BILL NUMBER: AB 1907 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 25, 2014
PASSED THE ASSEMBLY MAY 15, 2014
AMENDED IN ASSEMBLY APRIL 3, 2014
INTRODUCED BY Assembly Member Ridley-Thomas
FEBRUARY 19, 2014
An act to amend Sections 13404 and 13470 of the Business and
Professions Code, and to amend Section 8651.6 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1907, Ridley-Thomas. Use fuel tax: natural gas: gallon
equivalent.
Existing law regulates the sale, offer for sale, or advertisement
for sale, at retail to the general public of petroleum products,
including liquefied natural gas and compressed natural gas for use
only as a motor vehicle fuel, as specified.
This bill would require compressed natural gas sold at retail to
the public for use as a motor vehicle fuel to be sold in a gasoline
gallon equivalent that is equal to 126.67 cubic feet, or 5.66 pounds,
of compressed natural gas, measured at the standard pressure and
temperature, as specified, and would require liquefied natural gas to
be sold in a diesel gallon equivalent that is equal to 6.06 pounds
of liquefied natural gas. This bill would prohibit a person from
selling at retail any compressed natural gas or liquid natural gas
for use as motor fuel from any place of business in this state unless
there is displayed and labeled on the dispensing apparatus in a
conspicuous place "Gasoline gallon equivalent" or "Diesel gallon
equivalent," respectively.
The Use Fuel Tax Law imposes an excise tax upon natural gas at the
rate of $0.07 for each 100 cubic feet, or 5.66 pounds, of compressed
natural gas used, measured at standard pressure and temperature, and
at a rate of $0.06 for each gallon of liquid natural gas used, as
provided.
This bill would, on and after January 1, 2015, instead of using
only a cubic foot measurement, impose an excise upon natural gas at
the rate of $0.0887 for each 126.67 cubic feet, or 5.66 pounds, of
compressed natural gas used, measured at standard pressure and
temperature, and instead of using a gallon measurement, at a rate of
$0.1017 for each 6.06 pounds of liquid natural gas used.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 13404 of the Business and Professions Code is
amended to read:
13404. (a) The sale of compressed natural gas by persons who sell
compressed natural gas at retail to the public for use only as a
motor vehicle fuel, and who are exempted from public utility status
by subdivision (f) of Section 216 of the Public Utilities Code, is a
sale of a motor fuel for the purposes of this chapter.
(b) Compressed natural gas sold at retail to the public for use as
a motor vehicle fuel shall be sold in a gasoline gallon equivalent
that shall be equal to 126.67 cubic feet, or 5.66 pounds, of
compressed natural gas, measured at the standard pressure and
temperature, described in Section 8615 of the Revenue and Taxation
Code.
(c) Liquefied natural gas sold at retail to the public for use as
a motor vehicle fuel shall be sold in a diesel gallon equivalent that
shall be equal to 6.06 pounds of liquefied natural gas.
SEC. 2. Section 13470 of the Business and Professions Code is
amended to read:
13470. (a) A person shall not sell at retail to the general
public, any motor fuel from any place of business in this state
unless there is displayed on the dispensing apparatus in a
conspicuous place at least one sign or price indicator showing the
actual total price per gallon or liter of all motor fuel sold
therefrom. The actual total price per gallon, or liter, shall include
fuel taxes and all sales taxes.
(b) (1) A person shall not sell at retail to the general public,
any compressed natural gas for use as a motor fuel from any place of
business in this state unless there is displayed and labeled on the
dispensing apparatus in a conspicuous place "Gasoline gallon
equivalent."
(2) A person shall not sell at retail to the general public, any
liquefied natural gas for use as a motor fuel from any place of
business in this state unless there is displayed and labeled on the
dispensing apparatus in a conspicuous place "Diesel gallon
equivalent."
(c) When a discount for cash is offered from a dispenser computing
only at the credit price, at least one sign or label shall be
conspicuously displayed on the dispenser indicating that the
dispenser is computing at the credit price and indicating the amount
of the discount per gallon or liter in letters and numerals not less
than one-half inch high.
(d) If motor fuel is sold by the liter, the word "liter" shall be
conspicuously displayed on the side of the dispensing apparatus from
which service can be made.
SEC. 3. Section 8651.6 of the Revenue and Taxation Code is amended
to read:
8651.6. (a) (1) Notwithstanding the provisions of Sections 8651
and 8651.5, on or after January 1, 1971, and before January 1, 2015,
the excise tax imposed upon natural gas shall be at the rate of seven
cents ($0.07) for each 100 cubic feet of compressed natural gas
used, measured at standard pressure and temperature, and at a rate of
six cents ($0.06) for each gallon of liquid natural gas used.
(2) Notwithstanding the provisions of Sections 8651 and 8651.5, on
or after January 1, 2015, an excise tax imposed upon natural gas
shall be imposed as follows:
(A) The rate of eight and eighty-seven hundredths cents ($0.0887)
for each 126.67 cubic feet, or 5.66 pounds, of compressed natural gas
used, measured at standard pressure and temperature.
(B) The rate of ten and seventeen hundredth cents ($0.1017) for
each 6.06 pounds of liquid natural gas used.
(b) (1) All references in this code to Section 8651 shall, with
respect to the rate imposed upon natural gas on or after January 1,
1971, also refer to this section.
(2) (A) Neither the tax imposed by this section nor the tax
imposed by Section 8651 shall apply to the use of compressed natural
gas or liquid natural gas used in a vehicle during any period of time
for which the owner or operator of the vehicle has paid the annual
flat rate fuel tax as provided in Section 8651.7.
(B) To the extent that an owner or operator has provided written
representation to a fuel seller that the owner or operator has
prepaid the annual flat rate fuel tax as provided in Section 8651.7,
the owner or operator shall be solely responsible for the taxes due
under this part and the fuel seller shall not be liable for
collecting and remitting those taxes.