The Hawaii M 38 form serves as an Exemption Certificate for diesel oil and liquefied petroleum gas used off public highways. This document is essential for individuals and businesses that utilize these fuels in motor vehicles outside of public highway areas. Proper completion and submission of the form can prevent unnecessary tax liabilities and ensure compliance with state regulations.
The Hawaii M 38 form is an essential document for individuals and businesses that purchase diesel oil and liquefied petroleum gas for use off public highways. This form serves as an exemption certificate, allowing users to avoid certain taxes associated with these fuels when they are utilized in areas not designated as public highways. To obtain this exemption, users must fill out the form accurately and provide it in triplicate to the distributor, the tax office, and keep a copy for their records. Key details include the name of the purchaser, the type of fuel, and the affirmation that the fuel will not be used on public highways. The form outlines specific instructions for when it should be furnished, emphasizing the importance of notifying the distributor whenever there is a change in fuel use. Failure to provide the M 38 form can result in tax liabilities as if the fuel were used on public highways. Additionally, the form includes provisions for refunds of taxes if the fuel is ultimately used off the public highways, despite an initial intention to use it on them. Separate certificates are required for different types of fuel, and additional documentation may be necessary to clarify intended use. Understanding the M 38 form is crucial for compliance with Hawaii's fuel tax regulations and for ensuring that users are not subjected to unnecessary tax burdens.
Filling out the Hawaii M-38 form can be a straightforward process, but there are common mistakes that individuals and businesses often make. Recognizing these errors can help ensure that the form is completed correctly, avoiding potential issues down the line.
One frequent mistake is failing to include the correct Hawaii GE/Use ID number. This number is essential for identification purposes. Without it, the form may be considered incomplete, leading to delays in processing.
Another common error involves the business name. It is crucial to ensure that the name under which the business operates is accurately reflected on the form. Misnaming the business can cause confusion and complications when the form is reviewed.
Many people overlook the importance of providing a complete business address. The address must include the number and street name, as well as the city and town. Incomplete addresses can lead to miscommunication and difficulties in reaching the business.
Some individuals mistakenly believe that an Exemption Certificate is not necessary if they use liquefied petroleum gas for heating purposes. However, it is vital to understand that the certificate is required only when the fuel is used in an internal combustion engine or motor vehicle. Ignoring this requirement can result in unexpected tax liabilities.
Additionally, failing to furnish the certificate to the distributor annually or when there is a change in fuel use is a common oversight. It is essential to notify the distributor in writing if there is a change from highway use to off-highway use, or vice versa. This notification helps maintain compliance and avoids penalties.
Another mistake involves not filing a copy of the Exemption Certificate with the Tax Collector in the appropriate taxation district. This step is necessary to ensure that all records are accurate and up-to-date, preventing any issues with tax assessments.
Purchasers often forget that if they buy both diesel oil and liquefied petroleum gas, separate Exemption Certificates must be provided for each type of fuel. This requirement ensures that each fuel type is tracked correctly for tax purposes.
Lastly, individuals sometimes neglect to keep accurate records of how fuel is used. If fuel intended for off-highway use is later used on public highways, the purchaser may be liable for additional taxes. Maintaining detailed records can help avoid unexpected tax obligations and simplify the filing process.
By being aware of these common mistakes, individuals and businesses can complete the Hawaii M-38 form accurately and efficiently, ensuring compliance with state regulations.
FORM M-38
STATE OF HAWAII
Year
(REV. 2001)
DEPARTMENT OF TAXATION
20
EXEMPTION CERTIFICATE
FOR DIESEL OIL AND LIQUEFIED PETROLEUM GAS USED OFF PUBLIC HIGHWAYS
(Chapter 243, HRS)
Name of individual, corporation, or partnership
Hawaii GE/Use Id. No. (if any)
PREPARE THIS CERTIFICATE
IN TRIPLICATE AS FOLLOWS:
Name under which business is operated
Please
1.
