Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018
 

Diesel Fuel Tax Law

CHAPTER 2. IMPOSITION OF TAX.

Section 60050

60050. Levy of tax. [Repealed by Stats. 2011, Ch. 6 (AB 105), in effect March 24, 2011.]

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).

60050. Levy of tax. (a) (1) A tax of deletionsixteen cents ($0.deletion16) is hereby imposed upon each gallon of diesel fuel subject to the tax in Sections 60051, 60052, and 60058.

(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 paragraph (1)deletion shall be increased by an amount so that the combined state rate under paragraph (1) and the federal tax rate per gallon equal what it would have been in the absence of the federal reduction.

(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) deletionOn and after November 1, 2017, in addition to the tax imposed pursuant to subdivision (a), an additional tax of twenty cents ($0.20) is hereby imposed upon each gallon of diesel fuel subject to the tax in Sections 60051, 60052, and 60058.deletion

(c) On July 1, 2020, and every July 1 thereafter, the State Board of Equalization shall adjust the taxes imposed by subdivisions (a), and (b), with the adjustment to apply to both to the base tax rates specified in those provisions and to any previous adjustment in rates made pursuant to this subdivision, by increasing the taxes by a percentage amount equal to the increase in the California Consumer Price Index, as calculated by the Department of Finance with the resulting taxes rounded to the nearest one-tenth of one cent ($0.01). The first adjustment pursuant to this subdivision shall be a percentage amount equal to the increase in the California Consumer Price Index from November 1, 2017, to November 1, 2019. Subsequent annual adjustments shall cover subsequent 12 month periods. The incremental change shall be added to the associated rate for that year.

(d) Any changes to the taxes imposed under this section that are enacted by legislation subsequent to July 1, 2017, shall be deemed to be changes to the base tax rates for purposes of the California Consumer Price Index calculation and adjustment performed pursuant to subdivision (c).

History.—Added by Stats. 2011, Ch. 6 (AB 105), in effect March 24, 2011. Stats. 2017, Ch. 5 (SB 1), in effect April 28, 2017, substituted "sixteen" for "eighteen" after "A tax of" and substituted "($0.16)" for "($0.18)" after "cents" in paragraph (1), and deleted ", including any reduction or adjustment pursuant to subdivision (b), on and after the date of the reduction," after "rate imposed by paragraph (1)" in paragraph (2), of subdivision (a); deleted former subdivision (b)(1)-(4); and added subdivisions (b), (c), and (d). Stats. 2017, Ch. 20 (AB 115), in effect January 1, 2018, substituted "subdivision (c)" for "paragraph (1)" after "performed pursuant to" in subdivision (d).