S.B. 252 Enrolled

COLLECTION OF FUEL TAX
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Howard A. Stephenson
AN ACT RELATING TO REVENUE AND TAXATION; AMENDING PROCEDURES FOR
THE TAXATION OF SPECIAL FUELS INCLUDING DIESEL FUEL; PROVIDING
DEFINITIONS; AMENDING PENALTIES; MAKING TECHNICAL CORRECTIONS;
AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-13-102, as last amended by Chapter 4, Laws of Utah 1993
59-13-103, as last amended by Chapter 20, Laws of Utah 1995
59-13-201, as last amended by Chapter 78, Laws of Utah 1995
59-13-301, as last amended by Chapter 79, Laws of Utah 1994
59-13-302, as last amended by Chapters 53 and 313, Laws of Utah 1994
59-13-304, as last amended by Chapters 79 and 113, Laws of Utah 1994
59-13-305, as last amended by Chapter 53, Laws of Utah 1994
59-13-307, as enacted by Chapter 6, Laws of Utah 1987
59-13-308, as last amended by Chapter 53, Laws of Utah 1994
59-13-310, as enacted by Chapter 6, Laws of Utah 1987
59-13-312, as last amended by Chapter 53, Laws of Utah 1994
59-13-313, as last amended by Chapter 53, Laws of Utah 1994
59-13-314, as enacted by Chapter 6, Laws of Utah 1987
59-13-316, as last amended by Chapter 53, Laws of Utah 1994
59-13-317, as last amended by Chapter 53, Laws of Utah 1994
59-13-320, as enacted by Chapter 6, Laws of Utah 1987
ENACTS:
59-13-321, Utah Code Annotated 1953
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:
[(b)] (1) "Aviation fuel" means fuel that is sold at airports and used exclusively for the
operation of aircraft.
[(a)] (2) "Clean fuel" means:
(i) the following special fuels:
(A) propane;
(B) compressed natural gas; or
(C) electricity; or
(ii) any motor or special fuel that meets the clean fuel vehicle standards in the federal clean
Air Act Amendments of 1990, Title II.
[(1)] (3) "Commission" means the State Tax Commission.
(4) "Diesel fuel" means any liquid that is commonly or commercially known, offered for
sale, or used as a fuel in diesel engines. "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.
[(2)] (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; or
(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.
(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.

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(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.
[(3)] (8) "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[. For purposes of this chapter fuels
are separated into four categories as follows:], including aviation fuel, clean fuel, diesel fuel, motor
fuel, and special fuel.
[(4)] (9) "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.
[(c)] (10) "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.
[(5)] (11) "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.
[(6)] (12) (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

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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.
(13) "Rack," as used in Part 3, 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.
(14) "Removal," as used in Part 3, 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.
[(d)] (15) (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. Special fuel includes those fuels
that are not conveniently measurable on a gallonage basis.
(b) "Special fuel" includes diesel fuel.
(16) "Supplier," as used in Part 3, 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.
(17) "Terminal," as used in Part 3, 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.
(18) "Two party exchange" means a transaction in which special fuel is transferred between

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licensed suppliers pursuant to an exchange agreement.
(19) "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.
[(7)] (20) "Use," as used in Part 3, 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.
[(8)] (21) "User," as used in Part 3, 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.
[(9) "User-dealer," as used in Part 3, means any person who delivers special fuel into the fuel
supply tank of any motor vehicle operated or propelled upon the public highways of the state.]
Section 2. Section 59-13-103 is amended to read:
59-13-103. List of clean fuels provided to tax commission -- Report to the Legislature.
(1) The Air Quality Board shall annually provide to the tax commission a list of fuels that
are clean fuels under Section 59-13-102.
(2) The Air Quality Board created under Section 19-2-103 shall in conjunction with the State
Tax Commission prepare and submit to the Legislature before January 1, 1995, a report evaluating
the impacts, benefits, and economic consequences of the clean fuel [exemption] certificate provisions
of Sections 59-13-201 and 59-13-301.
Section 3. Section 59-13-201 is amended to read:
59-13-201. Rate -- Tax basis -- Exemptions -- Revenue deposited in the Transportation
Fund -- 1987 increase used for repairs only -- Restricted account for boating uses -- Refunds.
(1) (a) A tax is imposed at the rate of 19 cents per gallon upon all motor fuel that is sold,
used, or received for sale or use in this state. If any change is made in this tax amount, the tax on
fuel under Subsection (1)(b), Subsection 59-13-301(1)(a), and the fee for a clean special fuel [tax
exemption] certificate under Subsection 59-13-304(2)(a) are increased or decreased by the same
percentage of change as is made to the tax under this Subsection (1)(a).

