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S.B. 213 Enrolled
AN ACT RELATING TO REVENUE AND TAXATION; ADDRESSING REQUIRED PASS
THROUGH OF MOTOR FUEL TAXES; PROVIDING REFUNDS RELATED TO IMPACTS
OF MOTOR OR SPECIAL FUELS ON THE UTE TRIBE AND ITS MEMBERS; MAKING
TECHNICAL CHANGES; AND PROVIDING FOR DEPENDENT ENACTMENT.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-13-102, as last amended by Chapter 179, Laws of Utah 1999
59-13-204, as enacted by Chapter 6, Laws of Utah 1987
ENACTS:
59-13-201.5, Utah Code Annotated 1953
59-13-301.5, Utah Code Annotated 1953
This act enacts uncodified material.
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-13-102 is amended to read:
59-13-102. Definitions.
As used in this chapter:
(1) "Aviation fuel" means fuel that is sold at airports and used exclusively for the operation
of aircraft.
(2) "Clean fuel" means:
(a) the following special fuels:
(i) propane;
(ii) compressed natural gas; or
(iii) electricity; or
(b) any motor or special fuel that meets the clean fuel vehicle standards in the federal clean
Air Act Amendments of 1990, Title II.
(3) "Commission" means the State Tax Commission.
(4) (a) "Diesel fuel" means any liquid that is commonly or commercially known, offered for
sale, or used as a fuel in diesel engines.
(b) "Diesel fuel" includes any combustible liquid, by whatever name the liquid may be known
or sold, when the liquid is used in an internal combustion engine for the generation of power to
operate a motor vehicle licensed to operate on the highway, except fuel that is subject to the tax
imposed in Part 2, Motor Fuel, and Part 4, Aviation Fuel, of this chapter.
(5) "Distributor" means any person in this state who:
(a) imports or causes to be imported motor fuel for use, distribution, or sale, whether at retail
or wholesale;
(b) produces, refines, manufactures, or compounds motor fuel in this state for use,
distribution, or sale in this state;
(c) is engaged in the business of purchasing motor fuel for resale in wholesale quantities to
retail dealers of motor fuel and who accounts for his own motor fuel tax liability; or
(d) for purposes of Part 4, Aviation Fuel, only, makes retail sales of aviation fuel to:
(i) federally certificated air carriers; and
(ii) other persons.
(6) "Dyed diesel fuel" means diesel fuel that is dyed in accordance with 26 U.S.C. Sec. 4082
or United States Environmental Protection Agency or Internal Revenue Service regulations and that
is considered destined for nontaxable off-highway use.
(7) "Exchange agreement" means an agreement between licensed suppliers where one is a
position holder in a terminal who agrees to deliver taxable special fuel to the other supplier or the
other supplier's customer at the loading rack of the terminal where the delivering supplier holds an
inventory position.
(8) "Federally certificated air carrier" means a person who holds a certificate issued by the
Federal Aviation Administration authorizing the person to conduct an all-cargo operation or
scheduled operation, as defined in 14 C.F.R. Sec. 119.3.
(9) "Fuels" means any gas, liquid, solid, mixture, or other energy source which is generally
used in an engine or motor for the generation of power, including aviation fuel, clean fuel, diesel fuel,
motor fuel, and special fuel.
(10) "Highway" means every way or place, of whatever nature, generally open to the use of
the public for the purpose of vehicular travel notwithstanding that the way or place may be
temporarily closed for the purpose of construction, maintenance, or repair.
(11) "Motor fuel" means fuel that is commonly or commercially known or sold as gasoline
or gasohol and is used for any purpose, but does not include aviation fuel.
(12) "Motor fuels received" means:
(a) motor fuels that have been loaded at the refinery or other place into tank cars, placed in
any tank at the refinery from which any withdrawals are made directly into tank trucks, tank wagons,
or other types of transportation equipment, containers, or facilities other than tank cars, or placed in
any tank at the refinery from which any sales, uses, or deliveries not involving transportation are made
directly; or
(b) motor fuels that have been imported by any person into the state from any other state or
territory by tank car, tank truck, pipeline, or any other conveyance at the time when, and the place
where, the interstate transportation of the motor fuel is completed within the state by the person who
at the time of the delivery is the owner of the motor fuel.
(13) (a) "Qualified motor vehicle" means a special fuel-powered motor vehicle used,
designed, or maintained for transportation of persons or property which:
(i) has a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds;
(ii) has three or more axles regardless of weight; or
(iii) is used in a combination of vehicles when the weight of the combination of vehicles
exceeds 26,000 pounds gross vehicle weight.
(b) "Qualified motor vehicle" does not include a recreational vehicle not used in connection
with any business activity.
(14) "Rack," as used in Part 3, Special Fuel, means a deck, platform, or open bay which
consists of a series of metered pipes and hoses for the delivery or removal of diesel fuel from a
refinery or terminal into a motor vehicle, rail car, or vessel.
