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First Substitute S.B. 253
7 AN ACT RELATING TO REVENUE AND TAXATION; INCREASING VARIOUS FUEL TAX
8 RATES; REDUCING THE STATE SALES AND USE TAX RATE; REPEALING THE
9 ENVIRONMENTAL SURCHARGE ON PETROLEUM; MAKING TECHNICAL
10 CHANGES; PROVIDING AN EFFECTIVE DATE; AND PROVIDING A COORDINATION
12 This act affects sections of Utah Code Annotated 1953 as follows:
14 19-6-409, as last amended by Chapter 297, Laws of Utah 1994
15 19-6-411, as last amended by Chapter 162, Laws of Utah 1996
16 59-12-103, as last amended by Chapters 82, 126, 186, 320, 338, 341 and 342, Laws of Utah
18 59-13-201, as last amended by Chapter 78, Laws of Utah 1995
19 59-13-301, as last amended by Chapter 79, Laws of Utah 1994
20 59-13-304, as last amended by Chapters 79 and 113, Laws of Utah 1994
22 19-6-410, as last amended by Chapter 1, Laws of Utah 1993, Second Special Session
23 Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 19-6-409 is amended to read:
25 19-6-409. Petroleum Storage Tank Fund created -- Source of revenues.
26 (1) (a) There is created an expendable trust fund entitled the Petroleum Storage Tank Fund.
1 (b) The sole sources of revenues for the fund are:
2 (i) petroleum storage tank fees under Section 19-6-411;
3 (ii) underground storage tank installation company permit fees under Section 19-6-411;
7 (c) Interest earned on fund monies shall be deposited into the fund.
8 (2) Fund monies may be used to pay:
9 (a) costs as provided in this part; and
10 (b) for the administration of the fund [
11 (3) Costs for the administration of the fund [
12 appropriated by the Legislature.
13 (4) The executive secretary may expend monies from the fund for:
14 (a) legal and claims adjusting costs incurred by the state in connection with claims,
15 judgments, awards, or settlements for bodily injury or property damage to third parties;
16 (b) costs incurred by the state risk manager in determining the actuarial soundness of the
17 fund; and
18 (c) other costs as provided in this part.
19 (5) Money in the Petroleum Storage Tank Fund in excess of $18,000,000 may be
20 appropriated by the Legislature to either or both of the following:
21 (a) the loan fund for purposes stated in Section 19-6-405.3; or
22 (b) the department to be applied to the costs of investigation, abatement, and corrective
23 action regarding releases not covered by the fund and not on the national priority list as defined
24 in Section 19-6-302.
25 (6) The board shall:
26 (a) establish by rule criteria for determining priorities for taking action or expending
27 money under Subsection (5)(b); and
28 (b) give due emphasis to releases that present a threat to public health or the environment.
29 (c) All funds appropriated to the department under Subsections (3) and (5)(b) that are not
30 expended or committed at the end of the fiscal year lapse into the Underground Storage Tank
1 Section 2. Section 19-6-411 is amended to read:
2 19-6-411. Petroleum storage tank fee.
