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Business Taxes Law Guide – Revision 2022
 

Motor Vehicle Fuel Tax Regulations

Title 18. Public Revenues
Division 2. California Department of Tax and Fee Administration—Business Taxes (State Board of Equalization – Business Taxes, See Chapters 6 and 9.9)
Chapter 1. Motor Vehicle Fuel Tax

Article 1. General Provisions and Definitions


Regulation 1101. Motor Vehicle Fuel.

Reference: Sections 7304, 7306, 7307, 7313, 7316, 7317, 7318, and 7326, Revenue and Taxation Code.

(a) "Motor vehicle fuel" includes aviation gasoline, gasohol, finished gasoline, gasoline, gasoline blendstocks, and blended motor vehicle fuel.

"Motor vehicle fuel" does not include diesel fuel, jet fuel, kerosene, liquefied petroleum gas, natural gas in liquid or gaseous form, or racing fuel. "Motor vehicle fuel" does not include ethanol (ethyl alcohol), methanol (methyl alcohol), or blends of gasoline and alcohol (including any denaturant) containing 15 percent, or less, gasoline.

(b) "Aviation gasoline" means all special grades of gasoline that are suitable for use in aviation reciprocating engines and covered by ASTM specification D 910 or military specification MIL-G-5572.

(c) "Finished gasoline" means all products (including gasohol) that are commonly or commercially known or sold as gasoline and are suitable for use as a motor fuel, other than products that have an ASTM octane number of less than 75 as determined by the motor method.

(d) "Gasohol" means all blends of gasoline and alcohol (including any denaturant) containing more than 15 percent gasoline.

(e) "Gasoline" means finished gasoline and gasoline blendstocks.

(f) "Gasoline Blendstocks"

(1) "Gasoline blendstocks" includes:

(A) Alkylate;

(B) Butane;

(C) Butene;

(D) Catalytically cracked gasolin;

(E) Coker gasoline;

(F) Ethyl tertiary butyl ether (ETBE);

(G) Hexane;

(H) Hydrocrackate;

(I) Isomerate;

(J) Light naphtha;

(K) Methyl tertiary butyl ether (MTBE);

(l) Mixed xylene (not including any separated isomer of xylene);

(M) Naphtha;

(N) Natural gasoline;

(O) Pentane;

(P) Pentane mixture;

(Q) Polymer gasoline;

(R) Raffinate;

(S) Reformate;

(T) Straight-run gasoline;

(U) Straight-run naphtha;

(V) Tertiary amyl methyl ether (TAME);

(W) Tertiary butyl alcohol (gasoline grade) (TBA);

(X) Thermally cracked gasoline;

(Y) Toluene; and

(Z) Transmix containing gasoline.

(2) "Gasoline blendstocks" does not include any product that cannot, without further processing, be used in the production of finished gasoline. For example, a mixed hydrocarbon stream that is produced in a natural gas processing plant is not a gasoline blendstock if the stream cannot be used to produce finished gasoline without further processing.

(g) "Blended motor vehicle fuel" means any mixture of motor vehicle fuel with respect to which tax has been imposed and any other liquid on which tax has not been imposed. "Blended motor vehicle fuel" also means any conversion of a liquid into motor vehicle fuel. "Conversion of a liquid into motor vehicle fuel" occurs when any liquid that is not included in the definition of motor vehicle fuel and that is outside the bulk transfer/terminal system is sold as motor vehicle fuel, delivered as motor vehicle fuel, or represented to be motor vehicle fuel. "Blended motor vehicle fuel" does not include racing fuel.

(h) "Racing fuel" means a fuel that meets all of the criteria for leaded racing fuel set forth in subdivision (1) or all of the criteria for unleaded racing fuel set forth in subdivision (2).

(1) Leaded Racing Fuel.

(A) Generally is used in vehicles not eligible to be registered for highway use in any state;

(B) Is not diesel fuel, kerosene, or gasoline blendstock;

(C) Has an octane rating of 100 or higher;

(D) Contains 1.0 gram of lead per gallon or more;

(E) Does not meet the ASTM specification (D 4814) for gasoline.

(2) Unleaded Racing Fuel.

(A) Is not diesel fuel, kerosene, or gasoline blendstock;

(B) Has an octane rating of 100 or higher;

(C) Does not meet the California Air Resources Board specification for gasoline.

History—Effective March 15, 1948.

Amended Effective September 1, 1953.

Amended Effective September 8, 1962.

Amended December 8, 1970, effective January 15, 1971.

Amended July 28, 1982, effective December 5, 1982. Added the last sentence of each paragraph referring to gas—alcohol blends, ethanol and methanol.