(15) "Removal," as used in Part 3, Special Fuel, means the physical transfer of diesel fuel
from a production, manufacturing, terminal, or refinery facility and includes use of diesel fuel.
Removal does not include:
(a) loss by evaporation or destruction; or
(b) transfers between refineries, racks, or terminals.
(16) (a) "Special fuel" means any fuel regardless of name or character that:
(i) is usable as fuel to operate or propel a motor vehicle upon the public highways of the
state; and
(ii) is not taxed under the category of aviation or motor fuel.
(b) Special fuel includes:
(i) fuels that are not conveniently measurable on a gallonage basis; and
(ii) diesel fuel.
(17) "Supplier," as used in Part 3, Special Fuel, means a person who:
(a) imports or acquires immediately upon importation into this state diesel fuel from within
or without a state, territory, or possession of the United States or the District of Columbia;
(b) produces, manufactures, refines, or blends diesel fuel in this state;
(c) otherwise acquires for distribution or sale in this state, diesel fuel with respect to which
there has been no previous taxable sale or use; or
(d) is in a two party exchange where the receiving party is deemed to be the supplier.
(18) "Terminal," as used in Part 3, Special Fuel, means a facility for the storage of diesel fuel
which is supplied by a motor vehicle, pipeline, or vessel and from which diesel fuel is removed for
distribution at a rack.
(19) "Two party exchange" means a transaction in which special fuel is transferred between
licensed suppliers pursuant to an exchange agreement.
(20) "Undyed diesel fuel" means diesel fuel that is not subject to the dyeing requirements in
accordance with 26 U.S.C. Sec. 4082 or United States Environmental Protection Agency or Internal
Revenue Service regulations.
(21) "Use," as used in Part 3, Special Fuel, means the consumption of special fuel for the
operation or propulsion of a motor vehicle upon the public highways of the state and includes the
reception of special fuel into the fuel supply tank of a motor vehicle.
(22) "User," as used in Part 3, Special Fuel, means any person who uses special fuel within
this state in an engine or motor for the generation of power to operate or propel a motor vehicle upon
the public highways of the state.
(23) "Ute tribal member" means an enrolled member of the Ute tribe.
(24) "Ute tribe" means the Ute Indian Tribe of the Uintah and Ouray Reservation.
(25) "Ute trust land" means the lands:
(a) of the Uintah and Ouray Reservation that are held in trust by the United States for the
benefit of:
(i) the Ute tribe;
(ii) an individual; or
(iii) a group of individuals; or
(b) specified as trust land by agreement between the governor and the Ute tribe meeting the
requirements of Subsections 59-13-201.5 (3) and 59-13-301.5 (3).
Section 2. Section 59-13-201.5 is enacted to read:
59-13-201.5. Refund of taxes impacting Ute tribe and Ute tribal members.
(1) In accordance with this section, the Ute tribe may receive a refund from the state of
amounts paid to a distributor for taxes imposed on the distributor in accordance with Section
59-13-204 if:
(a) the motor fuel is purchased from a licensed distributor;
(b) the Ute tribe pays the distributor as provided in Section 59-13-204 ;
(c) the motor fuel is purchased for use by:
(i) the Ute tribe; or
(ii) a Ute tribal member from a retail station:
(A) wholly owned by the Ute tribe; and
(B) that is located on Ute trust land; and
(d) the governor and the Ute tribe execute and maintain an agreement meeting the
requirements of Subsection (3).
(2) In addition to the agreement required by Subsection (1), the commission shall enter into
an agreement with the Ute tribe that:
(a) provides an allocation formula or procedure for determining:
(i) the amount of motor fuel sold by the Ute tribe to a Ute tribal member; and
(ii) the amount of motor fuel sold by the Ute tribe to a person who is not a Ute tribal
member; and
(b) provides a process by which:
(i) the Ute tribe obtains a refund permitted by this section; and
(ii) reports and remits motor fuel tax to the state for sales made to persons who are not Ute
tribal members.
(3) The agreement required under Subsection (1):
(a) may not:
(i) authorize the state to impose a tax in addition to a tax imposed under this chapter; or
(ii) provide a refund, credit, or similar tax relief that is greater or different than the refund
permitted under this section;
(iii) affect the power of the state to establish rates of taxation; and
(b) shall:
(i) provide that the state agrees to allow the refund described in this section;
(ii) be in writing;
(iii) be signed by:
(A) the governor; and
(B) the chair of the Business Committee of the Ute tribe;
(iv) be conditioned on obtaining any approval required by federal law; and
(v) state the effective date of the agreement.
(4) (a) The governor shall report to the commission by no later than February 1 of each year
as to whether or not an agreement meeting the requirements of this Subsection (4) is in effect.
