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Business Taxes Law Guide—Revision 2024
Use Fuel Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 3. Use Fuel Tax
Chapter 3. Permits.
Article 1. User
Article 2. Vendor
Chapter 3. Permits.
Article 1. User
8701. To whom issued. Every person desiring to become a user of fuel within this state shall secure a use fuel tax permit.
History—Stats. 1983, Ch. 1000, in effect January 1, 1984, added "(a)" before "Every" in the first sentence, and added subdivision (b). Stats. 1984, Ch. 512, effective July 17, 1984, subdivision (c) operative only until December 31, 1984, deleted "first" before "secure" in (a), substituted "without a currently valid" for "not acquired … with a" before "use fuel tax" in (b), added (c) and (d) and all text therein. Stats. 1995, Ch. 555, in effect January 1, 1996, deleted subdivision letter "(a)" and deleted subdivisions (b), (c), and (d) which provided a $500 penalty for using fuel without a use fuel permit.
8702. Applications. Applications for permits shall be made to the board upon forms prescribed by the board.
8703. Issuance of permit. On receipt of an application and after the deposit of such security as the board may require pursuant to Section 8951, the board shall issue to the applicant a use fuel tax permit authorizing the applicant to become a user of fuel taxable under this part. The permit is valid until canceled or revoked.
History—Stats. 1943, p. 2002, in effect August 4, 1943, added "canceled or." Stats. 1984, Ch. 193, effective January 1, 1985, deleted "of this code" after "Section 8951."
8704. Revocation of permit; notice. Whenever any user fails to comply with any provision of this part or any rule or regulation of the board prescribed and adopted under this part, the board upon hearing, after giving the user at least 10 days' notice in writing specifying the time and place of hearing and requiring him to show cause why his permit should not be revoked, may revoke the permit held by him. The notice may be served personally or by mail in the manner prescribed for service of notice of a deficiency determination.
History—Stats. 1945, p. 1438, in effect September 15, 1945, added "at least" before "10 days'." Stats. 1955, p. 3288, in effect September 7, 1955, deleted provision respecting issuance of a new permit after revocation.
8705. Operation after cancellation or revocation. It is unlawful for any person whose permit has been canceled or revoked to operate as a user of fuel in this State until he has fully complied with the provisions of this part and has been issued a new permit or his permit has been reinstated.
History—Stats. 1943, p. 2002, in effect August 4, 1943, added "cancelled or." Stats. 1955, p. 3289, added "or his permit has been reinstated."
8706. Impoundment of vehicles. The board or its authorized representatives may impound the vehicles of a user whose permit has been revoked and who continues to use fuel after having been duly notified by the board of the revocation. The board or its representatives may retain possession of the vehicles until the user fully complies with the provisions of this part and all costs incurred in connection with the impounding or storage of the vehicles have been paid.
History—Added by Stats. 1955, p. 3289, in effect September 7, 1955.
8707. Reinstatement; fee; refund. Subsequent to the revocation of the permit of a user the board shall reinstate the permit when the user pays the amount of excise tax determined, together with interest and penalties, fully complies with the provisions of 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 9151.
History—Added by Stats. 1955, p. 3289, in effect September 7, 1955. Stats. 1959, p. 2426, in effect September 18, 1959, substituted "ten" for "five" dollars and added the last sentence. Stats. 1966, p. 188, in effect April 18, 1966, operative July 1, 1966, substituted "fifteen" for "ten" dollars. Stats. 1988, Ch. 1029, in effect January 1, 1989, substituted "fifty dollars ($50)" for "fifteen dollars ($15)" following "pays a fee of."
8708. Issuance of California 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 8751) of Chapter 4 do not apply to the holder of a California fuel trip permit who uses only fuel brought into this state in the fuel tank of a qualified motor vehicle and fuel purchased from, and delivered into the fuel tank of the qualified motor vehicle by, a vendor. Any use fuel tax paid to a vendor for 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 permit, notwithstanding any other provisions 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—Added by Stats. 1983, Ch. 1000, in effect January 1, 1984. Stats. 1995, Ch. 555, in effect January 1, 1996, substituted "a qualified motor" for "the" after "fuel tank of" in the third sentence of, and added "qualified motor" after "tank of the" and after "tank of a" in the third sentence and fourth sentence, respectively, of, the first paragraph; and substituted "an interstate" for "a" after "trip permit for" and added "qualified motor" after "board to bring" in the first sentence of, and added "use fuel trip" after "file of all" in the second sentence of, the second paragraph. Stats. 1996, Ch. 1087, in effect January 1, 1997, substituted "or its authorized representative … interstate users and" for "may authorize the issuance of use fuel trip permits to" after "The board" in the first sentence and substituted "California" for "use" 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 an interstate user of fuel determined by the board to bring qualified motor vehicles into this state on a regular, ongoing basis. The board shall maintain a file of all California fuel trip permits issued under this section for the purpose of determining the effectiveness of the program and the appropriateness of the fee." in the second paragraph.
