Sales to the United States Government (Publication 102)
Special Taxes and Fees

Special taxes and fees

In addition to sales and use tax, the State of California imposes several special taxes and fees. The manner in which these other taxes and fees apply to sales to the United States (U.S.) government varies. Below are the general rules for the application of the taxes and fees we administer.

Motor Vehicle Fuel Tax

Sales of motor vehicle fuel to the United States and its agencies and instrumentalities are subject to the motor vehicle fuel tax, except when sold to the U.S. government armed forces for use in ships or aircraft, or for use outside of California. A licensed supplier making an exempt sale of motor vehicle fuel without tax should retain supporting documentation, such as a U.S. government purchase order from the armed forces branch purchasing the motor vehicle fuel. Any person who makes sales of tax-paid motor vehicle fuel to the U.S. armed forces for use in ships or aircraft, or for use outside of California, may file a claim for refund for the tax paid with the California State Controller. Or, in lieu of filing a claim for refund with the State Controller, a licensed supplier may claim a credit on CDTFA-501-PS, Supplier of Motor Vehicle Fuel Tax Return.

Diesel Fuel Tax

Sales of diesel fuel to the United States and its agencies and instrumentalities are not subject to the diesel fuel tax. Agencies and instrumentalities of the United States include, but are not limited to, the American Red Cross, U.S. Postal Service, branches of the armed services and military exchanges, and agencies such as the U.S. Department of Agriculture Forest Service and the U.S. Department of Housing and Urban Development.

A licensed supplier making sales to the United States should retain government purchase orders or other supporting documentation and may claim an exemption on CDTFA-501-DD, Supplier of Diesel Fuel Tax Return. If the diesel fuel tax was paid on the diesel fuel sold to the United States, its agencies, or its instrumentalities, in lieu of filing a claim for refund, a licensed supplier may claim a credit on CDTFA-501-DD. A licensed ultimate vendor may claim a refund on CDTFA-770-DV, Diesel Fuel Ultimate Vendor Report/Claim for Refund.

A diesel fuel seller not required to be licensed may file a claim for refund for the tax-paid gallons of diesel fuel it sold to the United States and its agencies and instrumentalities without collecting tax reimbursement. The claim for refund may only be filed by the person who owned the tax-paid diesel fuel and directly sold the tax-paid diesel fuel to the United States or its agencies and instrumentalities.

Emergency Telephone Users Surcharge

The Emergency Telephone Users Surcharge is not imposed upon the United States, its agencies and instrumentalities, its unincorporated agencies or instrumentalities, the American National Red Cross, or a corporation wholly owned by the United States. For additional information, see our Tax Guide for Sellers of Prepaid Mobile Telephony Services (MTS) and Telecommunication Service Suppliers.

Environmental Fee

The United States and its agencies and instrumentalities are not subject to California's Environmental Fee. For additional information, see publication 90, Environmental Fee.

Covered Electronic Waste Recycling (eWaste) Fee

Sales to government entities are subject to the eWaste Fee. For additional information, see publication 95, Electronic Waste Recycling Fee.

California Tire Fee

Sales to government entities are subject to the California Tire Fee. For additional information, see publication 91, California Tire Fee.

Lead-Acid Battery Fees

Government entities are subject to both the California battery fee and manufacturer battery fee. The definitions of a person or manufacturer who are subject to the fees, as applicable, include, among other government entities, the United States and its agencies and instrumentalities to the extent permitted by law. For additional information, see our Lead-Acid Battery Fees Guide.

Underground Storage Tank Maintenance Fee

The underground storage tank maintenance fee is not imposed upon the United States, its agencies and instrumentalities, its unincorporated agencies or instrumentalities, or a corporation wholly owned by the United States. For additional information, see publication 88, Underground Storage Tank Fee.