California Revenue and Taxation Code § 60043

Revenue and Taxation Code
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(a) “Government entity” means this state and its political subdivisions except for a political subdivision that is only an exempt bus operator. (b) Sections 60146 and 60205.5 do not apply to a government entity if both of the following apply: (1) The diesel fuel is purchased tax-paid from a supplier or retail vendor. (2) The tax-paid diesel fuel is used solely for the operation of a diesel-powered highway vehicle within this state.

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