Article 2. Vendor
8711. To whom issued. Every person desiring to become a vendor shall first secure a vendor use fuel tax permit.
History—Added by Stats. 1953, p. 3597, in effect September 9, 1953.
8712. Applications. Applications for permits shall be made to the board upon forms prescribed by the board.
History—Added by Stats. 1953, p. 3597, in effect September 9, 1953.
8713. Issuance of permit. On receipt of an application the board shall issue to the applicant a vendor use fuel tax permit authorizing him to become a vendor of fuel taxable under this part. The permit is valid until canceled, suspended, or revoked.
History—Added by Stats. 1953, p. 3597, in effect September 9, 1953.
8714. Revocation or suspension; notice; reissuance. Whenever any vendor fails to comply with any provision of this part or any rule or regulation of the board prescribed and adopted under this part, relating to fuel vendors, the board upon hearing, after giving the vendor at least 10 days' notice in writing specifying the time and place of hearing and requiring the vendor to show cause why his or her permit should not be revoked, may revoke or suspend the permit held by the vendor. The board shall give to the person written notice of the suspension or revocation of his or her permit. The notices may be served personally or by mail in the manner prescribed for service of notice of a deficiency determination. The board shall not issue a new permit to a vendor whose permit has been revoked or reinstate the permit of a vendor whose permit has been suspended or revoked unless it is satisfied that he or she will comply with the provisions of this part and the rules and regulations of the board, and the vendor pays to the board a fee of fifty dollars ($50) for the reinstatement or issuance of a permit. The fee shall not be subject to refund except as provided in Section 9151.
History—Added by Stats. 1953, p. 3597, in effect September 9, 1953. Stats. 1959, p. 2427, in effect September 18, 1959, added "or reinstate the permit of a vendor whose permit has been suspended or revoked", reworded the next to last sentence and added the last. Stats. 1966, p. 1881, in effect April 18, 1966, operative July 1, 1966, substituted "fifteen" for "ten" dollars. Stats. 1990, Ch. 1528, in effect January 1, 1991, substituted "the vendor" for "him" after "requiring", added "or her" after "his", substituted "the vendor" for "him" after "permit held by", in first sentence; added "or her" after "him" in the second sentence; and added "or she" after "him" and substituted "fifty dollars ($50)" for "fifteen dollars ($15)" in the fourth sentence.
8715. Operation after suspension. It is unlawful for any person to operate as a vendor of fuel in this State without a permit or after a permit has been suspended or revoked.
History—Added by Stats. 1953, p. 3597, in effect September 9, 1953. Stats. 1957, p. 3227, in effect September 11, 1957, operative October 1, 1957, added "or revoked."
8716. Notification; cease operations; transfers. (a) A permit shall be held only by persons actively engaging in or conducting a business as a vendor of fuel taxable under this part. Any person not so engaged shall forthwith surrender his or her permit to the board for cancellation. The board may revoke the permit of a person found to be not actively engaged in or conducting a business as a vendor of fuel taxable under this part.
(b) If the permit holder who transfers a business does not notify the board of the transfer, or deliver the permit to the board for cancellation, and the transferee, with the permit holder's actual or constructive knowledge, uses the permit in any way, the transferor shall be liable for taxes under this part, interest computed as specified in Section 8777, and those penalties imposed pursuant to subdivision (c).
(c) The transferor shall be liable for penalties incurred by the transferee under Sections 8779, 8876, and 9352, but shall not be liable for penalties incurred by the transferee under Sections 8780 and 9353. However, the board may, at its discretion, relieve the transferor from liability for penalties incurred by the transferee.
History—Added by Stats. 1989, Ch. 768, in effect January 1, 1990.