Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2011
 

Use Fuel Tax Law

CHAPTER 3.5. COLLECTION OF TAX BY VENDOR.


Article 1. Collection of Tax by Vendor


CHAPTER 3.5. COLLECTION OF TAX BY VENDOR.

Article 1. Collection of Tax by Vendor1

1Stats. 1991, Ch. 770, in effect January 1, 1992, added "Article 1. Collection of Tax by Vendor." immediately preceding Section 8732.

8732. Collection by vendor; receipt. A vendor of fuel the use of which is taxable under this part, who sells and delivers such fuel into a fuel tank shall, at the time of sale, collect the tax from the user and give to the user a receipt therefor in the manner and form prescribed by the board.

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. This presumption 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 keylock mechanism or other unattended mechanism will be delivered into bulk containers.

Vendors of fuel required by this section to collect tax from users shall not be required to make such collections on sales and deliveries to users who are authorized by the board, as hereinafter provided, to purchase fuel without payment of tax to a vendor.

The board may issue written authorization to a holder of a valid use fuel permit to purchase fuel from a vendor designated by the user without payment of the tax to the vendor when the board finds (1) that the user consistently is using the fuel in vehicles which are operated partly without this state or off the highways of this state, or the user qualifies for the exemption provided in Section 8655, and (2) that to require collection of the tax from the user by the vendor would cause consistently recurring overpayments of the tax, and (3) that the revenue of the state with respect to the tax liability of such user is adequately secured. Such authorization may be revoked when any such condition no longer obtains.

History.—Added by Stats. 1953, p. 3598, in effect September 9, 1953. Stats. 1957, p. 3227, in effect September 11, 1957, operative October 1, 1957, completely reworded this section which previously had required collection of tax by vendor from unlicensed users with vehicles registered out of state. Stats. 1963, p. 4383, in effect September 20, 1963, added the second and third paragraphs. Stats. 1970, p. 1076, in effect November 23, 1970, added "or the user qualifies for the exemption provided in Section 8655" in (1) of third paragraph. Stats. 1979, Ch. 260, effective July 17, 1979, added second paragraph.

8732.1. Transfers between political subdivisions. Without requiring the issuance of a vendor use fuel tax permit, the board may issue written authorization to a political subdivision of this state which holds a valid user use fuel tax permit to furnish fuel as an accommodation to another political subdivision of this state which holds a valid user use fuel tax permit if the board finds that the political subdivision furnishing the fuel agrees to report and pay all taxes applicable to the fuel it furnishes and each political subdivision agrees to keep such records and file such reports as the board deems necessary to unsure that all applicable taxes shall be paid.

For the purposes of this section "political subdivision of this state" means any governmental organization formed and operating under the authority of the laws of this state and includes counties, cities, cities and counties, school districts, fire protection districts, irrigation districts, and recreation districts.

History.—Added by Stats. 1976, Ch. 776, in effect January 1, 1977.

8732.5. Credit for bad debt losses. A vendor is relieved from liability to collect use fuel tax which became due and payable subsequent to July 1, 1958, insofar as the sales of the fuel are represented by accounts which have been found worthless and charged off for income tax purposes. If the vendor has previously paid the amount of the tax, he may, under rules and regulations prescribed by the board, take a credit in such amount. If any such accounts are thereafter in whole or in part collected by the vendor, the gallons of fuel represented by the amounts collected shall be included in the first return filed after such collection and the amount of the tax thereon paid with the return. The board may, at its option, require the seller to submit periodical reports listing accounts delinquent for a 90-day period or over.

History.—Added by Stats. 1958, p. 8, in effect June 29, 1958. Stats. 1959, p. 3263, in effect September 18, 1959, reworded the section so as to eliminate a requirement that the credit be taken in the report filed for the period in which the debt was found to be worthless.

8733. Tax as debt. The tax required to be collected by the vendor constitutes a debt owed by the vendor to this State.

History.—Added by Stats. 1953, p. 3598, in effect September 9, 1953.

8734. Copies of receipts to be submitted. The board may require vendors to submit at such times as it shall designate copies of the receipts given pursuant to Section 8732.

History.—Added by Stats. 1953, p. 3598, in effect September 9, 1953.

8735. Applicability of other provisions. The provisions of Chapters 4 to 9, inclusive, of this part shall apply to any vendor in the same manner as such provisions apply to any user.

History.—Added by Stats. 1953, p. 3598, in effect September 9, 1953.

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