Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2010
 

Diesel Fuel Tax Annotations

FEDERAL INSTRUMENTALITIES

Sales of Diesel Fuel to the Army and Air Force Exchange Service. The Army and Air Force Exchange Service (AAFES) is a federal instrumentality under Revenue and Taxation Code (R&TC) sections 60100, subdivision (a)(8), and 60501, subdivision (a)(4)(H), of the Diesel Fuel Tax Law and is, therefore, exempt from paying the diesel fuel tax, whether it uses the fuel in its own vehicles or resells the fuel to others. Suppliers and persons who sell diesel fuel to the AAFES may claim an exemption from the tax on such fuel or a credit or refund of the tax paid on such fuel. 4/24/09.

The Army and Air Force Exchange Service is Not a "Highway Vehicle Fueler." The AAFES is not a "highway vehicle fueler" pursuant to Revenue and Taxation Code (R&TC) section 60034, subdivision (b), when it delivers diesel fuel into the fuel tank of a diesel-powered highway vehicle, because the AAFES is a federal instrumentality of the United States, and the "United States" is not included in the definition of a "person" on whom the diesel fuel tax is imposed, pursuant to R&TC section 60008. Accordingly, with respect to fuel on which the diesel fuel tax has not been paid, AAFES is exempt from collecting the diesel fuel backup tax from operators of diesel-powered highway vehicles and paying the tax to the Board, pursuant to R&TC section 60057. 4/24/09.