Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Diesel Fuel Tax Annotations

ULTIMATE VENDOR

Credit Card Company. A credit card company contracts with a fuel distributor and independent dealers that sell the distributor's products to allow the credit card company's fleet customers to purchase fuel at the distributor's and independent dealers' retail locations. The contracts specifically state that title to the fuel will pass from the distributor and independent dealers to the credit card company when the fuel is delivered into the vehicle of the fleet customer. Since title to the fuel passes to the credit card company, the distributor or independent dealer is selling the fuel for resale and the credit card company is the retail seller of the fuel to the fleet customers. Therefore the credit card company is the ultimate vendor, as defined under Revenue Taxation Code section 60036, when the fuel is sold using the credit card for use in a farm for farming purposes or in an exempt bus operation; and the credit card company may file claims for refund as provided in section 60502. 6/30/98. (M99–1).