Original for Distributor
Print
2. Copy for Tax Office
Business address (Number and Street)
or
3. Copy for Taxpayer
Type
For filing requirements, see the
City, Town
Island
instructions below for WHEN TO
FURNISH A CERTIFICATE.
Name of Distributor
This certificate is hereby issued in the foregoing name indicated above for the purchase of
and
(Type of Fuel)
the said person affirms that the use of such fuel purchased is for operating a motor vehicle or motor vehicles in areas other than upon the public highways of the State. It is further understood that the misuse of this certificate will lead to its revocation and/or the penalties provided by law.
I declare under the penalties set forth in section 231-36, HRS, that this is a true and correct certificate, prepared in accordance with the provisions of the Fuel Tax Law, Chapter 243, HRS, and the Hawaii administrative rules issued thereunder.
Signature
Title
Date
INSTRUCTIONS FOR FUEL EXEMPTION CERTIFICATE
(FORM M-38)
1.General Rule. The following persons shall furnish an Exemption Certificate (FORM M-38) to the distributor thereof as provided under sections 243-4(b) and (c), HRS:
a.Every purchaser of diesel oil who uses such fuel in a motor vehicle in areas other than upon the public highways of the State, or
b.Every purchaser of liquefied petroleum gas who uses such fuel in an internal combustion engine or a motor vehicle in areas other than upon the public highways of the State.
2.Exception. An Exemption Certificate shall not be required if liquefied petroleum gas is used for fuel and heating purposes and not used in operating an internal combustion engine.
3.When to Furnish a Certificate. An Exemption Certificate shall be furnished to the distributor annually or whenever a change is anticipated in the use of the fuel. For example, whenever a change is anticipated from highway use to off highway use or from off highway to highway use, the purchaser shall notify the distributor in writing to this effect. The purchaser shall also file a copy of the Exemption Certificate with the Tax Collector in his taxation district.
4.Failure to Furnish Certificate. In the event an Exemption Certificate is not or cannot be furnished to the distributor, the tax shall be imposed upon all sales for operating a motor vehicle and collected as if the fuel is to be used for operating a motor vehicle upon the public highways of the State.
5.Refund of Taxes. A purchaser may obtain refund of all taxes imposed under sections 243-4(b) (1) through (4) and 243-4(c) (2), HRS, by filing a Combined Claim for Refund of Fuel Taxes (FORM M-36) with the Tax Collector in the purchaser’s taxation district in a situation where:
a.The tax was imposed and collected because the purchaser failed to furnish an Exemption Certificate but, in fact, the fuel was ultimately used off the public highways (not including the use for operating an internal combustion engine in the case of liquefied petroleum gas) or,
b.The fuel purchased was initially intended for use upon the public highways but was subsequently used off the public highways.
6.Purchase of More than One Type of Fuel. If both diesel oil and liquefied petroleum gas are purchased for use off the public highways (in motor vehicles or internal combustion engines), separate Exemption Certificates shall be furnished to the distributor covering the use of each fuel.
7.Additional Information to be Submitted by Purchaser. If the fuel is not used off the public highways, the purchaser shall, in addition to furnishing an Exemption Certificate to the distributor, furnish a separate statement at the time of each purchase showing:
a.Breakdown as to the diesel oil to be used upon the public highways and/or off the public highways.
b.Breakdown as to the liquefied petroleum gas to be used upon the public highways and/or off the public highways (operating an internal combustion engine).
8.Liability for Additional Taxes. Every purchaser of diesel oil or liquefied petroleum gas who furnishes an Exemption Certificate to a distributor for the purchase of fuel initially intended for use off the public highways but subsequently uses such fuel upon the public highways shall be liable for any additional taxes arising from the taxable use. In such event, the purchaser shall pay the additional taxes imposed by sections 243-4(b) (1) through (4) and 243-4(c) (2), HRS, by filing a Quarterly Tax Return for Additional Fuel Taxes Due on Fuel Initially Purchased for Use Off the Public Highways but Subsequently Used on the Public Highways (FORM M-22), with the Tax Collector in the purchaser's taxation district.
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