S.B. 252

1

COLLECTION OF FUEL TAX
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Howard A. Stephenson
5 AN ACT RELATING TO REVENUE AND TAXATION; AMENDING PROCEDURES FOR
6 THE TAXATION OF SPECIAL FUELS INCLUDING DIESEL FUEL; PROVIDING
7 DEFINITIONS; AMENDING PENALTIES; MAKING TECHNICAL CORRECTIONS; AND
8 PROVIDING AN EFFECTIVE DATE.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 59-13-102, as last amended by Chapter 4, Laws of Utah 1993
12 59-13-103, as last amended by Chapter 20, Laws of Utah 1995
13 59-13-201, as last amended by Chapter 78, Laws of Utah 1995
14 59-13-301, as last amended by Chapter 79, Laws of Utah 1994
15 59-13-302, as last amended by Chapters 53 and 313, Laws of Utah 1994
16 59-13-304, as last amended by Chapters 79 and 113, Laws of Utah 1994
17 59-13-305, as last amended by Chapter 53, Laws of Utah 1994
18 59-13-307, as enacted by Chapter 6, Laws of Utah 1987
19 59-13-308, as last amended by Chapter 53, Laws of Utah 1994
20 59-13-310, as enacted by Chapter 6, Laws of Utah 1987
21 59-13-312, as last amended by Chapter 53, Laws of Utah 1994
22 59-13-313, as last amended by Chapter 53, Laws of Utah 1994
23 59-13-314, as enacted by Chapter 6, Laws of Utah 1987
24 59-13-316, as last amended by Chapter 53, Laws of Utah 1994
25 59-13-317, as last amended by Chapter 53, Laws of Utah 1994
26 59-13-320, as enacted by Chapter 6, Laws of Utah 1987
27 Be it enacted by the Legislature of the state of Utah:

1 Section 1. Section 59-13-102 is amended to read:
2 59-13-102. Definitions.
3 As used in this chapter:
4 [(b)] (1) "Aviation fuel" means fuel that is sold at airports and used exclusively for the
5 operation of aircraft.
6 [(a)] (2) "Clean fuel" means:
7 (i) the following special fuels:
8 (A) propane;
9 (B) compressed natural gas; or
10 (C) electricity; or
11 (ii) any motor or special fuel that meets the clean fuel vehicle standards in the federal clean
12 Air Act Amendments of 1990, Title II.
13 [(1)] (3) "Commission" means the State Tax Commission.
14 (4) "Diesel fuel" means any liquid that is commonly or commercially known, offered for
15 sale, or used as a fuel in diesel engines. "Diesel fuel" includes any combustible liquid, by
16 whatever name the liquid may be known or sold, when the liquid is used in an internal combustion
17 engine for the generation of power to operate a motor vehicle licensed to operate on the highway,
18 except fuel that is subject to the tax imposed in Part 2, Motor Fuel, and Part 4, Aviation Fuel, of
19 this chapter.
20 [(2)] (5) "Distributor" means any person in this state who:
21 (a) imports or causes to be imported motor fuel for use, distribution, or sale, whether at
22 retail or wholesale;
23 (b) produces, refines, manufactures, or compounds motor fuel in this state for use,
24 distribution, or sale in this state; or
25 (c) is engaged in the business of purchasing motor fuel for resale in wholesale quantities
26 to retail dealers of motor fuel and who accounts for his own motor fuel tax liability.
27 (6) "Dyed diesel fuel" means diesel fuel that is dyed in accordance with 26 U.S.C. Sec.
28 4082 or United States Environmental Protection Agency or Internal Revenue Service regulations
29 and that is considered destined for nontaxable off-highway use.
30 [(3)] (7) "Fuels" means any gas, liquid, solid, mixture, or other energy source which is
31 generally used in an engine or motor for the generation of power[. For purposes of this chapter

