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(2) A tank used for storing heating oil for consumptive use on the premises where stored.
(3) A tank which meets all of the following conditions:
(A) All exterior surfaces of the tank, including connected piping, and the floor directly beneath the tank, can be monitored by direct viewing.
(B) The structure in which the tank is located is constructed in such a manner that the structure provides for secondary containment of the contents of the tank, as determined by the local agency designated pursuant to Section 25283 of the Health and Safety Code.
(C) The owner or operator of the underground storage tank conducts daily inspections of the tank and maintains a log of inspection results for review by the local agency designated pursuant to Section 25283 of the Health and Safety Code, as requested by the local agency.
(D) The local agency designated pursuant to Section 25283 of the Health and Safety Code determines without objection from the State Water Resources Control Board that the underground storage tank meets requirements which are equal to or more stringent than those imposed by Division 20, Chapter 6.7 of the Health and Safety Code, commencing with Section 25280.
Note: Authority cited: Section 50152, Revenue and Taxation Code; and Section 25299.42, Health and Safety Code. Reference: Sections 50107, 50108.1, 50109 and 7355, Revenue and Taxation Code; Sections 25281, 25283.5, 25299.20, 25299.22, 25299.24, 25299.41 and 25299.43, Health and Safety Code; Title 18, Section 1121, California Code of Regulations; and Section 280.12, 40 Code of Federal Regulations.
s 1205. Fee Payer; Rebuttable Presumption.
The fee is due from the owner of an underground storage tank for which a permit is required pursuant to Section 25284 of the Health and Safety Code. There is a rebuttable presumption that the owner of the real property is the owner of the underground storage tank located on the property, even if the property is leased to another person. This presumption may be overcome by showing that ownership of the tank rests with someone other than the real property owner. Evidence to rebut the presumption may include, but is not limited to, the following:
(a) The lessee installed the underground storage tank at the location, and the lease agreement gives the lessee the right to remove the tank at the termination of the lease, regardless of whether the lessor's approval of the removal is required.
(b) The lessee installed the underground storage tank at the location, and the lease agreement states that any improvements installed by the lessee are the property of the lessee during the term of the lease.
(c) Documentation, such as a bill of sale, shows the transfer of ownership of the tank to a person other than the real property owner.
(d) The underground storage tank is depreciated on the state or federal income tax returns of a person other than the real property owner.
(e) The underground storage tank existed at the premises at the time the lease agreement was signed, and the lease agreement specifies that the underground storage tank is owned by and title thereto is vested in the lessee during the term of the lease.
Note: Authority cited: Section 50152, Revenue and Taxation Code; and Section 25299.42, Health and Safety Code. Reference: Section 50107, Revenue and Taxation Code; and Sections 25299.21, 25299.41 and 25299.43, Health and Safety Code.
s 1212. Liability for Fee.
(a) The fee is imposed upon the owner of an underground storage tank for each gallon of petroleum placed into the tank. The owner of the tank is liable for payment of the fee regardless of whether the owner is the operator of the underground storage tank and is liable for the fee even if the owner and operator have entered into an agreement that requires the operator to pay the fee to the board.
(b) The fee is due regardless of whether the fee has previously been paid for gallons of petroleum that were removed from an underground storage tank and placed into another underground storage tank or redeposited into the same tank in which they were previously stored.
(c) An owner is liable for the fee on all gallons placed in the underground storage tank(s) he or she owns. Where the owner requires a certain brand of fuel to be placed in a tank and the operator also places a different brand of fuel in the tank, the owner is liable for the fee on the gallons of both brands of fuel, even if placing fuel of a different brand in the tank violates the lease between the operator and owner.
(d) An owner is liable for the fee even though the owner claims he or she did not know the fee was due or was unable to obtain information from an operator as to the gallons placed into the underground storage tank(s). As provided by subdivision (c) of Section 50159 of the Revenue and Taxation Code, the board may provide to the fee payer otherwise confidential information obtained from the operator of an underground storage tank to the extent that this information is necessary for assessment, administration, and verification of the fee.
Note: Authority cited: Section 50142, Revenue and Taxation Code; and Section 25299.42, Health and Safety Code. Reference: Sections 50107, 50109 and 50159, Revenue and Taxation Code; and Sections 25299.41 and 25299.43, Health and Safety Code.
s 1213. Payment of Fee by Operator.
(a) If the board discovers that the fee has been paid by the operator, but the notarized documents described in subdivisions (b)(1) and (b)(2) below have not been filed with the board, the owner and operator will be given an opportunity to request in writing that fee payments made by the operator be transferred to the owner's account. Until such request is made, the owner remains liable for payment of the fee, penalties, and interest without credit for fees paid by the operator, and the operator may request a refund of the amounts paid pursuant to Section 50140 of the Revenue and Taxation Code.
