§237-27.1 Exemption of sale of alcohol fuels. (a) There shall be exempted from and excluded from the measure of the taxes imposed by this chapter all of the gross proceeds arising from the sale of alcohol fuels for consumption or use by the purchaser and not for resale.

(b) As used in this section, "alcohol fuels" means neat biomass-derived alcohol liquid fuel or a petroleum-derived fuel and alcohol liquid fuel mixture consisting of at least ten volume per cent denatured biomass-derived alcohol commercially usable as a fuel to power aircraft, seacraft, spacecraft, automobiles, or other motorized vehicles.

(c) The director of taxation shall annually submit a written report to the governor and legislature prior to the regular session of the legislature indicating a comparison of the number of gallons and average price per gallon of alcohol fuels and gasoline sold in the State.

(d) The director of taxation shall adopt rules pursuant to chapter 91 necessary to administer this section. [L 1980, c 274, §2; am L 1981, c 179, §2; am L 1984, c 29, §2; am L 1985, c 232, §1; am L 1988, c 43, §1]