Fuel taxes: blended fuels.

The Motor Vehicle Fuel Tax Law and the Diesel Fuel Tax Law impose state excise taxes at specified rates per gallon on the removal, entry, sale, delivering, or specified use of motor vehicle fuel and diesel fuel respectively, and the Use Fuel Tax Law imposes a state excise tax on the use of other fuel at specified rates. The Motor Vehicle Fuel Tax Law requires certain persons who have paid a tax for motor vehicle fuel, as specified, to be reimbursed and repaid the amount of the tax. This bill would make the provision requiring reimbursement and repayment of the motor vehicle fuel tax applicable to any person who buys and uses tax-paid motor vehicle fuel for the purpose of producing a blended fuel that will be used to operate motor vehicles upon the public highways of the state that is taxed under the Use Fuel Tax Law, if the person has submitted or submits the refund application request on or after January 1, 2011, and can show that the applicable California use fuel tax has been paid on the blended fuel produced by the person. This bill would also state that the Legislature finds and declares that this act serves multiple public purposes. This bill would take effect immediately as a tax levy.