(b) For the convenience of the owner and operator, and to facilitate payment of the fee by the operator on behalf of the owner, the board shall mail fee returns and any notices for the owner's account to the operator if both of the following conditions are met:
(1) The owner executes a notarized document in the form shown below, requesting that the fee returns and all notices for the owner's account be mailed to the operator. The owner must acknowledge in the form that he or she is responsible for the fee if, for example, the operator fails to make payment, pays the fee late, or underreports the gallons on which the fee is based. The documents will remain in effect until the owner advises the board and operator in writing of any change.
(2) The operator executes a notarized document in the form shown below, acknowledging that he or she will pay the fee and any related interest and penalty on behalf of the owner and will not file a claim for refund of the fee based on the grounds that he or she was the operator rather than the owner of the tank and, therefore, did not owe the fee. The document will remain in effect until the operator advises the board and owner in writing of any change.
Exhibits A and B are samples of the documents described in (b)(1) and (b)(2) above.
Exhibit A
STATEMENT OF UNDERGROUND STORAGE TANK OWNER
(Title 18, California Code of Regulations, Section 1213)
Account No.: TK MT 44-________________________
I hereby authorize the Board of Equalization to send all notices and returns concerning the identified Underground Storage Tank Maintenance Fee (Part 26, Division 2 of the Revenue and Taxation Code, commencing with Section 50101) Account to the following:
________________________________________________________________
Location of tanks(s) STREET CITY COUNTY
________________________________________________________________
Name of Tank Operator Area Code and Phone Number
________________________________________________________________
Mailing Address of Tank Operator
By executing this document, I/we understand that all returns and notices regarding the above Underground Storage Tank Maintenance Fee Account will be mailed to the tank operator identified above, but that I/we am/are responsible for payment of all Underground Storage Tank Maintenance Fees, penalties and interest due based on the gallons of petroleum placed in the underground storage tank(s). I/we also acknowledge receipt of a copy of the Board's Publication 88, Underground Storage Tank Fee.
________________________________________________________________
Name of Tank Operator (Please Print) Area Code and Telephone Number
________________________________________________________________
Mailing Address of Tank Owner
________________________________ ______________________________
Signature of Tank Owner Date
________________________________
Title (owner, partner, corporate officer)
________________________________ ______________________________
Signature of Tank Owner Date
__________________________________________
Title (owner, partner, corporate officer)
Attach Notary Statement Here
Exhibit B
STATEMENT OF UNDERGROUND STORAGE TANK OPERATOR
(Title 18, California Code of Regulations, Section 1213)
Account No.: TK MT 44-________________________
________________________________________________________________
Location of tanks(s) STREET CITY COUNTY
________________________________________________________________
Name of Tank Owner Area Code and Telephone Number
________________________________________________________________
Mailing Address of Tank Owner
By executing this document, I/we understand that all returns and notices regarding the above Underground Storage Tank Maintenance Fee Account will be mailed to me/us, as the tank operator identified below. As the operator of the underground storage tank, I/we acknowledge I/we am/are paying the Underground Storage Tank Maintenance Fee on behalf of the tank owner and will not apply for a refund of the fees on the basis that I/we am/are not the owner of the tank and, therefore, do not owe the fees. I/we will notify both the Board of Equalization and the tank owner of any changes affecting this account. I also acknowledge receipt of a copy of the Board's Publication 88, Underground Storage Tank Fee.
________________________________________________________________
Name of Tank Operator (Please Print) Area Code and Telephone Number
________________________________________________________________
Mailing Address of Tank Operator
___________________________ ___________________________________
Signature of Tank Operator Date
_________________________________________
Title (owner, partner, corporate officer)
___________________________ ___________________________________
Signature of Tank Operator Date
_________________________________________
Title (owner, partner, corporate officer)
Attach Notary Statement Here
Note: Authority cited: Section 50152, Revenue and Taxation Code; and Section 25299.42, Health and Safety Code. Reference: Sections 50107, 50109, 50139 and 50140, Revenue and Taxation Code; and Sections 25299.41 and 25299.43, Health and Safety Code.
s 1214. Payment by Electronic Funds Transfer.
Payments by electronic funds transfer shall be made in accordance with California Code of Regulations, Title 18, Section 4905.
Note: Authority cited: Section 50112.7, Revenue and Taxation Code. Reference: Sections 50112.7 and 50112.9, Revenue and Taxation Code.
s 1220. Exemption from Fee.
The fee does not apply to:
(a) The State of California, or any agency or department thereof.
(b) The United States, its unincorporated agencies and instrumentalities.
(c) Any incorporated agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States.
(d) Banks and other financial institutions.
(e) Insurance companies.
(f) Any person of Indian descent who is entitled to receive services as an Indian from the United States Department of the Interior when the underground storage tank is located upon an Indian reservation, including rancherias, or any land held by the United States in trust for any Indian tribe or individual Indian.
