Laws, Regulations and Annotations


Business Taxes Law Guide – Revision 2024

Diesel Fuel Tax Annotations

Refund of Tax Based on Use

Diesel Fuel Used In Manufacture Of Fuel Additives. Diesel fuel purchased for use in the manufacture of fuel additives, which additives are not used to propel motor vehicles but instead to improve fuel combustion, clean valves, and reduce emissions, is used for purposes other than operation of motor vehicles upon the public highways of this state. A person purchasing diesel fuel for this use is entitled to a refund of the Diesel Fuel Tax paid on the fuel. 2/23/96.

Fuel Included in Rental. A business sells taxpaid diesel fuel in conjunction with off-highway diesel equipment the business rents to customers. Since the business sold the fuel to its customers, it cannot claim a refund of the tax under section 60501. 1/22/98. (M99–1, Am. 2001–1).

Off-Highway Use—Airport Roads. Roads within an airport which are not maintained by a public agency are not considered publicly maintained highways as defined in Revenue and Taxation Code section 60016. Therefore, Diesel Fuel Tax paid for diesel fuel used in motor vehicle on such roads within an airport is refundable as off-highway usage. 2/18/98. (M99–1).