Sales Tax Prepayment Rates for Fuels

By March 1st of each year, the Board of Equalization (BOE) is required to establish the prepayment sales tax rate for motor vehicle fuel, diesel fuel, and aircraft jet fuel. The rates generally remain in effect from July 1 of the subsequent year to June 30 of the following year. The rate varies depending on the type of fuel involved, and may be adjusted annually or more frequently if necessary.

For more information on rates for sales and use tax, excise tax, and prepayment rates on fuels, please see the FAQ #2 for the Fuel Tax Swap.

Period
Motor Vehicle Fuel (Gasoline)
Diesel Fuel
Aircraft Jet Fuel
(Cents per Gallon)
07/2014 – 06/2015
6.5
27.0
17.5
07/2013 – 06/2014
7.0
28.0
18.0
07/2012 - 06/2013
7.0
29.0
18.0
04/2012 - 06/2012
7.0
26.5
18.0
07/2011 – 03/2012
5.5
25.0
14.0
04/2011 – 06/2011
5.5
18.0
14.0
07/2010 – 03/2011
5.5
16.0
12.0
04/2010 – 06/2010
18.5
16.0
12.0
01/2009 – 03/2010
12.0
13.5
10.5
04/2008 – 12/2008
16.5
15.5
12.5
04/2007 – 03/2008
17.0
16.0
12.5
04/2006 – 03/2007
14.5
14.5
11.0
04/2005 – 03/2006
11.5
10.5
7.5
04/2004 – 03/2005
10.0
8.0
5.0
04/2003 – 03/2004
9.0
7.0
4.5

Suppliers are required* to collect prepayment of retail sales tax from the person to whom the fuel is sold at any time the motor vehicle fuel tax or diesel fuel tax is imposed, or would be imposed but for certain exemptions, on the removal, entry, or sale in this state of motor vehicle fuel, diesel fuel, and aircraft jet fuel.

If no sale occurs at the time the motor vehicle fuel or diesel fuel tax is imposed, the supplier must prepay the retail sales tax. On each subsequent sale of the fuel, any seller other than the retailer (i.e. wholesaler) must collect the prepaid sales tax from the purchaser, based on the rate applicable at the time of the sale.

For more information on prepayments, please see publication 82, Prepaid Sales Tax and Sales of Fuel, which can be found on our website or call our Customer Service Center at 800-400-7115. Staff is available from 8:00 a.m. to 5:00 p.m. Monday through Friday, excluding state holidays.


*This requirement is in Article 1.5 of Chapter 5 of the California Sales and Use Tax Law, commencing with section 6480.