GASOLINE TAX REFUNDS TO STATE AGENCIES/DEPARTMENTS - 8297

(Renumbered: 10/2020)

(Revised and renumbered from 8745.1)

Revenue and Taxation Code sections 8101-8107  allows for a refund of the gasoline tax paid if the fuel is used for certain off-highway purposes. Some off-highway purposes may include farming, construction, landscaping, and utility providers.

 

The term “motor vehicle fuel” includes gasoline or similar inflammable liquid which is used in an explosion type of engine, but does not include diesel, kerosene, or liquefied petroleum gas. Gasoline tax refunds will be claimed when substantial quantities of fuel are used in equipment (except boats) of the following two categories:

1. Equipment not required to be licensed and registered for highway use by the Department of Motor Vehicles such as tractors, aircraft, lawnmowers, farming equipment,  and engines used for pumping, air compressing, auxiliary power units, etc.
2. Equipment licensed and registered for highway use but which is substantially used off the highway such as dump trucks, fire trucks, pickups, etc.

The State Controller’s Office (SCO) administers the Gasoline Tax Refund Programs for the State of California. The SCO website provides detailed information on the Program, including guidance, instructions for filing a claim, forms, and excise tax rate/refund rate.

Records       

Original fuel purchase invoices must be submitted with the refund claim. The following records will be maintained to support the gasoline tax refund claimed:

1. Agency issue tags or requisitions for fuel pumped from the agency’s storage tank. These documents will show the date the fuel was placed in the equipment, identification of the equipment, and gallons.
2. Trip tickets and working papers showing calculations based on reasonable data to support quantities of fuel used in motor vehicles operated both on and off the highway.
3. In cases where the fuel is delivered directly into equipment tanks by the vendor, the original invoice will constitute the usage record. Where the fuel is delivered by the vendor in drums or into an agency’s/department’s storage tank, issue tags and trip tickets or calculations are the usage records and will support the applicable original invoice.

Refund Claims                                                                                                                         

Refunds are calculated at the excise tax rates as specified in Revenue and Taxation Code section 7360 and are updated annually by the California Department of Tax and Fee Administration. The refund claims are required as follows:

 

• Agencies/departments must use the State Controller’s Form SCGR-1 to file a refund.
• Agencies/departments may file one claim for each calendar year. However, if during the year the amount of gasoline paid exceeds $750, a claim may be filed at the end of that quarter, rather than waiting for the end of the year.
• Gasoline tax refund claims will be supported by original invoices. Monthly or other periodic billings covering several purchases will not be accepted in support of the refunds.
• When a claim for refund of motor vehicle fuel taxes is to be filed, the original invoice will be used to support this claim and a duplicate invoice used to support the claim to pay the vendor’s bill. The duplicate invoice will bear the notation “Original invoice retained for use in filing claim for refund of motor vehicle fuel taxes.” This procedure is acceptable to the State Controller’s Office. The department may prepare a third copy of the invoice for its files.
• Refund claims must be filed within three years from the date of gasoline purchase.
• All documents relating to the refund claim will be retained for audit for four years after the refund claim is filed.