§ 47.7. Motor vehicles; separate statement of gasoline charge.

 (a)  A person engaged in the business of renting motor vehicles, who furnishes gasoline together with the vehicle rented, shall collect tax from his customer upon the entire rental charge, including the cost of gasoline, unless the charge for gasoline is stated separately from the vehicle rental charge.

 (b)  Where, due to the nature of his business, a person renting vehicles cannot make an exact determination of the amount of a rental charge which is allocable to gasoline, the person may, in accordance with this section, obtain authorization to compute the tax upon the rental charge after deducting 16 2/3% thereof, as an approximation of the value of the gasoline furnished.

 (c)  The procedures set forth in this section may be used only by persons who, upon application, have been authorized by the Department to use the gasoline allowance, and upon the following conditions:

   (1)  The applicant, in addition to the returns otherwise required by law, will file an annual return setting forth the total quantity and value of gasoline furnished in conjunction with his taxable rentals of motor vehicles.

   (2)  Where the value of gasoline so furnished is less than 16 2/3% of the applicant’s total gross receipts from taxable rentals, including gasoline, the applicant upon filing his annual return will pay tax upon the difference.

   (3)  The applicant will maintain his books and records in such manner as to enable the Department, by inspection, to determine the accuracy of the information furnished, and the correctness of the tax remitted.

 (d)  Upon approval of the application, the following procedure may be used:

   (1)  Where the lessor charges a lump sum rental charge which includes gasoline, he will deduct from his lump sum rental charge an amount equal to 16 2/3% thereof, this amount representing the approximate value of the gasoline.

   (2)  Where the lump sum rental charge includes wages paid to an operator of the vehicle as well as gasoline, the amount representing wages shall be deducted from the lump sum for the purpose of determining the 16 2/3% fuel allowance. Note, however, that the wages of an operator, when not separately stated, are included as a part of the gross rental charge from which the 16 2/3% fuel allowance is deducted.

   Example. A dealer furnished a motor vehicle, with driver and fuel, for a total rental of $15 per day. The driver’s salary, paid by the dealer, is $5 per day, but this amount is not separately stated on the customer’s invoice. In determining the amount of fuel allowance, the driver’s wage is first deducted from the total ($15 minus $5), and the 16 2/3% deduction is applied to the balance (16 2/3% x $10 = $1.66). This amount is then deducted from the total rental charge, including the driver’s wage ($15 minus $1.66 = $13.34). The tax is computed upon the $13.34 balance.

   (3)  Upon all billings to customers in which the procedure set forth herein is used, the words ‘‘PENNSYLVANIA SALES TAX COMPUTED AFTER DEDUCTION FOR FUEL ALLOWANCE’’ shall be written.