3 (1) In addition to the underground storage tank registration fee paid in Section 19-6-408,
4 the owner or operator of a petroleum storage tank shall also pay an annual petroleum storage tank
5 fee to the department for each facility as follows:
6 (a) on and after July 1, 1990, through June 30, 1993, an annual fee of:
7 (i) $250 for each tank:
8 (A) located at a facility engaged in petroleum production, refining, or marketing; or
9 (B) with an annual monthly throughput of more than 10,000 gallons; and
10 (ii) $125 for each tank:
11 (A) not located at a facility engaged in petroleum production, refining, or marketing; and
12 (B) with an annual monthly throughput of 10,000 gallons or less;
13 (b) on and after July 1, 1993, through June 30, 1994, an annual fee of:
14 (i) $150 for each tank:
15 (A) located at a facility engaged in petroleum production, refining, or marketing; or
16 (B) with an average monthly throughput of more than 10,000 gallons; and
17 (ii) $75 for each tank:
18 (A) not located at a facility engaged in petroleum production, refining, or marketing; and
19 (B) with an average monthly throughput of 10,000 gallons or less; and
20 (c) on and after July 1, 1994, an annual fee of:
21 (i) $50 for each tank in a facility with an annual facility throughput rate of 400,000 gallons
22 or less;
23 (ii) $150 for each tank in a facility with an annual facility throughput rate of more than
24 400,000 gallons; and
25 (iii) $150 for each tank in a facility regarding which:
26 (A) the facility's throughput rate is not reported to the department within 30 days after the
27 date this throughput information is requested by the department; or
28 (B) the owner or operator elects to pay the fee under this subsection, rather than report
29 under Subsection (1)(c)(i) or (ii).
30 (2) (a) As a condition of permitting, each underground storage tank installation company
31 shall pay to the department the following fees to be deposited in the fund:
1 (i) an annual fee of:
2 (A) $2,000 per underground storage tank installation company if the installation company
3 has installed 15 or fewer underground storage tanks within the 12 months preceding the fee due
4 date; or
5 (B) $4,000 per underground storage tank installation company if the installation company
6 has installed 16 or more underground storage tanks within the 12 months preceding the fee due
7 date; and
8 (ii) $200 for each underground storage tank installed in the state, to be paid prior to
9 completion of installation.
10 (b) The board shall make rules specifying which portions of an underground storage tank
11 installation shall be subject to the permitting fees when less than a full underground storage tank
12 system is installed.
13 (3) (a) Fees under Subsections (1) and (2)(a)(i) are due on or before July 1 annually.
14 (b) If the department does not receive the fee on or before July 1 or before the installation
15 under Subsection (2)(a)(ii) is completed, the department shall impose a late penalty of $60 per
16 facility or per installation company.
17 (c) The fee and the late penalty accrue interest at 12% per annum.
18 (4) (a) If the fee, late penalty, and all accrued interest due under Subsection (3)(a) are not
19 received by the department within 60 days after July 1, the issued certificate of compliance or
20 underground storage tank installation company permit, and eligibility to receive payments for
21 claims against the fund lapse on the 61st day after July 1.
22 (b) If the fee, late penalty, and all accrued interest due under Subsection (2)(a)(ii) are not
23 received by the department within 60 days after the underground storage tank installation is
24 completed, the issued underground storage tank installation company permit and eligibility to
25 receive payments for claims against the fund lapse on the 61st day after the tank installation is
27 (c) The executive secretary may not reissue the certificate of compliance or underground
28 storage tank installation company permit until the fee, late penalty, and all accrued interest are
29 received by the department.
30 (5) If the state risk manager determines the fees established in Subsections (1) and (2) [
1 on an actuarially sound basis, he shall petition the Legislature to increase the petroleum storage
2 tank and underground storage tank installation company permit fees to a level that will sustain the
3 fund on an actuarially sound basis.
4 (6) The provisions of this subsection take precedence over all other provisions of this
6 (a) when a petroleum storage tank is initially registered with the executive secretary, the
7 department shall assess and collect a petroleum storage tank fee of $250 from the owner or
8 operator for that fiscal year; and
9 (b) the department may not assess any other petroleum storage tank fee from the owner
10 or operator for that fiscal year.
11 (7) The executive secretary may waive all or part of the fees required for a petroleum
12 storage tank under this section if no fuel has been dispensed from the tank on or after July 1, 1991.
13 (8) (a) Each petroleum storage tank or underground storage tank, for which payment of
14 fees has been made and other requirements have been met to qualify for a certificate of compliance
15 under this part, shall be issued a form of identification, as determined by the board under
16 Subsection (8)(b).
17 (b) The board shall make rules providing for the identification, through a tag or other
18 readily identifiable method, of petroleum storage tanks or underground storage tanks under
19 Subsection (8)(a) that qualify for a certificate of compliance under this part.
20 Section 3. Section 59-12-103 is amended to read:
21 59-12-103. Sales and use tax base -- Rate.
