Getting Started with Use Fuel

Use Fuel Tax

The following are examples of fuel types subject to use fuel tax:

  • Liquefied petroleum gas (LPG; a mixture of light gaseous hydrocarbons [for example, ethane, propane, butane, among others] made liquid by pressure)
  • Liquid natural gas and compressed natural gas (LNG, CNG)
  • Dimethyl ether (DME)
  • Dimethyl ether-liquefied petroleum gas blends (DME-LPG)
  • Kerosene
  • Alcohol fuels (ethanol, methanol)
  • Blended alcohol fuels containing 15%, or less, gasoline by volume
  • Distillate
  • Stove oil

If you sell or use a product not listed in this section, please contact our Motor Carrier Office (MCO) to determine whether it is subject to the use fuel tax law.

Licenses and Permits Required

Depending on your business activities, you may need a seller's permit, multiple fuel tax licenses, permits, and accounts.

You are generally required to register with us for the following fuels: liquified petroleum gas (LPG, Propane, Butane), dimethyl ether (DME), dimethyl ether-liquefied petroleum gas blends (DME-LPG), liquid natural gas and compressed natural gas (LNG or CNG), or any of the alcohol fuels or alcohol fuel blends. See the chart below to determine the type of Use Fuel Tax Permit you need:

Use Fuel Tax — Permit Requirements
My activities are: Account Type Permit Type
I sell and deliver fuels that are subject to use fuel tax into the fuel talk of a motor vehicle. Alternative Fuel Vendor Vendor Use Fuel Tax Permit
I use fuels that are subject to use fuel tax:
  • to propel a vehicle weighing more than 7,000 pounds
  • to propel a commercial vehicle weighing less than 7,000 pounds and pay the flat rate tax
  • to propel construction equipment or farm equipment
 Alternative Fuel User User Use Fuel Tax Permit
I use fuels that are subject to use fuel tax in a qualified motor vehicle for occasional trips into California.

A qualified motor vehicle:
  • Has three or more axles; or
  • Has two axles and a gross vehicle or registered gross vehicle weight of more than 26,000 pounds or 11,797 kilograms; or
  • Is used in a combination that has a combined or registered gross vehicle weight of more than 26,000 pounds or 11,797 kilograms.
 IFTA Carrier Tax
IFTA License and Decal		 IFTA License or California Fuel Trip Permit
I am a transit bus operator who operates public or private transit companies and use fuels that are subject to use fuel tax to propel transit buses. Alternative Fuel Exempt Bus Exempt Bus Operator Use Fuel Tax Permit
  1. Certain public and private operators of transit bus services are eligible for the Exempt Bus Operator Use Fuel Tax Permit. However, charter-party carriers of passengers, as defined in section 5360 of the Public Utilities Code, are not considered transit operators, and do not qualify for the permit. Nor do carriers that provide the transportation services described in subdivisions (a) and (e) of section 5353 of the Public Utility Code qualify for the permit if such transportation service is rendered as a contract carrier and not as a common carrier of passengers. See our Exempt Bus Operator section in our Vendor tab.

Flat Rate Fuel Tax Decal Program

Exempt Bus Operator and User Use Fuel Tax Permit holders may choose to register for the flat rate fuel tax decal.

The flat rate fuel tax decal allows you to pay your use fuel tax at an annual flat rate to us as an alternative to paying the tax to your vendors. You may renew your annual flat rate tax decal by logging into your online services account.

The annual flat rate tax is based on the type and weight of the vehicle, as listed below:

Vehicle Type and Size Annual Flat Rate
All passenger vehicles and vehicles with automobile license plates $ 36
Vehicles with an unladen weight of 4,000 lbs. or less $ 36
Vehicles with an unladen weight of 4,001 lbs. to 8,000 lbs. $ 72
Vehicles with an unladen weight of 8,001 lbs. to 12,000 lbs. $ 120
Vehicles with an unladen weight of 12,001 lbs. or more $ 168

For more information on the Flat Rate Fuel Tax Decal Program, please visit our User page.

California Fuel Trip Permit

If you qualify as a user under the use fuel tax program but choose not to register, you must obtain a California Fuel Trip Permit (CFTP) for your trips into or through California.

The CFTP must be purchased and completed before you enter California. Please see the California Fuel Trip Permit page for more information.

Tax Rates

Please visit the Tax Rates — Special Taxes and Fees webpage to view current and historical use fuel tax rates.

Use Fuel Tax Returns

All applicable use fuel tax returns must be filed even if no transactions occurred during the reporting period. The return and payment are due on the last day of the month following the close of the reporting period. For example, a third quarter (July–September) return would be due October 31. You may be required to file other returns or reports with us.

Listed below are the applicable use fuel tax returns required by each filer type. For more information, see our Vendor and User pages. You may file your returns using our online services webpage.

Use Fuel Tax Forms
License/Permit Required Type of Filer Form Number Tax Form Title
Vendor Use Fuel Tax Permit Vendor CDTFA-501-AV Vendor User Fuel Tax Return
User Use Fuel Tax Permit User CDTFA-501-AU User Use Fuel Tax Return
Exempt Bus Operator Use Fuel Tax Permit Exempt Bus Operator CDTFA-501-AB Exempt Bus Operator Use Fuel Tax Return

Claim for Refund

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