Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2012
 

Motor Vehicle Fuel Tax Law

CHAPTER 10. DISTRIBUTION OF PROCEEDS.


CHAPTER 10. DISTRIBUTION OF PROCEEDS.

8351. Deposit of fund. The Controller shall transmit all money received by him or her in payment of taxes, interest, and penalties due under this part, and restitution orders or any other amounts otherwise authorized by law to be collected by the Controller, or any other amounts imposed by a court of competent jurisdiction to be paid to the Controller, to the State Treasurer who shall deposit it in the State Treasury and credit it to the Motor Vehicle Fuel Fund, which is continued in existence as the Motor Vehicle Fuel Account in the Transportation Tax Fund, which fund is hereby created. All fees paid and accepted for issuance or reinstatement of licenses under this part shall be deposited by the board in the State Treasury to the credit of the same account.

Any reference in any law or regulation to the Motor Vehicle Fuel Fund shall be deemed to refer to the Motor Vehicle Fuel Account in the Transportation Tax Fund.

History.—Stats. 1963, p. 1272, in effect September 20, 1963, substituted "interest and penalties due under this part" for "and license fees," and added the second sentence. Stats. 1971, p. 2427, operative January 1, 1972. Changed title of Motor Vehicle Fuel Fund to Motor Vehicle Fuel Account and created the Transportation Tax Fund. Stats. 2000, Ch. 1053 (AB 2114), operative January 1, 2002, added "or her" after "all money received by him" and deleted "license" after "in payment of" in the first sentence of first paragraph. Stats. 2011, Ch. 727 (AB 242), in effect January 1, 2012, added ", and restitution orders or any other amounts otherwise authorized by law to be collected by the Controller, or any other amounts imposed by a court of competent jurisdiction to be paid to the Controller," after "due under this part" in the first paragraph.

8352. Appropriation of fund. Subject to the provisions of any budget bill heretofore or hereafter enacted, the money deposited to the credit of the Motor Vehicle Fuel Account is hereby appropriated for expenditure, allocation, or transfer as provided in this chapter.

History.—Stats. 1947 (First Extra Session 1947), p. 3806, operative January 1, 1948, substituted "Highway Users Tax Fund" for "counties" in (d), deleted (e) making appropriation to State Highway Fund and relettered former (f) as (e). Stats. 1949, p. 2546, operative January 1, 1950, added (f). Stats. 1955, p. 2026, in effect September 7, 1955, added portion of first sentence beginning "the sum of" in (f). Stats. 1957, p. 769, in effect September 11, 1957, substituted Section "11006 of the Government" for Section "661 of the Political" Code. Stats. 1959, p. 2841, in effect September 18, 1959, added (g). Stats. 1961, p. 4389, in effect September 15, 1961, amended (f) to provide for the transfer of funds to the Airport Assistance Fund instead of to the counties and added the language "and less the pro rata cost . . . attributable to determining such amount of money." Stats. 1963, p. 4374, in effect September 20, 1963, substituted "two million dollars ($2,000,000)" for "seven hundred fifty thousand dollars ($750,000)" and "1963–1964" for "1959–1960" in paragraph (g). Stats. 1965, p. 4599, in effect September 17, 1965, completely revised (f) and substituted "four million dollars ($4,000,000)" for "two million dollars ($2,000,000)" and "1965–1966" for "1963–1964" in (g). Stats. 1966, p. 480 (First Extra Session), in effect October 6, 1966, substituted "Harbors and Watercraft Revolving Fund" for "Small Craft Harbor Revolving Fund" and "Division 1 (commencing with Section 30) of the Harbors and Navigation Code" for "Division 5.7 (commencing with Section 5801) of the Public Resources Code." Stats. 1967, p. 2804, in effect November 8, 1967, added the last sentence to (q). Stats. 1969, p. 368, in effect November 10, 1969, substituted "Department" for "Division" of Aeronautics in (f)(3). Stats. 1970, p. 3232, in effect November 23, 1970, added (h). Stats. 1971, p. 368, in effect June 30, 1971, completely revised (g), and p. 2427, operative January 1, 1972, divided former 8352 into numbered subsections. Stats. 1972, Ch. 1382, in effect December 26, 1972, substituted "8352.6 inclusive." for "8352.5 inclusive.". Stats. 1973, Ch. 1153, operative July 1, 1974, and Ch. 1195, effective October 2, 1973, substituted "this chapter" for specified sections. Stats. 2004, Ch. 227 (SB 1102), in effect August 16, 2004, deleted "and Section 11006 of the Government Code" after "heretofore or hereafter enacted".

