California tax: Underground Storage Tank Maintenance Fee to Increase

Temporary rate increase takes effect January 1, 2010

Newly enacted legislation (AB 1188, Chapter 649, Statutes of 2009) increases the underground storage tank maintenance fee starting January 1, 2010. The new fee for petroleum placed into underground storage tanks will be $0.02 per gallon. This increased fee is in effect until January 1, 2012, at which time the fee will revert back to $0.014 per gallon.

The fee is set in statute to provide revenue for programs administered by the State Water Resources Control Board (SWRCB). The Board of Equalization (BOE) collects the fee. The underground storage tank maintenance fee was established in 1991 and provides revenues for programs designed to expedite the cleanup of leaking underground petroleum storage tanks in California. If you own an underground storage tank, you must register with the BOE and pay the fee.

An underground storage tank is any tank used to store petroleum beneath the surface of the ground. Petroleum subject to the fee includes gasoline and additives, aviation gasoline, jet fuel, diesel fuel, lubrication oils, heating and lighting oils, solvents, and alternative fuels containing petroleum.

If you have any questions regarding fee administration, please contact the BOE at 800-400-7115. For questions about the underground storage tank program contact the SWRCB at 916-341-5254.

The California State Board of Equalization is a publicly elected tax board. The BOE collects more than $53 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes. For more information on other taxes and fees in California, visit www.taxes.ca.gov.