Aircraft Jet Fuel Tax
Industry Topics

Definitions

Definitions of terms used in the aircraft jet fuel (AJF) industry:

  • Aircraft Jet Fuel means any inflammable liquid which is used or sold for use in propelling aircraft operated by the jet or turbine type of engine.
  • Aircraft Jet Fuel Dealer means any person who sells to an AJF user AJF delivered in this state into the fuel tanks of aircrafts or into a storage facility from which the fuel is withdrawn for use in aircrafts.
  • Aircraft Jet Fuel User means any person who uses AJF for the propulsion of an aircraft in this state, except for the following:
    • A common carrier by air engaged in the business of transporting people or property for hire or compensation under a Certificate of Public Convenience and Necessity issued by the U.S. Department of Transportation or a foreign government.
    • A person engaged in the business of constructing or reconstructing by manufacture or assembly of completed aircrafts, or modifying, overhauling, repairing, maintaining, or servicing of aircrafts.
    • The United States Armed Forces.

Excluded from Definition of Aircraft Jet Fuel User

The following are not included in the definition of AJF user:

  • Engine overhaulers who are engaged in the overhaul and repair of jet aircraft engines are excluded from the definition of an AJF user, even though the overhaul and repair work are performed on only a part of the aircraft, such as the engine. Further, the exclusion applies whether the engine that is being overhauled or repaired is attached to an aircraft or not.
  • Foreign government sales are exempt since foreign governments are not included in the definition of “person” under the Motor Vehicle Fuel Tax Law: as a result, foreign governments are not AJF users. Therefore, AJF dealers are not liable for the tax on sales of AJF to foreign governments.

Sustainable Jet Fuel

Sustainable jet fuel is a biofuel used to power aircraft that has similar properties to conventional AJF but with a smaller carbon footprint. It is considered AJF and it is subject to the AJF tax in the same manner as conventional AJF.

Inventory Position Holder

As an inventory position holder making sales to other licensed suppliers, you are not required to register as an AJF dealer. However, if you are a diesel fuel supplier, you are required to report terminal receipts and disbursements of AJF.

Sales and Use Tax

The AJF tax is part of gross receipts and should be included in the calculation of gross receipts subject to sales and use tax.

Refunds

For deadlines to file a refund, please visit our Resources page.

Overpayment by Aircraft Jet Fuel Dealers

AJF dealers who overpay their taxes on their Aircraft Jet Fuel Dealer Tax Return may file a claim for refund using our online services webpage, or may file a claim using CDTFA-101, Claim for Refund or Credit.

Overpayment by Aircraft Jet Fuel Users and Nonusers

AJF users and nonusers may not file a claim for refund with us for taxes paid in error when purchasing jet fuel. AJF users who overpaid the AJF tax and nonusers who are charged tax in error may request a refund of the tax from the dealer.

Record Retention

AJF dealers must maintain complete records of all activities. These include sales or other dispositions of jet fuel including fuel used by the AJF dealer, a record of inventories, purchases, and tank gauge or meter readings.

Such records include but are not limited to:

  • Sales invoices
  • Exemption certificates
  • Purchase orders