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Business Taxes Law Guide—Revision 2024

BTLG Table of Contents > Diesel Fuel Tax Law > Chapter 4 > entire chapter

Diesel Fuel Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 31. Diesel Fuel Tax Law

Chapter 4. Interstate Users.

CHAPTER 4. INTERSTATE USERS.

Article 1. Definitions

60110. Construction. Except where the context otherwise requires, the definitions given in this chapter govern the construction of this chapter and this part.

60111. "Interstate user." "Interstate user" includes any person who uses diesel fuel in the operation of a qualified motor vehicle in this state and who operates the qualified motor vehicle within and without this state or the United States.

History—Stats. 1995, Ch. 555, in effect January 1, 1996, substituted "user" for "trucker" after "Interstate".

60112. "Qualified motor vehicle." "Qualified motor vehicle" means a motor vehicle used, designed, or maintained for transportation of persons or property that (a) has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms, (b) has three or more axles regardless of weight, or (c) is used in combination, when the weight of that combination exceeds 26,000 pounds or 11,797 kilograms gross vehicle weight. "Qualified motor vehicle" does not include recreational vehicles.

History—Stats. 1995, Ch. 555, in effect January 1, 1996, substituted "11,797" for "12,000" after "26,000 pounds or" in the first sentence.

60113. "Recreational vehicle." "Recreational vehicle" means motor vehicles such as motor homes, pickup trucks with attached campers, and buses when used exclusively for personal pleasure by an individual. In order to qualify as a recreational vehicle, the motor vehicle shall not be used in connection with any business endeavor.

60114. "Diesel vendor." "Diesel vendor" means every person who sells diesel fuel in this state and places, or causes to be placed, the diesel fuel into a fuel tank of a qualified motor vehicle and at the time of sale, collects the diesel fuel tax from an interstate user.

History—Stats. 1995, Ch. 555, in effect January 1, 1996, substituted "user" for "trucker" after "from an Interstate".

Article 2. Imposition of Tax

60115. Levy of tax. For the privilege of using diesel fuel in a qualified motor vehicle in this state by interstate users, there is hereby imposed upon any interstate user for each gallon of diesel fuel used in this state, a tax consisting of the following two components:

(a) A tax at the rate imposed by Section 60050.

(b) A tax at the rate prescribed by Section 60116.

History—Added by Stats. 1994, Ch. 912 (SB 840), in effect September 27, 1994, operative July 1, 1995. Stats. 1995, Ch. 555 (SB 718), in effect January 1, 1996, substituted "users" for "truckers" after "state by interstate" and substituted "user" for "trucker" after "upon any interstate" in subdivision (a). Stats. 1997, Ch. 618 (AB 1269), in effect October 3, 1997, amended the introductory clause by deleting subdivision designation (a) at the beginning, adding "in this state" after "fuel used", and substituting "consisting of the following two components:" for "of eighteen cents ($0.18)."; added subdivisions (a) and (b); and deleted former subdivisions (b) and (c) which read: "(b) If the federal fuel tax is reduced below the rate of fifteen cents ($0.15) per gallon and federal financial allocations to this state for highway and exclusive public mass transit guideway purposes are reduced or eliminated correspondingly, the tax rate imposed by this section, on and after the date of the reduction, shall be increased by an amount so that the combined state and federal tax rate per gallon equals thirty-three cents ($0.33). "(c) If any person or entity is exempt or partially exempt from the federal fuel tax at the time of a reduction, the person or entity shall continue to be exempt under this section."

60116. Interstate user component b rate. (a)Commencing January 1, 1998, and on each January 1 up to and including January 1, 2013, the board shall establish a tax rate per gallon, rounded to the nearest one-tenth of a cent ($0.001), by multiplying the average retail price per gallon (including the federal excise tax and excluding the state excise tax and the sales and use tax) of diesel fuel sold in this state by a percentage equal to the combined state and local sales tax rate established by Part 1 (commencing with Section 6001) and Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code and Section 35 of Article XIII of the California Constitution. The average retail price per gallon shall be the average of weekly retail prices for the 12-month period ending August 31 of the year prior to the effective date of the new rate. In determining the average retail price per gallon, the board shall use the weekly average retail price published by the State Energy Resources Conservation and Development Commission, in its publication "Fuel Price And Supply Update." In the event the "Fuel Price And Supply Update" is delayed or discontinued, the board may base its determination on other sources of the average retail price of diesel fuel. The board shall make its determination of the rate no later than October 1 of the year prior to the effective date of the new rate.

(b) The tax rate established by the board on January 1, 2013, shall remain in effect only through June 30, 2013.

