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Business Taxes Law Guide—Revision 2024
Diesel Fuel Tax Annotations
Penalties
No Daily Limit on Penalty For Unlicensed Interstate Users Entering California (Section 60361(b)). When a person becomes a supplier, exempt bus operator, government entity, qualified highway vehicle operator or interstate user without first obtaining a license, in those instances where the board does not determine an amount of tax due, the board must assess a penalty of $100. The penalty increases by $100 for each subsequent violation up to a maximum of $500. If an unlicensed interstate user, such as a bus company with more than one bus carrying passengers from Las Vegas to Los Angeles, were to enter California multiple times on a single day, the bus company would be assessed a penalty of $100 and would be required to purchase a California Fuel Trip Permit for each bus entering the state. (The California Fuel Trip Permit is valid for four days.) For each company bus that subsequently entered the state without a valid California Fuel Trip Permit, the unlicensed company would be required to purchase a California Fuel Trip Permit, and the initial $100 penalty would be increased by $100 for each such entry up to the maximum penalty of $500, irrespective of the fact that the violations occurred on a single day. 9/09/03.