Wednesday, May 30, 2018
OPMCA Connection - Keeping You Informed!
OPMCA Connection keeps you informed and current on regulations from all state and national agencies as well as laws pertaining to the petroleum marketing/c-store industry.
OPMCA Staff
Candace McGinnis
Executive Director 
Candace@opmca4you.com 

Hannah Fite
Director of Member Services 
Hannah@opmca4you.com
OPMCA  
6420 N. Santa Fe, Suite B
Oklahoma City, OK 73116
Phone: (405) 842-6625 
(800) 256-5013 
Fax: (405) 842-9562
2017-2018 Board of Directors
Brian Lohman, Chairman  
 ASAP Energy Inc.

Jerry Davidson
Pete’s Corporation

Jason Flinn
Flowers Oil Company

Mike Gramm  
Speedy's, LLC 

Kurtis Hutchinson
Hutchinson Oil Company

John Netherton
Danielson Fuel Services

Tommy Shreffler
OnCue Marketing, LLC

Rob Toth
Coffeyville Resources
2018 OPMCA Annual Business Meeting
Please join us for the 2018 OPMCA Annual Business Meeting held on Thursday, June 7, 2018 at Cattlemen's Steak House Event Center. The luncheon will take place from 11 AM - 1 PM with legislative and financial updates, as well as a new slate of officers!
Wednesday, May 30, 2018
  • Petroleum Marketers Take Capitol Hill
  • Motor Fuel Tax Rates
  • Tobacco and Cigarette Tax
  • Post Legislative Session Update
  • Federated Insurance
Petroleum Marketers Take Capitol Hill
Over 300 petroleum marketers attended the highly successful PMAA Annual DC Conference and “Day on the Hill.” This year’s event occurred at a vital time in Washington with important industry changes sought by the Trump Administration and the GOP-controlled Congress.
PMAA marketers obtained many new signatures for the letter that is authored by Senator Jerry Moran (R-KS) that urges EPA Administrator Scott Pruitt to delay the 2015 UST final rule compliance deadline for containment sumps, spill buckets and overfill prevention equipment operability testing until October 13, 2024.
Marketers also focused their meetings on ensuring passage of a technical fix to the tax reform Act. The new tax law contains a provision in Section 168 that provides retailers with the benefit of 100 percent bonus depreciation for qualified improvement property acquired and placed into service after September 27, 2017. However, an error occurred when the final text was drafted that makes retailers ineligible for this benefit. A technical fix is planned, but we must ensure that there is enough support, particularly by moderate Democrats, for passage of the correction language. Definite progress was made in this effort during the meetings that marketers had with their Senators.
Other critical and active issues that were brought up in Hill meetings were reducing the corn ethanol mandate, reinstating the biodiesel blender’s tax credit, menu labeling flexibility relief, ADA reform, maintaining funding for the Low-Income Heating Energy Assistance Program (LIHEAP) and thanking past supporters of the National Oilheat Research Alliance (NORA).
PMAA’s opening speaker was David Whikehart, Vice President, Environment, Safety and Corporate Affairs for Marathon Petroleum Company LP, who discussed RFS reform and the 95 RON proposal to meet future high compression engine fuel requirements. On Thursday, we heard from the Senate Environment and Public Works Committee Chairman John Barrasso (R-WY), prior to proceeding to Capitol Hill. Senator Barrasso’s Committee is particularly important for petroleum marketers as it is the lead in making any changes to the RFS.
To end the week, attendees heard from Rep. Walberg (R-MI), who authored the House letter to EPA Administrator Pruitt seeking a delay to the compliance deadline in the 2015 underground storage tank amendments for containment sumps, spill buckets and overfill prevention equipment operability testing until October 13, 2024.

Overall, the DC Conference was a success.

OPMCA Representing in Washington DC
(L to R): Tommy Shreffler, Brian Lohman, Rick Koch, and Jim Griffith.
OPMCA at the PMAA "Day on The Hill"
(L to R): Brian Lohman, Tommy Shreffler, Representative Mullin, Rick Koch, Candace McGinnis, Hannah Fite, and Jim Griffith
Motor Fuel Tax Rates
New motor fuel tax rates will go into effect on July 1, 2018. The new rates are as follows:

  • Gasoline/Gasohol/E85: $0.16 per gallon-Eligible Purchaser rate is $0.15744 per gallon
  • Gasoline/Gasohol/E85: $0.03 per gallon-Eligible Purchaser rate is $0.02952 per gallon
  • Diesel Fuel/Biodiesel Fuel: $0.13 per gallon-Eligible Purchaser rate is $0.12753 per gallon
  • Diesel Fuel/Biodiesel Fuel: $0.06 per gallon-Eligible Purchaser rate is $0.05886 per gallon

Motor Fuel forms, OkTAP, and XML filing systems will be updated to reflect these new rates for the July 2018 filing period, which is due August 27, 2018. 

For assistance regarding these changes contact Motor Fuel Office Audit Section at (405) 522-6121.
Tobacco and Cigarette Tax
Legislative Notification Regarding Little Cigar tax change

Attention Wholesalers:

Effective July 1, 2018 little cigars will be taxed the same as cigarettes. The tax will be paid through the purchase and affixing of a cigarette tax stamp. As you are aware, the tax stamps are sold for packs of 20 and packs of 25.

After the effective date of July 1, 2018, and to allow a smooth transition for tribal rebates, sales to Tribal retail stores must include the roll number affixed to the packs. This is to ensure the correct rebate amount. A new form to record those sales will be sent to each wholesaler making tribal sales and this form will need to be included with the monthly return.