22 (1) There is levied a tax on the purchaser for the amount paid or charged for the following:
23 (a) retail sales of tangible personal property made within the state;
24 (b) amount paid to common carriers or to telephone or telegraph corporations, whether the
25 corporations are municipally or privately owned, for:
26 (i) all transportation;
27 (ii) intrastate telephone service; or
28 (iii) telegraph service;
29 (c) gas, electricity, heat, coal, fuel oil, or other fuels sold for commercial use;
30 (d) gas, electricity, heat, coal, fuel oil, or other fuels sold for residential use;
31 (e) meals sold;
1 (f) (i) admission or user fees for theaters, movies, operas, museums, planetariums, shows
2 of any type or nature, exhibitions, concerts, carnivals, amusement parks, amusement rides,
3 circuses, menageries, fairs, races, contests, sporting events, dances, boxing and wrestling matches,
4 closed circuit television broadcasts, billiard or pool parlors, bowling lanes, golf and miniature golf,
5 golf driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
6 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
7 horseback rides, sports activities, or any other amusement, entertainment, recreation, exhibition,
8 cultural, or athletic activity;
9 (ii) the tax imposed on admission or user fees in Subsection (1)(f)(i) does not affect an
10 entity's sales tax exempt status under Section 59-12-104.1;
11 (g) services for repairs or renovations of tangible personal property or services to install
12 tangible personal property in connection with other tangible personal property;
13 (h) except as provided in Subsection 59-12-104(8), cleaning or washing of tangible
14 personal property;
15 (i) tourist home, hotel, motel, or trailer court accommodations and services for less than
16 30 consecutive days;
17 (j) laundry and dry cleaning services;
18 (k) leases and rentals of tangible personal property if the property situs is in this state, if
19 the lessee took possession in this state, or if the property is stored, used, or otherwise consumed
20 in this state; and
21 (l) tangible personal property stored, used, or consumed in this state.
22 (2) Except for Subsection (1)(d), the rates of the tax levied under Subsection (1) shall be:
23 (a) 5% through June 30, 1994; [
24 (b) 4.875% [
25 (c) 4.75% beginning on July 1, 1997.
26 (3) The rates of the tax levied under Subsection (1)(d) shall be 2% from and after January
27 1, 1990.
28 (4) (a) From January 1, 1990, through December 31, 1999, there shall be deposited in an
29 Olympics special revenue fund or funds as determined by the Division of Finance under Section
30 51-5-4, for the use of the Utah Sports Authority created under Title 63A, Chapter 7, Utah Sports
31 Authority Act:
1 (i) the amount of sales and use tax generated by a 1/64% tax rate on the taxable items and
2 services under Subsection (1);
3 (ii) the amount of revenue generated by a 1/64% tax rate under Section 59-12-204 on the
4 taxable items and services under Subsection (1); and
5 (iii) interest earned on the amounts under Subsections (4)(a)(i) and (ii).
6 (b) These funds shall be used:
7 (i) by the Utah Sports Authority as follows:
8 (A) to the extent funds are available, to transfer directly to a debt service fund or to
9 otherwise reimburse to the state any amount expended on debt service or any other cost of any
10 bonds issued by the state to construct any public sports facility as defined in Section 63A-7-103;
11 (B) to pay for the actual and necessary operating, administrative, legal, and other expenses
12 of the Utah Sports Authority, but not including protocol expenses for seeking and obtaining the
13 right to host the Winter Olympic Games; and
14 (C) the Utah Sports Authority may not expend, loan, or pledge in the aggregate more than
15 $59,000,000 of sales and use tax deposited into the Olympics special revenue fund under
16 Subsection (4)(a) unless the Legislature appropriates additional funds from the Olympics special
17 revenue fund to the Utah Sports Authority; or
18 (ii) to pay salary, benefits, or administrative costs associated with the State Olympic
19 Coordinator under Subsection 63A-10-103(3), except that the salary, benefits, or administrative
20 costs may not be paid from the sales and tax revenues generated by municipalities or counties and
21 deposited under Subsection (4)(a)(ii).