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

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(6) (a) The commission shall determine what amount of motor fuel tax revenue is received
from the sale or use of motor fuel used in motorboats registered under the provisions of the State
Boating Act, and this amount shall be deposited in a restricted revenue account in the General Fund
of the state.
(b) The funds from this account shall be used for the construction, improvement, operation,
and maintenance of state-owned boating facilities and for the payment of the costs and expenses of
the Division of Parks and Recreation in administering and enforcing the State Boating Act.
(7) (a) The United States government or any of its instrumentalities, this state, or a political
subdivision of this state that has purchased motor fuel from a licensed distributor or from a retail
dealer of motor fuel and has paid the tax on the motor fuel as provided in this section is entitled to
a refund of the tax and may file with the commission for a quarterly refund.
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission shall make rules governing the application and refund provided for in Subsection (7)(a).
(8) (a) The commission shall refund annually into the Off-Highway Vehicle Account in the
General Fund an amount equal to the lesser of the following:
(i) .5% of the motor fuel tax revenues collected under this section; or
(ii) $600,000.
(b) This amount shall be used as provided in Section 41-22-19.
(c) Subsection (8) sunsets on July 1, 2010.
Section 4. Section 59-13-301 is amended to read:
59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer and
credited to Transportation Fund.
(1) (a) [A] Except as provided in Subsection (2) and Section 59-13-304, a tax is imposed at
the rate of 19 cents per gallon on the [sale or use of special fuel other than clean special fuel, which
is exempt upon the purchase of an exemption certificate under Section 59-13-304]:
(i) removal of undyed diesel fuel from any refinery;
(ii) removal of undyed diesel fuel from any terminal;
(iii) entry into the state of any undyed diesel fuel for consumption, use, sale, or warehousing;

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(iv) sale of undyed diesel fuel to any person who is not registered as a supplier under this
part unless the tax has been collected under this section;
(v) any untaxed special fuel blended with undyed diesel fuel; or
(vi) use of untaxed special fuel, other than a clean special fuel.
(b) If any change is made in the motor fuel tax rate under Subsection 59-13-201(1)(a), the
tax rate under Subsection (1)(a) of this section is increased or decreased by the same percentage of
change.
(c) The tax imposed under this section shall only be imposed once upon any special fuel.
(2) (a) No special fuel tax is imposed or collected upon [special] dyed diesel fuel which:
[(a)] (i) is sold or used for any purpose other than to operate or propel a motor vehicle upon
the public highways of the state, but this exemption applies only in those cases where the purchasers
or the users of special fuel establish to the satisfaction of the commission that the special fuel was
used for purposes other than to operate a motor vehicle upon the public highways of the state; or
(ii) is sold to this state or any of its political subdivisions.
(b) No special fuel tax is imposed on undyed diesel fuel which:
[(b)] (i) is sold to the United States government or any of its instrumentalities or to this state
or any of its political subdivisions; or
[(c) is sold and delivered into a motor vehicle for which the owner or operator possesses an
unexpired special fuel tax exemption certificate issued to that owner or operator by the commission
as provided in Section 59-13-304 for vehicles powered by certain special fuels.]
(ii) is exported from this state if proof of actual exportation on forms prescribed by the
commission is made within 180 days after exportation.
(3) No tax is imposed or collected on special fuel if it is:
(a) purchased for business use in machinery and equipment not registered and not required
to be registered for highway use; and
(b) used pursuant to the conditions of a state implementation plan approved under Title 19,
Chapter 2, Air Conservation Act.
(4) Upon request of a buyer meeting the requirements under Subsection (3), the Division of

