Fuel licensees in California saw a recent decrease in the diesel fuel tax rate. The International Fuel Tax Agreement and Interstate User Diesel Fuel Tax that licensees report and pay with their quarterly returns for fuel purchased outside of CA and used in CA decreased from 79.5 cents per gallon to 72.7 cents per gallon. The new rate took effect on July 1, 2021, and will remain through June 30, 2022. Licensees must use it starting with their third-quarter 2021 return. Beginning July 1, 2021, licensees may claim a credit of 72.7 cents per gallon for tax-paid diesel fuel they purchase in CA and use inside and outside of the state.