AB 200

Administrative allowance of the motor vehicle fuel tax

Current law allows a motor vehicle fuel supplier to retain as an administrative allowance 1.35 percent of the motor vehicle fuel tax the supplier collects on the first sale of gasoline in this state. This bill allows a motor vehicle fuel supplier to retain the same administrative allowance for the motor vehicle fuel tax the supplier collects on the first sale of diesel fuel in this state.

Retailer refund for motor vehicle fuel evaporation

The bill allows a retailer who sells gasoline, diesel fuel, or both (motor vehicle fuel) in this state to claim a refund equal to 0.5 percent of the state motor vehicle fuel tax paid on the retailer’s purchase of the motor vehicle fuel to compensate for motor vehicle fuel stored on site that is lost by shrinkage or evaporation. A claim for a refund under the bill must be made to the Department of Revenue no later than 12 months after the date on which the retailer purchased the motor vehicle fuel and must be accompanied with invoices prepared by the motor vehicle fuel supplier or a list of purchases prepared by the retailer. Prior to 2019, the state provided such refunds to compensate gasoline retailers for shrinkage and evaporation losses.