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Air Quality shall issue an exemption certificate that may be shown to a seller.
[(3)] (5) The special fuel tax shall be paid by the [user-dealer where the special fuel is sold
within the state and delivered directly into the fuel supply tank of a motor vehicle unless a current
special fuel exemption certificate has been issued for the motor vehicle under Section 59-13-304]
supplier.
[(4)] (6) (a) The special fuel tax shall be paid by every user who is required by Sections
59-13-303 and 59-13-305 to obtain a special fuel permit and file special fuel tax reports.
(b) The user shall receive a [refund] refundable credit for special fuel taxes paid [to the
user-dealer] on purchases [made] which are delivered into vehicles and for which special fuel tax
liability is reported.
[(5)] (7) (a) All revenue received by the commission from taxes and license fees under this
part shall be deposited daily with the state treasurer and credited to the Transportation Fund.
(b) The revenue received from the five cent per gallon increase effective April 1, 1987, shall
be used for the repair of highways, roads, and streets.
(c) An appropriation from the Transportation Fund shall be made to the commission to cover
expenses incurred in the administration and enforcement of this part and the collection of the special
fuel tax.
(8) The commission may either collect no tax on special fuel exported from the state or,
upon application, refund the tax paid.
(9) (a) The United States government or any of its instrumentalities, this state, or a political
subdivision of this state that has purchased special fuel from a supplier or from a retail dealer of
special fuel and has paid the tax on the special fuel as provided in this section is entitled to a refund
of the tax and may file with the commission for a quarterly refund.
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission shall make rules governing the application and refund provided for in Subsection (9)(a).
Section 5. Section 59-13-302 is amended to read:
59-13-302. License required -- Fees -- Application for license -- Bond -- Monthly
reports -- Failure to comply -- Penalties -- Discontinuance of business -- Liens upon property.

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(1) Each [user-dealer or retail dealer] supplier of [special] diesel fuel [at retail] shall first
obtain from the commission a [user-dealer's] supplier's license and shall pay a license fee determined
by the commission pursuant to Section 63-38-3.2 [for each distributing station, bulk plant, place of
business, or agency]. The license shall be valid until the holder of the license ceases to act as a
[user-dealer] supplier, unless the commission has reasonable cause to terminate the license at an
earlier date. The license issued by the commission is not assignable and is valid only for the
[user-dealer] supplier in whose name it is issued.
(2) The [user-dealer] supplier license application shall state:
(a) the places of business and locations from which [sales] delivery or removal are made
[into motor vehicles or from which retail sales of special fuel are made];
(b) the name and address of the managing agent; and
(c) the names and addresses of the persons constituting the firm, association, or partnership,
if a firm, association, or partnership, and if a corporation, the corporate name under which it is
authorized to transact business and the names and addresses of its principal officers, resident general
agent, and attorney in fact.
(3) [The commission may require a user-dealer to furnish a bond depending upon financial
rating, if the commission considers it practical and necessary in the administration of this part.] (a)
(i) A supplier may not be granted a license until the commission is furnished a bond in an amount
two times the estimated monthly tax not to exceed $100,000, but no less than $35,000, in a form
prescribed by the commission.
(ii) The bond shall be executed by the applicant as principal, with a corporate surety, and
shall be payable to the commission conditioned upon the faithful performance of all the requirements
of this part, including the payment of all taxes, penalties, interest, and other obligations of the
applicant arising under this part and under Section 59-1-401.
(b) (i) In lieu of the bond, the applicant may deposit with the commission, under terms and
conditions prescribed by the commission, either a like amount of lawful money of the United States
or bonds or other obligations satisfactory to the commission and which shall, at all times, be of an
actual market value not less than the amount fixed by the commission.

