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Business Taxes Law Guide—Revision 2024
Motor Vehicle Fuel Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 2. Motor Vehicle Fuel Tax Law
Chapter 1. General Provisions and Definitions.1
Chapter 1. General Provisions and Definitions1
(Part 2, Division 2, Revenue and Taxation Code*)
Enacted Statutes 1941, Chapter 37; amended Statutes 1941, Chapters 836, 843, 981, 1037; Statutes 1943, Chapters 459, 460, 874; Statutes 1945, Chapters 343, 531, 1025; Statutes 1947, Chapters 861, 960, 1564; Statutes First Extra Session 1947, Chapters 11, 15; Statutes 1948, Chapter 36; Statutes 1949, Chapters 401, 711, 725, 1408, 1465; Statutes 1951, Chapters 780, 1279, 1460; Statutes 1953, Chapters 1198, 1200, 1601, 1865; Statutes 1954, Chapter 10; Statutes 1955, Chapters 4, 1059, 1870; Statutes 1957, Chapters 155, 701, 1051; Statutes 1959, Chapters 6, 508, 822, 1859, 1968; Statutes 1961, Chapters 232, 233, 448, 712, 1239, 1270, 2127; Statutes 1963, Chapters 269, 438, 558, 780, 1325, 1357, 1523, 1527, 1852, 2102; Statutes 1965, Chapters 27, 371, 396, 671, 679, 690, 1920, 2028, 2029; Statutes (First Extra Session) 1966, Chapter 61; Statutes 1967, Chapters 881, 1134, 1480, 1682; Statutes 1968, Chapters 432, 631, 1217, 1222, 1256, 1299; Statutes 1969, Chapters 29, 52, 131, 138, 368, 561, 1587; Statutes 1970, Chapters 555, 1509, 1571; Statutes 1971, Chapters 241, 243, 1400, 1634; Statutes 1972, Chapters 103, 481, 1158, 1273, 1382, 1405, 1408; Statutes 1973, Chapters 700, 1153, 1195; Statutes 1974, Chapters 532, 610, 1134, 1250, 1516; Statutes 1975, Chapters 508, 661, 972, 1050; Statutes 1977, Chapters 329, 352, 481, 921; Statutes 1978, Chapters 817, 827, 1140; Statutes 1979, Chapters 322, 373; Statutes 1980, Chapters 228, 600. Statutes 1981, Chapters 541, 714, 947. Statutes 1982, Chapters 5 (First Extra Session), 517, 681, 762, 1500, and 1589. Statutes 1983, Chapters 46, 323, and 1102.
* The provisions of this part, except as otherwise noted, became effective July 1, 1943.
1Added by Stats. 2000, Ch. 1053 (AB 2114), operative January 1, 2002.
7301. Title. This part is known and may be cited as the "Motor Vehicle Fuel Tax Law."
7302. Construction. Except where the context otherwise requires, the definitions given in this chapter govern the construction of this part.
7303. "Aircraft." "Aircraft" means any powered contrivance designed for navigation in the air except a rocket or missile.
7304. "Alcohol." "Alcohol" includes ethanol and methanol.
7305. "Approved terminal or refinery." "Approved terminal or refinery" means a terminal or refinery that is operated by a licensed supplier.
7306. "Aviation gasoline." "Aviation gasoline" means all special grades of gasoline that are suitable for use in aviation reciprocating engines.
7307. "Blended motor vehicle fuel." "Blended motor vehicle fuel" means any mixture of motor vehicle fuel with respect to which tax has been imposed and any other liquid on which tax has not been imposed. Blended motor vehicle fuel also means any conversion of a liquid into motor vehicle fuel. "Conversion of a liquid into motor vehicle fuel" occurs when any liquid that is not included in the definition of motor vehicle fuel and that is outside the bulk transfer/terminal system is sold as motor vehicle fuel, delivered as motor vehicle fuel, or represented to be motor vehicle fuel.
7308. "Blender." "Blender" includes any person that produces or converts blended motor vehicle fuel outside the bulk transfer/terminal system.
7309. "Bulk transfer." "Bulk transfer" means any transfer of motor vehicle fuel by pipeline or vessel.
7310. "Bulk transfer/terminal system." "Bulk transfer/terminal system" means the motor vehicle fuel distribution system consisting of refineries, pipelines, vessels, and terminals. Motor vehicle fuel in a refinery, pipeline, vessel, or terminal is in the bulk transfer/terminal system. Motor vehicle fuel in the fuel tank of any engine, or in any railcar, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system.
7311. "Enterer." "Enterer" includes any person who is the importer of record (under federal customs law) with respect to motor vehicle fuel. If the importer of record is acting as an agent, the person for whom the agent is acting is the enterer. If there is no importer of record of motor vehicle fuel entered into this state, the owner of the motor vehicle fuel at the time it is brought into this state is the enterer.
