book of
ASTM Standards, Section 5, Volume 05.01” published by the American Society for
Testing and Materials (“ASTM”).
However, in order for the sales and use tax on aviation gasoline, as defined above, to be credited
the State Aviation Fund under Code Section 55-5-280 such aviation gasoline must have been
sold for use in an airplane.
SOUTH CAROLINA DEPARTMENT OF REVENUE

s/Burnet R. Maybank III
Burnet R. Maybank III, Director
March 10
, 2005
Columbia, South Carolina
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