Laws, Regulations and Annotations
Business Taxes Law Guide – Revision 2023
Diesel Fuel Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 31. Diesel Fuel Tax Law
Chapter 2 The International Fuel Tax Agreement.1
Article 1 Construction
Article 2 Definitions
Article 3 Annual Fees
Article 4 Administration
Article 5 IFTA Disclosure
Article 6 Distribution of Proceeds
CHAPTER 2 THE INTERNATIONAL FUEL TAX AGREEMENT.1
1Added by Stats. 1995, Ch. 555, in effect January 1, 1996.
Article 1. Construction
9405. Construction. This chapter shall be administered in conjunction with the IFTA, the Use Fuel Tax Law (Part 3 (commencing with Section 8601)), and the Diesel Fuel Tax Law (Part 31 (commencing with Section 60001)). Whenever the Use Fuel Tax Law or the Diesel Fuel Tax Law is inconsistent with the IFTA or this chapter, the IFTA or this chapter shall prevail except where prohibited by the California Constitution or United States Constitution.
History—Stats. 2004, Ch. 183 (AB 3082) in effect January 1, 2005, added "Section" after "(Part 31 (commencing with" in the first sentence, and added "Constitution" after "by the California" in the second sentence. Stats. 2005, Ch. 519 (AB 1765), in effect October 4, 2005, but operative January 1, 2006, deleted "Articles of Agreement" after "IFTA" throughout section.
9407. Limits of authority. (a) The IFTA, for the purposes of this chapter, may be used to:
(1) Determine the base state jurisdiction for motor carriers engaged in interstate commerce.
(2) Impose recordkeeping requirements.
(3) Specify audit procedures.
(4) Establish procedures for the exchange of information.
(5) Identify interstate motor carriers.
(6) Define motor vehicles and fuels subject to the provisions of the agreement.
(7) Determine bond requirements.
(8) Specify reporting requirements, due dates of returns, interest and penalty rates, and provisions for failure to file returns.
(9) Specify methods for collection of taxes, interest, and penalties.
(10) Determine methods for the distribution of taxes and interest collected or assessed to the appropriate jurisdictions.
(11) Deny, suspend, or cancel benefits under the agreement to any interstate motor carrier who violates the provisions of the agreement.
(b) The board may adopt regulations to administer the provisions of this chapter.
History—Stats. 2005, Ch. 519 (AB 1765), in effect October 4, 2005, but operative January 1, 2006, substituted "IFTA" for "International Fuel Tax Agreement" after "The" in subdivision (a).
Article 2. Definitions
9410. "Contractor." "Contractor" includes a subcontractor.
9411. "IFTA." "IFTA" means the International Fuel Tax Agreement. The International Fuel Tax Agreement consists of the Articles of Agreement, the Procedures Manual, the Audit Manual, as amended from time to time.
History—Stats. 2005, Ch. 519 (AB 1765), in effect October 4, 2005, but operative January 1, 2006, added the second sentence which provided "The International Fuel Tax Agreement consists of the Articles of Agreement, the Procedures Manual, the Audit Manual, as amended from time to time."
Article 3. Annual Fees
9420. License and fee. Except for trip permits as provided in Sections 8708 and 60122, all interstate users who choose to obtain an IFTA license from the board shall apply for a license and secure decals for their vehicles. Application for the license and decals shall be made annually on forms prescribed by the board. The application shall be under oath and shall contain that information as the board deems necessary. Upon receipt of the application, and upon payment of any required reinstatement fee, the board may issue to the applicant a license and decals.
The decals issued to the interstate user shall be placed on both exterior sides of the vehicle cab. Failure to display the decals in the required location may subject the interstate user to the purchase of a trip permit. The transfer of decals from one interstate user to another interstate user is prohibited. All decals shall remain the property of the state and may be recalled for any violation of the provisions of the IFTA.
A fee to be determined by the board shall be charged for the annual license and a set of two decals issued prior to and during the calendar year that the license and decal is valid. The board may also prescribe procedures and set a fee for the issuance of a 30-day IFTA temporary license or replacement decals.
History—Stats. 2005, Ch. 519 (AB 1765), in effect October 4, 2005, but operative January 1, 2006, substituted "license" for "permit" after "who choose to obtain an IFTA" in the first sentence of the first paragraph and deleted "Articles of Agreement" after "violation of the provisions of the IFTA" in the last sentence of the second paragraph.
Article 4. Administration
9425. Returns and refunds. The exemptions in Chapter 2 (commencing with Section 8651) of Part 3 do not apply to IFTA-required returns. However, the exempt use shall be refunded under the refund provisions in Chapter 6 (commencing with Section 9151) of Part 3.
Article 5. IFTA Disclosure
9430. Release of information. (a) The board shall make available any and all information obtained under this chapter to any member jurisdiction of the IFTA, a designee of the member jurisdiction, or any contractor under contract with the board. The information obtained by the member jurisdiction, designee, or contractor shall not be made public except to the extent authorized by the agreement.
(b) The member jurisdictions of the IFTA and the board may utilize any information obtained pursuant to this chapter to develop data on international or interstate commerce, fuel consumption, and any aspect of motor fuel tax administration.
Article 6. Distribution of Proceeds
9432. Distribution of funds. The board shall transmit all moneys received by it under this chapter to the Treasurer to be deposited in the State Treasury. The board in accordance with the Treasurer shall set up a reserve account in the State Treasury to disburse those moneys as needed. After distribution payments to other jurisdictions and refunds authorized by the IFTA, the balance remaining in the reserve account shall be transferred, except as provided in Section 9433, to the Motor Vehicle Fuel Account in the Transportation Tax Fund
History—Stats. 2005, Ch. 519 (AB 1765), in effect October 4, 2005, but operative January 1, 2006, deleted "Articles of Agreement" after "refunds authorized by the IFTA" in the third sentence.
9433. Uses of funds. The fees paid for licenses and decals issued under Section 9420 shall be deposited in a reserve account in the State Treasury and shall, upon appropriation by the Legislature, be used for administration of the IFTA program.