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Business Taxes Law Guide—Revision 2024
Use Fuel Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 3. Use Fuel Tax
Chapter 2. Imposition of Tax.
Section 8651.6
8651.6. Rate; natural gas. (a) (1) Notwithstanding the provisions of Sections 8651 and 8651.5, on or after January 1, 1971, and before January 1, 2015, the excise tax imposed upon natural gas shall be at the rate of seven cents ($0.07) for each 100 cubic feet of compressed natural gas used, measured at standard pressure and temperature, and at a rate of six cents ($0.06) for each gallon of liquid natural gas used.
(2) Notwithstanding the provisions of Sections 8651 and 8651.5, on or after January 1, 2015, an excise tax imposed upon natural gas shall be imposed as follows:
(A) The rate of eight and eighty-seven hundredths cents ($0.0887) for each 126.67 cubic feet, or 5.66 pounds, of compressed natural gas used, measured at standard pressure and temperature.
(B) The rate of ten and seventeen hundredth cents ($0.1017) for each 6.06 pounds of liquid natural gas used.
(b) (1) All references in this code to Section 8651 shall, with respect to the rate imposed upon natural gas on or after January 1, 1971, also refer to this section.
(2) (A) Neither the tax imposed by this section nor the tax imposed by Section 8651 shall apply to the use of compressed natural gas or liquid natural gas used in a vehicle during any period of time for which the owner or operator of the vehicle has paid the annual flat rate fuel tax as provided in Section 8651.7.
(B) To the extent that an owner or operator has provided written representation to a fuel seller that the owner or operator has prepaid the annual flat rate fuel tax as provided in Section 8651.7, the owner or operator shall be solely responsible for the taxes due under this part and the fuel seller shall not be liable for collecting and remitting those taxes.
History—Added by Stats. 1970, p. 2997, in effect November 23, 1970. Stats. 1975, Ch. 807, operative January 1, 1976, added sentence referring to Section 8651.7. Amended by Stats. 2014, Ch. 805 (AB 1907), effective January 1, 2015, added subdivision letter (a)(1) to, and deleted the last two sentences of, the former sole paragraph; added paragraph (2), to subdivision (a); and added subdivision (b).
Amended by Stats. 2014, Ch. 805 (AB 1907), effective January 1, 2015, added subdivision letter (a)(1) to, and deleted the last two sentences of, the former sole paragraph; added paragraph (2), to subdivision (a); and added subdivision (b).