8352.1. Fund expenditures. The money deposited to the credit of the Motor Vehicle Fuel Account may be expended for the following purposes:

(a) To pay the refunds authorized in this part, including refunds due on account of judgments for the return of taxes illegally collected.

(b) To the Controller, to carry out any duties imposed upon him or her by this part.

(c) To the board, to carry out any duties imposed upon it by this part.

(d) To pay the pro rata share of the overhead and general administrative expense of the Controller and the board attributable to duties imposed by this part. The pro rata share is payable upon presentation of a claim against any appropriation from the Motor Vehicle Fuel Account for the support of the Controller or the board, as the case may be.

History.—Added by Stats. 1971, p. 2428, operative January 1, 1972. Stats. 2000, Ch. 1053 (AB 2114), operative January 1, 2002, deleted "license" after "judgments for the return of" in subdivision (a) and added "or her" after "imposed upon him" in subdivision (b).

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8352.2. Transfer to State Transportation Fund. Subject to the provisions of this chapter, the money deposited to the credit of the Motor Vehicle Fuel Account shall be transferred to the State Transportation Fund, which is hereby created, as provided in this chapter.

History.—Added by Stats. 1971, p. 2428, operative January 1, 1972. Stats. 1973, Ch. 1153, operative July 1, 1974, substituted "this chapter" for several specific sections.

8352.3. Transfer to Aeronautics Account. Subject to Sections 8352 and 8352.1, all moneys deposited to the credit of the Motor Vehicle Fuel Account attributable to the distribution of motor vehicle fuel for use or used in propelling an aircraft in the state shall be transferred to the Aeronautics Account in the State Transportation Fund, for allocation as follows:

(a) To pay the refunds authorized by Section 8101.5.

(b) To pay the pro rata cost of the Controller and the board under subdivisions (b), (c), and (d) of Section 8352.1.

(c) To pay for the support of the Department of Transportation, for the administration of the State Aeronautics Act (Division 9 (commencing with Section 21001) of the Public Utilities Code).

(d) Remaining balance to be available for expenditures in accordance with Section 21602, and 21682 to 21684, inclusive, of the Public Utilities Code.

History.—Added by Stats. 1971, p. 2428, operative January 1, 1972. Stats. 1982, Ch. 681, in effect January 1, 1983, deleted "the provisions of" after "Subject to" in the first sentence, and substituted "Division of Aeronautics of the Department of Transportation" for "Department of Aeronautics" after "of the" in subdivision (c). Stats. 1998, Ch. 877 (AB 2132), in effect January 1, 1999, deleted "there shall be transferred to the Aeronautics Account in the State Transportation Fund" after "8352 and 8352.1," and substituted "state shall be . . . State Transportation Fund" for "state," in the first paragraph; substituted "Department of Transportation . . . Public Utilities Code)." for "Division of Aeronautics of the Department of Transportation." after "support of the" in subdivision (c); and substituted "expenditures in accordance . . . Public Utilities Code." for "the California Aid to Airports Program." after "be available for" in subdivision (d).