- 2 -

1 fuels are separated into four categories as follows:], including aviation fuel, clean fuel, diesel fuel,
2 motor fuel, and special fuel.
3 [(4)] (8) "Highway" means every way or place, of whatever nature, generally open to the
4 use of the public for the purpose of vehicular travel not withstanding that the way or place may be
5 temporarily closed for the purpose of construction, maintenance, or repair.
6 [(c)] (9) "Motor fuel" means fuel that is commonly or commercially known or sold as
7 gasoline or gasohol and is used for any purpose, but does not include aviation fuel.
8 [(5)] (10) "Motor fuels received" means:
9 (a) motor fuels that have been loaded at the refinery or other place into tank cars, placed
10 in any tank at the refinery from which any withdrawals are made directly into tank trucks, tank
11 wagons, or other types of transportation equipment, containers, or facilities other than tank cars,
12 or placed in any tank at the refinery from which any sales, uses, or deliveries not involving
13 transportation are made directly; or
14 (b) motor fuels that have been imported by any person into the state from any other state
15 or territory by tank car, tank truck, pipeline, or any other conveyance at the time when, and the
16 place where, the interstate transportation of the motor fuel is completed within the state by the
17 person who at the time of the delivery is the owner of the motor fuel.
18 [(6)] (11) (a) "Qualified motor vehicle" means a special fuel-powered motor vehicle used,
19 designed, or maintained for transportation of persons or property which:
20 (i) has a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds;
21 (ii) has three or more axles regardless of weight; or
22 (iii) is used in a combination of vehicles when the weight of the combination of vehicles
23 exceeds 26,000 pounds gross vehicle weight.
24 (b) "Qualified motor vehicle" does not include a recreational vehicle not used in
25 connection with any business activity.
26 (12) "Rack," as used in Part 3, means a deck, platform, or open bay which consists of a
27 series of metered pipes and hoses for the delivery or removal of diesel fuel from a refinery or
28 terminal into a motor vehicle, rail car or vessel.
29 (13) "Removal," as used in Part 3, means the physical transfer of diesel fuel from a
30 production, manufacturing, or refinery facility and includes use of diesel fuel. Removal does not
31 include loss by evaporation or destruction.

- 3 -

1 [(d)] (14) (a) "Special fuel" means any fuel regardless of name or character that:
2 (i) is usable as fuel to operate or propel a motor vehicle upon the public highways of the
3 state; and
4 (ii) is not taxed under the category of aviation or motor fuel. Special fuel includes those
5 fuels that are not conveniently measurable on a gallonage basis.
6 (b) "Special fuel" includes diesel fuel.
7 (15) "Supplier," as used in Part 3, means a person who:
8 (a) imports or acquires immediately upon importation into this state diesel fuel from within
9 or without a state, territory or possession of the United States or the District of Columbia;
10 (b) produces, manufactures, refines, or blends diesel fuel in this state; or
11 (c) otherwise acquires for distribution or sale in this state, diesel fuel with respect to which
12 there has been no previous taxable sale or use.
13 (16) "Terminal," as used in Part 3, means a facility for the storage of diesel fuel which
14 is supplied by a motor vehicle, pipeline or vessel and from which diesel fuel is removed for
15 distribution at a rack.
16 (17) "Undyed diesel fuel" means diesel fuel that is not subject to the dyeing requirements
17 in accordance with 26 U.S.C. Sec. 4082 or United States Environmental Protection Agency or
18 Internal Revenue Service regulations.
19 [(7)] (18) "Use," as used in Part 3, means the consumption of special fuel for the operation
20 or propulsion of a motor vehicle upon the public highways of the state and includes the reception
21 of special fuel into the fuel supply tank of a motor vehicle.
22 [(8)] (19) "User," as used in Part 3, means any person who uses special fuel within this
23 state in an engine or motor for the generation of power to operate or propel a motor vehicle upon
24 the public highways of the state.
25 [(9) "User-dealer," as used in Part 3, means any person who delivers special fuel into the
26 fuel supply tank of any motor vehicle operated or propelled upon the public highways of the state.]
27 Section 2. Section 59-13-103 is amended to read:
28 59-13-103. List of clean fuels provided to tax commission -- Report to the
29 Legislature.
30 (1) The Air Quality Board shall annually provide to the tax commission a list of fuels that
31 are clean fuels under Section 59-13-102.