(b) If an agreement meeting the requirements of this Subsection (4) is terminated, the refund
permitted under this section is not allowed beginning the January 1 following the date the agreement
terminates.
(5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may make rules regarding the procedures for seeking a refund agreed to under the
agreement described in Subsection (2).
Section 3. Section 59-13-204 is amended to read:
59-13-204. Distributors liable for tax -- Computations -- Exceptions -- Assumption of
liability statements -- Motor fuel received -- Tax to be added to price of motor fuel.
(1) Distributors licensed under this part who receive motor fuel are liable for the tax as
provided by this part, and shall report the receipt of the motor fuel to the commission and pay the tax
as prescribed.
(2) (a) Distributors shall compute the tax on the total taxable amount of motor fuel produced,
purchased, received, imported, or refined in this state, and all distributors shipping motor fuels into
this state shall compute the tax on the total taxable amount of motor fuels received for sale or use in
this state.
(b) All motor fuel distributed by any distributor to the distributor's branches within this state
is considered to be sold at the time of this distribution and is subject to this part as if actually sold.
(c) Distributors licensed under this part may sell motor fuel to other licensed distributors
without the payment or collection of the tax, if the purchasing distributor furnishes the seller with an
assumption of liability statement indicating the purchasing distributor is a licensed and bonded Utah
motor fuel distributor and will assume the Utah motor fuel tax responsibility on all motor fuel
purchased from the seller. The seller shall report each sale to the commission in a monthly report of
sales as provided under Section 59-13-206 .
(3) If motor fuels have been purchased outside of this state and brought into this state in
original packages from a distributor for the use of the consumer, then the tax shall be imposed when
the motor fuel is received.
(4) (a) Every distributor and retail dealer of motor fuels shall add the amount of the taxes
levied and assessed by this part to the price of the motor fuels. [
(b) This Subsection (4) in no way affects the method of the collection of the taxes as specified
in this part.
(c) Notwithstanding Subsection (4)(a), if the Ute tribe may receive a refund under Section
59-13-201.5 , the Ute tribe is not required to add the amount of the taxes levied and assessed by this
part to the price of motor fuel that is purchased:
(i) by a Ute tribal member; and
(ii) at a retail station:
(A) wholly owned by the Ute tribe; and
(B) located on Ute trust land.
Section 4. Section 59-13-301.5 is enacted to read:
59-13-301.5. Refund of taxes impacting Ute tribe and Ute tribal members.
(1) In accordance with this section, the Ute tribe may receive a refund from the state of
amounts paid in accordance with Section 59-13-301 if:
(a) the amounts paid by the Ute tribe when it purchases the special fuel includes the amount
paid in taxes on the special fuel;
(b) the special fuel is purchased for use by:
(i) the Ute tribe; or
(ii) a Ute tribal member from a retail station that is:
(A) wholly owned by the Ute tribe; and
(B) located on Ute trust land; and
(c) the governor and the Ute tribe execute and maintain an agreement meeting the
requirements of Subsection (3).
(2) (a) In addition to the agreement required by Subsection (1), the commission shall enter
into an agreement with the Ute tribe that:
(i) provides an allocation formula or procedure for determining:
(A) the amount of special fuel sold by the Ute tribe to a Ute tribal member; and
(B) the amount of special fuel sold by the Ute tribe to a person who is not a Ute tribal
member; and
(ii) provides a process by which:
(A) the Ute tribe obtains a refund permitted by this section; and
(B) reports and remits special fuel tax to the state for sales made to persons who are not Ute
tribal members.
(3) The agreement required under Subsection (1):
(a) may not:
(i) authorize the state to impose a tax in addition to a tax imposed under this chapter;
(ii) provide a refund, credit, or similar tax relief that is greater or different than the refund
permitted under this section; or
(iii) affect the power of the state to establish rates of taxation; and
(b) shall:
(i) provide that the state agrees to allow the refund described in this section;
(ii) be in writing;
(iii) be signed by:
(A) the governor; and
(B) the chair of the Business Committee of the Ute tribe;
(iv) be conditioned on obtaining any approval required by federal law; and
(v) state the effective date of the agreement.
(4) (a) The governor shall report to the commission by no later than February 1 of each year
as to whether or not an agreement meeting the requirements of this Subsection (4) is in effect.
(b) If an agreement meeting the requirements of this Subsection (4) is terminated, the refund
permitted under this section is not allowed beginning the January 1 following the date the agreement
terminates.
(5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may make rules regarding the procedures for seeking a refund agreed to under the
agreement described in Subsection (2).
Section 5. Dependent enactment.
It is the intent of the Legislature that if S.B. 181, Income Taxes - Application to the Uintah
and Ouray Reservation, is not also passed by this Legislature, the enacting clause of this S.B. 213 is
stricken and the provisions of this S.B. 213 not be given effect.
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