8352.4. Transfer to Harbors and Watercraft Revolving Fund.Subject to Sections 8352 and 8352.1, there shall be transferred from the money deposited to the credit of the Motor Vehicle Fuel Account to the Harbors and Watercraft Revolving Fund, for expenditure in accordance with Division 1 (commencing with Section 30) of the Harbors and Navigation Code, the sum of six million six hundred thousand dollars ($6,600,000) per annum, representing the amount of money in the Motor Vehicle Fuel Account attributable to taxes imposed on distributions of motor vehicle fuel used or usable in propelling vessels. The actual amount shall be calculated using the annual reports of registered boats prepared by the Department of Motor Vehicles for the United States Coast Guard and the formula and method of the December 1972 report prepared for this purpose and submitted to the Legislature on December 26, 1972, by the Director of Transportation. If the amount transferred during each fiscal year is in excess of the calculated amount, the excess shall be retransferred from the Harbors and Watercraft Revolving Fund to the Motor Vehicle Fuel Account. If the amount transferred is less than the amount calculated, the difference shall be transferred from the Motor Vehicle Fuel Account to the Harbors and Watercraft Revolving Fund. No adjustment shall be made if the computed difference is less than fifty thousand dollars ($50,000), and the amount shall be adjusted to reflect any temporary or permanent increase or decrease that may be made in the rate under the Motor Vehicle Fuel Tax Law. Payments pursuant to this section shall be made prior to payments pursuant to Section 8352.2.

When deemed necessary by the Department of Transportation and the Department of Boating and Waterways, the Department of Transportation, after consultation with the Department of Boating and Waterways, shall prepare, or cause to be prepared, an updated report setting forth the current estimate of the amount of money credited to the Motor Vehicle Fuel Account attributable to taxes imposed on distributions of motor vehicle fuel used or usable in propelling vessels. The Department of Transportation shall submit the report to the Legislature upon its completion.

History.—Added by Stats. 1971, p. 2428, operative January 1, 1972. Stats. 1973, Ch. 700, operative January 1, 1974, made the following substitutions: "six million dollars ($6,000,000) . . . 1973–1974" in place of "five million two hundred thousand dollars ($5,200,000) . . . 1970–1971"; "six million two hundred thousand dollars ($6,200,000) . . . 1974–1975" in place of "five million six hundred thousand dollars ($5,600,000) . . . 1971–1972"; "six million four hundred thousand ($6,400,000) in the 1975–1976 fiscal year, and six million six hundred thousand dollars ($6,600,000) in the 1976–1977" fiscal year, in place of "six million dollars ($6,000,000) . . . 1972–1973." Deleted the second sentence: "If the amount so transferred during each of such fiscal years is in excess of ten dollars and two cents ($10.02) multiplied by the estimated number of boats in existence as of December 31st of each year, the excess shall be retransferred from the Harbors and Watercraft Revolving Fund to the Motor Vehicle Fuel Account." In the last paragraph deleted "The Department of Public Works," added "an updated" preceding "report," changed "Public Works" to "Transportation," deleted "on or before the fifth calendar day of 1973 regular session and each four years thereafter" following "report to the Legislature" and substituted "upon its completion." Stats. 1982, Ch. 681, in effect January 1, 1983, deleted "the provisions of" before "Sections 8352" and "Division 1" in, deleted "six million dollars . . . fiscal year, and" before "six million six" and "commencing . . . sums" before "representing" in the first sentence of, substituted "fiscal year" for "of such fiscal years" before "is in excess" in the third sentence of, substituted ". No" for "; provided no such" after "Fund" in the fourth sentence of, and deleted "further provided that such" before "amount" in the new fifth sentence of, the first paragraph; and, substituted "Department of Boating and Waterways" for "Department of Navigation and Ocean Development" in the first sentence of; substituted ". The" for "; and the," and substituted "the" for "such" in the second sentence of, paragraph 2. Stats. 2000, Ch. 1053 (AB 2114), operative January 1, 2002, deleted "so" after "if the amount" and substituted "retransferred" for "transferred" in the third sentence of, deleted "so" after "transferred is less than the amount" in the fourth sentence of, and deleted "License" after "Motor Vehicle Fuel" in the fifth sentence of, the first paragraph.