- 4 -

1 (2) The Air Quality Board created under Section 19-2-103 shall in conjunction with the
2 State Tax Commission prepare and submit to the Legislature before January 1, 1995, a report
3 evaluating the impacts, benefits, and economic consequences of the clean fuel [exemption]
4 certificate provisions of Sections 59-13-201 and 59-13-301.
5 Section 3. Section 59-13-201 is amended to read:
6 59-13-201. Rate -- Tax basis -- Exemptions -- Revenue deposited in the
7 Transportation Fund -- 1987 increase used for repairs only -- Restricted account for boating
8 uses -- Refunds.
9 (1) (a) A tax is imposed at the rate of 19 cents per gallon upon all motor fuel that is sold,
10 used, or received for sale or use in this state. If any change is made in this tax amount, the tax on
11 fuel under Subsection (1)(b), Subsection 59-13-301(1)(a), and the fee for a clean special fuel [tax
12 exemption] certificate under Subsection 59-13-304(2)(a) are increased or decreased by the same
13 percentage of change as is made to the tax under this Subsection (1)(a).
14 (b) A tax is imposed at the rate of 3 cents per gallon upon all motor fuels that meet the
15 definition of clean fuel in Section 59-13-102 and are sold, used, or received for sale or use in this
16 state. If any change is made to the motor fuel tax under Subsection (1)(a), the tax under this
17 Subsection (1)(b) is increased or decreased by the same percentage of change, rounded up to the
18 next penny.
19 (2) Any increase or decrease in tax rate applies to motor fuel that is imported to the state
20 or sold at refineries in the state on or after the effective date of the rate change.
21 (3) (a) No tax is imposed upon:
22 (i) motor fuel that is brought into and sold in this state in original packages as purely
23 interstate commerce sales;
24 (ii) motor fuel that is exported from this state if proof of actual exportation on forms
25 prescribed by the commission is made within 180 days after exportation;
26 (iii) motor fuel or components of motor fuel that is sold and used in this state and distilled
27 from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons located in this state; or
28 (iv) motor fuel that is sold to the United States government, this state, or the political
29 subdivisions of this state where sale and delivery is made in quantities of 750 gallons or more.
30 (b) For purposes of this subsection, the state and its political subdivisions may make
31 collective purchases for purposes of meeting the 750 gallon requirement, and the state and political

- 5 -

1 subdivisions may provide for this purchase in any manner approved by the commission.
2 (4) The commission may either collect no tax on motor fuel exported from the state or,
3 upon application, refund the tax paid.
4 (5) (a) All revenue received by the commission under this part shall be deposited daily
5 with the state treasurer and credited to the Transportation Fund.
6 (b) The revenue received from the five cent per gallon increase effective April 1, 1987,
7 shall be used for the repair of highways, roads, and streets.
8 (c) An appropriation from the Transportation Fund shall be made to the commission to
9 cover expenses incurred in the administration and enforcement of this part and the collection of
10 the motor fuel tax.
11 (6) (a) The commission shall determine what amount of motor fuel tax revenue is received
12 from the sale or use of motor fuel used in motorboats registered under the provisions of the State
13 Boating Act, and this amount shall be deposited in a restricted revenue account in the General
14 Fund of the state.
15 (b) The funds from this account shall be used for the construction, improvement,
16 operation, and maintenance of state-owned boating facilities and for the payment of the costs and
17 expenses of the Division of Parks and Recreation in administering and enforcing the State Boating
18 Act.
19 (7) (a) The United States government or any of its instrumentalities, this state, or a
20 political subdivision of this state that has purchased motor fuel from a licensed distributor or from
21 a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in this section is
22 entitled to a refund of the tax and may file with the commission for a quarterly refund.
23 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
24 commission shall make rules governing the application and refund provided for in Subsection (a).
25 (8) (a) The commission shall refund annually into the Off-Highway Vehicle Account in
26 the General Fund an amount equal to the lesser of the following:
27 (i) .5% of the motor fuel tax revenues collected under this section; or
28 (ii) $600,000.
29 (b) This amount shall be used as provided in Section 41-22-19.
30 (c) Subsection (8) sunsets on July 1, 2010.
31 Section 4. Section 59-13-301 is amended to read:

- 6 -

1 59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer and
2 credited to Transportation Fund.
3 (1) (a) [A] Except as provided in Subsection (2) and Section 59-13-304, a tax is imposed
4 at the rate of 19 cents per gallon on the [sale or use of special fuel other than clean special fuel,
5 which is exempt upon the purchase of an exemption certificate under Section 59-13-304]:
6 (i) removal of undyed diesel fuel from any refinery;
7 (ii) removal of undyed diesel fuel from any terminal;
8 (iii) entry into the state of any undyed diesel fuel for consumption, use, sale, or
9 warehousing;
10 (iv) sale of undyed diesel fuel to any person who is not registered as a supplier under this
11 part unless the tax has been collected under this section;
12 (v) any untaxed special fuel blended with undyed diesel fuel; or
13 (vi) use of untaxed special fuel, other than a clean special fuel.
14 (b) If any change is made in the motor fuel tax rate under Subsection 59-13-201(1)(a), the
15 tax rate under Subsection (1)(a) of this section is increased or decreased by the same percentage
16 of change.
17 (2) No special fuel tax is imposed upon [special]:
18 (a) dyed diesel fuel which:
19 [(a)] (i) is sold or used for any purpose other than to operate or propel a motor vehicle
20 upon the public highways of the state, but this exemption applies only in those cases where the
21 purchasers or the users of special fuel establish to the satisfaction of the commission that the
22 special fuel was used for purposes other than to operate a motor vehicle upon the public highways
23 of the state;
24 (ii) is sold to this state or any of its political subdivisions;
25 (b) undyed diesel fuel which:
26 [(b)] (i) is sold to the United States government or any of its instrumentalities [or to this
27 state or any of its political subdivisions]; or
28 [(c) is sold and delivered into a motor vehicle for which the owner or operator possesses
29 an unexpired special fuel tax exemption certificate issued to that owner or operator by the
30 commission as provided in Section 59-13-304 for vehicles powered by certain special fuels.]
31 (ii) is exported from this state if proof of actual exportation on forms prescribed by the

- 7 -

1 commission is made within 180 days after exportation.
2 (3) The special fuel tax shall be paid by the [user-dealer where the special fuel is sold
3 within the state and delivered directly into the fuel supply tank of a motor vehicle unless a current
4 special fuel exemption certificate has been issued for the motor vehicle under Section 59-13-304]
5 supplier.
6 (4) (a) The special fuel tax shall be paid by every user who is required by Sections
7 59-13-303 and 59-13-305 to obtain a special fuel permit and file special fuel tax reports.
8 (b) The user shall receive a [refund] refundable credit for special fuel taxes paid [to the
9 user-dealer] on purchases [made] which are delivered into vehicles and for which special fuel tax
10 liability is reported.
11 (5) (a) All revenue received by the commission from taxes and license fees under this part
12 shall be deposited daily with the state treasurer and credited to the Transportation Fund.
13 (b) The revenue received from the five cent per gallon increase effective April 1, 1987,
14 shall be used for the repair of highways, roads, and streets.
15 (c) An appropriation from the Transportation Fund shall be made to the commission to
16 cover expenses incurred in the administration and enforcement of this part and the collection of
17 the special fuel tax.
18 (6) The commission may either collect no tax on special fuel exported from the state or,
19 upon application, refund the tax paid.
20 (7) (a) The United States government or any of its instrumentalities, this state, or a
21 political subdivision of this state that has purchased special fuel from a supplier or from a retail
22 dealer of special fuel and has paid the tax on the special fuel as provided in this section is entitled
23 to a refund of the tax and may file with the commission for a quarterly refund.
24 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
25 commission shall make rules governing the application and refund provided for in Subsection (a).
26 Section 5. Section 59-13-302 is amended to read:
27 59-13-302. License required -- Fees -- Application for license -- Bond -- Monthly
28 reports -- Failure to comply -- Penalties -- Discontinuance of business -- Liens upon property.
29 (1) Each [user-dealer or retail dealer] supplier of [special] diesel fuel [at retail] shall first
30 obtain from the commission a [user-dealer's] supplier license and shall pay a license fee
31 determined by the commission pursuant to Section 63-38-3.2 [for each distributing station, bulk

