2005 California Revenue and Taxation Code Sections 60501-60512 Article 1. Refunds on Certain Sales and Uses

60501.  Persons who have paid a tax for diesel fuel lost, sold, or
removed as provided in paragraph (4) of subdivision (a), or used in a
nontaxable use, other than on a farm for farming purposes or in an
exempt bus operation, shall, except as otherwise provided in this
part, be reimbursed and repaid the amount of the tax.
   (a) A claim for refund with respect to diesel fuel is allowed
under this section only if all of the following apply:
   (1) Tax was imposed on the diesel fuel to which the claim relates.
   (2) The claimant bought or produced the diesel fuel and did not
sell or resell it in this state except as provided in paragraph (4)
of subdivision (a).
   (3) The claimant has filed a timely claim for refund that contains
the information required under subdivision (b) and the claim is
supported by the original invoice or original invoice facsimile
retained in an alternative storage media showing the purchase.  If no
original invoice was created, electronic invoicing shall be accepted
as reflected by a computerized facsimile when accompanied by an
original copy of the bill of lading or fuel manifest that can be
directly tied to the electronic invoice.
   (4) The diesel fuel was any of the following:
   (A) Used for purposes other than operating motor vehicles upon the
public highways of the state.
   (B) Exported for use outside of this state.  Diesel fuel carried
from this state in the fuel tank of a motor vehicle is not deemed to
be exported from this state unless the diesel fuel becomes subject to
tax as an import under the laws of the destination state.
   (C) Used in any construction equipment that is exempt from vehicle
registration pursuant to the Vehicle Code, while operated within the
confines and limits of a construction project.
   (D) Used in the operation of a motor vehicle on any highway that
is under the jurisdiction of the United States Department of
Agriculture and with respect to the use of the highway the claimant
pays, or contributes to, the cost of construction or maintenance
thereof pursuant to an agreement with, or permission of, the United
States Department of Agriculture.
   (E) Used in any motor vehicle owned by any county, city and
county, city, district, or other political subdivision or public
agency when operated by it over any highway constructed and
maintained by the United States or any department or agency thereof
within a military reservation in this state.  If the motor vehicle is
operated both over the highway and over a public highway outside the
military reservation in a continuous trip the tax shall not be
refunded as to that portion of the diesel fuel used to operate the
vehicle over the public highway outside the military reservation.
   Nothing contained in this section shall be construed as a refund
of the tax for the use of diesel fuel in any motor vehicle operated
upon a public highway within a military reservation, which highway is
constructed or maintained by this state or any political subdivision
thereof.
   As used in this section, "military reservation" includes any
establishment of the United States Government or any agency thereof
used by the armed forces of the United States for military, air, or
naval operations, including research projects.
   (F) Sold by a supplier to any consulate officer or consulate
employee under circumstances which would have entitled the supplier
to an exemption under paragraph (6) of subdivision (a) of Section
60100 if the supplier had sold the diesel fuel directly to the
consulate officer or consulate employee.
   (G) Lost in the ordinary course of handling, transportation, or
storage.
   (H) Sold by a person to the United States and its agencies and
instrumentalities under circumstances that would have entitled that
person to an exemption from the payment of diesel fuel tax under
Section 60100 had that person been the supplier of this diesel fuel.
   (I) Sold by a person to a train operator for use in a
diesel-powered train or for other off-highway use under circumstances
that would have entitled that person to an exemption from the
payment of diesel fuel tax under Section 60100 had that person been
the supplier of this diesel fuel.
   (J) Removed from an approved terminal at the terminal rack, but
only to the extent that the supplier can show that the tax on the
same amount of diesel fuel has been paid more than one time by the
same supplier.
   (b) Each claim for refund under this section shall contain the
following information with respect to all of the diesel fuel covered
by the claim:
   (1) The name, address, telephone number, and permit number of the
person that sold the diesel fuel to the claimant and the date of the
purchase.
   (2) A statement by the claimant that the diesel fuel covered by
the claim did not contain visible evidence of dye.
   (3) A statement, which may appear on the invoice, original invoice
facsimile, or similar document, by the person that sold the diesel
fuel to the claimant that the diesel fuel sold did not contain
visible evidence of dye.
   (4) The total amount of diesel fuel covered by the claim.
   (5) The use made of the diesel fuel covered by the claim described
by reference to specific categories listed in paragraph (4) of
subdivision (a).
   (6) If the diesel fuel covered by the claim was exported, a
statement that the claimant has the proof of exportation.