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8352.5. Transfer to Agriculture Fund. Subject to Sections 8352 and 8352.1, there shall be transferred from the money deposited to the credit of the Motor Vehicle Fuel Account to the Department of Food and Agriculture Fund, during the second quarter of each fiscal year, an amount equal to the estimate contained in the most recent report prepared pursuant to this section.

The amounts are not subject to Section 6357 with respect to the collection of sales and use taxes thereon, and represent the portion of receipts in the Motor Vehicle Fuel Account during a calendar year that were attributable to agricultural off-highway use of motor vehicle fuel which is subject to refund pursuant to Section 8101, less gross refunds allowed by the Controller during the fiscal year ending June 30th following the calendar year to persons entitled to refunds for agricultural off-highway use pursuant to Section 8101. Payments pursuant to this subdivision shall be made prior to payments pursuant to Section 8352.2.

On or before September 30th of each odd-numbered year, the Director of Transportation and the Director of Food and Agriculture shall jointly prepare, or cause to be prepared, a report setting forth the current estimate of the amount of money in the Motor Vehicle Fuel Account attributable to agricultural off-highway use of motor vehicle fuel, which is subject to refund pursuant to Section 8101 less gross refunds allowed by the Controller to persons entitled to refunds for agricultural off-highway use pursuant to Section 8101; and they shall submit a copy of the report to the Legislature.

History.—Added by Stats. 1971, p. 2429, operative January 1, 1972. Stats. 1978, Ch. 817, effective January 1, 1979, in the first paragraph deleted "as follows" following "Department of Agriculture Fund", substituted the above language and deleted subdivisions (a), (b) and (c). In the second paragraph added "State" preceding "Controller" and in the third paragraph deleted "May 31, and on or before September 30, 1973, and every two years thereafter" and substituted "September 30th of each odd-numbered year" deleted "Secretary of the Agriculture and Services Agency" and substituted "Director of Food and Agriculture" and added "State" preceding "Controller". Stats. 1984, Ch. 579, effective January 1, 1985, deleted "the provisions of" after "Subject to" in first paragraph, substituted "The" for "Such", deleted "the provisions of" before "Section 6357," deleted "State" before "Controller," deleted "such" before "refunds" in second paragraph, substituted "Director of Transportation" for "Secretary of the Business and Transportation Agency," deleted "State" before "Controller," deleted "such" before "refunds," substituted "the" for "such" in third paragraph.

8352.6. Transfer to Off-Highway Vehicle Fund. [Repealed by Stats. 2007, Ch. 541 (SB 742), in effect January 1, 2008.]

8352.6. Transfer to Off-Highway Vehicle Trust Fund. (a) (1) Subject to Section 8352.1, on the first day of every month, there shall be transferred from moneys deposited to the credit of the Motor Vehicle Fuel Account to the Off-Highway Vehicle Trust Fund created by Section 38225 of the Vehicle Code an amount attributable to taxes imposed upon distributions of motor vehicle fuel used in the operation of motor vehicles off highway and for which a refund has not been claimed. Transfers made pursuant to this section shall be made prior to transfers pursuant to Section 8352.2.

(2) The Controller shall withhold eight hundred thirty-three thousand dollars ($833,000) from this monthly transfer, and transfer that amount to the General Fund.

(b) The amount transferred pursuant to paragraph (1) of subdivision (a), as a percentage of the Motor Vehicle Fuel Account, shall be equal to the percentage transferred in the 2006-07 fiscal year. Every five years, starting in the 2013-14 fiscal year, the percentage transferred may be adjusted by the Department of Transportation in cooperation with the Department of Parks and Recreation and the Department of Motor Vehicles. Adjustments shall be based on, but not limited to, the changes in the following factors since the 2006-07 fiscal year or the last adjustment, whichever is more recent:

(1) The number of vehicles registered as off-highway motor vehicles as required by Division 16.5 (commencing with Section 38000) of the Vehicle Code.

(2) The number of registered street-legal vehicles that are anticipated to be used off highway, including four-wheel drive vehicles, all-wheel drive vehicles, and dual-sport motorcycles.

(3) Attendance at the state vehicular recreation areas.