22 (c) A payment of salary, benefits, or administrative costs under Subsection 63A-10-103(3)
23 is not considered an expenditure of the Utah Sports Authority.
24 (d) If the Legislature appropriates additional funds under Subsection (4)(b)(i)(C), the
25 authority may not expend, loan, pledge, or enter into any agreement to expend, loan, or pledge the
26 appropriated funds unless the authority:
27 (i) contracts in writing for the full reimbursement of the monies to the Olympics special
28 revenue fund by a public sports entity or other person benefitting from the expenditure; and
29 (ii) obtains a security interest that secures payment or performance of the obligation to
31 (e) A contract or agreement entered into in violation of Subsection (4)(d) is void.
1 (f) Any monies in the Olympics special revenue fund or funds as of October 1, 2002, shall
2 be dispersed as follows:
3 (i) 50% shall be deposited into the General Fund; and
4 (ii) 50% to counties, cities, or towns in proportion to the sales and use taxes generated by
5 the county, city, or town and deposited under Subsection (4)(a)(ii).
6 (5) (a) From July 1, 1997, the annual amount of sales and use tax generated by a 1/8%
7 tax rate on the taxable items and services under Subsection (1) shall be used as follows:
8 (i) 50% shall be used for water and wastewater projects as provided in Subsections (5)(b)
9 through (f); and
10 (ii) 50% shall be used for transportation projects as provided in Subsections (5)(g) through
12 (b) Five hundred thousand dollars each year shall be transferred to the Agriculture
13 Resource Development Fund created in Section 4-18-6.
14 (c) Fifty percent of the remaining amount generated by 50% of the 1/8% tax rate shall be
15 transferred to the Water Resources Conservation and Development Fund created in Section
16 73-10-24 for use by the Division of Water Resources. In addition to the uses allowed of the fund
17 under Section 73-10-24, the fund may also be used to:
18 (i) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the
19 funds made available to the Division of Water Resources under this section, of potential project
20 features of the Central Utah Project;
21 (ii) conduct hydrologic and geotechnical investigations by the Department of Natural
22 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
23 quantifying surface and ground water resources and describing the hydrologic systems of an area
24 in sufficient detail so as to enable local and state resource managers to plan for and accommodate
25 growth in water use without jeopardizing the resource;
26 (iii) fund state required dam safety improvements; and
27 (iv) protect the state's interest in interstate water compact allocations, including the hiring
28 of technical and legal staff.
29 (d) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
30 shall be transferred to the Utah Wastewater Loan Program subaccount created in Section 73-10c-5
31 for use by the Water Quality Board to fund wastewater projects as defined in Section 73-10b-2.
1 (e) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
2 shall be transferred to the Drinking Water Loan Program subaccount created in Section 73-10c-5
3 for use by the Division of Drinking Water to:
4 (i) provide for the installation and repair of collection, treatment, storage, and distribution
5 facilities for any public water system, as defined in Section 19-4-102;
6 (ii) develop underground sources of water, including springs and wells; and
7 (iii) develop surface water sources.
8 (f) Notwithstanding Subsections (5)(b), (c), (d), and (e), $100,000 of the remaining amount
9 generated by 50% of the 1/8% tax rate each year shall be transferred as dedicated credits to the
10 Division of Water Rights to cover the costs incurred in hiring legal and other technical staff for
11 the adjudication of water rights. Any remaining balance at the end of each fiscal year shall lapse
12 back to the contributing funds on a prorated basis.
