Amended in Assembly May 5, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1442

Introduced by Assembly Members O'Donnell and Brough

February 27, 2015

An act to amend Sections 7318 and 8651.8 begin delete of end delete begin insert of, and to add Section 8623 to, end insert the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 1442, as amended, O'Donnell. Motor vehicle fuel: gasohol.

Existing law, the Motor Vehicle Fuel Tax Law, imposes a tax upon the privilege of distributing motor fuel and defines the term “gasohol” for purposes of that law. Gasohol is defined as all blends of begin delete gasoline, end delete begin insert gasoline end insert and alcohol containing more than 15% gasoline.

This bill would redefine gasohol to instead mean all blends of begin delete gasoline, end delete begin insert gasoline end insert and alcohol containing more than 21% begin delete gasoline. end delete begin insert or a percentage determined by regulations adopted by the State Board of Equalization, as specified. end insert

Existing law, the Use Fuel Tax Law, imposes an excise tax for the use of fuel, as defined, and begin delete provides end delete begin insert requires end insert that the excise tax imposed upon ethanol or methanol containing not more than 15% gasoline or diesel fuels begin delete shall end delete be 1⁄2 of that rate. begin insert That law provides for refunds for certain overpayments of tax within a specified time period. end insert

This begin delete bill end delete begin insert bill, beginning on and after January 1, 2013, end insert would instead apply that discounted rate to ethanol or methanol containing not more than 21% begin delete gasoline end delete begin insert gasoline, blended ethanol fuel, as defined, end insert or diesel begin delete fuel. end delete begin insert fuels. end insert

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 7318 of the Revenue and Taxation Code
is amended to read:

7318.  

“Gasohol” means all blends of begin delete gasoline, end delete begin insert gasoline end insert and
alcohol containing more than 21 percent begin delete gasoline. end delete begin insert gasoline, or a
percentage adopted by board regulation as specified in Section
8623. end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 8623 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 8623. end insert   

“Blended ethanol fuel” is defined as a fuel blend
consisting of ethanol and gasoline that meets one of the following
requirements:

(a) Contains not more than 21 percent gasoline.

(b) Contains not more than a percentage of gasoline, as
specified by board regulation, that is consistent with the E-85 Fuel
Ethanol Specifications of Section 2292.4 of Title 13 of the
California Code of Regulations.

end insert

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

Section 8651.8 of the Revenue and Taxation Code is
amended to read:

8651.8.  

(a)  begin insert (1) end insert begin insert   end insert Notwithstanding Section 8651, the excise tax
imposed upon ethanol or methanol containing not more than begin delete 21 end delete
begin insert 15 end insert percent gasoline or diesel fuels shall be one-half the rate
prescribed by Section 8651 for each gallon of fuel used.

begin insert

(2) This subdivision shall only apply to ethanol, methanol, or
diesel fuels sold before January 1, 2013.

end insert

(b) All references in this code to Section 8651 shall be deemed,
with respect to the rate imposed upon begin delete ethanol end delete begin insert blended ethanol fuel,
ethanol, end insert or methanol, to also refer to this section.

begin insert

(c) Notwithstanding Section 8651, on or after January 1, 2013,
the excise tax imposed on ethanol or methanol containing not more
than 21 percent gasoline, blended ethanol fuel, or diesel fuels shall
be one-half the rate prescribed by Section 8651 for each gallon
of fuel used.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert begin insert

The Legislature finds and declares that this act serves
a public purpose and does not constitute a gift of public funds
within the meaning of Section 6 of Article XVI of the California
Constitution.

end insert

begin delete SEC. 3. end delete
begin insert SEC. 5. end insert   

This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.