(4) Off-highway recreation use on federal lands as indicated by the United States Forest Service's National Visitor Use Monitoring and the United States Bureau of Land Management's Recreation Management Information System.

(c) It is the intent of the Legislature that transfers from the Motor Vehicle Fuel Account to the Off-Highway Vehicle Trust Fund should reflect the full range of motorized vehicle use off highway for both motorized recreation and motorized off-road access to other recreation opportunities. Therefore, the Legislature finds that the fuel tax baseline established in subdivision (b), attributable to off-highway estimates of use as of the 2006-07 fiscal year, accounts for the three categories of vehicles that have been found over the years to be users of fuel for off-highway motorized recreation or motorized access to nonmotorized recreational pursuits. These three categories are registered off-highway motorized vehicles, registered street-legal motorized vehicles used off highway, and unregistered off-highway motorized vehicles.

(d) It is the intent of the Legislature that the off-highway motor vehicle recreational use to be determined by the Department of Transportation pursuant to paragraph (2) of subdivision (b) be that usage by vehicles subject to registration under Division 3 (commencing with Section 4000) of the Vehicle Code, for recreation or the pursuit of recreation on surfaces where the use of vehicles registered under Division 16.5 (commencing with Section 38000) of the Vehicle Code may occur.

History.—Added by Stats. 2007, Ch. 541 (SB 742), in effect January 1, 2008. Stats. 2008, Ch. 179 (SB 1498), in effect January 1, 2009, substituted "moneys" for "money" after "shall be transferred from" and substituted "off highway" for "off-highway" after "operation of motor vehicles" in the first sentence of subdivision (a); substituted "percentage" for "percent" after "subdivision (a), as a" and after "shall be equal to the" in the first sentence of, and after "2013-14 fiscal year, the" in the second sentence of, and substituted "off highway" for "off-highway" in subdivision (2) of, subdivision (b); deleted "Motorized" after "to the Off-Highway" and substituted "off highway" for "off-highway" after "vehicle use" in the first sentence of, and substituted "street-legal" for "street legal" after "motorized vehicles, registered" in the third sentence of, subdivision (c); and deleted the comma after "(2) of subdivision (b)" in subdivision (d). Stats. 2011, Ch. 2 (AB 95), in effect March 24, 2011, added paragraph designation (1) and added paragraph (2) to subdivision (a); added "paragraph (1) of" after "transferred pursuant to" in the first sentence of the introductory paragraph of subdivision (b).

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8352.7. Transfer to Off-Highway Vehicle Fund. [Repealed by Stats. 2007, Ch. 541 (SB 742), in effect January 1, 2008.]

8352.8. Transfer to State Highway Account. [Repealed by Stats. 1982, Ch. 681, in effect January 1, 1983.]

8352.8. Transfer to Conservation and Enforcement Services Account. (a) The Conservation and Enforcement Services Account is hereby established as an account in the Off-Highway Vehicle Trust Fund created by Section 38225 of the Vehicle Code.

(b) Funds in the Conservation and Enforcement Services Account shall be allocated to the Division of Off-Highway Motor Vehicle Recreation of the Department of Parks and Recreation for expenditure, upon appropriation by the Legislature, for the following purposes:

(1) Up to 40 percent of the funds, for cooperative agreements or challenge cost-sharing agreements with the United States Forest Service and the United States Bureau of Land Management, to complete necessary route designation planning work and to implement route planning decisions.

(2) Up to one million one hundred thousand dollars ($1,100,000) for each grant cycle, to increase the amount of funds available for restoration grants in the program pursuant to paragraph (2) of subdivision (b) of Section 5090.50 of the Public Resources Code.

