Governor Brown recently signed Senate Bill (SB) 1 (Stats. 2017, Ch. 5), The Road Repair and Accountability Act of 2017. This new legislation increases the excise tax rates on motor vehicle fuel (MVF) and diesel fuel, and the sales and use tax rate on retail sales of diesel fuel. The new law will go into effect on November 1st, 2017.
“In addition to the fuel tax rate increase, retailers, wholesalers, and suppliers who hold in inventory tax paid MVF or diesel fuel on November 1, 2017 at 12:01 a.m., will need to file a storage tax return and pay a storage tax. The storage tax return and payment is due no later than January 1st, 2018.”
Here’s a closer look at the tax increases:
“The excise tax rate for MVF will increase from $0.297 to $0.417 per gallon (an increase of $0.12 per gallon), the excise tax rate for diesel fuel will increase from $0.16 to $0.36 per gallon (an increase of $0.20 per gallon), and the additional statewide sales and use tax rate imposed on retail sales of diesel fuel will increase from 1.75 percent to 5.75 percent (an increase of 4.00 percent).”
It’s important to make sure that your business is in compliance with this new rule. Do you need help getting started? Have questions or concerns about the process? Or would you just like to learn more about our services? The team here at Greg’s Petroleum Service is here to help however we can. Contact us today or give us a call at (661) 725 – 2078!
Servicing the Bakersfield, Fresno and Ventura areas, we pride ourselves in supplying the best oils, lubes, fuel and service. Services include fuel delivery, lubrication solutions, fleet fueling cards, and both gas station and quick lube franchising opportunities. We look forward to serving you!