Sales and use taxes: excise taxes: fuel.

The Sales and Use Tax Law imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or a tax, measured by the sales price, on the storage, use, or other consumption of tangible personal property in this state." That law defines the terms "gross receipts" and "sales price." This bill would exclude from the terms "gross receipts" and "sales price" the amount charged at retail for gasoline and diesel fuels in excess of $3.88 or $3.52 per gallon, respectively, as provided. Existing law imposes a sales and use tax and an excise tax on gasoline and diesel fuels and requires the State Board of Equalization to annually modify both the gasoline and diesel excise tax rates on a going-forward basis so that the taxes imposed on gasoline and diesel fuels, as described above, are revenue neutral. This bill would require the State Board of Equalization to reduce, but not increase, certain excise tax rates on gasoline and diesel fuels to maintain revenue neutrality. This bill would declare that it is to take effect immediately as an urgency statute.