Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2010
 

Motor Vehicle Fuel Tax Law

CHAPTER 2. IMPOSITION OF TAX.1

Section 7360

7360. Levy of tax. (a) A tax of eighteen cents ($0.18) is hereby imposed upon each gallon of fuel subject to the tax in Sections 7362, 7363, and 7364.

(b) If the federal fuel tax is reduced below the rate of nine cents ($0.09) per gallon and federal financial allocations to this state for highway and exclusive public mass transit guideway purposes are reduced or eliminated correspondingly, the tax rate imposed by this section, on and after the date of the reduction, shall be recalculated by an amount so that the combined state and federal tax rate per gallon equals twenty-seven cents ($0.27).

(c) If any person or entity is exempt or partially exempt from the federal fuel tax at the time of a reduction, the person or entity shall continue to be so exempt under this section.

1Added by Stats. 2000, Ch. 1053 (AB 2114), operative January 1, 2002.