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(ii) Any license obtained by depositing bonds or other obligations shall automatically be
revoked upon the failure of the holder, within 15 days after written notice from the commission, to
deposit the additional bonds or other securities sufficient to offset any diminution of the actual
market value of the deposited bonds or other obligations.
(4) (a) The commission may cancel the license of a [user-dealer] supplier and notify that
[user-dealer] supplier of the cancellation if that [user-dealer] supplier:
(i) files a false monthly report of the data or information required by this part;
(ii) fails, refuses, or neglects to file the monthly report as required by this part;
(iii) fails to pay the full amount of the tax as required by this part; or
(iv) fails to keep accurate records of quantities of fuel received, produced, refined,
manufactured, compounded, or used in this state.
(b) The commission may also cancel any license issued to any [user-dealer] supplier upon
the written request of the [user-dealer] supplier.
(5) (a) If any person ceases to be a [user-dealer] supplier within the state by reason of the
discontinuance, sale, or transfer of the person's business, the [user-dealer] supplier shall notify the
commission in writing at the time the discontinuance, sale, or transfer takes effect.
(b) The notice shall give the date of discontinuance and, in the event of a sale, the date of
the sale and the name and address of the purchaser or transferee.
(c) Taxes on all [sales] special fuel delivery or removal made prior to the discontinuance,
sale, or transfer, shall become due and payable on the date of discontinuance, sale, or transfer.
(d) The [user-dealer] supplier shall make a report and pay all taxes, interest, and penalties
and surrender to the commission the license certificate that was issued to the [user-dealer] supplier
by the commission.
(6) (a) The tax imposed by this part shall be a lien upon the property of any [user-dealer]
supplier liable for an amount of tax that is required to be collected, if the [user-dealer] supplier sells
the business, stock of goods, or quits business, and if the [user-dealer] supplier fails to make a final
return and payment within 15 days after the date of selling or quitting business.
(b) The successor or assigns, if any, shall be required to withhold a sufficient amount of the

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purchase money to cover the amount of the taxes that are required to be collected and interest or
penalties due and paid under Sections 59-1-401 and 59-1-402 until the former owner produces a
receipt from the commission showing that the taxes have been paid or a certificate stating that no
amount of tax is due. If the purchaser of a business or stock of goods fails to withhold sufficient
purchase money, the purchaser shall be personally liable for the payment of the amount that is due.
Section 6. Section 59-13-304 is amended to read:
59-13-304. Clean special fuel tax -- Certificate required -- Fees for certificates --
Inspection of vehicles.
(1) (a) A user of special fuel who owns a vehicle powered by a clean fuel as defined under
Section 59-13-102, [may receive an exemption from the] shall pay a clean special fuel tax [imposed
under Section 59-13-301] as provided under this section for use of clean special fuel.
[(b) The commission determines if a user shall receive this exemption.]
[(c)] (b) A user who [receives this exemption] qualifies for the clean special fuel tax shall
annually purchase from the commission a clean special fuel [tax exemption] certificate for each
vehicle owned that is described under Subsection (1)(a).
[(d) Special] (c) Clean special fuel [tax exemption] certificates are provided to encourage
the use of clean fuels to reduce air pollution.
(2) (a) The fee for a clean special fuel [tax exemption] certificate is:
(i) $70 for qualified motor vehicles as defined under Section 59-13-102; and
(ii) $36 for other vehicles.
(b) When any increase or decrease is made in the motor fuel tax under Subsection
59-13-201(1)(a), that same percentage of increase or decrease applies to the fee for a certificate under
Subsection (2)(a), rounded to the nearest dollar.
(c) The commission may require each vehicle to be inspected for safe operation before
issuing the [exemption] certificate.
(d) Each vehicle shall be equipped with an approved and properly installed carburetion
system if it is powered by a fuel that is gaseous at standard atmospheric conditions.
Section 7. Section 59-13-305 is amended to read:

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59-13-305. User report required -- Contents of report -- Signature -- Penalties --
Exemptions from requirements -- Change of exemption status -- Duty to notify commission.
(1) Unless exempted by Subsection (4) or (6), each user shall file with the commission, on
or before the last day of the month following the end of a reporting period, a report on forms
prescribed by the commission showing:
(a) the amount of fuel purchased and the amount of fuel used during the preceding reporting
period by that user in the state; and
(b) any other information the commission may require to carry out the purposes of this part.
(2) The report shall be signed by the user or a responsible representative. This signature
need not be notarized, but when signed is considered to have been made under oath.
(3) A penalty is imposed under Section 59-1-401 for failure to file reports as provided in this
section for each report not filed, regardless of the imposition of other penalties under this part.
(4) (a) Each user that has a registered special fuel-powered motor vehicle other than a
qualified motor vehicle and does not have facilities for bulk storage of special fuels is exempt from
the requirements of Subsections (1) and (2) and Section 59-13-303 for that motor vehicle.
(b) This exemption applies only when the user retains records verifying that all special fuel
purchases for the exempt vehicle were taxed [at the pump] as required under this part.
(5) (a) Each user that has a registered special fuel-powered motor vehicle other than a
qualified motor vehicle and has facilities for bulk storage of special fuels shall declare special fuel
tax liability for any nonqualified motor vehicle on the user report required by Subsection (1).
(b) Credit shall be given on the report for any special fuel taxes paid [at the pump of licensed
user-dealers] on purchases for any nonqualified vehicle. Purchase records must be maintained to
substantiate the amount of any credit claimed.
(6) A user who purchases a special fuel trip permit for all of its operations for qualified
vehicles for the reporting period, except a user having a special fuel permit pursuant to Subsection
59-13-303 (2)(a), is exempt from the filing requirements of Subsections (1) and (2).
Section 8. Section 59-13-307 is amended to read:
59-13-307. Supplier reports -- Signature required -- Penalties.

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(1) Each [user-dealer] supplier shall file with the commission, on or before the last day of
each month, a report on forms prescribed by the commission showing the amount of fuel [sold]
delivered or removed, during the preceding calendar month and any other information the
commission may require to carry out the purposes of this part.
(2) The report shall be signed by the [user-dealer] supplier or a responsible representative.
This signature need not be notarized, but when signed is considered to have been made under oath.
The report shall be accompanied by a remittance payable to the commission for the amount of
special fuel tax due.
(3) A penalty is imposed under Section 59-1-401 upon each licensee and bonded
[user-dealer] supplier who fails to file any report as prescribed regardless of the imposition of other
penalties under this part.
Section 9. Section 59-13-308 is amended to read:
59-13-308. Delinquency -- Revocation of license or permits -- Penalties -- Interest.
If any user or [user-dealer] supplier becomes delinquent in tax payments under this part, all
licenses or permits issued under this part are automatically revoked. In addition, the commission
shall impose a penalty determined under Section 59-1-401. The amount of the delinquent tax and
the penalty shall bear interest at the rate and in the manner prescribed in Section 59-1-402.
Section 10. Section 59-13-310 is amended to read:
59-13-310. Special fuel from out of state -- Reports required -- Contents of reports.
(1) Every person who delivers special fuel from outside the state to any consignee within
the state shall file with the commission on or before the last day of each month a report on forms
prescribed by the commission showing:
(a) all deliveries of special fuel within the state during the preceding month; and
(b) the points of origin and original destination.
(2) Where any consignment of special fuel was diverted in transit and delivered within this
state, the carrier making [final] delivery of this consignment shall report to the commission:
(a) the place of [final] the delivery of the consignment;
(b) to whom the consignment was delivered;