(c) Commencing on July 1, 2013, and on each July 1 thereafter, the board shall establish a tax rate per gallon, rounded to the nearest one-tenth of one cent ($0.001), by multiplying the average retail price per gallon (including the federal excise tax and excluding the state excise tax and the sales and use tax) of diesel fuel sold in this state by a percentage equal to the combined state and local sales tax rate established by Part 1 (commencing with Section 6001) and Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code and Section 35 of Article XIII of the California Constitution. The average retail price per gallon shall be the average of weekly retail prices for the 12-month period ending on the last day of January prior to the effective date of the new rate. In determining the average retail price per gallon, the board shall use the weekly average retail price as reported by the United States Energy Information Administration (EIA). In the event the EIA information is delayed or discontinued, the board may base its determination on other sources of the average retail price of diesel fuel. The board shall make its determination of the rate no later than March 1 of the same year as the effective date of the new rate.

History—Added by Stats. 1997, Ch. 618 (AB 1269), in effect October 3, 1997. Stats. 2012, Ch. 769 (AB 2679), operative January 1, 2013, added subdivision designation (a) to former solo paragraph; deleted "on" after "Commencing", substituted "up to and including January 1, 2013" for "thereafter" after "each January 1", and substituted "one-tenth of a cent ($0.001)" for "tenth of a cent" after "rounded to the nearest", in the first sentence of subdivision (a); added subdivisions (b) and (c).

Article 3. Licenses for Interstate Users

60120. To whom issued. Every person operating a qualified motor vehicle within and without this state or the United States shall apply to the board for a license on forms prescribed by the board. It is unlawful for any person to be an interstate user without first securing a license.

History—Stats. 1997, Ch. 620 (SB 1102), in effect January 1, 1998, substituted "within and without this state or the United States" for "in interstate commerce" in the first sentence and added the second sentence.

60121. Security requirement. Before granting a license to an interstate user, the board may require the person to file with the board security pursuant to Section 60401. The license issued to any interstate user is not transferable and is valid until canceled or revoked.

History—Stats. 1995, Ch. 555, in effect January 1, 1996, substituted "user" for "trucker" after "as an interstate" in the first sentence and after "to any interstate" in the second sentence. Stats. 1997, Ch. 620 (SB 1102), in effect January 1, 1998, substituted "to" for "authorizing a person to engage in business as" after "granting a license" and added a comma after "an interstate user" in the first sentence.

60122. Diesel fuel trip permit. The board or its authorized representative may issue a California fuel trip permit to interstate users for entry into this state. The California fuel trip permit shall be valid for four consecutive days and includes any reentry into the state during the four-day period. The fee for issuance of a California fuel trip permit is thirty dollars ($30). Other provisions of this article and Article 1 (commencing with Section 60201) of Chapter 6 shall not apply to the holder of a California fuel trip permit who uses only diesel fuel brought into this state in the fuel tank of the qualified motor vehicle and diesel fuel purchased in this state with the diesel fuel tax paid and delivered into the fuel tank of the qualified motor vehicle. Any diesel fuel tax paid to a diesel vendor for diesel fuel taken out of the state in the fuel tank of a qualified motor vehicle operated under a California fuel trip permit shall not be refunded to the holder of the California fuel trip permit, notwithstanding any other provision of this part.

The board may enter into an interagency agreement with the Department of Motor Vehicles providing for the issuance of California fuel trip permits by that department.

History—Stats. 1995, Ch. 555, in effect January 1, 1996, substituted "user" for "trucker" after "for any interstate" in the first sentence of the second paragraph. Stats. 1996, Ch. 1087, in effect January 1, 1997, substituted "or its authorized … interstate users and" for "may authorize the issuance of diesel fuel trip permits to" after "The board" in the first sentence of the first paragraph and subsituted "California" for "diesel" before "fuel trip permit" throughout the section. Stats. 1998, Ch. 609 (SB 2232), in effect January 1, 1999, substituted "for entry into this state" for "and holders of trip permits issued under Section 4004 of the Vehicle Code" after "to interstate users" in the first sentence and substituted "four consecutive days … four-day period" for "the same period as the trip permit issued under Section 4004 of the Vehicle Code" after "be valid for" in the second sentence of the first paragraph, and deleted "The board may deny the issuance of more than one California fuel trip permit for any interstate user determined by the board to bring vehicles into this state on a regular, ongoing basis. The board shall maintain a file of all permits issued under this section for the purpose of determining the effectiveness of the program and the appropriateness of the fee." as the first two sentences of the second paragraph.

Article 4. Administrative Provisions

60128. Administration. All of the administrative provisions of this part not inconsistent with this chapter shall be applicable to the administration of the tax imposed by Section 60115.