Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Motor Vehicle Fuel Tax Law

CHAPTER 2. IMPOSITION OF TAX.1

Section 7360

7360. 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 Repealed by Stats. 2011, Ch. 6 (AB 105), in effect March 24, 2011.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 subdivisions (a)(1)-(a)(3); substituted "paragraph (1)" for "this section" after "the tax rate imposed by", substituted "rate under paragraph (1) and the federal" for "and federal" after "that the combined state", and substituted "equals" for "equal" 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 "motor vehicle" after "upon each gallon of" and added ", other than aviation gasoline," after "motor vehicle fuel" in paragraph (1) of, and added ", and that rate shall be effective during the state's next fiscal year" after "estimates made by the board" in paragraph (2) of, subdivision (b).

7360. Levy of tax. (a) (1) A tax of eighteen cents ($0.18) is hereby imposed upon each gallon of fuel subject to the tax in Sections 7362, 7363, and 7364.

(2) If the federal fuel tax is reduced below the rate of nine cents ($0.09) 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), on and after the date of the reduction, shall be recalculated by an amount so that the combined state rate under paragraph (1) and the federal tax rate per gallon equal twenty-seven cents ($0.27).

(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 so exempt under this section.

(b) (1) On and after July 1, 2010, in addition to the tax imposed by subdivision (a), a tax is hereby imposed upon each gallon of motor vehicle fuel, other than aviation gasoline, subject to the tax in Sections 7362, 7363, and 7364 in an amount equal to seventeen and three-tenths cents ($0.173) per gallon.

(2) For the 2011-12 fiscal year and each fiscal year thereafter, the board shall, on or before March 1 of the fiscal year immediately preceding the applicable fiscal year, adjust the rate in paragraph (1) in that manner as to generate an amount of revenue that will equal the amount of revenue loss attributable to the exemption provided by Section 6357.7, based on estimates made by the board, and that rate shall be effective during the state's next fiscal year.

(3) In order to maintain revenue neutrality for each year, beginning with the rate adjustment on or before March 1, 2012, the adjustment under paragraph (2) shall also take into account the extent to which the actual amount of revenues derived pursuant to this subdivision and, as applicable, Section 7361.1, the revenue loss attributable to the exemption provided by Section 6357.7 resulted in a net revenue gain or loss for the fiscal year ending prior to the rate adjustment date on or before March 1.

(4) The intent of paragraphs (2) and (3) is to ensure that the act adding this subdivision and Section 6357.7 does not produce a net revenue gain in state taxes.

History.—Added by Stats. 2011, Ch. 6 (AB 105), in effect March 24, 2011.

1Added by Stats. 2000, Ch. 1053 (AB 2114), operative January 1, 2002.