7312. "Entry." "Entry" means the importing of motor vehicle fuel into this state. However, motor vehicle fuel brought into this state in the fuel tank of a motor vehicle or aircraft shall not be deemed to be an "entry" if not removed from the fuel tank except as used for the operation of that motor vehicle or aircraft, except to the extent that the motor vehicle fuel was acquired tax free for export or a refund of tax was claimed as a result of exportation from the state from which that motor vehicle fuel was transported into this state.
7313. "Finished gasoline." "Finished gasoline" means all products (including gasohol) that are commonly known or sold as gasoline.
7314. "Fuel tank." "Fuel tank" means any receptacle on a motor vehicle from which fuel is supplied for the operation of a motor vehicle.
7315. "Gallon." "Gallon" means the United States gallon of 231 cubic inches or the volumetric gallon adjusted to 60 degrees Fahrenheit when the invoice and settlement is made on the temperature corrected gallonage.
7316. "Gasoline." "Gasoline" means finished gasoline and gasoline blendstocks.
7317. "Gasoline blendstocks." "Gasoline blendstocks" means any petroleum product component of gasoline.
7318. "Gasohol." "Gasohol" means all blends of gasoline, and alcohol containing more than 15 percent gasoline.
7319. "Highway." "Highway" includes a way or place, of whatever nature, publicly maintained and open to the use of the public for purposes of vehicular travel.
7320. "Highway vehicle operator/fueler." "Highway vehicle operator/fueler" includes:
(a) Any person that owns, operates, or otherwise controls a motor vehicle fuel-powered highway vehicle and delivers, or causes to be delivered, motor vehicle fuel or any liquid into the fuel tank of a motor vehicle fuel-powered highway vehicle; or
(b) Any person who sells motor vehicle fuel on which a claim for refund has been allowed, or who sells and delivers or causes to be delivered into the fuel tank of a motor vehicle fuel-powered highway vehicle any liquid on which tax has not been imposed.
History—Stats. 2001, Ch. 429 (AB 309), operative January 1, 2002, substituted "Any" for "any" before "person that owns", substituted "delivers" for "places" after "highway vehicle", and substituted "delivered" for "placed" after "causes to be" in subdivision (a); and substituted "Any" for "any" before "person who sells", added "who sells and delivers or causes to be delivered into the fuel tank of a motor vehicle fuel-powered highway vehicle" after "allowed, or" in subdivision (b).
7321. "In this state." "In this state" or "in the state" means within the exterior limits of the State of California and includes all territory within these limits owned by or ceded to the United States of America.
7322. "Industrial user." "Industrial user" means any person that receives gasoline blendstocks by bulk transfer for its own use in the manufacture of any product other than finished gasoline.
7323. "Licensed industrial user." "Licensed industrial user" means any industrial user that is licensed pursuant to Section 7460.
7324. "Licensed supplier." "Licensed supplier" includes any enterer, position holder, refiner, terminal operator, or throughputter that is licensed as a supplier pursuant to Section 7451.
7325. "Motor vehicle." "Motor vehicle" includes every self-propelled vehicle operated or suitable for operation on the highway, except a vehicle used exclusively upon stationary rails or tracks.
7326. "Motor vehicle fuel." "Motor vehicle fuel" means gasoline and aviation gasoline. It does not include jet fuel, diesel fuel, kerosene, liquefied petroleum gas, natural gas in liquid or gaseous form, alcohol, or racing fuel.
History—Stats. 2001, Ch. 429 (AB 309), operative January 1, 2002, substituted "means" for "includes" after "Motor vehicle fuel", added "and" after "means gasoline", and deleted ", and any inflammable liquid, by whatever name the liquid may be known or sold, which is used or is usable in an explosion type of engine" after "aviation gasoline" in the first sentence, and added "jet fuel," after "It does not include" in the second sentence. Stats. 2003, Ch. 605 (SB 1060), effective January 1, 2004, substituted "alcohol, or racing fuel" for "or alcohol" after "liquid or gaseous form," in the second sentence.
7327. "Motor vehicle fuel-powered highway vehicle." "Motor vehicle fuel-powered highway vehicle" means a motor vehicle that is operated by a motor vehicle fuel-powered engine on a highway.
7328. "Motor vehicle fuel-powered train." "Motor vehicle fuel-powered train" means any motor vehicle fuel-powered equipment or machinery that rides on rails, including equipment or machinery that transports passengers, freight, or a combination of both passengers and freight, and equipment or machinery that only carries freight or passengers of the operator thereof. Thus, the term includes a locomotive, work train, switching engine, and track maintenance machine.
7329. "Person." "Person" includes any individual, firm, partnership, joint venture, limited liability company, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, the United States, this state, any county, city and county, municipality, district, or other political subdivision of the state, or any other group or combination acting as a unit.
7330. "Pipeline." "Pipeline" means a fuel distribution system that moves motor vehicle fuel, in bulk, through a pipe, from a refinery to a terminal, from a terminal to another terminal, from a vessel to a terminal, or from a refinery or terminal to a vessel.