   (c) Each claim for refund under this section shall be made on a
form prescribed by the board and shall be filed for a calendar year.
If, at the close of any of the first three quarters of the calendar
year, more than seven hundred fifty dollars ($750) is refundable
under this section with respect to diesel fuel used or exported
during that quarter or any prior quarter during the calendar year,
and for which no other claim has been filed, a claim may be filed for
the quarterly period.  To facilitate the administration of this
section, the board may require the filing of claims for refund for
other than yearly periods.
60502.  (a) Any ultimate vendor who has paid a tax on diesel fuel
sold to an ultimate purchaser for use on a farm for farming purposes
or use in an exempt bus operation shall, except as otherwise provided
in this part, be reimbursed and repaid the amount of the tax.
   (b) A claim for refund with respect to diesel fuel is allowed
under this section only if all of the following apply:
   (1) Tax was imposed on the diesel fuel to which the claim relates.
   (2) The claimant sold the diesel fuel to the ultimate purchaser
for use on a farm for farming purposes or for use in an exempt bus
operation.
   (3) The claimant is a registered ultimate vendor.
   (4) The claimant has filed a timely claim for refund that contains
the information required under subdivision (c) and the claim is
supported by the original invoice showing the purchase.  If no
original invoice was created, electronic invoicing shall be accepted
as reflected by a computerized facsimile when accompanied by an
original copy of the bill of lading or fuel manifest that can be
directly tied to the electronic invoice.
   (c) Each claim for refund under this section shall contain the
following information with respect to all the diesel fuel covered by
the claim:
   (1) The claimant's permit number.
   (2) The name, address, telephone number, and permit number of each
person that sold the diesel fuel to the claimant and the date of the
purchase.
   (3) The name, address, telephone number, and federal taxpayer
identification number of each farmer or the permit number of each
exempt bus operator that bought the diesel fuel from the claimant and
the number of gallons that the claimant sold to each.
   (4) A statement that the diesel fuel covered by the claim did not
contain visible evidence of dye.
   (5) The total amount of diesel fuel covered by the claim.
   (6) A statement that the claimant has not included the amount of
the tax in its sales price of the diesel fuel and has not collected
the amount of tax from its buyer.
   (7) A statement that the claimant has in its possession an
unexpired exemption certificate described in Section 60503 and the
claimant has no reason to believe any information in the certificate
is false.
   (8) A statement that the amounts claimed have not been previously
refunded to the claimant and that there are no other claims
outstanding for the amounts included in the current claim.
   (d) Each claim for refund under this section shall be made on a
form prescribed by the board and shall be for an amount of not less
than two hundred dollars ($200) and for a period of not less than one
week.
60502.1.  No tax shall be included in the sales price or on the
sales invoice by the ultimate vendor on diesel fuel sold to an
ultimate purchaser.
60502.2.  Notwithstanding the refund provided for by Section 60502
and the exemption provided for by subparagraph (B) of paragraph (5)
of subdivision (a) of Section 60100, any exempt bus operation using
diesel fuel on which the tax has been refunded under Section 60502 or
exempt from tax under subparagraph (B) of paragraph (5) of
subdivision (a) of Section 60100 shall, for the privilege of
operating buses on state highways and freeways, make a payment equal
to one cent ($0.01) for each gallon of the refunded or exempt diesel
fuel used.  The payments required by this subdivision shall be paid
to the State Board of Equalization in the manner prescribed by the
board, and the payments shall be treated as a tax for all purposes of
this part.
60503.  (a) The certificate to be provided to the ultimate vendor
consists of a statement that is signed under penalty of perjury by a
person with authority to bind the buyer.  A new certificate shall 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 to the seller.
   (b) An exemption certificate for diesel fuel used on a farm for
farming purposes or for diesel fuel used in an exempt bus operation
shall contain that information and be in the form as the board may
prescribe.
60503.1.  If a purchaser gives a Section 60503 exemption certificate
to an ultimate vendor to the effect that the diesel fuel purchased
will be used on a farm for farming purposes or in an exempt bus
operation, and sells the diesel fuel or uses the diesel 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
60050) 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 60361.5.
60503.2.  (a) Any person, including any officer or employee of a
corporation, who gives a Section 60503 exemption certificate for
diesel fuel that he or she knows at the time of purchase is not to be
used by him or her or the corporation on a farm for farming purposes
or in an exempt bus operation, for the purpose of evading payment to
the ultimate vendor of the amount of the tax applicable to the
transaction, is guilty of either a misdemeanor punishable as provided
in Section 60706 or a felony punishable as provided in Section
60707.