Note: Authority cited: Section 50152, Revenue and Taxation Code; and Section 25299.42, Health and Safety Code. Reference: Sections 50107 and 50108, Revenue and Taxation Code; and Sections 25299.20 and 25299.21, Health and Safety Code.
s 1248. Relief from Liability.
A person may be relieved from the liability for the payment of the fee, including any penalties and interest added to those fees, when that liability resulted from the failure to make a timely return or a payment and such failure was found by the board to be due to reasonable reliance on written advice given by the board as described in California Code of Regulations, Title 18, Section 4902.
Note: Authority cited: Section 50152, Revenue and Taxation Code; and Section 25299.42, Health and Safety Code. Reference: Section 50112.5, Revenue and Taxation Code.
s 1271. Records.
(a) General. A fee payer shall maintain and make available for examination on request by the board or its authorized representatives, records in the manner set forth at California Code of Regulations, Title 18, Section 4901.
(b) Specific Applications. In addition to the record keeping requirements set forth in subdivision (a), owners of underground storage tanks shall comply with the following requirements.
An owner of underground storage tanks shall maintain complete records of all tanks owned and all purchases of petroleum products placed into underground storage tanks. Such records include but are not limited to:
(1) Federal Income Tax Return Depreciation Schedules or fixed asset and improvement listing.
(2) Property Tax Statements.
(3) Underground storage tank installation records.
(4) Lease agreements.
(5) Petroleum products purchase invoices.
(6) Copy of local agency permit and application for permit filed with the local agency.
Note: Authority cited: Section 50152, Revenue and Taxation Code. Reference: Sections 50109 and 50153, Revenue and Taxation Code.
s 1300. Foreword.
Note: 1300 to 1335, inclusive, issued under authority of Section 9251, Revenue and Taxation Code.
s 1301. Fuel.
Fuel includes any combustible gas or liquid, by whatever name the gas or liquid may be known or sold, of a kind used in an internal combustion engine for the generation of power to propel a motor vehicle on the highways, except fuel that is subject to the tax imposed by the Motor Vehicle Fuel License Tax Law and the Diesel Fuel Tax Law. For example, fuel includes, but is not limited to, liquefied petroleum gases, kerosene, distillate, stove oil, natural gas in liquid or gaseous form, and alcohol fuels. "Alcohol fuel" includes: ethanol (ethyl alcohol), methanol (methyl alcohol), or blends of gasoline and alcohol (including any denaturant) containing 15 percent, or less, gasoline by volume measured at 60 degrees Fahrenheit.
"Natural gas" means naturally occurring mixtures of hydrocarbon gases and vapors consisting principally of methane whether in gaseous or liquid form.
The taxable unit for compressed natural gas (gaseous form) is 100 cubic feet of gas measured at 14.73 pounds of pressure per square inch at 60 degrees Fahrenheit.
The taxable unit for liquid natural gas and other liquid fuels is the United States gallon, which is 231 cubic inches. To convert liters to gallons, the quantity of liters shall be multiplied by .26417 to determine the equivalent quantity in gallons. The resulting figure should be rounded to the nearest tenth of a gallon.
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Sections 7304, 8604, 8607, 8613, 8615 and 8651.6, Revenue and Taxation Code.
s 1302. Motor Vehicle.
Motor vehicle includes every self-propelled vehicle operated or suitable for operation on the highways, including an overweight or oversize vehicle operated on the highway under permit and a vehicle exempt from vehicle registration under the Vehicle Code, except vehicles used exclusively upon stationary rails or tracks.
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Section 8603, Revenue and Taxation Code.
s 1303. Highway.
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. It shall be presumed that a way or place is dedicated and accepted as a highway when it is recognized as a part of its maintained highway system by a proper public authority.
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. (See regulation 1316-Exempt Uses of Fuel in Motor Vehicles.)
A way or place is not a highway within the meaning of section 8605 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.
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: 8605, Revenue and Taxation Code.
s 1304. User.
The term "user" includes:
(a) a subhaul operator who uses his vehicle in the performance of subcontract services for another contract operator,
(b) the lessee of a vehicle who purchases and supplies fuel used in the operation of the vehicle,
(c) the lessee of a vehicle who is qualified in writing by the board as a user of fuel which is purchased and supplied by the lessor of the vehicle, or
(d) the lessor of a vehicle who purchases and supplies the fuel used in the operation of that vehicle by the lessee unless the lessee is qualified as the user under (c) above.
The term "user" does not include the Government of the United States or an instrumentality thereof
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Section 8608, Revenue and Taxation Code.
s 1305. Fuel Tank.
A fuel tank includes a separate compartment of a cargo tank used as a fuel tank and any auxiliary tank or receptacle of any kind from which fuel is supplied for the propulsion of the vehicle whether or not such tank or receptacle is directly connected to the fuel supply line of the vehicle.
