A licensed dealer or licensed special fuel seller shall deduct 0.5% of the 1st 10 cents of the motor fuel tax on each gallon of motor fuel, as a discount: instead of an allowance for evaporation, shrinkage, and handling; and to reimburse the licensed dealer or licensed special fuel seller for expenses incurred for the State in: keeping records; collecting and paying the tax; and preparing reports. This subsection does not apply to: any aviation gasoline; or any other motor fuel on which the motor fuel tax has not been paid. From the discount under subsection (a) of this section: a licensed dealer who sells gasoline to a retail service station dealer shall deduct on the bill 1/2 of the discount; a licensed dealer who sells gasoline to a licensed distributor or licensed special fuel seller shall deduct on the bill 2/3 of the discount; a licensed distributor who sells motor fuel to a retail service station dealer shall deduct on the bill 1/3 of the discount; a licensed special fuel seller who sells special fuel to a retail service station dealer shall deduct on the bill 1/2 of the discount; a licensed special fuel seller who sells special fuel to a licensed distributor shall deduct on the bill 2/3 of the discount; and a licensed special fuel seller who sells gasoline to a licensed distributor shall deduct on the bill 1/3 of the discount.