Exempt Bus Operators (DB) - Filing Claims for Refund

If you are an Exempt Bus Operator, you may purchase clear diesel fuel for use in exempt bus operations without paying the tax by giving your supplier a form BOE-231-DB, Certificate of Exempt Bus Operations. You must give your supplier a new certificate annually or whenever the information on the certificate changes. Section 60039 of the Diesel Fuel Tax Law defines exempt bus operations.

You should pay tax to your supplier on diesel fuel purchased for non-exempt operations. If you overstate your exempt percentage on your exemption certificate, you must report the ex-tax gallons used in non-exempt operations on your tax return, form BOE-501-DB, Exempt Bus Operator Diesel Fuel Tax Return, and pay the tax.

You may not claim a refund or credit when you use tax-paid fuel in an exempt manner. Only your supplier may file a claim for refund. In this case, you must request a refund from your supplier, and the supplier may file a claim for refund with us to recover the tax.

The only time you may file a claim for refund directly with us is when you make a mistake when filing your Exempt Bus Operator Diesel Fuel Tax Return that caused you to overpay the taxes due on the return. You may files these claims using form BOE-101, Claim for Refund or Credit.