Note: Authority cited: Sections 9251 and 8612, Revenue and Taxation Code.
s 1306. Vendor.
"Vendor" includes a service station dealer, a broker or distributor as defined under the Motor Vehicle Fuel License Tax Law, and a user who sells fuel to others. "Vendor" also includes any person who sells fuel delivered into the fuel tank of a motor vehicle through a pump equipped with a key-lock meter which he supplies when he retains ownership of the fuel until it is withdrawn and placed in the fuel tank, notwithstanding that the fuel is placed in the fuel tank by the user. "Vendor" does not include a commission agent who makes no sales of fuel to users on his own account, who sells fuel title to which remains in the agent's principal until the fuel is delivered to the user, and who bills the user in the name, and on the invoice, of the principal for whom the agent sells the fuel. In such instances the agent's principal is the vendor.
Note: Authority cited for Sections 1306 and 1307: Section 9251, Revenue and Taxation Code, and Chapters 1180, 1859 and 1968, Stats. 1959. Reference: Section 8610, Revenue and Taxation Code.
s 1307. Vendor's Permit.
(a) General. A vendor who wishes to conduct business separately at different locations will be issued a permit for each place of business upon the filing of an application for a permit for each location. The permit shall be conspicuously displayed at the place of business of the vendor where fuel is sold and delivered to users. If a vendor is the holder of a single permit and has more than one such place of business but does not wish to conduct business separately at each location, duplicate copies of the permit will be supplied by the board so that the vendor may display the permit as required.
(b) Inactive Permits. Any person operating as a vendor of fuel in this State under the Use Fuel Tax Law must hold a valid vendor use fuel tax permit. Any person who is not operating as a vendor of fuel but who is holding a vendor use fuel tax permit must surrender the permit to the board for cancellation. The board may revoke the permit of any person found not to be operating as a vendor of fuel.
Upon either the discontinuance of operations as a vendor or the sale of the business, a permit holder shall notify the board of such discontinuance or sale and physically deliver the permit to the board for cancellation. To be acceptable, the notice of the discontinuance or sale of the business must be received by the board in one of the following ways:
(1) Either an oral or a written statement given to a board representative accompanied by delivery of the permit. If the permit is lost, destroyed, or otherwise unavailable for delivery to the board, the notice of discontinuance or sale must be in writing.
(2) Receipt by the board of the application for a vendor's permit from the successor of the business. Such application will serve to put the board on notice of the discontinuance of operations as a vendor by the predecessor.
Notice to another state agency of the discontinuance of operations or the sale of a business does not constitute notice to the board.
(c) Predecessor Liability. Unless the permit holder who sells, donates, trades or otherwise transfers a business notifies the board of such transfer and delivers the permit to the board for cancellation as provided in paragraph (b) above, he or she will be liable for taxes, interest, and penalties (excluding penalties for fraud or intent to evade the tax) incurred by the successor who, with the transferor's actual or constructive knowledge, uses the permit in any way, e.g., displays the permit in the successor's place of business or files returns with the board in the name of the predecessor. The amount of the liability of the predecessor shall include all taxes, interest, and penalties incurred by the successor up to the time the board receives notice of the sale as provided herein. However, at its discretion, the board may relieve the predecessor from liability for penalties incurred by the successor.
A successor may, under certain conditions, be liable for tax, interest, and penalties incurred by a predecessor as explained in Regulation 1334, Successor's Liability (18 CCR 1334).
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Sections 8711, 8712, 8713, and 8716, Revenue and Taxation Code.
s 1308. Wholesaler.
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Section 8616, Revenue and Taxation Code.
s 1316. Exempt Uses of Fuel in Motor Vehicle.
The tax does not apply with respect to that fuel which the user establishes to the satisfaction of the Board is used:
(a) In the operation of a motor vehicle off the highway. "Off the highway" includes private property, a way or place permanently or temporarily closed to public use for the purpose of vehicular travel, or any way or place used for vehicular travel which is not a highway as defined in Regulation 1303.
A vehicle is operated upon a highway if it moves any distance in the general direction of the highway, whether upon the paved or unpaved portion thereof. An operation is not conducted upon a highway when a vehicle is operated thereon only for the purpose of crossing the highway from private property on one side to private property directly on the other and the vehicle is not operated for any distance in the general direction of the highway in making the crossing.
