Union Oil Co. v. State Board of Equalization
Opinion
Opinion
McCARTY, J.
Summary of Case
Revenue and Taxation Code section 6358.1 exempts from taxation the sale of “[w]aste byproducts” when used as a fuel source in lieu of oil, natural gas, or coal.
Plaintiff sued for a refund of sales tax imposed on the sale of petroleum coke produced at its plant in Santa Maria, California. The issue is whether the petroleum coke produced at this plant is a waste byproduct within the meaning of Revenue and Taxation Code section 6358.1, and, therefore, exempt from sales and use tax. The trial court concluded it was and entered judgment for plaintiff.
The judgment is affirmed.
Statement of Facts
The parties stipulated to many of the underlying facts:
Union Oil Company of California (hereafter, Union) was engaged in the business of refining crude oil into finished petroleum products. Petroleum coke is a solid byproduct of the refining processes. Much of the sulfur originally contained in the crude oil and almost all of the metals are concentrated in the petroleum coke. Petroleum coke quality can vary significantly from refinery to refinery. The higher the level of sulfur and metals, the less the value of the petroleum coke.