Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013

Sales and Use Tax Annotations

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Annotation 295.1335


295.1335 Fuel Fees. The Los Angeles Department of Airports has imposed certain fuel fees by resolution. One resolution establishes license requirements and fees to airlines and other companies providing contract and/or into-plane fueling service. A licensee must pay one cent per gallon for all fuel placed into any aircraft. In addition, if a licensee elects to provide into-plane fueling services as an agent for an oil company that does not have a valid fuel delivery permit, the licensee pays five cents per gallon for all aviation gasoline delivered and input into aircraft at the airport. These fees do not apply when the services are provided to a signatory air carrier whose operating agreements with the airport provide that no such fee should be imposed. The fee imposed with respect to fuel delivered into aircraft appears to be a charge for use of the airport's fuel delivery facilities. As such, when the fuel vendor separately states these charges in an amount that does not exceed the cost to the vendor, these amounts are excludable from the vendor's measure of sales tax as delivery charges. (Section 6012(c)(7).)

A second resolution provides that permittees pay three cents per gallon for all fuel delivered to the airport and fifteen cents per gallon for all lubricants delivered to the airport. Fuel and lubricants supplied to signatory air carriers are excluded from these charges. These fees are not for transportation to the purchaser, but are charges for the right to conduct business at the airport. These charges are costs of doing business by the permittees and are not excluded from the measure of tax. The fact that the vendors may choose to separately state such charges on their billings has no effect on the application of tax. 8/28/90; 10/25/90.