The California Department of Tax and Fee Administration (CDTFA) has announced that the Office of Administrative Law approved the CDTFA’s amendments to Diesel Fuel Tax Regulation 1435, Tax Paid Twice on Diesel Fuel. The amendments clarify when a supplier that paid diesel fuel tax on diesel fuel removed from an approved terminal at the rack may file a claim for refund with the Department or take a credit on its tax return because the supplier paid tax twice on the same amount of diesel fuel. The amendments make Regulation 1435 more consistent with Revenue and Taxation Code section 60501(a)(4)(J), include real-world examples that were developed with interested parties, and define terms used to refer to different types of diesel fuel.
The approved regulation can be found on the CDTFA’s website at https://cdtfa.ca.gov/taxes-and-fees/Reg1435-2021.htm. Inquiries concerning Regulation 1435 should be directed to Ms. Kim DeArte, Regulations Coordinator, by telephone at (916)-309-5227 or by email at CDTFARegulations@cdtfa.ca.gov.