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AB-1374 Diesel taxes: biofuel.(2017-2018)

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Date Published: 02/17/2017 09:00 PM


Assembly Bill
No. 1374

Introduced by Assembly Member Salas

February 17, 2017

An act to add Section 60022.1 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


AB 1374, as introduced, Salas. Diesel taxes: biofuel.
The Diesel Fuel Tax Law imposes a tax of a specified amount per gallon of diesel fuel for the removal of diesel fuel in this state from a terminal if the diesel fuel is removed at the rack, and in addition to that tax, imposes a tax, at a specified rate, for the privilege of using diesel fuel in a qualified motor vehicle in this state by an interstate user. Existing law allows a claim for refund for amounts of tax paid on the biodiesel fuel portion of dyed blended biodiesel fuel removed from an approved terminal at the terminal rack, as provided, to the extent a supplier can show that the tax on that biodiesel fuel has been paid by the same supplier.
This bill would limit the definition of biodiesel to a biofuel that meets a specified standard for the purposes of the Diesel Fuel Tax Law and this would limit the above-specified claims for refund.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
This bill would take effect immediately as a tax levy.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


 Section 60022.1 is added to the Revenue and Taxation Code, to read:

 “Biodiesel” means a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, and meeting the specifications set forth by the ASTM International in the latest version of Standard Specification for Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels D6751 contained in the ASTM publication entitled: Annual Book of ASTM Standards, Section 5.

SEC. 2.

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