§ 1323. Passenger Carriers--Transit Partial Exemption.
18 CA ADC § 1323Barclays Official California Code of Regulations
18 CCR § 1323
§ 1323. Passenger Carriers--Transit Partial Exemption.
(A) The common carriage of passengers by motor vehicle for compensation on an individual fare basis between fixed termini, or over a regular route on any line or lines in urban and suburban areas, or between cities in close proximity, or on any line or lines owned and operated by a transit district, transit authority, or city.
(B) Any private entity providing transportation service under a contract or agreement, other than a general franchise agreement, entered into after September 26, 1978, with a public agency authorized to provide public transportation services. The provisions of subdivision (b) of this regulation shall apply only with respect to fuels consumed by that private entity while providing service under such contract or agreement.
(C) Any passenger stage corporation as defined in Section 226 of the Public Utilities Code, engaging in transit service subject to the jurisdiction of the Public Utilities Commission, when the motor vehicles of such passenger stage corporation are exclusively operated in urban or suburban areas or between cities in close proximity for the transportation of persons for hire, compensation, or profit; provided, however, that the exemption is not extended to any line or lines operated by such passenger stage corporation which shall exceed 50 miles of one-way route mileage. As defined in Section 226 of the Public Utilities Code, “passenger stage corporation” includes every person engaged as a common carrier for compensation, in the ownership, control, operation or management of a passenger stage over any public highway in this state between fixed termini or over a regular route except:
3. that part of the passenger stage operations of any person, whether between fixed termini or over a regular route or otherwise, engaged in the transportation of any pupils or students to or from a public or private school, college or university, or to or from activities of a public or private school, college or university, where the rate, charge or fare for such transportation is not computed, collected or demanded on an individual fare basis.
(D) Any common carrier of passengers operating exclusively on any line or lines within the limits of a single city between fixed termini or over a regular route, 98 percent or more of whose operations, as measured by total route mileage operated, are exclusively within the limits of a single city, and who by reason thereof is not a passenger stage corporation subject to the jurisdiction of the Public Utilities Commission.
(E) Any school district, community college district, or county superintendent of schools owning, leasing, or operating buses for the purpose of transporting pupils to and from school and for other school or college activities involving pupils, including, but not limited to, field trips and athletic contests.
(F) Any private entity providing transportation services for the purposes specified in (a)(2)(E) under contract or agreement entered into after October 1, 1984, with a school district, community college district, or county superintendent of schools. The provisions of subdivision (b) of this regulation shall apply only with respect to fuels consumed by that private entity while providing service under such contract or agreement.
(b) Application of Tax. A transit operator is exempt from use fuel tax with respect to fuel used for the propulsion of motor vehicles when operated in transit service. The operator must pay one cent for each gallon of such exempt fuel used. These payments shall be treated as a tax imposed under the use fuel tax law. The full rate of tax applies to the use of such fuels for the propulsion of motor vehicles in operations other than in transit service. The exemption does not apply to fuel used by a passenger stage corporation in passenger stage operations over any line or lines:
(c) Records. A transit operator claiming the partial exemption from the use fuel tax under (a)(2)(B) or (a)(2)(F) above, must retain all relevant contracts and other documentary evidence to support the claimed exemption. The operator shall maintain records of fuel consumed in contract operations. If the same vehicles are used for charter or any other purpose when not required for contract runs, the operator shall maintain records sufficiently detailed to support the exempt portion of the fuel consumed. For example, if the operator computes the exemption based upon mileage driven, the operator shall maintain records of each trip, total mileage, and the mileage the vehicle is operated while providing services under such contracts or agreements.
If an overpayment of use fuel tax is expected to occur consistently, a transit operator may apply for authorization from the Board to purchase fuel without payment of tax to vendors as specified in Regulation 1319.
Credits
Note: Authority cited: Section 9251, Revenue and Taxation Code. Reference: Section 8655, Revenue and Taxation Code.
History
1. Amendment of subsection (a)(1) filed 7-22-77; effective thirtieth day thereafter (Register 77, No. 30). For prior history, see Register 73, No. 51.
2. Amendment filed 12-6-79; effective thirtieth day thereafter (Register 79, No. 49).
3. Amendment of subsections (a) and (c) filed 11-23-87; operative 12-23-87 (Register 87, No. 48).
4. Amendment filed 4-20-99; operative 5-20-99 (Register 99, No. 17).
This database is current through 5/10/24 Register 2024, No. 19.
Cal. Admin. Code tit. 18, § 1323, 18 CA ADC § 1323
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