Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2011

Diesel Fuel Tax Law


Section 60050

60050. Levy of tax. (a) (1) A tax of eighteen cents ($0.18) is hereby imposed upon each gallon of diesel fuel subject to the tax in Sections 60051, 60052, and 60058.

deletion(2) If the federal fuel tax is reduced below the rate of fifteen cents ($0.15) 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 deletionparagraph (1), including any reduction or adjustment pursuant to subdivision (b), on and after the date of the reduction, shall be increased by an amount so that the combined state rate under paragraph (1) and the federal deletiontax rate per gallon deletionequal what it would have been in the absence of the federal reduction.

deletion(3) 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 exempt under this section.

(b)(1) On July 1, 2011, the tax rate specified in paragraph (1) of subdivision (a) shall be reduced to 13.6 cents ($0.136) and every July 1 thereafter shall be adjusted pursuant to paragraphs (2) and (3).

(2) For the 2012-13 fiscal year and each fiscal year thereafter, the board shall, on or before March 1 of the fiscal year immediately preceding the applicable fiscal year, adjust the rate reduction in paragraph (1) in that manner as to result in a revenue loss attributable to paragraph (1) that will equal the amount of revenue gain attributable to Sections 6051.8 and 6201.8, based on estimates made by the board, and that rate shall be effective during the state's next fiscal year.

(3) In order to maintain revenue neutrality for each year, beginning with the rate adjustment on or before March 1, 2013, the adjustment under paragraph (2) shall take into account the extent to which the actual amount of revenues derived pursuant to Sections 6051.8 and 6201.8 and the revenue loss attributable to this subdivision resulted in a net revenue gain or loss for the fiscal year ending prior to the rate adjustment date on or before March 1.

(4) The intent of paragraphs (2) and (3) is to ensure that the act adding this subdivision and Sections 6051.8 and 6201.8 does not produce a net revenue gain in state taxes.

History.—Stats. 2010, Ch. 11x8 (ABx8 6), in effect March 22, 2010, redesignated former subdivisions (a)-(c) as subparagraphs (a)(1)-(a)(3), substituted "paragraph (1), including any reduction or adjustment pursuant to subdivision (b)," for "this section" after "the tax rate imposed by", added "rate under paragraph (1) and the federal" for "and federal" after "that the combined state", and substituted "equal what it would have been in the absence of the federal reduction" for "equals thirty three cents ($0.33)" after "rate per gallon" in paragraph (2), of subdivision (a); and added subdivision (b). Stats. 2010, Ch. 9 (SB 70), in effect March 23, 2010, added "and that rate shall be effective during the state's next fiscal year" after "made, by the board" in paragraph (2) of subdivision (b).