Regulation 1435, Tax Paid Twice on Diesel Fuel

The California Department of Tax and Fee Administration proposes to amend Regulation 1435, Tax Paid Twice on Diesel Fuel. The proposed amendments clarify when a supplier that paid diesel fuel tax on diesel fuel removed from an approved terminal at the rack may file a claim for refund with the Department or take a credit on its tax return under Revenue and Taxation Code sections 60501(a)(4)(J) or 60508, respectively, because the supplier paid tax twice on the same amount of diesel fuel. The proposed amendments make Regulation 1435 more consistent with section 60501(a)(4)(J), include real-world examples that were developed with interested parties, and define terms used to refer to different types of diesel fuel.