BILL NUMBER: SB 1485	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 24, 2012
	AMENDED IN ASSEMBLY  AUGUST 20, 2012
	AMENDED IN ASSEMBLY  AUGUST 7, 2012
	AMENDED IN SENATE  APRIL 19, 2012

INTRODUCED BY   Senator Kehoe

                        FEBRUARY 24, 2012

   An act to amend Section 8101 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1485, as amended, Kehoe. Fuel taxes: blended fuels.
   The Motor Vehicle Fuel Tax Law and the Diesel Fuel Tax Law impose
state excise taxes at specified rates per gallon on the removal,
entry, sale, delivering, or specified use of motor vehicle fuel and
diesel fuel respectively, and the Use Fuel Tax Law imposes a state
excise tax on the use of other fuel at specified rates. The Motor
Vehicle Fuel Tax Law requires certain persons who have paid a tax for
motor vehicle fuel, as specified, to be reimbursed and repaid the
amount of the tax.
   This bill would make the provision requiring reimbursement and
repayment of the motor vehicle fuel tax applicable to any person who
buys and uses tax-paid motor vehicle fuel for the purpose of
producing a blended fuel that will be used to operate motor vehicles
upon the public highways of the state that is taxed under the Use
Fuel Tax Law, if the person has submitted or submits the refund
application request on or after January 1, 2011, and can show that
the applicable California use fuel tax has been paid on the blended
fuel produced by the person. 
   This bill would also state that the Legislature finds and declares
that this act serves multiple public purposes. 
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 8101 of the Revenue and Taxation Code is
amended to read:
   8101.  The following persons who have paid a tax for motor vehicle
fuel, either directly or to the vendor from whom it was purchased,
or indirectly by the adding of the amount of the tax to the price of
the fuel, shall, except as otherwise provided in this part, be
reimbursed and repaid the amount of the tax:
   (a) Any person who buys and uses the motor vehicle fuel for
purposes other than operating motor vehicles upon the public highways
of the state, except vehicles subject to identification under
Division 16.5 (commencing with Section 38000) of the Vehicle Code,
which are used for recreational purposes or are rented or leased for
recreational purposes, and, on and after July 1, 1974, except motor
vehicles subject to registration under Division 3 (commencing with
Section 4000) of the Vehicle Code while engaged in off-highway
recreational use.
   (b) Any person who exports the motor vehicle fuel for use outside
of this state. Motor vehicle fuel carried from this state in the fuel
tank of a motor vehicle or aircraft is not deemed to be exported
from this state unless the motor vehicle fuel becomes subject to tax
as an "import" under the laws of the destination state.
   (c) Any person who sells the motor vehicle fuel to the Armed
Forces of the United States for use in ships or aircraft or for use
outside this state, under circumstances that would have entitled him
or her to an exemption from the payment of the tax under Section 7401
had he or she been the supplier of this fuel.
   (d) Any person who buys and uses the motor vehicle fuel in any
construction equipment which is exempt from vehicle registration
pursuant to the Vehicle Code, while operated within the confines and
limits of a construction project.
   (e) Any supplier who sells motor vehicle fuel which is sold to any
consulate officer or consulate employee under circumstances which
would have entitled the supplier to an exemption under paragraph (4)
of subdivision (a) of Section 7401 if the supplier had sold the motor
vehicle fuel directly to the consulate officer or consulate
employee.
   (f) Any supplier who removes motor vehicle fuel at a rack and pays
tax on that removal or who purchases tax-paid motor vehicle fuel
outside the bulk transfer/terminal system and then delivers the
tax-paid motor vehicle fuel to another approved terminal from which
that supplier subsequently removes the tax-paid motor vehicle fuel at
the terminal rack, but only to the extent that the supplier can show
that tax on the same amount of motor vehicle fuel has been paid more
than one time by the same supplier.
   (g) Any supplier who purchases tax-paid motor vehicle fuel in the
bulk transfer/terminal system and subsequently removes the tax-paid
motor vehicle fuel at the terminal rack, but only to the extent that
the supplier can show that tax on the same amount of motor vehicle
fuel has been paid more than one time by the same supplier. This
subdivision applies only to those purchases made on or after January
1, 2002.
   (h) Any person who buys and uses tax-paid motor vehicle fuel for
the purpose of producing a blended fuel that will be used to operate
motor vehicles upon the public highways of the state that is taxed
under Part 3 (commencing with Section 8601) of Division 2. To be
eligible, a person must show that the applicable California fuel tax
has been paid and must submit or have submitted the refund
application request on or after January 1, 2011.
   SEC. 2.    The Legislature finds and declares that
this act serves the following public purposes:  
   (a) Correcting the inequality to persons that pay duplicative
taxes on fuel.  
   (b) Offsetting the costs incurred by persons that have paid
duplicative taxes by authorizing tax refunds for refund application
requests submitted on or after January 1, 2011.  
   (c) Incentivizing the distribution of alternative, renewable fuels
to the public. 
   SEC. 2.   SEC. 3.   This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.