Amended May 6, 1986, effective July 18, 1986. In first paragraph, defines "motor vehicle fuel" to include "aviation gasoline". In second paragraph, defines "motor vehicle fuel" to exclude certain inflammable liquids.

Amended March 27, 2002, effective July 11, 2002. Totally revised regulation to reflect changes in the definition of motor vehicle fuel under the Motor Vehicle Fuel Tax Law that took effect on January 1, 2002. Added Subdivisions (a) through (h) to provide additional definitions, and added explanations and list of motor vehicle fuels, gasoline blendstocks, and racing fuels.


Regulation 1105. Tax-Paid Fuel and Ex-Tax Fuel.

Reference: Sections 7345, 7401, 7653, 8101, and 8106, Revenue and Taxation Code.

(a) "Tax-paid fuel" is the gallonage of motor vehicle fuel acquired with the California motor vehicle fuel tax paid. An acquisition of motor vehicle fuel will be considered tax-paid only if it can be supported by one of the following:

(1) A sales invoice or a contract which clearly states that the tax is included in the invoice or contract and proof that the amount representing motor vehicle fuel tax has been paid, or

(2) A motor vehicle fuel purchase receipt showing that the amount paid for the fuel included the motor vehicle fuel tax, or

(3) Other documentation showing that the motor vehicle fuel tax has been paid to the state.

(b) "Ex-tax fuel" is the gallonage of motor vehicle fuel acquired without the California motor vehicle fuel tax paid.

History—Adopted February 5, 1986, effective May 4, 1986. In subdivision (a)(1) added definition of tax-paid fuel and explains the support required to consider the fuel tax paid. In subdivision (a)(2) added definition of ex-tax fuel. In subdivision (b)(1) added explanation that a distributor or broker is relieved of further liability of tax on the number of gallons upon which the tax has been paid. In subdivision (b)(2) added explanation that a distributor is not relieved of its liability to report and pay tax on taxable distributions when the distributor fails to invoice or collect the tax. In subdivision (b)(3) added explanation that a distributor is liable to the state for the tax on ex-tax fuel distributed to a qualified distributor when the distributor indicates the fuel is tax-paid fuel by invoicing or collecting the tax.

Amended March 27, 2002, effective July 11, 2002. Repealed former subdivisions (b)(1), (b)(2), and (b)(3) because tax is imposed on a supplier upon removal, entry, or sale of motor vehicle fuel instead of on the distribution by a distributor or broker, pursuant to change in Motor Vehicle Fuel Tax Law that took effect on January 1, 2002. Therefore, on and after January 2, 2002, it is no longer necessary to explain the continuing tax liability of a distributor upon distribution of fuel. Subdivisions (a) and (b) revised to clarify definitions of "tax-paid fuel" and "ex-tax fuel". Added subdivision (a)(2) to define purchase receipt which shows that tax was included in the amount a purchaser paid for the motor vehicle fuel as the type of documentation which supports a claim that fuel is tax-paid.

Amended May 31, 2012, effective July 10, 2012. Replaced the reference to Revenue and Taxation Code section "8106.8" with a reference to Revenue and Taxation Code section "8106" in the reference note.


Regulation 1111. Highway.

Reference: Section 7319, Revenue and Taxation Code.

A highway includes a way or place, of whatever nature, within the exterior boundaries of the State including a way or place within a Federal area, publicly maintained and open to the use of the public for purposes of vehicular travel, notwithstanding private participation in the maintenance of the way or place.

A way or place within a national or state forest which is entirely privately maintained, or a road over which forest products are transported in a national or state forest privately constructed or maintained pursuant to an existing agreement with the public authority having jurisdiction thereof will not be considered a highway notwithstanding the fact that it may be declared by the public authority to be a part of its road system.

A way or place under the jurisdiction of the United States Department of Agriculture within a national forest including private property within or adjacent thereto, which way or place is open to public use, is a highway but the tax is refundable on the fuel used in the operation of a motor vehicle thereon by any person who for the use of such highway pays, or contributes to, the cost of construction or maintenance of the way or place pursuant to an agreement with, or permission of, the United States Department of Agriculture. (See Section 8101.1, Revenue and Taxation Code.)

A way or place is not a highway within the meaning of Section 7319 of the Revenue and Taxation Code, during such times as it is closed by the governmental authority to the use of the public regardless of the purpose for which it is closed. A highway is open to the use of the public if vehicular travel is permitted although subject to traffic controls.

History—Effective March 21, 1958.

Amended December 5, 1968, effective January 8, 1969.

Change without regulatory effect amending last paragraph and amending Note filed June 5, 2002.