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Business Taxes Law Guide—Revision 2024

BTLG Table of Contents > Hazardous Substances Tax Annotations > Exemptions > entire annotation

Hazardous Substances Tax Annotations

Exemptions

Banks and Financial Institutions

Banks and financial institutions are not subject to the various hazardous substances fees and taxes by virtue of section 23182 of the Revenue and Taxation Code, which provides for an in lieu tax to be imposed on those institutions. 4/29/88.

Banks and Financial Institutions—Banks Operating Nonbanking Businesses

The "in lieu" exemption provided to banks applies as well to bank-operated businesses and to activities which are performed by a bank but are unrelated to the banking function. However, if the activities are conducted by a separate entity, even one wholly-owned by the bank, those activities are not covered by the "in lieu" exemption. 11/3/89.

Banks and Financial Institutions—Factoring Companies

Factoring companies which pay the "in lieu" tax are financial institutions and thus exempt from the hazardous waste fees and taxes. 7/20/93.

Cleaning and Recycling of Underground Storage Tanks

The cleaning and recycling of underground storage tanks is an exempt activity (Health and Safety Code section 25205.12(c)). In addition, any storage of residue from the tanks incidental to such cleaning and recycling is also exempt. 7/11/94.

Fraternal Societies

Fraternal benefit societies organized in accordance with Chapter 10 of the Insurance Code are exempt from hazardous waste fees and taxes. 7/9/93.

Government Agency—Act of Nature

A state college was exempt from the hazardous waste land disposal fee and generator fee concerning the abatement of hazardous waste which directly resulted from an act of nature, such as an earthquake. However, the college was still subject to the fees on any hazardous wastes which were not directly caused by the act of nature or which were generated during routine operation and maintenance activities. 8/21/95.

Government Agency—Burden of Proof

While a government agency is exempt from land disposal and generator fees with respect to removal of hazardous waste which was generated by others (Health and Safety Code section 25174.7(a)), it has the burden of showing that the agency or the city for which it is acting was not responsible for generating the waste. 6/1/93.

Government Agency—Consent Decree with EPA

A feepayer who conducts remedial action as a result of a consent decree with the U.S. Environmental Protection Agency (EPA) does not thereby become an agent of the EPA and does not qualify for the exemption from the land disposal fee and generator fee for a government agency cleaning up a release of waste caused by another person (Health and Safety Code section 25174.7(a)). 1/24/95.

Government Agency—County Airport Cleanup

The County operated an airport for use by the public, and as part of that service, provided a concrete wash pad for the convenience of cropdusters that used the airport. The cropdusters used the wash pad when rinsing their airplanes, including the inside of tanks that previously contained dilute pesticide solutions. Runoff containing unknown pesticide concentrations flowed into the unlined earthen collection pond for evaporation. At a later time, this activity was discontinued and contaminated soil was removed from the pond site and submitted for disposal. The County is exempt from hazardous waste fees under section 25174.7(a)(1) since it was members of the public, and not the County, that caused the release of hazardous waste when they rinsed their airplanes and pesticide tanks. 6/30/98. (Am. M99–1).

Government Agency—Demolition of Buildings by Redevelopment Agency

A redevelopment agency acquired buildings in which asbestos had been used in construction. The agency intended to demolish the buildings. Local agencies are exempt from generator fees with respect to hazardous wastes which result from the removal or remediation by the agency of a release of hazardous waste by another person. In this case there was no release of waste, hazardous or otherwise, until the agency began the demolition of the buildings. Accordingly, the agency did not qualify for the exemption on its generation of waste from the demolition of the buildings. 11/27/89.

Government Agency—Generator Fee and Disposal Fee

When a government agency or its contractor removes or remedies a release of hazardous waste in the state caused by another, neither the disposal fee nor the generator fee applies. The exemption from payment of fees applies irrespective of who the generator is or who owns the property on which the contaminated soil is located. 11/04/96.

Government Agency—Gravel Containing Asbestos

Hazardous waste fees were due concerning hazardous waste generated and disposed of when a school district removed asbestos-containing gravel that had been used for a running track and as road base. There is no exemption for asbestos-containing waste materials which are in a form similar to that in which asbestos naturally occurs. 8/1/90.

Government Agency—Publicly Owned Utilities

Publicly owned utilities such as municipal water or electrical districts are government agencies for purposes of the hazardous waste fee exemption in Health and Safety Code section 25174.7(a)(1). 7/28/95.

Government Agency—Sewer Line Cleanup

A company discharged lead waste into the municipal sewer system in violation of the city's ordinances and a pretreatment plan submitted by the company. The city was exempt from the land disposal fee and generator fee concerning hazardous waste generated while the city endeavored to bring the company into compliance with its discharge requirement and while the city and the company cleaned out the contaminated sewer lines. 12/10/93.

Government Agency—Special Masters

A special master appointed by the federal court to operate a corporation is not acting as an agent of the federal government. Any fees that would normally be due from the corporation would also be during the operation of the corporation by the special master. 5/19/95.

Used Oil—Bilge Water

Beginning January 1, 1995, bilge water does not come within the definition of "used oil" and is therefore no longer exempt from the generator fee as used oil removed from a motor vehicle. 3/7/95.

Used Oil—Exemption Applies to Locomotives

The exemption from the generator fee for used oil removed from a motor vehicle applies to oil removed from the crankcases of locomotives. 9/20/91.

Used Oil—Exemption Applies to Vessels

The exemption from the generator fee for used oil removed from a motor vehicle applies to oil removed from vessels. 5/14/90.

Used Oil—Off-Road Equipment

For purposes of the exemption from the generator fee for used oil removed from a motor vehicle, the term "motor vehicle" includes off-road equipment which is self-propelled, whether or not the equipment moves or is permitted to move on public highways. 2/3/94.

Used Oil—Removed from a Barge

The exemption from the generator fee for used oil removed from a motor vehicle does not apply to used oil removed from a barge. 6/9/94.

Waste Transported Offsite for Recycling

Waste materials which are recycled and used onsite and are not transferred offsite are not hazardous wastes under section 25205.5 of the Health and Safety Code. However, hazardous waste transported offsite is subject to the generator fee whether or not some or all of the waste will be recycled. 4/6/95. (Am 2003-1). (Note: subsection (e) has been renumbered.)