8745 REFUNDS OF GASOLINE TAX TO STATE AGENCIES
8745.1 GENERAL
(Revised 2/83)
Sections 8101/8107 of the Revenue and Taxation Code provide for refunds of the State motor vehicle fuel tax to purchasers who use such fuel for certain nonhighway purposes. Refunds are at the rate of seven cents per gallon through December 1982 and nine cents per gallon of fuel purchased January 1, 1983 or later, except with respect to aircraft where the refunds are at the rate of five cents per gallon. "Motor vehicle fuel" includes gasoline or similar inflammable liquid which is used in an explosion type of engine, but does not include diesel, kerosene, or liquified petroleum gas.
Gasoline tax refunds will be claimed when substantial quantities of fuel are used in equipment (except boats) of the following two categories:
- Equipment not required to be licensed for highway use by the Department of Motor Vehicles such as tractors, aircraft, lawnmowers, farming equipment, etc., and engines used for pumping, air compressing, auxiliary power units, etc.
- Equipment licensed for highway use but which is substantially used off the highway such as dump trucks, fire trucks, pickups, etc. Records and documents needed to support refund claims on fuel for motor vehicles which are used both on and off the highway and which is purchased from vendors' pumps may make such claims uneconomical.
8745.2 RECORDS
(Revised 5/71)
Original fuel purchase invoices must be submitted with the refund claim. The following records will be maintained to support the gasoline tax refund claimed:
- Agency issue tags or requisitions for fuel pumped from the agency's storage tank. These documents will show the date the fuel was placed in the equipment, identification of the equipment, and gallonage.
- Trip tickets and working papers showing calculations based on reasonable data to support quantities of fuel used in motor vehicles operated both on and off the highway.
In cases where the fuel is delivered directly into equipment tanks by the vendor, the original invoice will constitute the usage record. Where the fuel is delivered by the vendor in drums or into an agency storage tank, issue tags and trip tickets or calculations are the usage records and will support the applicable original invoice.
8745.3 REFUND CLAIMS
(Revised 10/66)
Gasoline tax refund claims are administered by the State Controller's Division of Tax Collection and Refund and are subject to audit by the office. State Controller's Form SCGR–I must be used. Agencies will file claims at least annually since the law provides that a claim must be filed within thirteen months of the date fuel was purchased. Gasoline tax refund claims will be supported by original invoices. Monthly or other periodic billings covering several purchases will not be accepted in support of the refunds. When a claim for refund of motor vehicle fuel taxes is to be filed, the original invoice will be used to support this claim and a duplicate invoice used to support the claim to pay the vendor's bill. The duplicate invoice will bear the notation "Original invoice retained for use in filing claim for refund of motor vehicle fuel taxes." This procedure is acceptable to the State Controller's Office. The agency may prepare a third copy of the invoice for its files.
Since tax refunds on fuel used to operate aircraft are payable from the Aeronautics Fund, separate claims will be filed requesting such refunds.
All documents pertaining to the refund claim will be retained for audit for a period of four years after the refund claim is filed.
8745.4 ACCOUNTING FOR REFUNDS
(Renumbered 2/65)
The refunds will be abated to the appropriation current for the period of usage for which the claim is being filed.
8745.5 FEDERAL MOTOR VEHICLE FUEL TAX
(Renumbered 2/65)
The state is exempt from Federal Excise Tax on motor vehicle fuel.
