How does sales tax and motor vehicle fuel tax apply to unleaded racing fuel?
Unleaded racing fuel which has an octane rating of 100 or higher and does not meet the California Air Resources Board specifications for gasoline generally is not subject to the motor vehicle fuel tax and would not qualify for the partial sales tax exemption. However, when unleaded racing fuel is sold for use on the highway it is subject to the motor vehicle fuel tax and would qualify for the sales tax partial exemption.