13 (g) Fifty percent of the 1/8% tax rate shall be transferred to the Class B and Class C Roads
14 Account to be expended as provided in Title 27, Chapter 12, Article 11, except as provided in
15 Subsection (5)(h).
16 (h) (i) If HB 53, "Transportation Corridor Preservation," passes in the 1996 General
17 Session, $500,000 each year shall be transferred to the Transportation Corridor Preservation
18 Revolving Loan Fund, and if HB 121, "State Park Access Roads," passes in the 1996 General
19 Session, from July 1, 1997, through June 30, 2006, $500,000 shall be transferred to the Department
20 of Transportation for the State Park Access Highways Improvement Program. The remaining
21 amount generated by 50% of the 1/8% tax rate shall be transferred to the Class B and Class C
22 Roads Account.
23 (ii) At least 50% of the money transferred to the Transportation Corridor Preservation
24 Revolving Loan Fund under Subsection (5)(h)(i) shall be used to fund loan applications made by
25 the Department of Transportation at the request of local governments.
26 Section 4. Section 59-13-201 is amended to read:
27 59-13-201. Rate -- Tax basis -- Exemptions -- Revenue deposited in the
28 Transportation Fund -- 1987 increase used for repairs only -- Restricted account for boating
29 uses -- Refunds.
30 (1) (a) [
31 rate of [
1 in this state. [
5 (ii) Beginning on July 1, 1997, a tax is imposed at the rate of 24 1/2 cents per gallon upon
6 all motor fuel that is sold, used, or received for sale or used in this state.
7 (b) A tax is imposed at the rate of [
8 Subsection (1)(a), rounded up to the nearest penny, upon all motor fuels that meet the definition
9 of clean fuel in Section 59-13-102 and are sold, used, or received for sale or use in this state. [
12 (2) Any increase or decrease in tax rate applies to motor fuel that is imported to the state
13 or sold at refineries in the state on or after the effective date of the rate change.
14 (3) (a) No tax is imposed upon:
15 (i) motor fuel that is brought into and sold in this state in original packages as purely
16 interstate commerce sales;
17 (ii) motor fuel that is exported from this state if proof of actual exportation on forms
18 prescribed by the commission is made within 180 days after exportation;
19 (iii) motor fuel or components of motor fuel that is sold and used in this state and distilled
20 from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons located in this state; or
21 (iv) motor fuel that is sold to the United States government, this state, or the political
22 subdivisions of this state where sale and delivery is made in quantities of 750 gallons or more.
23 (b) For purposes of this subsection, the state and its political subdivisions may make
24 collective purchases for purposes of meeting the 750 gallon requirement, and the state and political
25 subdivisions may provide for this purchase in any manner approved by the commission.
26 (4) The commission may either collect no tax on motor fuel exported from the state or,
27 upon application, refund the tax paid.
28 (5) (a) All revenue received by the commission under this part shall be deposited daily
29 with the state treasurer and credited to the Transportation Fund.
2 to cover expenses incurred in the administration and enforcement of this part and the collection
3 of the motor fuel tax.
4 (6) (a) The commission shall determine what amount of motor fuel tax revenue is received
5 from the sale or use of motor fuel used in motorboats registered under the provisions of the State
6 Boating Act, and this amount shall be deposited in a restricted revenue account in the General
7 Fund of the state.
8 (b) The funds from this account shall be used for the construction, improvement,
9 operation, and maintenance of state-owned boating facilities and for the payment of the costs and
10 expenses of the Division of Parks and Recreation in administering and enforcing the State Boating
12 (7) (a) The United States government or any of its instrumentalities, this state, or a
13 political subdivision of this state that has purchased motor fuel from a licensed distributor or from
14 a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in this section is
15 entitled to a refund of the tax and may file with the commission for a quarterly refund.
