7401-7405

REVENUE AND TAXATION CODE
SECTION 7401-7405




7401.  (a) The provisions of this part requiring the payment of
motor vehicle fuel taxes do not apply to any of the following:
   (1) Any entry or removal from a terminal or refinery of motor
vehicle fuel transferred in bulk to a refinery or terminal if the
persons involved (including the terminal operator) are licensed
suppliers.
   (2) The removal of motor vehicle fuel, if all of the following
apply:
   (A) The motor vehicle fuel is removed by railroad car from an
approved refinery and is received at an approved terminal.
   (B) The refinery and the terminal are operated by the same
licensed supplier.
   (C) The refinery is not served by pipeline (other than a pipeline
for the receipt of crude oil) or vessel.
   (3) Motor vehicle fuel which, pursuant to the contract of sale, is
required to be shipped and is shipped to a point outside of this
state by a supplier by means of any of the following:
   (A) Facilities operated by the supplier.
   (B) Delivery by the supplier to a carrier, customs broker, or
forwarding agency, whether hired by the purchaser or not, for
shipment to the out-of-state point.
   (C) Delivery by the supplier to any vessel clearing from a port of
this state for a port outside of this state and actually exported
from this state in the vessel.
   (4) Motor vehicle fuel sold by credit card certified by the United
States Department of State to any consulate officer or consulate
employee of a foreign government who is not engaged in any private
occupation for gain within this state, who uses the motor vehicle
fuel in a motor vehicle that is registered with the United States
Department of State, and whose government has done either of the
following:
   (A) Entered into a treaty with the United States providing for the
exemption of its representatives from national, state, and municipal
taxes.
   (B) Granted a similar exemption to representatives of the United
States.
   (5) Motor vehicle fuel sold to the United States armed forces for
use in ships or aircraft, or for use outside this state.
   (6) Gasoline blendstocks removed from a pipeline or vessel, when
the gasoline blendstocks are received by a licensed industrial user.
   (7) Any entry or removal from a terminal or refinery of gasoline
blendstocks that are received at an approved terminal or refinery if
the person otherwise liable for the tax is a licensed supplier.
   (8) Any entry or removal from a terminal or refinery of gasoline
blendstocks not in connection with a sale if the person otherwise
liable for the tax is a licensed supplier and the person does not use
the gasoline blendstocks to produce finished gasoline.
   (9) Any entry or removal from a terminal or refinery of gasoline
blendstocks in connection with a sale if the person otherwise liable
for the tax is a licensed supplier and at the time of sale, such
person has an unexpired exemption certificate described in Section
7402 from the buyer and has no reason to believe any information in
the certificate is false.
   (10) If paragraph (8) or (9) applied to the removal or entry of
gasoline blendstocks, any resale made of gasoline blendstocks, when
the person has an unexpired exemption certificate described in
Section 7402 from the buyer and has no reason to believe any
information in the certificate is false.
   (11) Motor vehicle fuel sold by a supplier to a train operator for
use in a motor vehicle fuel-powered train or for other off-highway
use and the supplier has on hand an exemption certificate described
in Section 7403 from the train operator.
   (b) For purposes of this section:
   (1) "Carrier" means a person or firm engaged in the business of
transporting for compensation property owned by other persons, and
includes both common and contract carriers.
   (2) "Forwarding agent" means a person or firm engaged in the
business of preparing property for shipment or arranging for its
shipment.


7402.  (a) The certificate to be provided by a buyer of gasoline
blendstocks consists of a statement that is signed under penalty of
perjury by a person with authority to bind the buyer. A new
certificate must be given if any information in the current
certificate changes. The certificate may be included as part of any
business records normally used to document a sale. The certificate
expires on the earliest of the following dates:
   (1) The date one year after the effective date of the certificate.
   (2) The date a new certificate is provided by the buyer to the
seller.
   (b) An exemption certificate for gasoline blendstocks that states
that the blendstocks will not be used to produce finished gasoline
shall contain that information and be in the form as the board may
prescribe.


7403.  (a) The certificate to be provided by a train operator
consists of a statement that is signed under penalties of perjury by
a person with authority to bind the buyer. A new certificate must be
given if any information in the current certificate changes. The
certificate may be included as part of any business records normally
used to document a sale.
   (b) An exemption certificate for motor vehicle fuel used in a
motor vehicle fuel-powered train or for other off-highway use shall
contain that information and be in the form as the board may
prescribe.



7403.1.  Prior to issuing an exemption certificate as provided in
Section 7403, the train operator shall obtain a license from the
board. Every application for a license shall be made upon a form
prescribed by the board and shall set forth the name under which the
applicant transacts or intends to transact business, the location of
his or her place or places of business, and such other information as
the board may require. The application shall be signed by the owner
if a natural person; in the case of an association or partnership, by
a member or partner; in the case of a corporation, by an executive
officer or some person specifically authorized by the corporation to
sign the application.


7403.2.  (a) For the privilege of purchasing motor vehicle fuel
exempt from taxes under paragraph (11) of subdivision (a) of Section
7401, each train operator must make a report to the board showing:
   (1) The name and license number of the supplier from whom it
purchased motor vehicle fuel and the number of gallons of motor
vehicle fuel purchased that is exempt from the tax.
   (2) Any other information required by the board.
   (b) Each train operator shall prepare and file with the board a
report in the form as prescribed by the board, which may include, but
not be limited to, electronic media showing the information in
subdivision (a) during each quarterly reporting period. The report
shall be filed with the board on or before the last day of the month
following the close of the quarterly period to which it relates. To
facilitate the administration of this part, the board may require the
filing of these reports for other than quarterly periods. Reports
shall be authenticated in a form or pursuant to methods as may be
prescribed by the board.
   (c) All of the administrative provisions of this part relating to
a supplier shall be applicable to a train operator.
   (d) The board may revoke the train operator's license provided for
in Section 7403.1 due to the filing of inaccurate or improper
reports.


7404.  If a purchaser gives an exemption certificate for motor
vehicle fuel pursuant to this chapter to the effect that the motor
vehicle fuel purchased will be used in an exempt manner, and sells
the motor vehicle fuel or uses the motor vehicle fuel in some other
manner or for some other purpose, the purchaser will be liable for
payment of the tax under Chapter 2 (commencing with Section 7360) of
this part. The tax, applicable penalties, and interest shall become
due and payable and shall be ascertained and determined in the same
manner as the backup tax under Section 7727.



7405.  (a) Any person, including any officer or employee of a
corporation, who gives an exemption certificate pursuant to this
chapter for motor vehicle fuel that he or she knows at the time of
purchase is not to be used by him or her or the corporation in an
exempt manner, for the purpose of evading payment of the amount of
the tax applicable to the transaction, is guilty of a misdemeanor
punishable as provided in Section 8405.
   (b) Any person, including any officer or employee of a
corporation, who gives an exemption certificate for motor vehicle
fuel pursuant to this chapter that he or she knows at the time of
purchase is not to be used by him or her or the corporation in an
exempt manner, is liable to the state for the amount of tax that
would be due if he or she had not given that certificate. In addition
to the tax, the person shall be liable to the state for a penalty of
25 percent of the tax or one thousand dollars ($1,000), whichever is
greater, for each certificate issued for personal gain or to evade
the payment of taxes.