Instructions For Form Boe-401-Gs - Fuel Retailers Return (Page 5 of 9) in pdf

BOE-401-GSIN REV. 5 (4-13)

STATE OF CALIFORNIA

BOARD OF EQUALIZATION

Line 4. Returned Taxable Merchandise

Enter amounts you credited or refunded to customers for returned taxable merchandise, as described below.

You can take this deduction only if:

• You returned or credited to your customer the full sales price, including sales tax charges, and

• The customer, in order to obtain the refund or credit, is not required to purchase other property at a price greater than

the amount charged for the property returned.

Claim only the amount of the sale before tax. For example, if the returned merchandise had been sold for $15 plus sales

tax, you would claim only $15 as a deduction.

(Regulation 1655, Returns, Defects and Replacements.)

Line 5. Cash Discounts on Taxable Sales

If you gave a cash discount to a customer on a taxable sale, enter the amount of the discount here.

You can claim a deduction on this line only if you reported the full (undiscounted) selling price on line 1. Do not use this

line if you reported the discounted selling price on line 1 of this return or a previous return. In addition, you must ensure

that you do not collect from your customer more tax than the amount due on the discounted price. If you collect more

than the amount due on the discounted price, you cannot claim this deduction.

(Regulation 1671, Trading Stamps and Related Promotional Plans; Regulation 1700, Reimbursement for Sales Tax.)

Section C. Lines 1 thru 3: Partial Exemptions

The following transactions are exempt from the state portion of the total sales and use tax rate. They remain subject to

2.00 percent of the total sales and use tax rate, representing local, city, and county taxes. They are also subject to any

applicable district taxes. If the partial exemption was taken prior to July 1, 2011,

click

here.

Exemption Certificate Requirements

Retailers who wish to claim a partial exemption must obtain from purchasers a timely, valid exemption certificate as

described in Regulation 1667, Exemption Certificates. The BOE has designed a specific certificate for this purpose,

entitled, “Certificate of Partial Exemption.” The certificate is available on our website at or call our

Taxpayer Information Section for a copy. Retailers must retain the completed certificate for a period of not less than four

years.

Line 1. Farm Equipment

For a description of exempt farm equipment and who is eligible to claim this exemption see publication 66, Agricultural

Industry and Regulation 1533.1, Farm Equipment and Machinery.

Complete this line to claim a partial exemption for the sale, storage, use or other consumption of qualified farm equip

ment, machinery and their parts, as described below. It also applies to qualified lease payments for farm equipment and

machinery rentals payable on or after September 1, 2001.

Who can claim a partial exemption?

You can claim this partial exemption if you are a person engaged in an agricultural business described in Codes 0111

to 0291 of the Standard Industrial Classification (SIC) Manual or are a person that assists such classified person by per

forming an agricultural service described in Codes 0711 to 0783 of the SIC manual.

What type of equipment is eligible?

• “Implements of husbandry,” as defined in Revenue and Taxation Code section 411. Such property generally includes

any tool, machinery, equipment, appliance, device or apparatus. The farm equipment, machinery, and parts must be

used primarily in producing and harvesting agricultural products. “Primarily” means 50 percent or more of the time.

• Property as defined in Chapter 1, Division 16 of the Vehicle Code used exclusively in agricultural operations. Such

property under certain conditions includes lift carriers, tip-bed type trailers, trailers/semi-trailers having no bed,

spray or fertilizer applicator rigs, nurse rigs or equipment auxiliaries, row dusters, trap wagons, fertilizer nurse tanks

or trailers, cotton trailers, truck tractors and truck tractor/semi-trailer combinations. Vehicles primarily designed for

the transportation of persons or property on a highway are generally not considered implements of husbandry and,

therefore, do not qualify for this partial exemption.

Instructions For Form Boe-401-Gs - Fuel Retailers Return Page 5

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