16 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
17 commission shall make rules governing the application and refund provided for in Subsection
19 (8) (a) The commission shall refund annually into the Off-Highway Vehicle Account in
20 the General Fund an amount equal to the lesser of the following:
21 (i) .5% of the motor fuel tax revenues collected under this section; or
22 (ii) $600,000.
23 (b) This amount shall be used as provided in Section 41-22-19.
24 (c) Subsection (8) sunsets on July 1, 2010.
25 Section 5. Section 59-13-301 is amended to read:
26 59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer and
27 credited to Transportation Fund.
28 (1) [
29 Subsection 59-13-201(1)(a) on the sale or use of special fuel other than clean [
30 is exempt upon the purchase of an exemption certificate under Section 59-13-304.
3 (2) No tax is imposed upon special fuel which:
4 (a) is sold or used for any purpose other than to operate or propel a motor vehicle upon the
5 public highways of the state, but this exemption applies only in those cases where the purchasers
6 or the users of special fuel establish to the satisfaction of the commission that the special fuel was
7 used for purposes other than to operate a motor vehicle upon the public highways of the state;
8 (b) is sold to the United States government or any of its instrumentalities or to this state
9 or any of its political subdivisions; or
10 (c) is sold and delivered into a motor vehicle for which the owner or operator possesses
11 an unexpired special fuel tax exemption certificate issued to that owner or operator by the
12 commission as provided in Section 59-13-304 for vehicles powered by certain special fuels.
13 (3) The special fuel tax shall be paid by the user-dealer where the special fuel is sold
14 within the state and delivered directly into the fuel supply tank of a motor vehicle unless a current
15 special fuel exemption certificate has been issued for the motor vehicle under Section 59-13-304.
16 (4) (a) The special fuel tax shall be paid by every user who is required by Sections
17 59-13-303 and 59-13-305 to obtain a special fuel permit and file special fuel tax reports.
18 (b) The user shall receive a refund for special fuel taxes paid to the user-dealer on
19 purchases made which are delivered into vehicles and for which special fuel tax liability is
21 (5) (a) All revenue received by the commission from taxes and license fees under this part
22 shall be deposited daily with the state treasurer and credited to the Transportation Fund.
26 to cover expenses incurred in the administration and enforcement of this part and the collection
27 of the special fuel tax.
28 Section 6. Section 59-13-304 is amended to read:
29 59-13-304. Exemptions from special fuel tax -- Certificate required -- Fees for
30 certificates -- Inspection of vehicles.
31 (1) (a) A user of special fuel who owns a vehicle powered by a clean fuel as defined under
1 Section 59-13-102, may receive an exemption from the special fuel tax imposed under Section
3 (b) The commission determines if a user shall receive this exemption.
4 (c) A user who receives this exemption shall annually purchase from the commission a
5 special fuel tax exemption certificate for each vehicle owned that is described under Subsection
7 (d) Special fuel tax exemption certificates are provided to encourage the use of clean fuels
8 to reduce air pollution.
9 (2) (a) The fee for a special fuel tax exemption certificate is:
10 (i) [
11 up to the nearest dollar, for qualified motor vehicles as defined under Section 59-13-102; and
12 (ii) [
13 up to the nearest dollar, for other vehicles.
18 before issuing the exemption certificate.
20 carburetion system if it is powered by a fuel that is gaseous at standard atmospheric conditions.
21 Section 7. Repealer.
22 This act repeals:
23 Section 19-6-410, Environmental surcharge on petroleum.
24 Section 8. Effective date.
25 This act takes effect on July 1, 1997, except that the amendments to Sections 19-6-409,
26 19-6-411, and 59-13-201 and the repeal of Section 19-6-410 take effect on May 5, 1997.
27 Section 9. Coordination clause.
28 If this bill and H.B. 117, Underground Storage Tank Funding, both pass, it is the intent of
29 the Legislature that the amendments to Sections 19-6-409 and 19-6-411 in H.B. 117 supersede the
30 amendments to Sections 19-6-409 and 19-6-411 in this bill.
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