Bill Text: CA AB1907 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Use fuel tax: natural gas: gallon equivalent.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-09-29 - Chaptered by Secretary of State - Chapter 805, Statutes of 2014. [AB1907 Detail]

Download: California-2013-AB1907-Introduced.html

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BILL NUMBER: AB 1907	INTRODUCED
	BILL TEXT


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, as introduced, 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 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.
   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 $0.0875 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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.   No   (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.  
   When 
    (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.

   If 
    (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. 
All  
   (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 seventy-five hundredths cents ($0.0875)
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.  Neither 
    (2)     (A)     Neithe
  r  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.