History—Stats. 2001, Ch. 429 (AB 309), operative January 1, 2002, substituted "a fuel distribution system that moves motor vehicle fuel, in bulk, through a pipe, from a refinery to a terminal, from a terminal to another terminal, from a vessel to a terminal, or from a refinery or terminal to a vessel" for "any pipeline used at any time to transport motor vehicle fuel" after ""Pipeline" means".
7331. "Pipeline operator." "Pipeline operator" includes any person that owns, operates, or otherwise controls a pipeline.
7332. "Position holder." "Position holder" includes any person that holds the inventory position in the motor vehicle fuel, as reflected on the records of the terminal operator. A person holds the inventory position in motor vehicle fuel when that person has a contractual agreement with the terminal operator for the use of storage facilities and terminaling services at a terminal with respect to the motor vehicle fuel. "Position holder" includes a terminal operator that owns motor vehicle fuel in its terminal.
7333. "Rack." "Rack" means a mechanism for delivering motor vehicle fuel from a refinery or terminal into a truck, trailer, railroad car, or other means of nonbulk transfer.
7334. "Refiner." "Refiner" includes any person that owns, operates, or otherwise controls a refinery.
7335. "Refinery." "Refinery" means a facility used to produce motor vehicle fuel from crude oil, unfinished oils, natural gas liquids, or other hydrocarbons, and from which motor vehicle fuel may be removed by pipeline, by vessel, or at a rack.
7336. "Removal." "Removal" means any physical transfer of motor vehicle fuel, and any use of motor vehicle fuel other than as a material in the production of motor vehicle fuel. However, motor vehicle fuel is not removed when it evaporates or is otherwise lost or destroyed.
7337. "Sale." "Sale" means:
(a) The transfer of title to motor vehicle fuel (other than motor vehicle fuel in a terminal) to a buyer for consideration, which may consist of money, services, or other property.
(b) The transfer of the inventory position in the motor vehicle fuel in a terminal if the buyer becomes the position holder with respect to the motor vehicle fuel.
History—Stats. 2001, Ch. 429 (AB 309), operative January 1, 2002, deleted ", or substantial incidents of ownership in," after "The transfer of title to" in subdivision (a); and substituted "motor vehicle" for "taxable" after "with respect to the" in subdivision (b).
7338. "Supplier." "Supplier" includes any person who is any of the following:
(a) Blender, as defined in Section 7308.
(b) Enterer, as defined in Section 7311.
(c) Position holder, as defined in Section 7332.
(d) Refiner, as defined in Section 7334.
(e) Terminal operator, as defined in Section 7340.
(f) Throughputter, as defined in Section 7341.
7339. "Terminal." "Terminal" means a motor vehicle fuel storage and distribution facility that is supplied by pipeline or vessel, and from which motor vehicle fuel may be removed at a rack. "Terminal" includes a fuel production facility where motor vehicle fuel is produced and stored and from which motor vehicle fuel may be removed at a rack.
History—Stats. 2009, Ch. 545 (AB 1547), in effect January 1, 2010, added the second sentence.
7339.1. "Fuel production facility." "Fuel production facility" means a facility, other than a refinery, in which motor vehicle fuel is produced.
History—Added by Stats. 2009, Ch. 545 (AB 1547), in effect January 1, 2010.
7340. "Terminal operator." "Terminal operator" includes any person that owns, operates, or otherwise controls a terminal.
7341. "Throughputter." "Throughputter" means any person that owns motor vehicle fuel within the bulk transfer/terminal system (other than in a terminal) or is a position holder.
7342. "Train operator." "Train operator" includes any person that owns, operates, or controls a train and is licensed as a railroad by a state or federal agency.
History—Stats. 2008, Ch. 306 (AB 3079), in effect January 1, 2009, deleted "motor vehicle fuel powered" after "owns, operates, or controls a".
7343. "Vessel." "Vessel" means a waterborne vessel used for transporting motor vehicle fuel.
History—Stats. 2001, Ch. 429 (AB 309), operative January 1, 2002, substituted "means a waterborne vessel used for transporting motor vehicle fuel" for "includes a barge and every description of motor craft, other than a seaplane on the water, used or capable of being used as a means of transportation on water" after ""Vessel"".
7344. "Vessel operator." "Vessel operator" means any person that operates or otherwise controls a vessel.
History—Stats. 2001, Ch. 429 (AB 309), operative January 1, 2002, substituted "means" for "includes" after ""Vessel operator"", deleted "owns" after "person that" and deleted "," after "operates".
7345. "Tax-paid fuel." "Tax-paid fuel" or "tax paid" means the gallons of motor vehicle fuel acquired on either a temperature corrected or volumetric basis on which the tax in Section 7360 has been imposed at the time of or prior to the acquisition by the supplier or person.
History—Added by Stats. 2001, Ch. 429 (AB 309), operative January 1, 2002.