Fillable Form Boe-501-Av - Vendor Use Fuel Tax Return (Page 3 of 4) in pdf

BOE-501-AV (S2F) REV. 5 (4-13)

STATE OF CALIFORNIA

BOARD OF EQUALIZATION

INSTRUCTIONS

VENDOR USE FUEL TAX RETURN

Payments: You can make your payment by paper check, Online ACH Debit (ePay) or by credit card. To use ePay, go to our

website at , click on the eServices tab and log in to make a payment. To pay by credit card, go to our

website or call 1-855-292-8931. Mandatory EFT accounts must pay by EFT or ePay. Be sure to sign and mail your return.

GENERAL INFORMATION

Fuel vendors must file this return to report sales of the following types of fuels (when sold and delivered into the fuel tanks of

motor vehicles):

Compressed natural gas (CNG)

Liquefied Petroleum Gas (LPG) and Liquid Natural Gas (LNG)

Alcohol fuels containing not more than 15 percent gasoline or diesel fuel (for example, ethanol and methanol)

Kerosene, distillate, and stove oil

Any fuel used or suitable for use in a motor vehicle, other than fuel subject to the diesel fuel tax or the motor vehicle fuel

license tax (for example, gasoline and blended fuels with more than 15 percent gasoline are subject to the motor vehicle

fuel license tax and not to use fuel tax)

TAX LIABILITY

Fuel vendors who sell and deliver the fuels described above into the tanks of motor vehicles must collect and report use fuel tax

for such sales (note exemption below). Vendors must also provide purchasers (users) with a receipt for each sale. The receipt

must show the name and address of the user (the sales invoice when paid constitutes a receipt).

Exemption: Vendors are not required to collect use fuel tax for sales of compressed natural gas, liquefied petroleum gas, or

liquid natural gas if the user's vehicle has a current State Board of Equalization (BOE) exemption sticker affixed. The sticker

specifies the type of fuel that is exempt from tax (only the fuel specified on the sticker is exempt for that vehicle).

FILING REQUIREMENTS

Vendors must file returns. The return and tax payment is due on the last day of the month following the end of the reporting

period. Payments should be made payable to the State Board of Equalization.

Step 1: Complete Appropriate Schedules

You must first complete the applicable schedules printed on the back of the return. Information from these schedules is used to

complete parts of the return.

Schedule A - Sales to Users Authorized to Purchase Ex-Tax Fuel under Regulations 1319 and 1320

Use this schedule to report sales of fuel for which you did not collect use fuel tax (fuel sold and delivered into the fuel

tanks of motor vehicles with a valid BOE exemption certificate).

Schedule B - Tax Credit on Bad Debt Losses.

Use this schedule to report any amount of tax that you have been unable to collect from users. The credit should be taken

on the return for the period the account is charged off for income tax purposes. Vendors using the reserve method to

account for bad debts should take the credit on the return for the period in which the account was charged against the

reserve. To claim this credit you must have reported and paid the tax on a return filed by you with the BOE and you must

have filed BOE-120,

Notice of Worthless Account (Bad Debts)

(refer to Schedule D), and have written off the account as a

bad debt for income tax purposes. You can claim a credit only for the amount of tax that applies to the unpaid portion of

the account.

Schedule C - Tax Recoveries on Bad Debt Losses

Use this schedule to report recoveries of delinquent tax payments for users (accounts previously reported on Schedule B

as bad debt losses). The tax collected must be included in the return due for the period in which the collection is made.

When an account of the purchaser is no longer delinquent or amounts remaining unpaid for over 60 days have been

cleared and the vendor is satisfied that the remainder of the account will be paid, the vendor should complete the pink

copy of the BOE-120,

Notice of Worthless Account (Bad Debts),

by indicating the payment received.

No tax credit is

allowable for any portion of a debt recovered that is retained by or paid to any person as compensation for

services or expenses in collecting the account.

Schedule D - Delinquent Accounts

Use this schedule to report any amounts unpaid arising from the sale of fuel or delinquent accounts on which you have

been unable to collect payment. For each delinquent account you must complete a BOE-120,

Notice of Worthless

Account (Bad Debts). Retain the pink and white copies for your records. Attach the blue and yellow copies to the return. In

order to properly report all delinquent accounts you need to complete a BOE-120 within 90 days of the calendar month

that the sale took place. For example, if you sold 100 gallons of fuel on 1/15/99, you would have until the end of the April

1999 tax return period to claim this account as delinquent and submit a BOE-120. Failure to claim this as a delinquent

account in a timely fashion will constitute a waiver of the credit that might otherwise be allowable as explained in

Regulation 1331.6.

Form Boe-501-Av - Vendor Use Fuel Tax Return Page 3

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