Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Motor Vehicle Fuel Tax Law

CHAPTER 2.5. AIRCRAFT JET FUEL TAX.1

Article 3. Permit—Aircraft Jet Fuel Dealer

Article 4. Administrative Provisions

Article 5. Disposition of Proceeds

CHAPTER 2.5. AIRCRAFT JET FUEL TAX.1

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

Article 1. Definitions

7385. Construction. Except where the context otherwise requires, the definitions given in this chapter govern the construction of this chapter.

7386. "Aircraft." "Aircraft" means any powered contrivance designed for navigation in the air except a rocket or missile.

7387. "Aircraft jet fuel." "Aircraft jet fuel" means any inflammable liquid which is used or sold for use in propelling aircraft operated by the jet or turbine type of engine.

7388. "Aircraft jet fuel dealer." "Aircraft jet fuel dealer" means any person who sells to an aircraft jet fuel user, aircraft jet fuel delivered in this state into the fuel tanks of aircraft or into a storage facility from which the fuel is withdrawn for use in aircraft.

7389. "Aircraft jet fuel user." "Aircraft jet fuel user" means any person who uses aircraft jet fuel for the propulsion of an aircraft in this state except the following:

(a) A common carrier by air engaged in the business of transporting persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the authority of the laws of this state, of the United States or of any foreign government.

(b) A person engaged in the business of constructing or reconstructing by manufacture or assembly of completed aircraft, or modifying, overhauling, repairing, maintaining, or servicing of aircraft.

(c) The armed forces of the United States.

7390. "Fuel tank." "Fuel tank" means any receptacle on an aircraft from which fuel is supplied for the propulsion of the aircraft.

7391. "Use." "Use" means the placing of aircraft jet fuel into the fuel tank of an aircraft in this state.

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Article 2. Imposition of Tax

7392. Rate of tax. For the privilege of using or selling aircraft jet fuel a tax is imposed upon every aircraft jet fuel dealer at the rate of two cents ($0.02) for each gallon of that fuel sold to an aircraft jet fuel user or used by the dealer as an aircraft jet fuel user.

7393. Dealer's returns. The aircraft jet fuel dealer shall make a return of the tax due under Section 7392 as required of suppliers under Section 7651. All of the provisions of this part relating to the collection of the tax shall be applicable to the collection of the tax imposed by Section 7392.

7394. Liability of purchaser. If a person certifies in writing to an aircraft jet fuel dealer that the sale or use of aircraft jet fuel purchased by him or her is not subject to the tax imposed by Section 7392 and the person uses the fuel as an aircraft jet fuel user, the person shall be liable for payment of the tax imposed by Section 7392 as if he or she were an aircraft jet fuel dealer making taxable sales of aircraft jet fuel at the time of that use and the number of gallons of fuel so used shall be deemed the number of gallons sold by him or her.

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Article 3. Permit—Aircraft Jet Fuel Dealer

7395. Dealer's permit. Every person desiring to become an aircraft jet fuel dealer shall first secure from the board an aircraft jet fuel dealer permit. Applications for permits shall be made to the board on forms prescribed by the board. Before issuing the permit the board may require the applicant to furnish the bond required under Chapter 4 (commencing with Section 7451).

7396. Issuance of permit. Upon receipt of the application and after the deposit of such bond as the board may require, the board shall issue to the applicant an aircraft jet fuel dealer permit authorizing the applicant to become a dealer in aircraft jet fuel. The permit is valid until canceled, suspended, or revoked.

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Article 4. Administrative Provisions

7397. Applicable administrative provisions. All of the administrative provisions of this part not inconsistent with this chapter shall be applicable to the administration of the tax imposed by Section 7392.

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Article 5. Disposition of Proceeds

7398. Disposition of proceeds. All money received in payment of the tax imposed by this chapter shall be deposited in the State Treasury to the credit of the Motor Vehicle Fuel Account in the Transportation Tax Fund, and after the payment of any refunds authorized by this part, the balance remaining shall be transferred to the Aeronautics Account in the State Transportation Fund for allocation pursuant to Section 8352.3.