   (b) Any person, including any officer or employee of a
corporation, who gives an exemption certificate for diesel fuel
pursuant to Section 60503 that he or she knows at the time of
purchase is not to be used by him or her or the corporation on a farm
for farming purposes or in an exempt bus operation, 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.
60504.  For the purpose of refund claims filed pursuant to this
article, diesel fuel containing a de minimis quantity of dye shall
not be considered diesel fuel containing visible evidence of dye.
60505.  The board, upon the presentation of the claim and the
invoice, shall cause to be paid to the claimant from the taxes
collected under this part an amount equal to the taxes collected on
the diesel fuel with respect to which the refund is claimed under
this article.  If no original invoice was created, electronic
invoicing shall be accepted as reflected by a computerized facsimile
when accompanied by an original copy of the bill of lading or fuel
manifest that can be directly tied to the electronic invoice.
60505.5.  The claim for refund forms prescribed in subdivision (c)
of Section 60501 and subdivision (d) of Section 60502 may include,
but not be limited to, electronic media.  The claim for refund forms
shall be authenticated in a form or pursuant to methods as may be
prescribed by the board.
60506.  In order to establish the validity of any claim, the board
may, upon demand, examine the books and records of the claimant for
that purpose.  The failure of the claimant to accede to that demand
constitutes a waiver of any right to the refund claimed on account of
the transactions questioned.
60507.  All applications for refund provided under this article
shall be filed within three years from the date of the purchase of
the diesel fuel or, if the tax was not invoiced at the time of the
purchase of the diesel fuel, the application for refund shall be
filed within six months after the receipt of an invoice for the tax,
whichever period expires later.  Any application filed after the time
prescribed shall not be considered for any purpose by the board, the
Treasurer, or the state.
60508.  In lieu of the collection and refund of the tax on diesel
fuel used by a supplier in the manner as would entitle a purchaser to
claim refund under this article, credit may be given the supplier
upon the supplier's tax return and the determination of the amount of
the supplier's tax.
60508.1.  In lieu of the collection and refund of the tax on diesel
fuel sold to a consulate officer or consulate employee of a foreign
government by a supplier who would be entitled to claim a refund
under subdivision (a) of Section 60501, a credit may be given the
supplier upon the supplier's tax return and the determination of the
amount of the supplier's tax shall be in accordance with any rules
and regulations that the board may prescribe.
60508.2.  In lieu of the collection and refund of the tax on diesel
fuel sold to an ultimate purchaser for use on a farm for farming
purposes or for use in an exempt bus operation by a supplier who
would be entitled to a claim for refund under Section 60502, a credit
may be given the supplier upon the supplier's tax return and the
determination of the amount of the supplier's tax shall be in
accordance with any rules and regulations that the board may
prescribe.
60508.3.  In lieu of the refund of tax on diesel fuel used by a
government entity in the manner as would entitle a government entity
to claim a refund under this article, credit may be given to the
government entity upon the government entity's tax return and the
demonstration of the amount of the government entity's tax.
60508.4.  In lieu of the collection and refund of the tax on
tax-paid diesel fuel removed at a terminal rack by a supplier who is
entitled to claim a refund of tax under subparagraph (J) of paragraph
(4) of subdivision (a) of Section 60501, credit may be given the
supplier upon the supplier's tax return.  The amount of tax and
refund shall be determined in accordance with such rules and
regulations as the board may prescribe.
60509.  In lieu of the collection and refund of the tax on diesel
fuel exported by a supplier for use outside the state in the manner
as would entitle a supplier to claim a refund under subdivision (a)
of Section 60501, credit may be given the supplier upon the supplier'
s tax return and the determination of the amount of the supplier's
tax shall be in accordance with the rules and regulations that the
board may prescribe.
60511.  Interest shall be paid upon any refund of tax at the
modified adjusted rate per month established pursuant to Section
6591.5 from the first day of the calendar month following the day a
properly completed claim for refund was received by the board on any
claim that has not been paid within 20 calendar days of the receipt
of a properly completed claim form by the board.
   The interest shall be paid to the last day of the month following
the date upon which the claim is approved by the board.
   No interest shall be granted on credits taken on tax returns.
60512.  (a) A refund filed pursuant to Section 60502 shall be paid
to the claimant within 20 calendar days of the receipt of a claim for
refund by the board.
   (b) Notwithstanding subdivision (a), the claim for refund must be
submitted on a properly completed form or in a substantially similar
format, as prescribed by the board.