Laws, Regulations and Annotations


Business Taxes Law Guide – Revision 2022

Sales And Use Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 4. Exemptions

Article 1. General Exemptions

Section 6358.1

6358.1. Fuel; organic products and waste byproducts. (a) There are exempted from taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this state of either of the following:

(1) Organic products grown expressly for fuel purposes.

(2) Waste byproducts from agricultural or forest products operations, municipal refuse, or manufacturing, which are used in an industrial facility as a fuel source in lieu of the use of either oil, natural gas or coal.

(b) In addition to subdivision (a), the exemption under this section shall include the use of still gas produced in the refining process from purchased crude oil.

History—Added by Stats. 1980, Ch. 1248, operative January 1, 1981 until December 31, 1986 and as of such date is repealed, unless a later enacted statute, chaptered before December 31, 1986, deletes or extends such date. Stats. 1983, Ch. 1059, in effect January 1, 1984, deleted "delivered in bulk and are" after "which are" in subdivision (b) and added subdivision (c). Stats. 1986, Ch. 254, effective July 3, 1986, deleted the expiration date of the exemption.

Note.—Section 2 of Stats. 1983, Ch. 1059, provided, "Section 1 of this act, which amends Section 6358.1 of the Revenue and Taxation Code, does not constitute a change in, but is declaratory of, the existing law. It is the intent of the Legislature in enacting this act to clarify existing law.

Petroleum coke is waste by product.—The court agreed with the taxpayer that fuel-grade petroleum coke was tax exempt as a waste by product despite the fact that the coke was sold for use as fuel in a chemical manufacturing facility. The coke was a solid by product of taxpayer's crude oil refinery. Union Oil v. State Board of Equalization (1990) 224 Cal.App.3d 665.