H.B. 191

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FEDERAL FUEL TAX REPLACEMENT PROVISIONS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Brian R. Allen
5 AN ACT RELATING TO REVENUE AND TAXATION; PROVIDING FOR AN INCREASE
6 IN CERTAIN STATE FUEL TAXES UPON A REDUCTION IN CERTAIN FEDERAL FUEL
7 TAXES; AND PROVIDING AN EFFECTIVE DATE.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 59-13-201, as last amended by Chapter 78, Laws of Utah 1995
11 59-13-301, as last amended by Chapter 79, Laws of Utah 1994
12 Be it enacted by the Legislature of the state of Utah:
13 Section 1. Section 59-13-201 is amended to read:
14 59-13-201. Rate -- Tax basis -- Exemptions -- Revenue deposited in the
15 Transportation Fund -- 1987 increase used for repairs only -- Restricted account for boating
16 uses -- Refunds.
17 (1) (a) (i) A tax is imposed at the rate of 19 cents per gallon upon all motor fuel that is
18 sold, used, or received for sale or use in this state.
19 (ii) If any change is made in this tax amount, the tax on fuel under Subsection (1)(b),
20 Subsection 59-13-301(1)(a), and the fee for a special fuel tax exemption certificate under
21 Subsection 59-13-304(2)(a) are increased or decreased by the same percentage of change as is
22 made to the tax under [this] Subsection (1)(a).
23 (iii) If any reduction is made to the federal tax on gasoline imposed under the Internal
24 Revenue Code, 26 U.S.C. Sec. 4081 (a)(2)(A)(i), the rate imposed under Subsection (1)(a)(i) is
25 increased by the amount of the reduction in the federal tax rounded up to the nearest half cent per
26 gallon. This additional tax is effective on the first day of the calendar month that is at least 30 days
27 after the date the federal tax reduction becomes effective.

1 (b) A tax is imposed at the rate of 3 cents per gallon upon all motor fuels that meet the
2 definition of clean fuel in Section 59-13-102 and are sold, used, or received for sale or use in this
3 state. If any change is made to the motor fuel tax under Subsection (1)(a), the tax under this
4 Subsection (1)(b) is increased or decreased by the same percentage of change, rounded up to the
5 next penny.
6 (2) Any increase or decrease in tax rate applies to motor fuel that is imported to the state
7 or sold at refineries in the state on or after the effective date of the rate change.
8 (3) (a) No tax is imposed upon:
9 (i) motor fuel that is brought into and sold in this state in original packages as purely
10 interstate commerce sales;
11 (ii) motor fuel that is exported from this state if proof of actual exportation on forms
12 prescribed by the commission is made within 180 days after exportation;
13 (iii) motor fuel or components of motor fuel that is sold and used in this state and distilled
14 from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons located in this state; or
15 (iv) motor fuel that is sold to the United States government, this state, or the political
16 subdivisions of this state where sale and delivery is made in quantities of 750 gallons or more.
17 (b) For purposes of this subsection, the state and its political subdivisions may make
18 collective purchases for purposes of meeting the 750 gallon requirement, and the state and political
19 subdivisions may provide for this purchase in any manner approved by the commission.
20 (4) The commission may either collect no tax on motor fuel exported from the state or,
21 upon application, refund the tax paid.
22 (5) (a) All revenue received by the commission under this part shall be deposited daily
23 with the state treasurer and credited to the Transportation Fund.
24 (b) The revenue received from the five cent per gallon increase effective April 1, 1987,
25 shall be used for the repair of highways, roads, and streets.
26 (c) An appropriation from the Transportation Fund shall be made to the commission to
27 cover expenses incurred in the administration and enforcement of this part and the collection of
28 the motor fuel tax.
29 (6) (a) The commission shall determine what amount of motor fuel tax revenue is received
30 from the sale or use of motor fuel used in motorboats registered under the provisions of the State
31 Boating Act, and this amount shall be deposited in a restricted revenue account in the General

