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Business Taxes Law Guide—Revision 2024
Diesel Fuel Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 31. Diesel Fuel Tax Law
Chapter 3. Exemptions.
Section 60100
60100. Exemptions. (a) The provisions of this part requiring the payment of taxes do not apply to any of the following:
(1) The removal from a terminal or refinery of, or the entry or sale of, any diesel fuel if all of the following apply:
(A) The person otherwise liable for tax is a diesel fuel registrant.
(B) In the case of a removal from a terminal, the terminal is an approved terminal.
(C) The diesel fuel satisfies the dyeing and marking requirements of Section 60101.
(2) Any entry or removal from a terminal or refinery of taxable diesel fuel transferred in bulk to a refinery or terminal if the persons involved (including the terminal operator) are registered.
(3) The removal of diesel fuel if all of the following apply:
(A) The diesel fuel is removed by railroad car from an approved refinery and is received at an approved terminal.
(B) The refinery and the terminal are operated by the same diesel fuel registrant.
(C) The refinery is not served by pipeline (other than a pipeline for the receipt of crude oil) or vessel.
(4) Diesel fuel which, pursuant to the contract of sale, is required to be shipped and is shipped to a point outside of this state by a supplier by means of any of the following:
(A) Facilities operated by the supplier.
(B) Delivery by the supplier to a carrier, customs broker, or forwarding agent, whether hired by the purchaser or not, for shipment to the out-of-state point.
(C) Delivery by the supplier to any vessel clearing from a port of this state for a port outside of this state and actually exported from this state in the vessel.
(5) Backup tax does not apply to delivery of diesel fuel into the fuel tank of a diesel-powered highway vehicle as provided in Section 60058 for any of the following:
(A) Use on a farm for farming purposes.
(B) Use in an exempt bus operation.
(C) Use in a diesel-powered highway vehicle that is operated off the highway.
(D) Use in a diesel-powered highway vehicle that is owned and operated by a government entity.
(E) Use by the United States and its agencies and instrumentalities.
(6) Diesel fuel sold by credit card certified by the United States Department of State to any consulate officer or consulate employee of a foreign government who is not engaged in any private occupation for gain within this state, who uses the diesel fuel in a motor vehicle which is registered with the United States Department of State, and whose government has done either of the following:
(A) Entered into a treaty with the United States providing for the exemption of its representatives from national, state, and municipal taxes.
(B) Granted a similar exemption to representatives of the United States.
(7) Diesel fuel sold by a supplier to a train operator for use in a diesel-powered train or for other off-highway use and the supplier has on hand an exemption certificate from the train operator.
(8) Diesel fuel sold by a supplier to the United States and its agencies and instrumentalities.
(b) For purposes of this section:
(1) "Carrier" means a person or firm engaged in the business of transporting for compensation property owned by other persons, and includes both common and contract carriers.
(2) "Forwarding agent" means a person or firm engaged in the business of preparing property for shipment or arranging for its shipment.
History—Stats. 1995, Ch. 34, in effect June 30, 1995, but operative July 1, 1995, added subparagraphs (D) and (E) to paragraph (5) of, and added paragraph (8) to, Subdivision (a). Stats. 1995, Ch. 555, in effect January 1, 1996, deleted "in this state" after "apply to delivery" in subdivision (a)(5).