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(c) the number of gallons of special fuel transported or delivered;
(d) the date of delivery and the name of the consignor and of the consignee; and
(e) any other information the commission may require.
Section 11. Section 59-13-312 is amended to read:
59-13-312. User and supplier reports on special fuel -- Commission examination of
reports -- Auditing requirements -- Deposit of funds with treasurer as dedicated credits.
(1) Each user, [user-dealer] supplier, and any other person importing, manufacturing,
refining, dealing in, transporting, or storing fuel shall keep a record, in the form prescribed by the
commission, of all deliveries, removals, purchases, receipts, sales, meter readings, inventories, and
distribution of special fuel. The records shall include copies of all invoices or bills of all sales, and
are subject to inspection by the commission or its authorized representative during regular business
hours. All records shall be preserved for a period of three years.
(2) Any user claiming a refund for taxes paid to a [user-dealer] supplier shall retain on file
a receipt or invoice, or a microfilm or microfiche of the receipt or invoice, evidencing the purchase
of special fuel and the payment of the tax. The commission may require the user to furnish
summaries or copies of original documentation substantiating the amount of refund claimed.
(3) (a) The commission or its authorized representative may examine the books, papers,
records, and equipment of any [user-dealer] supplier, user, or person dealing in, transporting, or
storing special fuel and may investigate the character of the disposition which any person makes of
special fuel in order to determine whether all taxes due are being properly reported and paid.
(b) The fact that the books, papers, records, and equipment are not maintained in this state
at the time of demand does not cause the commission to lose any right of examination under this part
when and where the records become available.
(4) If the payer of this tax or the person dealing in special fuel does not maintain records in
this state so that an audit of the records may be made by the commission or its representative, that
person may be required to:
(a) forward the necessary records to the commission for examination; or
(b) pay the necessary expenses for an auditor of the commission to travel to the location of

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the records outside of this state to make an examination.
(5) Any funds collected under this section shall be deposited with the state treasurer and are
dedicated credits for the commission.
Section 12. Section 59-13-313 is amended to read:
59-13-313. Commission to enforce the laws -- Estimations of tax -- Penalties -- Notice
of determinations -- Information sharing with other states -- Assessment procedures.
(1) (a) The commission is charged with the enforcement of this part and may prescribe rules
relating to administration and enforcement of this part.
(b) The commission may coordinate with state and federal agencies in the enforcement of
this part.
(c) Enforcement procedures may include checking diesel fuel dye compliance of storage
facilities and tanks of vehicles, in a manner consistent with state and federal law.
(2) (a) If the commission has reason to question the report filed or the amount of special fuel
tax paid to the state by any user or [user-dealer] supplier, it may compute and determine the amount
to be paid based upon the best information available to it.
(b) Any added amount of special fuel tax determined to be due under this section shall have
added to it a penalty as provided under Section 59-1-401, and shall bear interest at the rate and in
the manner prescribed in Section 59-1-402.
(c) The commission shall give to the user or [user-dealer] supplier written notice of its
determination. The notice may be served personally or by mail when addressed to the user or
[user-dealer] supplier at the user or [user-dealer's] supplier's last-known address as it appears in the
records of the commission.
(3) The commission may, upon the duly received request of the officials to whom the
enforcement of the special fuel laws of any other state are entrusted, forward to those officials any
information which the commission may have in its possession relative to the delivery, removal,
production, manufacture, refining, compounding, receipt, sale, use, transportation, or shipment of
special fuel by any person.
(4) A proceeding to assess the tax under this part may not begin more than three years after

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the filing of any report, except in the case of fraud a proceeding to assess the tax may begin at any
time.
Section 13. Section 59-13-314 is amended to read:
59-13-314. Special fuel vehicle permit required before registration of vehicle.
Before registering any motor vehicle which is operated by special fuels, the registered owner
or lessee of the vehicle shall obtain a valid special fuel vehicle permit for the current year or a valid
clean special fuel [tax exemption] certificate as provided by Section 59-13-304.
Section 14. Section 59-13-316 is amended to read:
59-13-316. Neglect or refusal to report -- Estimations -- Penalties -- Notice to user or
supplier.
(1) If any user or [user-dealer] supplier neglects or refuses to make a report required by this
part, the commission shall make an estimate based on the best information available to it, for the
months in which the user or [user-dealer] supplier failed to make a report, or for the amount of
special fuel sold or used by the user or [user-dealer] supplier subject to the special fuel tax.
(2) On the basis of the estimate, the commission shall compute and determine the amount
required to be paid to the state, adding to this sum a penalty as provided under Section 59-1-401, and
interest at the rate and in the manner prescribed in Section 59-1-402.
(3) The commission shall give to the user or [user-dealer] supplier written notice of the
estimate and determination personally, or by mail when addressed to the user or [user-dealer]
supplier at the user or [user-dealer's] supplier's last-known address.
Section 15. Section 59-13-317 is amended to read:
59-13-317. Delinquency -- Collection procedures.
(1) (a) In the event that any user or [user-dealer] supplier is delinquent in the payment of any
obligation imposed by this part, the commission may give notice of the amount of the delinquency
by registered mail to all persons having in their possession or under their control, any credits or other
personal property belonging to the user or [user-dealer] supplier, or owing any debts to the user or
[user-dealer] supplier.
(b) At the time of receipt of the notice and thereafter, any person so notified may not transfer

