(a) Gasoline Except as provided in subsection (g), if gasoline is used on a farm for farming purposes, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline the amount determined by multiplying
(1) the number of gallons so used, by
(2) the rate of tax on gasoline under section
4081 which applied on the date he purchased such gasoline.
(c) Meaning of terms For purposes of this section
(1) Use on a farm for farming purposes Gasoline shall be treated as used on a farm for farming purposes only if used
(A) in carrying on a trade or business,
(B) on a farm situated in the United States, and
(C) for farming purposes.
(2) Farm
The term farm includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards.
(3) Farming purposes Gasoline shall be treated as used for farming purposes only if used
(A) by the owner, tenant, or operator of a farm, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur-bearing animals and wildlife, on a farm of which he is the owner, tenant, or operator;
(B) by the owner, tenant, or operator of a farm, in handling, drying, packing, grading, or storing any agricultural or horticultural commodity in its unmanufactured state; but only if such owner, tenant or operator produced more than one-half of the commodity which he so treated during the period with respect to which claim is filed;
(C) by the owner, tenant, or operator of a farm, in connection with
(i) the planting, cultivating, caring for, or cutting of trees, or
(ii) the preparation (other than milling) of trees for market,
incidental to farming operations; or
(D) by the owner, tenant, or operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment.
(4) Certain farming use other than by owner, etc. In applying paragraph (3)(A) to a use on a farm for any purpose described in paragraph (3)(A) by any person other than the owner, tenant, or operator of such farm
(A) the owner, tenant, or operator of such farm shall be treated as the user and ultimate purchaser of the gasoline, except that
(B) if the person so using the gasoline is an aerial or other applicator of fertilizers or other substances and is the ultimate purchaser of the gasoline, then subparagraph (A) of this paragraph shall not apply and the aerial or other applicator shall be treated as having used such gasoline on a farm for farming purposes.
In the case of an aerial applicator, gasoline shall be treated as used on a farm for farming purposes if the gasoline is used for the direct flight between the airfield and one or more farms.
(5) Gasoline The term gasoline has the meaning given to such term by section
4083 (a).
(d) Exempt sales; other payments or refunds available No amount shall be payable under this section with respect to any gasoline which the Secretary determines was exempt from the tax imposed by section
4081. The amount which (but for this sentence) would be payable under this section with respect to any gasoline shall be reduced by any other amount which the Secretary determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such gasoline.
(e) Applicable laws
(1) In general All provisions of law, including penalties, applicable in respect of the tax imposed by section
4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.
(2) Examination of books and witnesses For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section
7602 (a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax.
(3) Fractional parts of a dollar Section
7504 (granting the Secretary discretion with respect to fractional parts of a dollar) shall not apply.
(i) Cross references
(1) For exemption from tax in case of special fuels used on a farm for farming purposes, see section
4041 (f).
(2) For civil penalty for excessive claim under this section, see section
6675.
(3) For fraud penalties, etc., see chapter 75 (section
7201 and following, relating to crimes, other offenses, and forfeitures).
(4) For treatment of an Indian tribal government as a State and
a subdivision of an Indian tribal government as a political subdivision of a State), see section
7871.
