Laws, Regulations and Annotations
Search
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 8. Overpayments and Refunds.
Article 1. Refunds on Certain Sales and Uses
Section 60501
60501. Overpayments; credits and refunds. Persons who have paid a tax for diesel fuel lost, sold, or removed as provided in paragraph (4) of subdivision (a), or used in a nontaxable use, other than on a farm for farming purposes or in an exempt bus operation, shall, except as otherwise provided in this part, be reimbursed and repaid the amount of the tax.
(a)Except as otherwise provided in subdivision (b), a claim for refund with respect to diesel fuel is allowed under this section only if all of the following apply:
(1) Tax was imposed on the diesel fuel to which the claim relates.
(2) The claimant bought or produced the diesel fuel and did not sell or resell it in this state except as provided in paragraph (4).
(3) The claimant has filed a timely claim for refund that contains the information required under subdivision (b) and the claim is supported by the original invoice or original invoice facsimile retained in an alternative storage media showing the purchase. If no original invoice was created, electronic invoicing shall be accepted as reflected by a computerized facsimile when accompanied by an original copy of the bill of lading or fuel manifest that can be directly tied to the electronic invoice.
(4) The diesel fuel was any of the following:
(A) Used for purposes other than operating motor vehicles upon the public highways of the state.
(B) Exported for use outside of this state. Diesel fuel carried from this state in the fuel tank of a motor vehicle is not deemed to be exported from this state unless the diesel fuel becomes subject to tax as an import under the laws of the destination state.
(C) Used in any construction equipment that is exempt from vehicle registration pursuant to the Vehicle Code, while operated within the confines and limits of a construction project.
(D) Used in the operation of a motor vehicle on any highway that is under the jurisdiction of the United States Department of Agriculture and with respect to the use of the highway the claimant pays, or contributes to, the cost of construction or maintenance thereof pursuant to an agreement with, or permission of, the United States Department of Agriculture.
(E) Used in any motor vehicle owned by any county, city and county, city, district, or other political subdivision or public agency when operated by it over any highway constructed and maintained by the United States or any department or agency thereof within a military reservation in this state. If the motor vehicle is operated both over the highway and over a public highway outside the military reservation in a continuous trip the tax shall not be refunded as to that portion of the diesel fuel used to operate the vehicle over the public highway outside the military reservation.
Nothing contained in this section shall be construed as a refund of the tax for the use of diesel fuel in any motor vehicle operated upon a public highway within a military reservation, which highway is constructed or maintained by this state or any political subdivision thereof.
As used in this section, "military reservation" includes any establishment of the United States Government or any agency thereof used by the Armed Forces of the United States for military, air, or naval operations, including research projects.
(F) Sold by a supplier and which was sold to any consulate officer or consulate employee under circumstances which would have entitled the supplier to an exemption under paragraph (6) of subdivision (a) of Section 60100 if the supplier had sold the diesel fuel directly to the consulate officer or consulate employee.
(G) Lost in the ordinary course of handling, transportation, or storage.
(H) (i) Sold by a person to the United States and its agencies and instrumentalities under circumstances that would have entitled that person to an exemption from the payment of diesel fuel tax under Section 60100 had that person been the supplier of this diesel fuel.
(ii) Sold by a supplier and which was sold by credit card to the United States and its agencies and instrumentalities under circumstances which would have entitled the supplier to an exemption under Section 60100 if the supplier had sold the diesel fuel directly to the United States and its agencies and instrumentalities.
(I) Sold by a person to a train operator for use in a diesel-powered train or for other off-highway use under circumstances that would have entitled that person to an exemption from the payment of diesel fuel tax under Section 60100 had that person been the supplier of this diesel fuel.
(J) Removed from an approved terminal at the terminal rack, but only to the extent that the supplier can show that the tax on the same amount of diesel fuel has been paid more than one time by the same supplier.