(b) In the operation of a motor vehicle on any highway which is under the jurisdiction of the United States Department of Agriculture and with respect to the use of such highway the user pays, or contributes to, the cost of construction or maintenance thereof pursuant to an agreement with, or permission of, that agency. "Highway which is under the jurisdiction of the United States Department of Agriculture" (hereafter referred to as U.S.D.A.) includes a way or place in the Forest Service road system with-in a National Forest, or partly within the National Forest and partly on private property, but does not include a state or county highway traversing the National Forest.A user who "pays, or contributes to the cost of construction or maintenance" includes any user who shares in the cost of construction or maintenance of a highway with respect to the use of which the exemption is claimed, either directly as a party to a joint construction or maintenance agreement with U.S.D.A., or indirectly through any person who is a party to such an agreement. "Pays or contributes," in addition to monetary payments or contributions, includes: (1) the bearing in whole or in part of the cost of construction or maintenance by the user who performs the work himself or by his employment of others to perform the work; or (2) the sharing of the cost of construction or maintenance indirectly by any person who contracts with a party to such an agreement to perform transportation by motor vehicle upon such U.S.D.A. highway, or any subcontractor of such contractor who makes a like use of the highway, when the share amount of the contribution is specified in the contract between the respective contracting parties, notwithstanding that such amount may be reflected in a lump sum rate of compensation for the transportation service or transportation and logging or other services.
Any user claiming exemption from tax with respect to fuel used on a highway which is under the jurisdiction of the U.S.D.A. shall also keep records to show a description of the highway and route traveled thereon, and the amounts paid or contributed directly or indirectly for the cost of construction or maintenance of the highway pursuant to an agreement with the U.S.D.A. When a motor vehicle is operated partly on such highway and partly on a highway of this state or any political subdivision thereof, the gallonage of fuel used in operations on the U.S.D.A. highway for which exemption is claimed may be determined: (1) in the proportion that the miles operated on such highway bears to the sum of the miles operated thereon and the miles operated upon any other highway; or (2) by computing the gallonage of fuel used on the U.S.D.A. highway by dividing a miles per gallon rate into the total miles operated on the U.S.D.A. highway. The miles per gallon rate shall be determined by a fuel consumption test made under typical operating conditions and subject to approval of the Board.
(c) In the operation of an implement of husbandry, truck or farm tractor which is used in agricultural operations off the highway and only incidentally operated upon a highway in moving between farms or parts of farms which are in close proximity and which vehicles are exempt from registration under the Vehicle Code.
(d) In the operation of any construction equipment while operated within the confines or limits of a construction project and only incidentally operated on the highway within such confines or limits and which equipment is exempt from registration under the Vehicle Code. As used in this subsection and in subsection (c), above, "incidentally operated" does not include the use of agricultural vehicles or special construction equipment for the transportation of persons or property upon the highways in an operation which would require registration of the vehicle under the Vehicle Code.
(e) For a purpose other than the generation of power to propel a motor vehicle on a highway, including fuel used to drive power take-off equipment to turn a rotary cement mixer, or to operate an air conditioner or garbage compressor.
(f) Any user claiming exemption from tax under this regulation shall accurately maintain adequate records to show the operations claimed to be exempt including the miles traveled and fuel used in order to establish to the satisfaction of the Board that the user is entitled to the exemption.
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Sections 8605, 8651, 8652, 8653 and 8653.1, Revenue and Taxation Code.
s 1316.5. Exemption Certificates.
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Sections 8740, 8741 and 9354.5, Revenue and Taxation Code.
s 1317. Allowance of Credit or Refund of Tax Paid to Vendor.
The tax paid to a vendor in this State may be applied by the purchaser as a credit against the tax due from the purchaser on all fuel used in this State in the reporting period in which the fuel, with respect to which the tax was paid to the vendor, was used.
The amount of credit allowable is the amount of tax separately stated or included in the selling price on the receipts (invoices) issued by the vendor to the purchaser for purchases of fuel delivered into vehicle fuel tanks. No tax credit may be taken for unauthorized payments of the tax on fuel delivered into a storage facility other than a vehicle fuel tank. To be entitled to the credit, a purchaser shall retain for inspection by the Board all receipts (invoices) given by vendors showing the amount of tax paid or included in the selling price, together with evidence of payment.
If within a reasonable period of time the purchaser has accumulated surplus credits which have not been applied to payment of tax liability under Section 8651 of the Revenue and Taxation Code, or if the purchaser ceases to be a user in this State, a claim for refund as provided in Sections 9152 and 9153 of said code should be filed. All claims for refund of overpayments shall be accompanied by the receipts (invoices) obtained by the purchaser from the vendor and evidence of payment.
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Sections 8651, 8751.5, 9151, 9152 and 9153, Revenue and Taxation Code.
s 1318. Vendor's Liability for the Tax.
(a) General. The vendor is required to collect and is liable for the amount of the tax on fuel sold and delivered into fuel tanks of motor vehicles, except any vehicle (a) operated by the Government of the United States or any instrumentality thereof, (b) operated interstate as authorized by regulation 1319, (c) operated by a user who qualifies for the exemption provided in Revenue and Taxation Code section 8655 as authorized by regulation 1319, or (d) operated exclusively on private property as authorized by regulation 1320. A vendor is not authorized to collect the tax on fuel delivered into a storage container other than a vehicle fuel tank. The amount of tax required to be collected constitutes a debt owed by the vendor to the state.
