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Business Taxes Law Guide—Revision 2024

BTLG Table of Contents > Diesel Fuel Tax Law > Chapter 5 > entire chapter

Diesel Fuel Tax Law

Revenue and Taxation Code

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

Chapter 5. Licenses.


Article 1 Licenses for Suppliers

Article 2 License for Exempt Bus Operator

Article 2.5 License for Government Entity

Article 3 License for Ultimate Vendor

Article 4 License for Qualified Highway Vehicle Operator

Article 5 Denial of License

Article 6 Revocation of License

Article 7 Licensing of Locations

CHAPTER 5. LICENSES.

Article 1. Licenses for Suppliers

60131. Supplier license. Every person, before becoming a supplier shall apply to the board for a license authorizing the person to engage in business as a supplier. A supplier's license shall be issued only to a person who is a supplier of diesel fuel within the meaning of the word "supplier" as defined in Section 60033. It is unlawful for any person to be a supplier without first securing a license.

60132. Applications. Applications shall be made on forms prescribed, prepared, and furnished by the board.

60133. Security requirement. Before granting a license authorizing a person to engage in business as a supplier, the board may require the person to file with the board security pursuant to Section 60401. The license issued to any supplier is not transferable and is valid until canceled or revoked.

60135. Pipeline operator license. Every person before becoming a pipeline operator or a vessel operator shall apply to the board for a license on forms prescribed by the board. In addition, every train operator that transports diesel fuel into, out of, or within this state shall obtain a license from the board on forms prescribed by the board. A train operator license, pipeline operator license or a vessel operator license shall be issued only to a person who is a train operator, pipeline operator or a vessel operator as defined in Sections 60041, 60047.1 and 60049.1. It is unlawful for a person to act as a pipeline operator or a vessel operator without first securing a license. It is unlawful for a train operator to transport diesel fuel into, out of, or within this state on or after January 1, 2009, without first securing a license under this section or a permit under Section 60106.1.

History—Added by Stats. 2001, Ch. 429 (AB 309), in effect January 1, 2002. Stats. 2008, Ch. 306 (AB 3079), in effect January 1, 2009, added the second sentence; added "train operator license," after "A", added a comma after "pipeline operator license", added "train operator," after "person who is a", added a comma after "pipeline operator", added "60041," after "as defined in Sections" and added a comma after "60047.1" in the third sentence, and added the fourth sentence.

Article 2. License for Exempt Bus Operator

60141. Exempt bus operator license. Every person before becoming an exempt bus operator shall apply for a license authorizing the person to engage in business as an exempt bus operator. A license shall be issued only to a person who is an exempt bus operator as defined in Section 60040. It is unlawful for any person to be an exempt bus operator without first securing a license.

60142. Application. Application shall be made on forms to be prescribed, prepared, and furnished by the board.

60143. Security requirement. Before granting a license authorizing a person to engage in business as an exempt bus operator, the board may require the person to file with the board security pursuant to Section 60401. The license issued to any exempt bus operator is not transferable and is valid until canceled or revoked.

Article 2.5. License for Government Entity

60146. Government entity license. Each government entity operating a diesel-powered highway vehicle upon this state's highways shall apply for a diesel fuel tax license on forms prescribed by the board. It is unlawful for any government entity to operate a diesel-powered highway vehicle upon the state's highways without first securing a diesel fuel tax license.

History—Added by Stats. 1995, Ch. 34, in effect June 30, 1995, but operative July 1, 1995.

Article 3. License for Ultimate Vendor

60151. Ultimate vendor license. (a) A person shall be licensed if that person is engaged in the activity of an "ultimate vendor" of diesel fuel. It is unlawful for any person to act as an ultimate vendor without first securing a license.

(b) If a person is a supplier and an ultimate vendor, the supplier's license may cover the ultimate vendor activities.

60152. Application. Applications shall be made on forms prescribed, prepared, and furnished by the board.

60153. Requirements. The board shall license an applicant as an ultimate vendor of diesel fuel only if the board determines that the applicant meets the necessary requirements and is satisfied with the filing, deposit, payment, and claim history for all state taxes of the applicant.

Article 4. License for Qualified Highway Vehicle Operator

60161. Qualified highway vehicle operator license. (a) Every person before becoming a qualified highway vehicle operator shall apply to the board for a license authorizing the person to engage in business as a qualified highway vehicle operator. A license shall be issued only to a person who is qualified to use dyed diesel fuel on the highway by the Internal Revenue Service under Section 48.4082-4 of Title 26 of the Code of Federal Regulations.

(b) If the person is already licensed as an exempt bus operator, government entity, or interstate user, the person does not need a separate qualified highway vehicle operator's license.

History—Stats. 2001, Ch. 429 (AB 309), in effect January 1, 2002, added subdivision letter designation "(a)" before former sole paragraph; added "person before becoming a qualified" after "(a) Every" in the first sentence of, deleted "and every end seller is required to be licensed at any time they incur liability for the backup tax under Section 60058. The highway vehicle operator and end seller" after "highway vehicle operator" in the first sentence of, added "to the board" after "shall apply" in the first sentence of, substituted "engaged in business as a qualified highway vehicle operator" for "report the backup tax" after "authorizing the person to" in the first sentence of, substituted "person who is … Code of Federal Regulations" for "highway vehicle operator who is subject to the backup tax in Section 60056 or to an end seller who is subject to the backup tax in Section 60057" after "issued only to a" in the second sentence of, subdivision (a); added subdivision (b).