History.—Added by Stats. 1986, Ch. 1009, effective January 1, 1987. Stats. 1987, Ch. 1027, effective January 1, 1988, in subdivision (a), changed "as a subaccount in the Motor Vehicle Fuel Account" to "as an account in the Off-Highway Vehicle Fund", deleted "the provisions of" before "Sections 8352 and 8352.1", deleted comma after "every month", deleted "an" and substituted "33 percent of the total" after "Account" and before "amount", changed "estimate" to "estimates" and "report" to "reports" in second sentence, and added "Sections 8352.6, 8352.7 and" before "this section." Stats. 2002, Ch. 563 (AB 2274), effective January 1, 2003, added "trust" after "Off-Highway Vehicle", deleted "33 percent of" after "Enforcement Services Account" and deleted "the most recent reports prepared pursuant to Sections 8352.6, 8352.7, and" after "estimates contained in" in subdivision (a); completed revised subdivision (d). Stats. 2004, Ch. 908 (AB 2666), in effect January 1, 2005, substituted "findings" for "fundings" after "five fiscal years and the" in subdivision (d). Stats. 2007, Ch. 541 (SB 742), in effect January 1, 2008, added "created by Section 38225 of the Vehicle Code" after "Off-Highway Vehicle Trust Fund" in the first sentence, and deleted the second sentence, in subdivision (a); deleted subdivision (b) and relettered former subdivision (c) as subdivision (b); substituted "expenditure, upon appropriation by the Legislature, for the following purposes:" for "expenditure when appropriated by the Legislature for the purposes of Section 5090.64 of the Public Resources Code." In, and added paragraphs (1) and (2) to, subdivision (b); and deleted subdivision (d). Stats. 2008, Ch. 179 (SB 1498), in effect January 1, 2009, deleted "the" after "Up to" in subdivision (b)(1).

8352.9. Withhold of report preparation costs. The Controller shall withhold from any funds transferred pursuant to any section of this chapter an amount equal to the cost, as determined by the Department of Transportation, to the State Highway Account for preparing any report needed in order to establish the appropriate amount of any such transfer. He shall transfer such amounts withheld to the State Highway Account in the State Transportation Fund.

History.—Added by Stats. 1974, Ch. 1134, effective January 1, 1975.

8353. Transfer to Highway Users Tax Fund. By the 28th day of each calendar month, the balance remaining to the credit of the Motor Vehicle Fuel Account at the close of business on the 23rd day of the same month, after payments of refunds and administration and enforcement, as provided for in Section 8352.1, shall, on order of the Controller, be transferred to the Highway Users Tax Account in the Transportation Tax Fund.

History.—Stats. 1947 (First Extra Session 1947), p. 3806, operative January 1, 1948, repealed the original section, relating to apportionments of the fund to counties, and added the present section. Stats. 1953, p. 3306, in effect November 1, 1953, revised language of section and substituted "each calendar month" for "the months of January, April, July and October of each year." Stats. 1971, p. 2430, operative January 1, 1972, changed fund titles. Substituted "section 8352.1" for "section 8352". Stats. 1972, Ch. 481, in effect March 7, 1973, deleted a paragraph governing transfers before commencement of state personal income tax withholding, deleted the words "Upon the commencement of the withholding of state personal income taxes," at the beginning of the remaining paragraph, and substituted "12th" for "10th". Stats. 1983, Ch. 323, in effect July 21, 1983, operative August 1, 1983, substituted "28th" for "12th" after "By the" and "23rd" for "seventh" after "on the", and deleted "State" before "Controller".

8359. Revolving fund. The board may, without at the time furnishing vouchers and itemized statements, draw from the Motor Vehicle Fuel Account a sum not to exceed five thousand dollars ($5,000). The sum so drawn shall be used as a revolving fund where cash advances are necessary.

History.—Stats. 1987, Ch. 56, effective January 1, 1988, deleted "Fund" following "Motor Vehicle Fuel" and substituted "Account".

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8360. Expenses of court action. The board may pay out of the appropriations made to it from the Motor Vehicle Fuel Account all expenses incurred in the prosecution before any court of this State of any person charged with the violation of this part.

History.—Stats 1987, Ch. 56, effective January 1, 1988, deleted "Fund" following "Motor Vehicle Fuel" and substituted "Account" and deleted "of any provision" following "with the violation".