Motor Fuels Tax Minute – Episode 45: Flash Titles

April 30, 2024

In this week’s episode of Motor Fuels Tax Minute, our hosts give an overview of flash titles.


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Detailed Description of Weaver’s Motor Fuels Tax Minute, Episode 45

Leanne: Welcome to this week’s Motor Fuels Tax Minute, the vlog where we talk all things motor fuel. This week, Kelly’s going to talk about flash title, and given her flashy sunglasses, we can’t wait to hear what she has to say.

Kelly: Well, flash title. It’s not going to be like a blinding flash of light that you need these sunglasses for. Oh no, flash title is when, let’s say Company A sells gasoline to Company B at a fuel terminal. Before the fuel is physically moved to Company B, Company B then sells the product to Company C, so Company B never takes physical ownership of the product. Now where this gets complicated is: How do you report it to a state? What taxes are collected? Who’s responsible for remitting those taxes?

Probably no surprise to anyone, all the states are a little bit different. Distributor states tend not to really hound too much on this. It becomes a bigger issue with our rock states. So just a little bit of an example, the position holder in North Carolina would be responsible for reporting and paying the applicable North Carolina taxes on the flash title sale to the first purchaser. Another thing to keep in mind is that this doesn’t usually show up with bill of lading because there’s no physical transfer, so keeping track of these, especially as they occur throughout the pipeline, can be extremely difficult. So, just something to keep in mind when you’re doing your reporting. Like I said, every state does a little bit differently, and Weaver can help guide you through that.

Emilda: That’s really good information, Kelly. Because these flash title transactions happen all the time. And, you know, like you said, it’s only the purchaser, the consignee that’s listed on that bill of lading, so the ownership does fall within that taxation from the position holder that’s selling to that consignee. So very good information. I think this is great information. Our listeners are going to be really excited to hear about it because it happens and it’s not a foreign term, right?

This wraps up our Motor Fuel Minute for the week. Thank you for joining us.

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