Except as may otherwise be provided by the board, a vendor who sells and delivers fuel into the fuel tank of a motor vehicle shall collect the tax notwithstanding that the user may claim exemption from the tax in his returns to the board for any nontaxable use of the fuel.
As respects a vendor's tax reporting, the tax is deemed to have been collected at the time of the sale irrespective of when payment for the amount of the invoice, including the tax, is received by the vendor. Failure to collect the tax from the purchaser (user) does not relieve the vendor from his liability to pay to the state the amount of the tax required to be collected, except that bad debt losses are deductible under circumstances described in section 8732.5 of the Revenue and Taxation Code and regulation 1331.6.
(b) Fuel Sold Through Keylock or Other Unattended Mechanisms. When fuel is sold through a keylock mechanism or other unattended mechanism it shall be presumed that the vendor delivered the fuel into the fuel tank of a motor vehicle and the vendor must collect the tax from the user. Farm and construction equipment are motor vehicles if they are suitable for operation on the highway. This includes most equipment running on rubber tires. Section 8652 of the Revenue and Taxation Code provides an exemption to farm and construction equipment users, but not to vendors delivering fuel into the fuel tanks of such vehicles. Customers fueling such equipment as rubber-tired backhoes, road graders, or farm tractors must pay the use fuel tax to the vendor when delivery is made through keylock pumps even if the equipment is hauled into the station on a trailer and the ultimate use of the fuel is exempt.
The presumption that fuel sold through a keylock or other unattended mechanism is delivered into the fuel tank of a motor vehicle shall be rebutted and the vendor shall not collect the tax if the user certifies in writing to the vendor that all fuel delivered to him through a specific mechanism will be delivered into bulk containers. If a customer puts fuel into the fuel tank of a motor vehicle and places fuel into drums or other bulk containers at the same keylock station, the vendor should assign the customer two meter registers. The customer then may furnish the vendor with a certificate that all fuel delivered through a specified meter register will be delivered into bulk containers. Regulation 1320 may not be applied to fuel deliveries through keylock or other unattended mechanisms unless the mechanism is located where the vehicle is operated exclusively off the highway. Regulation 1319 is applicable to keylock deliveries only in situations specified in that regulation and to the same extent as if the vendor made the delivery into the fuel tank of the vehicle personally.
(c) Sales to Persons Who Paid the Annual Flat Rate Tax. Any vendor who sells and delivers liquefied petroleum gas, liquid natural gas or compressed natural gas into the fuel tank of a vehicle with respect to which the owner or operator has paid the annual flat rate fuel tax and which bears the current year's identification emblem provided for in regulation 1325 is not required to collect the tax with respect to such fuel. The vendor must retain for each sale or delivery claimed to be exempt records showing (a) the type and quantity of fuel sold or delivered, (b) the date of the sale or delivery, (c) the serial number of the identification emblem affixed to the vehicle pursuant to regulation 1325 and (d) and license number of the vehicle.
(d) Overcollections by Vendor. If with respect to fuel tank deliveries the vendor collects from any user a greater amount of tax than that which is required to be collected, he shall remit the full amount collected to the board, since the user is entitled to a credit or a refund from the state. If the vendor improperly collects the tax on deliveries of fuel into storage facilities other than vehicle fuel tanks, the amount of tax so collected shall be refunded by the vendor to the user purchasing the fuel.
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Sections 8651, 8652, 8732, 8732.5, 8733, Revenue and Taxation Code.
s 1319. Vehicle Fuel Tank Deliveries Without Payment of Tax.
A user who:
(a) holds a valid use fuel tax permit,
(b) operates a motor vehicle within and without the state, or qualifies for the exemption provided in Revenue and Taxation Code section 8655, and
(c) purchases in the state for such operation fuel delivered into the fuel tank of such vehicle in quantities that would result consistently in payment of substantially more tax to vendors than the tax that would be imposed with respect to fuel used in the operation of the vehicle within this state may secure from the board an authorization which will permit the vendor of the fuel so purchased to sell and deliver such fuel into the fuel tank of the vehicle without collecting the tax from the user.
To secure the authorization the user shall apply to the board therefore, furnishing a description of his operations sufficiently detailed to demonstrate to the board that, in the absence of such authorization, the amount of tax which would be paid by the user to vendors would exceed that measured by the fuel consumed in the operation of the vehicle in this state so that an overpayment of fuel tax by the user may be expected to occur consistently.
Each user purchasing fuel in pursuance of this rule without payment of the tax to his vendor shall certify to the vendor that the user has complied with this rule and has secured authorization from the board so to purchase the fuel. The certificate shall contain the use fuel tax permit number of the user, together with his name and address. A single certificate may cover transactions occurring after it has been furnished to the vendor so long as the authorization remains in full force and effect.