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or make other disposition of the credits, personal property, or debts until the commission has
consented to a transfer or disposition or until ten days have elapsed from and after the receipt of the
notice.
(c) Any person so notified shall, within five days after the receipt of the notice, advise the
commission of any and all credits, personal property, or debts in their possession, under their control,
or owing by them.
(2) (a) If any user or [user-dealer] supplier is delinquent in the payment of the obligations
imposed by this chapter, the commission may at once bring an action to determine the amount of tax
and collect all sums due the state from any user or [user-dealer] supplier.
(b) In any suit brought to enforce the rights of the state, a certificate by the commission
showing the delinquency is prima facie evidence of the levy of the special fuel tax, of the
delinquency, and of compliance with this part in relation to the computation and levy of the special
fuel tax.
(c) In this action a writ of attachment may be issued, and no bond or affidavit previous to
the issuing of the attachment may be required.
Section 16. Section 59-13-320 is amended to read:
59-13-320. Penalties for violations of the special fuel tax provisions.
(1) The following offenses, unless otherwise provided, are class B misdemeanors:
(a) failing or refusing to pay the tax imposed by this part;
(b) engaging in business in this state as a [user-dealer] supplier without being the holder of
an uncancelled license to engage in this business;
(c) operating a motor vehicle, which requires special fuel, upon the highways of this state
without a valid special fuel vehicle permit;
(d) failing to make any of the reports required by this part;
(e) making any false statement in any application, report, or statement required by this part;
(f) refusing to permit the commission or any employee to examine records as provided by
this part;
(g) failing to keep proper records of quantities of fuel received, produced, refined,

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manufactured, compounded, used, or delivered in this state as required by this part;
(h) making any false statement in connection with an application for the refund of any
moneys or taxes provided in this part; or
(i) violating any of the provisions of this part for which no penalty is provided.
(2) Any person required to make, render, sign, or verify any report and who makes any false
or fraudulent report with intent to defeat or evade the assessment required by law to be made, is
subject to a criminal violation under Section 59-1-401.
(3) The remedies of the state are cumulative and no action taken by the commission or any
of its officers to pursue any remedy may be construed to be an election on the part of the state to
exclude any other allowed by law.
Section 17. Section 59-13-321 is enacted to read:
59-13-321. Wholesaler option for rack distributions tax payments -- Notification --
Security.
(1) As used in this section "wholesaler" means a person who receives a rack distribution of
diesel fuel from a supplier for purposes of resale.
(2) (a) Upon agreement of wholesaler and supplier, the payment of the taxes to the supplier
under this part may be made on or before one business day prior to the time that the supplier is
required to remit those taxes to the commission.
(b) The wholesaler shall provide written notification to the supplier of the wholesaler's intent
to exercise the payment option under Subsection (2)(a) at least 30 days prior to the payment.
(c) The wholesaler's payment of the taxes under Subsection (2)(a) shall be made by
electronic funds transfer.
(3) Upon the wholesaler's exercise of the payment option provided in Subsection (2), the
supplier may require security for the payment of the taxes if no security exists between the
wholesaler and the supplier.
(4) At the option of the supplier, the wholesaler's exercise of the payment option provided
under this section may be terminated if the wholesaler fails to:
(a) remit timely payment of the taxes as provided in Subsection (2); or

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(b) provide security as provided in Subsection (3).
Section 18. Effective date.
This act takes effect on July 1, 1997.

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