60162. Application. Applications shall be made on forms prescribed, prepared, and furnished by the board.

60163. Security requirement. Before granting a license authorizing a person to report the backup tax as a qualified highway vehicle operator, the board may require the person to file with the board security pursuant to Section 60401. The license issued to any qualified highway vehicle operator is not transferable and is valid until canceled or revoked.

History—Stats. 2001, Ch. 429 (AB 309), in effect January 1, 2002, added "qualified" in the first and second sentences, deleted "or an end seller" after "vehicle operator" in the first sentence, and deleted "or end seller" after "vehicle operator" in the second sentence.

Article 5. Denial of License

60171. Grounds for denial. The board may refuse to issue any license in either of the following circumstances:

(a) If the application therefor is filed by an applicant who formerly held any license under this part that, prior to the time of filing the application, has been revoked for cause by the board.

(b) If the board determines that the application therefor is not filed in good faith or made by the real person in interest.

60172. Right to hearing. Prior to refusal specified in Section 60171, the board shall grant the applicant a hearing and shall give him or her at least 10 days' written notice of the time and place thereof.

60173. Notice of denial. The notice specified in Section 60172 shall be addressed to the applicant at his or her address as it appears in the records of the board, and shall be given in the manner prescribed in Section 60311 for giving notice of a deficiency determination.

Article 6. Revocation of License

60180. Grounds for revocation. The board may revoke the license of any person who refuses or neglects to comply with any provision of this part or any rule or regulation of the board prescribed and adopted under this part.

60181. Grounds for revocation; cause. The board may revoke any of the following licenses:

(a) Any supplier's license held by a person who does not engage in, or who discontinues, the removal, entry, or sale of diesel fuel, producing of blended diesel fuel, owning or holding inventory position of diesel fuel, or owning or operating a refinery or terminal as any of the following:

(1) A blender, as defined in Section 60012.

(2) An enterer, as defined in Section 60013.

(3) A position holder, as defined in Section 60010.

(4) A refiner, as defined in Section 60011.

(5) A terminal operator, as defined in Section 60009.

(6) A throughputter, as defined in Section 60035.

(b) Any interstate user's license held by a person who does not engage in, or who discontinues, using diesel fuel as an "interstate user" as defined in Section 60111.

(c) Any ultimate vendor's license held by a person who does not engage in, or who discontinues, selling undyed diesel fuel as an "ultimate vendor" as defined in Section 60036.

(d) Any exempt bus operator's license held by a person who does not engage in, or who discontinues, using diesel fuel as an "exempt bus operator" as defined in Section 60040.

(e) Any qualified highway vehicle operator's license held by a person who does not engage in, or who discontinues, the delivery of diesel fuel subject to the backup tax into fuel tanks of diesel-powered highway vehicles as a qualified highway vehicle operator as defined in Section 60027.

(f) Any government entity's license held by a government entity that does not engage in, or that discontinues using diesel fuel in, the operation of a diesel-powered highway vehicle upon the state's highways.

History—Stats. 1995, Ch. 34, in effect June 30, 1995, but operative July 1, 1995, added Subdivision (f). Stats. 1995, Ch. 555, in effect January 1, 1996, substituted "user's" for "trucker's" after "Any interstate" and substituted "user" for "trucker" after "as an interstate" in subdivision (b). Stats. 2001, Ch. 429 (AB 309), in effect January 1, 2002, added "qualified" after "Any", deleted "or end seller's" after "vehicle operator's", added "qualified" after "vehicles as a", and deleted "or as an end seller as defined in Section 60034" after "Section 60027" in subdivision (e).

60182. Notice of revocation. Prior to revoking any license, the board shall notify the licensee to show cause, within 10 days after the notice is given, why his or her license should not be revoked. The notice shall be given in the manner prescribed in Section 60311 for giving notice of a deficiency determination.

60183. Cancellation of license. The board may cancel any license issued under this part immediately upon surrender thereof, but before revoking a license, the board shall allow the person an opportunity to show cause as provided in Section 60182.

60184. Tax liability upon revocation. Upon revocation or cancellation of the license of the person or his or her cessation of business, all diesel fuel remaining in his or her possession or ownership shall be deemed removed, entered, sold, delivered, or used and subject to jeopardy determination as provided in Section 60330 if, in the judgment of the board, it is necessary to ensure payment of the tax with respect to the removal, entry, sale, delivery, or use of the diesel fuel.

60185. Reinstatement. Subsequent to the revocation of the license of a person, the board shall reinstate the permit when the person pays the amount of tax determined, together with interest and penalties, fully complies with this part, and pays a fee of fifty dollars ($50) to the board for reinstatement. The fee shall not be subject to refund except as provided in Section 60521.

60186. Unlawful operation after revocation. It is unlawful for any person to operate in this state after a license has been revoked.

Article 7. Licensing of Locations

60190. Requirement to disclose multiple locations. Every person required to be licensed by the board shall provide the board with the names and addresses of all agents operating in this state, the location of all offices or other places of business in this state, and any other information as the board may require.