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Sections 8607 and 8732, Revenue and Taxation Code.
s 1320. Vehicle Fuel Tank Deliveries for Off-Highway Use.
A user whose use of fuel is exempt from the tax under Section 8653 because of the operation of his vehicle exclusively off the highway, may be authorized by the board to purchase fuel without payment of the tax to the vendor when the vendor delivers the fuel into the fuel tank of the user's vehicle at the location where the vehicle is operated exclusively off the highway. The user shall submit evidence satisfactory to the board that he is eligible for the exemption and the authorization.
The user shall execute and furnish to each vendor from whom fuel is purchased a certificate for all fuel purchased without payment of the tax to the vendor pursuant to the authorization of the board. The certificate shall be in form substantially as follows:
"The purchaser hereby certifies that he is the holder of valid California Use Fuel Tax Permit Number ________; that he has been issued authorization by the State Board of Equalization permitting the purchase of fuel delivered into the fuel tanks of vehicles operated by him exclusively off the highway without paying the tax to the vendor; that the use of the fuel so purchased is exempt from the Use Fuel Tax under Section 8607 of the Revenue and Taxation Code .
Name of Vendor_____________________________
Purchaser__________________________________
Address____________________________________
Date________."
Note: Authority cited: Sections 8651, 8732.5 and 9251, Revenue and Taxation Code, and Chapters 1180, 1859 and 1968, Stats. 1959.
s 1321. Allowances for Pumping Liquefied Petroleum Gas.
Liquefied petroleum gas dealers who operate motor vehicles propelled by liquefied petroleum gas subject to the use fuel tax shall be allowed exemption from the tax under the provisions of Sections 8607 or 8652 of the Revenue and Taxation Code for the gallons of fuel used in pumping operations involved in unloading liquefied petroleum gas from the cargo tanks of the vehicles.
If a pump is operated by power take-off from the engine of a motor vehicle which is propelled by liquefied petroleum gas and the cargo tank of the vehicle has a water capacity of not greater than 2,500 gallons, the allowance for the fuel used in pumping shall be at the rate of 1 1/2 gallons per 1,000 gallons of fuel pumped.
If the user establishes to the satisfaction of the Board by test checks of fuel used in pumping made under typical operating conditions that rates of fuel consumption for the operation of his pumps are greater per 1,000 gallons of fuel pumped than the rate herein provided, the Board may allow deductions for pumping at the greater rates so determined.
If the pump is operated by power take-off from the engine of the motor vehicle propelled by liquefied petroleum gas and the cargo tank of the vehicle has a water capacity greater than 2,500 gallons, the user shall establish the pumping allowance by test checks made under typical operating conditions.
All tests made by the user will be subject to review by the Board. All detail and test data should be retained for inspection by the Board.
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Sections 8607 and 8652, Revenue and Taxation Code.
s 1322. Consumption of Liquefied Petroleum Gas in Vehicles Fueled from Cargo Tanks.
Users who operate motor vehicles powered by liquefied petroleum gas supplied directly to the engine from the cargo tank of the motor vehicle are authorized for the purpose of making tax returns to compute the gallons used on a mile-per-gallon basis. The mile-per-gallon basis will be determined by tests. The tests will be made by the user and will be subject to review by the board. All detail and test data should be retained for inspection by the board. This method of computing use is authorized only for the purpose of making tax returns. Determinations may be imposed or refunds granted, if the board upon audit of the user's accounts and records, or upon the basis of tests made or other information determines that the return did not disclose the proper amount of tax due.
See regulation 1332 with respect to records on those motor vehicles powered by fuel not supplied directly to the engine from the cargo tank.
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Section 8607, Revenue and Taxation Code.
s 1323. Passenger Carriers -Transit Partial Exemption.
(a) Definitions. Except where the context otherwise requires, the following definitions govern the construction of this regulation:
(1) "Transit service" means and is limited to:
(A) The common carriage of passengers by motor vehicle for compensation on an individual fare basis between fixed termini, or over a regular route on any line or lines in urban and suburban areas, or between cities in close proximity, or on any line or lines owned and operated by a transit district, transit authority, or city.
(B) The carriage of passengers by motor vehicle by a transit district, transit authority, or city in conformance with a demand-responsive transportation service.
(C) The carriage of persons by motor vehicle by any private entity providing transportation services as a transit operator as defined in subdivision (a)(2)(B) or (a)(2)(F) of this regulation.
(2) "Transit operator" includes the following:
(A) Any transit district, transit authority, or city owning and operating a transit system and engaging in transit services itself or through a wholly-owned nonprofit corporation.
(B) Any private entity providing transportation service under a contract or agreement, other than a general franchise agreement, entered into after September 26, 1978, with a public agency authorized to provide public transportation services. The provisions of subdivision (b) of this regulation shall apply only with respect to fuels consumed by that private entity while providing service under such contract or agreement.