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1 Fund of the state.
2 (b) The funds from this account shall be used for the construction, improvement,
3 operation, and maintenance of state-owned boating facilities and for the payment of the costs and
4 expenses of the Division of Parks and Recreation in administering and enforcing the State Boating
5 Act.
6 (7) (a) The United States government or any of its instrumentalities, this state, or a
7 political subdivision of this state that has purchased motor fuel from a licensed distributor or from
8 a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in this section is
9 entitled to a refund of the tax and may file with the commission for a quarterly refund.
10 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
11 commission shall make rules governing the application and refund provided for in Subsection (a).
12 (8) (a) The commission shall refund annually into the Off-Highway Vehicle Account in
13 the General Fund an amount equal to the lesser of the following:
14 (i) .5% of the motor fuel tax revenues collected under this section; or
15 (ii) $600,000.
16 (b) This amount shall be used as provided in Section 41-22-19.
17 (c) Subsection (8) sunsets on July 1, 2010.
18 Section 2. Section 59-13-301 is amended to read:
19 59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer and
20 credited to Transportation Fund.
21 (1) (a) A tax is imposed at the rate of 19 cents per gallon on the sale or use of special fuel
22 [other than] except clean special fuel, [which] that is exempt upon the purchase of an exemption
23 certificate under Section 59-13-304.
24 (b) If any change is made in the motor fuel tax rate under Subsection 59-13-201(1)(a), the
25 tax rate under Subsection (1)(a) of this section is increased or decreased by the same percentage
26 of change.
27 (c) If any reduction is made to the federal tax on diesel fuel imposed under the Internal
28 Revenue Code, 26 U.S.C. Sec. 4081 (a)(2)(A)(ii), the rate imposed under Subsection (1)(a) is
29 increased by the amount of the reduction in the federal tax rounded up to the nearest half cent per
30 gallon. This additional tax is effective on the first day of the calendar month that is at least 30 days
31 after the date the federal tax reduction becomes effective.

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1 (2) No tax is imposed upon special fuel which:
2 (a) is sold or used for any purpose other than to operate or propel a motor vehicle upon the
3 public highways of the state, but this exemption applies only in those cases where the purchasers
4 or the users of special fuel establish to the satisfaction of the commission that the special fuel was
5 used for purposes other than to operate a motor vehicle upon the public highways of the state;
6 (b) is sold to the United States government or any of its instrumentalities or to this state
7 or any of its political subdivisions; or
8 (c) is sold and delivered into a motor vehicle for which the owner or operator possesses
9 an unexpired special fuel tax exemption certificate issued to that owner or operator by the
10 commission as provided in Section 59-13-304 for vehicles powered by certain special fuels.
11 (3) The special fuel tax shall be paid by the user-dealer where the special fuel is sold
12 within the state and delivered directly into the fuel supply tank of a motor vehicle unless a current
13 special fuel exemption certificate has been issued for the motor vehicle under Section 59-13-304.
14 (4) (a) The special fuel tax shall be paid by every user who is required by Sections
15 59-13-303 and 59-13-305 to obtain a special fuel permit and file special fuel tax reports.
16 (b) The user shall receive a refund for special fuel taxes paid to the user-dealer on
17 purchases made which are delivered into vehicles and for which special fuel tax liability is
18 reported.
19 (5) (a) All revenue received by the commission from taxes and license fees under this part
20 shall be deposited daily with the state treasurer and credited to the Transportation Fund.
21 (b) The revenue received from the five cent per gallon increase effective April 1, 1987,
22 shall be used for the repair of highways, roads, and streets.
23 (c) An appropriation from the Transportation Fund shall be made to the commission to
24 cover expenses incurred in the administration and enforcement of this part and the collection of
25 the special fuel tax.
26 Section 3. Effective date.
27 If approved by two-thirds of all the members elected to each house, this act takes effect
28 upon approval by the governor, or the day following the constitutional time limit of Utah
29 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
30 date of veto override.


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Legislative Review Note
as of 10-10-96 4:46 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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