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Business Taxes Law Guide—Revision 2024
Motor Vehicle Fuel Tax Regulations
Title 18. Public Revenues
Division 2. California Department of Tax and Fee Administration—Business Taxes (State Board of Equalization – Business Taxes, See Chapters 6 and 9.9)
Chapter 1. Motor Vehicle Fuel Tax
Article 1. General Provisions and Definitions
Regulation 1105
Regulation 1105. Tax-Paid Fuel and Ex-Tax Fuel.
Reference: Sections 7345, 7401, 7653, 8101, and 8106, Revenue and Taxation Code.
(a) "Tax-paid fuel" is the gallonage of motor vehicle fuel acquired with the California motor vehicle fuel tax paid. An acquisition of motor vehicle fuel will be considered tax-paid only if it can be supported by one of the following:
(1) A sales invoice or a contract which clearly states that the tax is included in the invoice or contract and proof that the amount representing motor vehicle fuel tax has been paid, or
(2) A motor vehicle fuel purchase receipt showing that the amount paid for the fuel included the motor vehicle fuel tax, or
(3) Other documentation showing that the motor vehicle fuel tax has been paid to the state.
(b) "Ex-tax fuel" is the gallonage of motor vehicle fuel acquired without the California motor vehicle fuel tax paid.
History—Adopted February 5, 1986, effective May 4, 1986. In subdivision (a)(1) added definition of tax-paid fuel and explains the support required to consider the fuel tax paid. In subdivision (a)(2) added definition of ex-tax fuel. In subdivision (b)(1) added explanation that a distributor or broker is relieved of further liability of tax on the number of gallons upon which the tax has been paid. In subdivision (b)(2) added explanation that a distributor is not relieved of its liability to report and pay tax on taxable distributions when the distributor fails to invoice or collect the tax. In subdivision (b)(3) added explanation that a distributor is liable to the state for the tax on ex-tax fuel distributed to a qualified distributor when the distributor indicates the fuel is tax-paid fuel by invoicing or collecting the tax.
Amended March 27, 2002, effective July 11, 2002. Repealed former subdivisions (b)(1), (b)(2), and (b)(3) because tax is imposed on a supplier upon removal, entry, or sale of motor vehicle fuel instead of on the distribution by a distributor or broker, pursuant to change in Motor Vehicle Fuel Tax Law that took effect on January 1, 2002. Therefore, on and after January 2, 2002, it is no longer necessary to explain the continuing tax liability of a distributor upon distribution of fuel. Subdivisions (a) and (b) revised to clarify definitions of "tax-paid fuel" and "ex-tax fuel". Added subdivision (a)(2) to define purchase receipt which shows that tax was included in the amount a purchaser paid for the motor vehicle fuel as the type of documentation which supports a claim that fuel is tax-paid.
Amended May 31, 2012, effective July 10, 2012. Replaced the reference to Revenue and Taxation Code section "8106.8" with a reference to Revenue and Taxation Code section "8106" in the reference note.