(C) Any passenger stage corporation as defined in Section 226 of the Public Utilities Code, engaging in transit service subject to the jurisdiction of the Public Utilities Commission, when the motor vehicles of such passenger stage corporation are exclusively operated in urban or suburban areas or between cities in close proximity for the transportation of persons for hire, compensation, or profit; provided, however, that the exemption is not extended to any line or lines operated by such passenger stage corporation which shall exceed 50 miles of one-way route mileage. As defined in Section 226 of the Public Utilities Code, "passenger stage corporation" includes every person engaged as a common carrier for compensation, in the ownership, control, operation or management of a passenger stage over any public highway in this state between fixed termini or over a regular route except:
1. those whose operations are 98 percent or more exclusively within the limits of a city; or
2. those whose operations consist solely in the transportation of bona fide pupils attending an institution of learning between their homes and such institutions; or
3. that part of the passenger stage operations of any person, whether between fixed termini or over a regular route or otherwise, engaged in the transportation of any pupils or students to or from a public or private school, college or university, or to or from activities of a public or private school, college or university, where the rate, charge or fare for such transportation is not computed, collected or demanded on an individual fare basis.
(D) Any common carrier of passengers operating exclusively on any line or lines within the limits of a single city between fixed termini or over a regular route, 98 percent or more of whose operations, as measured by total route mileage operated, are exclusively within the limits of a single city, and who by reason thereof is not a passenger stage corporation subject to the jurisdiction of the Public Utilities Commission.
(E) Any school district, community college district, or county superintendent of schools owning, leasing, or operating buses for the purpose of transporting pupils to and from school and for other school or college activities involving pupils, including, but not limited to, field trips and athletic contests.
(F) Any private entity providing transportation services for the purposes specified in (a)(2)(E) under contract or agreement entered into after October 1, 1984, with a school district, community college district, or county superintendent of schools. The provisions of subdivision (b) of this regulation shall apply only with respect to fuels consumed by that private entity while providing service under such contract or agreement.
(3) "City" includes and is limited to a chartered city, or a general law city incorporated or organized under laws of this state.
(4) "Urban area" means any area which lies within a city, or within an unincorporated residential, commercial, or industrial area, and which does not fall within the definition of a suburban area as herein defined.
(5) "Suburban area" means any unincorporated residential commercial, or industrial area contiguous to, adjacent to, or adjoining a city.
(6) "Close proximity" as applied to cities means that they, or their suburban areas, are contiguous to, adjacent to, in the immediate vicinity of, or adjoining each other. It is unnecessary that the city boundaries or their suburban areas touch in order for the cities to be in close proximity.
(7) "Public agency" includes any transit district, transit authority, county, city, city and county, this state and any agency of this state.
(b) Application of Tax. A transit operator is exempt from use fuel tax with respect to fuel used for the propulsion of motor vehicles when operated in transit service. The operator must pay one cent for each gallon of such exempt fuel used. These payments shall be treated as a tax imposed under the use fuel tax law. The full rate of tax applies to the use of such fuels for the propulsion of motor vehicles in operations other than in transit service. The exemption does not apply to fuel used by a passenger stage corporation in passenger stage operations over any line or lines:
(1) The one-way mileage of which exceeds fifty miles, or
(2) The one-way mileage of which is less than fifty miles, if the operations are not exclusively within urban or suburban areas or between cities in close proximity.
(c) Records. A transit operator claiming the partial exemption from the use fuel tax under (a)(2)(B) or (a)(2)(F) above, must retain all relevant contracts and other documentary evidence to support the claimed exemption. The operator shall maintain records of fuel consumed in contract operations. If the same vehicles are used for charter or any other purpose when not required for contract runs, the operator shall maintain records sufficiently detailed to support the exempt portion of the fuel consumed. For example, if the operator computes the exemption based upon mileage driven, the operator shall maintain records of each trip, total mileage, and the mileage the vehicle is operated while providing services under such contracts or agreements.
If an overpayment of use fuel tax is expected to occur consistently, a transit operator may apply for authorization from the Board to purchase fuel without payment of tax to vendors as specified in Regulation 1319.
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Section 8655, Revenue and Taxation Code.
s 1324. Fuel Used with Systems Approved by the Air Resources Board.
Note: Authority cited: Section 9251, Revenue and Taxation Code. References: Sections 8604, 8613, 8615, 8651.6, 8657, Revenue and Taxation Code.
s 1325. Annual Flat Rate Fuel Tax.
(a) In General. In lieu of paying the use fuel tax on the basis of the number of gallons used, the owner or operator, except an interstate user, of a motor vehicle propelled by a system using liquefied petroleum gas, liquid natural gas, or compressed natural gas, who operates the motor vehicle exclusively within the State, may elect to pay the fuel tax for the use of such fuels on an annual flat rate basis according to the following fee schedule: (continued)