Also effective after July 1, 2018, any stamps returned to little cigar manufacturers for credit must include roll numbers so proper credit is given. Any returns not including this information will not be extended credit.



Legislative Notification Regarding Cigarette Tax increase

Attention Wholesalers:

Effective July 1, 2018 the cigarette tax in Oklahoma will increase an additional $1 per pack of 20 cigarettes and an additional $1.25 per pack of 25 cigarettes.

For the purpose of ensuring maximum wholesaler compliance, the Oklahoma Tax Commission (OTC) will not sell cigarette excise tax stamps to any wholesaler in excess of the monthly average amount of cigarette excise tax stamps sold to the wholesaler during the preceding calendar year 2017. A wholesaler may purchase in excess of the monthly average upon documentation, to the OTC’s satisfaction, of probable sales in excess of the wholesaler’s sales in 2017.

After the effective date of July 1, 2018, and to allow a smooth transition for tribal rebates, sales to Tribal retail stores must include the roll number affixed to the packs. This is to ensure the correct rebate amount. A new form to record those sales will be sent to each wholesaler making tribal sales and this form will need to be included with the monthly return.

Also effective after July 1, 2018, any stamps returned to cigarette manufacturers for credit must include roll numbers so proper credit is given. Any returns not including this information will not be extended credit. 
Post Legislative Session Update
Following the successful early adjournment of the 2018 Oklahoma Legislative Session, we now had one full week to catch our breath and to start looking ahead at next steps and actions. Unfortunately, there is a lot in the pipeline and things are moving quickly. In that regard, we offer the following update:

I. Next Big Issues:
 
A. Efforts to Repeal the Revenue Raising Package that was passed to Fund the Teacher Pay Raise.
 
  • A conservative group led by former U.S. Senator Tom Coburn, R-Muskogee, has undertaken a referendum protesting the Constitutionality of the Revenue Raising measures that were passed in Special Session to provide the funding for the Teacher Pay Raise. Back in the early ‘90’s the passage of SQ 640 amended the State Constitution to provide that a state tax increase could only occur by either a super majority in both the House and Senate and then signed by the Governor -OR- by a statewide vote of the people. SQ 640 also said that any tax increase passed by the Legislature under the SQ 640 guidelines could be challenged by an initiative referendum requiring a statewide vote.

  • The Coburn group has proposed SQ 799 to over-turn the funding contained in Special Session HB 1010xx that increased the state tax on motor fuels, tobacco and the oil and gas gross production tax. They are currently gathering the necessary 40,000 plus signatures to send the repeal of the tax increase to a vote of the people. When they receive the necessary number of signatures, collection of the taxes being challenged will be automatically put on hold and there will be no new revenue until the outcome of the statewide vote — which could occur on August 26th during the Primary Run-Off’s or on November 6th during the General Election. 
 
  • If the Coburn group gets the signatures, the state budget for FY’19 that begins on July 1st has a very large hole in it — to the tune of all $474 million that was passed. We can expect a Special Session would have to be called to deal with the anticipated budget shortfall. 
 
B. Medical Marijuana — proposed SQ 788 is scheduled to be on the Statewide Primary Ballot on June 26th. 
 
  • The State Chamber of Commerce and other business groups are opposed on the basis that SQ 788 is so poorly written that it is closer to approving full-scale Recreational Marijuana than what was expected for Medical Marijuana. If SQ 788 passes, there will need to be another Special Session to deal with writing the statutes that will be needed to implement and regulate the proposal. 
 
C. SQ 796 and SQ 797 — both are proposed Recreational legalization of Marijuana. 
 
  • They are still collecting the signatures needed to put one or both measures on the statewide ballot this year in either the August 26th Run-off Elections or November 6th General Elections. If one or both should pass, there will be a need for another Special Session to deal with writing the statutes that will be needed to implement and regulate the proposal(s), including the creation of the Statewide Cannabis Commission that is to be established. 
 
II. Upcoming Elections:
 
A. State Legislature — A total of 463 candidates filed for the 125 State House and Senate seats up for election in November. After challenges and withdrawals, there will be 442 candidates running for the Legislature.  That represents a 24% increase in the number of candidates on the ballot in 2016 and a massive 67% from the 264 candidates who filed in 2014. 
 
  • Regardless of the election outcomes, we already know that after November there will only be 33 House Members who were in office in 2014 — out of the total of 101 House Members. We know that in the Senate after November there will be at least 24 members who were not in office in 2014 — out of the total of 48 Senate Members.  Bottom-line = Over 3/5’s of the Legislators in the 2019 Session will have less than 4 years of experience — even if every incumbent on the ballot is re-elected. 
 
B. Statewide Office-holder Elections — All Statewide offices from Governor through State Superintendent of Public Instruction to Labor Commissioner is up for election. With 8-year term limits on each office, only State Superintendent Joy Hofmeister is eligible for re-election. Note that State Attorney General Mike Hunter was appointed to fill an unexpired term of Scott Pruitt when he left to join the Trump administration and is running to continue to serve. 
 
Headlining the Statewide Elections will be the campaign for the Office of Governor, where 15 candidates have filed. All statewide offices will see competitive races. 
 
In terms of volume and impacts of these campaigns we identify at least 5 candidates for Governor as having the resources necessary to mount a serious statewide campaign. Overall, we understand that more than 12 statewide campaigns are each prepared to spend more than $250,000 on television advertising for the upcoming June 26th Primary.  It will certainly be interesting to watch!
Federated Insurance
May Educational Articles

HR Question of the Month:

Risk Management Corner:

Its Your Life: