Chapter 5. Motor Vehicle Fuel Tax of California Public Utilities Code >> Division 10. >> Part 11. >> Chapter 5.
(a) Except as specified in subdivision (b), in addition to
taxes imposed pursuant to Part 2 (commencing with Section 7301), Part
3 (commencing with Section 8601), and Part 31 (commencing with
Section 60001) of Division 2 of the Revenue and Taxation Code, a tax
of one cent ($0.01) per gallon (or, in the case of compressed natural
gas, per 100 cubic feet thereof as measured at standard pressure and
temperature) may be imposed pursuant to Section 99502 by a taxing
entity, as defined in Section 99501, in the area which is under its
jurisdiction and which is included in a county that has approved a
proposition pursuant to Section 4 of Article XIX of the California
(b) No tax shall be imposed under this chapter on fuel used in
propelling an aircraft or a vessel.
For purposes of this chapter:
(a) "Taxing entity" means a county other than a county with a
transit development board or a county under the jurisdiction of a
county transportation commission created pursuant to Division 12
(commencing with Section 130000), a city and county, a county
transportation commission, a transit development board, a transit
district, or a city with a population in excess of 500,000 located
within a transit district. The population of a city shall be as
determined by the last preceding federal census or by a subsequent
census validated by the Population Research Unit of the Department of
(b) "Transit vehicle" means a vehicle, including, but not limited
to, one operated on rails or tracks, which is used for public
transportation service and which carries more than 10 persons,
including the driver.
(a) The tax may be imposed by the adoption of an ordinance
by a taxing entity if (1) it calls a special election for the
submission of a proposition to grant it the authority to impose the
tax pursuant to the ordinance and (2) two-thirds of the voters voting
at the special election approves the proposition. The special
election may be held only when consolidated with an otherwise
scheduled state election or local election for an area that includes
the area under the jurisdiction of the taxing entity. In the case of
the City of Los Angeles, it may call the special election only after
securing the approval of the Los Angeles County Metropolitan
(b) Where two or more taxing entities have jurisdiction over the
same area and are authorized pursuant to subdivision (a) to impose
the tax under this chapter, the tax shall be imposed only by the
taxing entity with the largest area under its jurisdiction.
A special election for a transit development board or a
transit district shall be conducted pursuant to the Uniform District
Election Law (Part 4 (commencing with Section 10500) of Division 10
of the Elections Code).
(a) The taxing entity shall contract with the State Board of
Equalization for the administration of the tax imposed pursuant to
the adopted ordinance, and the state board shall be reimbursed for
its cost in the administration of the tax.
(b) The taxing entity shall also reimburse the board for its cost
of preparation to administer the tax.
The ordinance shall include provisions identical to those
contained in Part 2 (commencing with Section 7301), Part 3
(commencing with Section 8601), and Part 31 (commencing with Section
60001) of Division 2 of the Revenue and Taxation Code, except that
the name of the taxing entity as the taxing agency shall be
substituted for that of the state.
The State Board of Equalization shall adopt the necessary
rules and regulations to administer the tax.
After deducting its cost in administering the tax, the State
Board of Equalization shall transmit the net revenues to the taxing
entity periodically as promptly as possible. The transmittals shall
be made at least twice in each calendar quarter.
The net revenues received by a taxing entity shall be
expended only for the following:
(a) The planning, construction, and maintenance of, and the
acquisition of rights-of-way for, exclusive public mass transit
guideways and exclusive bus lanes and related fixed facilities to
such guideways and bus lanes.
(b) The purchase of transit vehicles.
(c) The payment of principal and interest on voter-approved bonds
issued for the purposes specified in subdivision (a) or (b).
(a) Notwithstanding Section 99505, any person required to
pay a license tax under Section 7351 of the Revenue and Taxation Code
shall also collect the tax imposed under this chapter from any
person to whom he sells or distributes motor vehicle fuel and shall
pay such tax also for all such fuel that he uses.
Any person paying the tax who, in turn, sells or distributes such
fuel to another, whether or not for use, shall include the tax as
part of the selling price of the fuel. Any person thereafter who pays
a price for the fuel, which includes an increment for the tax, and
who subsequently resells the fuel shall include the increment so paid
as part of the selling price of the fuel.
(b) Subdivision (a) of this section shall become operative only if
a ruling of a federal agency becomes effective which precludes the
tax imposed under this chapter on motor vehicle fuel from being
included in the price charged by distributors to retailers or other
persons, or precludes the increment of any price paid to the
distributors that represents the tax imposed from being included in
the price charged by retailers or other persons upon resale of the
motor vehicle fuel, and, in such case, this subdivision shall become
operative at the same time as such ruling becomes effective.
(a) Notwithstanding Section 99505, any person required to
pay a tax under Sections 60051, 60052, and 60058 of the Revenue and
Taxation Code shall also collect the tax imposed under this chapter
from any person to whom he or she sells diesel fuel and shall also
pay that tax for all diesel fuel that he or she uses.
(b) Any person paying the tax who, in turn, sells diesel fuel to
another, whether or not for use, shall include the tax as part of the
selling price of the fuel. Any person thereafter who pays a price
for the diesel fuel, which includes an increment for the tax, and who
subsequently resells the diesel fuel shall include the tax paid as
part of the selling price of the fuel.