Signed by Governor Arnold Schwarzenegger

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that modifies fuel taxes to allow revenues to be used to pay off the general fund deficit.

Highlights:

-Requires the Director of Finance to adjust "the percentage of General Fund revenues appropriated for school districts and community college districts, respectively, in fiscal year 1986--87" in a manner that ensures that the shift in General Fund revenue has no net fiscal impact upon the amounts that are otherwise required to be applied by the state for the support of school districts and community college districts (Sec. 1). -Establishes a 1.75 percent tax on gross receipts from the sale of all diesel fuel sold at retail on and after July 1, 2011 (Sec. 2). -Establishes a 1.75 excise tax on the storage, use, or other consumption of diesel fuel on and after July 1, 2011 (Sec. 3). -Exempts the gross receipts from the sale, storage, use or other consumption of motor vehicle fuel from the Sales and Use Tax Law on and after July 1, 2010 (Sec. 4). -Establishes a tax at the rate of $0.18 per gallon on the removal, entry, sale, delivery, or specified use of motor vehicle fuel (Sec. 5). -Requires that the above tax be calculated so that the combined rate of state and federal tax per gallon on motor vehicle fuel be $0.27 if the federal fuel tax drops below $0.09 (Sec. 5). -Requires the State Board of Equalization to annually adjust the motor vehicle fuel and diesel fuel tax rate consistent with the requirement that the estimated revenues from the motor vehicle fuel tax increase not exceed the estimated revenues attributable to the exemption from sales and use tax for the sale of, or the storage, use, or other consumption of, motor vehicle fuel, in order to prevent a net revenue gain in state taxes (Sec. 5 and 8). -Requires each supplier, wholesaler, and retailer owning 1,000 or more gallons of tax-paid motor vehicle fuel on July 1, 2010 to pay a storage tax of $0.173 per gallon of fuel in storage (Sec. 6). -Establishes a tax at the rate of $0.18 per gallon on the removal, entry, sale, delivery, or specified use of diesel fuel (Sec. 8). -Requires that if the federal fuel tax drops below $0.15 per gallon of diesel, the above tax be calculated so that the combined rate of state and federal tax per gallon be what it would have been prior to the reduction (Sec. 8).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that modifies fuel taxes to allow revenues to be used to pay off the general fund deficit.

Highlights:

-Requires the Director of Finance to adjust "the percentage of General Fund revenues appropriated for school districts and community college districts, respectively, in fiscal year 1986--87" in a manner that ensures that the shift in General Fund revenue has no net fiscal impact upon the amounts that are otherwise required to be applied by the state for the support of school districts and community college districts (Sec. 1). -Establishes a 1.75 percent tax on gross receipts from the sale of all diesel fuel sold at retail on and after July 1, 2011 (Sec. 2). -Establishes a 1.75 excise tax on the storage, use, or other consumption of diesel fuel on and after July 1, 2011 (Sec. 3). -Exempts the gross receipts from the sale, storage, use or other consumption of motor vehicle fuel from the Sales and Use Tax Law on and after July 1, 2010 (Sec. 4). -Establishes a tax at the rate of $0.18 per gallon on the removal, entry, sale, delivery, or specified use of motor vehicle fuel (Sec. 5). -Requires that the above tax be calculated so that the combined rate of state and federal tax per gallon on motor vehicle fuel be $0.27 if the federal fuel tax drops below $0.09 (Sec. 5). -Requires the State Board of Equalization to annually adjust the motor vehicle fuel and diesel fuel tax rate consistent with the requirement that the estimated revenues from the motor vehicle fuel tax increase not exceed the estimated revenues attributable to the exemption from sales and use tax for the sale of, or the storage, use, or other consumption of, motor vehicle fuel, in order to prevent a net revenue gain in state taxes (Sec. 5 and 8). -Requires each supplier, wholesaler, and retailer owning 1,000 or more gallons of tax-paid motor vehicle fuel on July 1, 2010 to pay a storage tax of $0.173 per gallon of fuel in storage (Sec. 6). -Establishes a tax at the rate of $0.18 per gallon on the removal, entry, sale, delivery, or specified use of diesel fuel (Sec. 8). -Requires that if the federal fuel tax drops below $0.15 per gallon of diesel, the above tax be calculated so that the combined rate of state and federal tax per gallon be what it would have been prior to the reduction (Sec. 8).

Full Bill Text