by Katy Grimes, E&E Legal Senior Media Fellow and California Globe Editor
As Appearing in the California Globe

‘California is closed for business and the service industry is at the verge of a collapse’

I was recently contacted by an independent gasoline station owner regarding the financial challenges facing these operators in California. Over the course of a few weeks, she provided numerous invoices on their wholesale fuel purchases, showing the staggering taxes and fees.

“This single delivery of 4,547 gallons totaled $23,706.16, including substantial California and federal taxes and fees. In addition, independent operators must meet sales tax and underground storage tank tax and fee obligations administered by the California Department of Tax and Fee Administration,” she said.

I searched “UNL ETH 10 CARB RFG,” the $19,548.69 line item on the invoice, and was taken to the California Air Resources Board website, California Reformulated Gasoline page, where it explains it is a “program to reduce emissions from motor vehicles.”

“The combination of high wholesale fuel costs, taxes, regulatory expenses, credit-card fees, payroll, insurance, utilities, and environmental compliance has created a serious cash-flow burden for small independent stations,” the gas station owner said.

“During the current energy crisis, we have not been provided a workable installment-payment option for these tax obligations.”