Sec. 14. 36 MRSA §2909, as amended by PL 1965, c. 479, §1, is repealed and the following enacted in its place:

§2909. Refund of entire tax paid by certain common carriers

A person engaged in furnishing common carrier passenger service under an operating authority license issued pursuant to Title 29-A, section 552 is entitled to reimbursement of the tax paid on internal combustion engine fuel used by that person in locally encouraged vehicles.__For purposes of calculating reimbursement due pursuant to this section, internal combustion engine fuel used in a person's locally encouraged vehicles is presumed to bear the same proportional relationship to internal combustion engine fuel used in all of the person's passenger vehicles that the person's commutation__fare revenue derived from service provided by locally encouraged vehicles bears to the person's total passenger fare revenue.__"Commutation fare revenue" means revenue attributable to fares of 60__or less and fares paid for commutation or season tickets for single trips of less than 30 miles or for commutation tickets for one month or less. "Total passenger fare revenue" means all revenue attributable to the claimant's passenger operations.__"Locally encouraged vehicles" means buses upon which no excise tax is collected under section 1483, subsection 13.

Applications for refunds must be filed with the State Tax Assessor, on a form prescribed by the assessor and accompanied by the original invoices showing those purchases, within 9 months from the date of purchase.__A refund may not be issued under this section unless the claimant's commutation fare revenue derived during the calendar quarter for which the refund is claimed is at least 60% of the claimant's total passenger fare revenue derived during that calendar quarter.

Sec. 15. 36 MRSA §3203-C, as enacted by PL 2001, c. 688, §7, is amended to read:

§3203-C. Inventory tax

On the date that any increase in the rate of tax imposed under this chapter takes effect, an inventory tax is imposed upon all distillates that are held in inventory by a distributor supplier or retail dealer as of the end of the day prior to that date on which the tax imposed by section 3203, subsection 1 has been paid. The inventory tax is computed by multiplying the number of gallons of tax-paid fuel held in inventory by the difference between the tax rate already paid and the new tax