(b) Where tax is not imposed on dyed blended biodiesel fuel upon removal from an approved terminal at the terminal rack, if tax was previously imposed on the biodiesel fuel portion of the dyed blended biodiesel fuel, then, pursuant to paragraph (1) of subdivision (a), a claim for refund is allowed for the tax that was paid on that biodiesel fuel, but only to the extent a supplier can show that the tax on that biodiesel fuel has been paid by the same supplier.
(c) Each claim for refund under this section shall contain the following information with respect to all of the diesel fuel covered by the claim:
(1) The name, address, telephone number, and permit number of the person that sold the diesel fuel to the claimant and the date of the purchase.
(2) A statement by the claimant that the diesel fuel covered by the claim did not contain visible evidence of dye.
(3) A statement, which may appear on the invoice, original invoice facsimile, or similar document, by the person that sold the diesel fuel to the claimant that the diesel fuel sold did not contain visible evidence of dye.
(4) The total amount of diesel fuel covered by the claim.
(5) The use made of the diesel fuel covered by the claim described by reference to specific categories listed in paragraph (4) of subdivision (a).
(6) If the diesel fuel covered by the claim was exported, a statement that the claimant has the proof of exportation.
(d) Each claim for refund under this section shall be made on a form prescribed by the board and shall be filed for a calendar year. If, at the close of any of the first three quarters of the calendar year, more than seven hundred fifty dollars ($750) is refundable under this section with respect to diesel fuel used or exported during that quarter or any prior quarter during the calendar year, and for which no other claim has been filed, a claim may be filed for the quarterly period. To facilitate the administration of this section, the board may require the filing of claims for refund for other than yearly periods.
History—Stats. 1995, Ch. 34 (SB 1131), in effect June 30, 1995, but operative July 1, 1995, added paragraph (G) to subdivision (a). Stats. 1995, Ch. 555 (SB 718), in effect January 1, 1996, added subdivision (c). Stats. 1997, Ch. 76 (SB 612), in effect July 16, 1997, added the second sentence to paragraph (3) of, substituted "Lost in the ordinary course of handling, transportation, or storage." for "Any person who sells diesel fuel to the United States and its agencies and instrumentalities under circumstances that would have entitled him or her to an exemption from the payment of diesel fuel tax under Section 60100 had he or she been the supplier of this diesel fuel." in paragraph (G) of, and added paragraphs (H) and (I) to, subdivision (a). Stats. 1998, Ch. 350 (SB 2231), in effect January 1, 1999, added "lost, sold as provided in paragraph (4) of subdivision (a), or" after "for diesel fuel" in the first paragraph; added "except as provided in paragraph (4) of subdivision (a)" after "in this state" in subparagraph (2) of subdivision (a); and added "of" after "respect to all" in subdivision (b). Stats. 2001, Ch. 429 (AB 309), in effect January 1, 2002, added ", or removed" after "fuel lost, sold" in the first paragraph, and added subparagraph (J) to subdivision (a)(4). Stats. 2003, Ch. 316 (AB 1744), effective January 1, 2004, added "or original invoice facsimile retained in an alternative storage media" after "is supported by the original invoice" in the first sentence of subdivision (a)(3); substituted "Government" for "government" after "establishment of the United States" in the third paragraph of subdivision (a)(4)(E); added "original invoice facsimile," after "which may appear on the invoice" in subdivision (b)(3). Stats. 2009, Ch. 545 (AB 1547), in effect January 1, 2010, deleted "of subdivision (a)" after "provided in paragraph (4)" in paragraph (2) of, substituted "Armed Forces" for "armed forces" in paragraph (4)(E) of, added "and which was sold" after "sold by a supplier" and before "to any consulate officer" in paragraph (4)(F) of, and added subparagraph heading (i), and added subparagraph (ii), to paragraph (4)(H) of, subdivision (a). Stats. 2015, Ch. 481 (AB 1032), in effect January 1, 2016, substituted "Except as otherwise provided in subdivision (b), a" for "A" before "claim for refund" in subdivision (a); added subdivision (b); relettered former subdivision (b) as subdivision (c); and relettered former subdivision (c) as subdivision (d).