- 8 -

1 plant, place of business, or agency]. The license shall be valid until the holder of the license ceases
2 to act as a [user-dealer] supplier, unless the commission has reasonable cause to terminate the
3 license at an earlier date. The license issued by the commission is not assignable and is valid only
4 for the [user-dealer] supplier in whose name it is issued.
5 (2) The [user-dealer] supplier license application shall state:
6 (a) the places of business and locations from which [sales] delivery or removal are made
7 [into motor vehicles or from which retail sales of special fuel are made];
8 (b) the name and address of the managing agent; and
9 (c) the names and addresses of the persons constituting the firm, association, or
10 partnership, if a firm, association, or partnership, and if a corporation, the corporate name under
11 which it is authorized to transact business and the names and addresses of its principal officers,
12 resident general agent, and attorney in fact.
13 (3) [The commission may require a user-dealer to furnish a bond depending upon financial
14 rating, if the commission considers it practical and necessary in the administration of this part.]
15 (a) (i) A supplier may not be granted a license until the commission is furnished a bond in an
16 amount two times the estimated monthly tax not to exceed $100,000, but no less than $35,000, in
17 a form prescribed by the commission.
18 (ii) The bond shall be executed by the applicant as principal, with a corporate surety, and
19 shall be payable to the commission conditioned upon the faithful performance of all the
20 requirements of this part, including the payment of all taxes, penalties, interest, and other
21 obligations of the applicant arising under this part and under Section 59-1-401.
22 (b) (i) In lieu of the bond, the applicant may deposit with the commission, under terms and
23 conditions prescribed by the commission, either a like amount of lawful money of the United
24 States or bonds or other obligations satisfactory to the commission and which shall, at all times,
25 be of an actual market value not less than the amount fixed by the commission.
26 (ii) Any license obtained by depositing bonds or other obligations shall automatically be
27 revoked upon the failure of the holder, within 15 days after written notice from the commission,
28 to deposit the additional bonds or other securities sufficient to offset any diminution of the actual
29 market value of the deposited bonds or other obligations.
30 (4) (a) The commission may cancel the license of a [user-dealer] supplier and notify that
31 [user-dealer] supplier of the cancellation if that [user-dealer] supplier:

- 9 -

1 (i) files a false monthly report of the data or information required by this part;
2 (ii) fails, refuses, or neglects to file the monthly report as required by this part;
3 (iii) fails to pay the full amount of the tax as required by this part; or
4 (iv) fails to keep accurate records of quantities of fuel received, produced, refined,
5 manufactured, compounded, or used in this state.
6 (b) The commission may also cancel any license issued to any [user-dealer] supplier upon
7 the written request of the [user-dealer] supplier.
8 (5) (a) If any person ceases to be a [user-dealer] supplier within the state by reason of the
9 discontinuance, sale, or transfer of the person's business, the [user-dealer] supplier shall notify the
10 commission in writing at the time the discontinuance, sale, or transfer takes effect.
11 (b) The notice shall give the date of discontinuance and, in the event of a sale, the date of
12 the sale and the name and address of the purchaser or transferee.
13 (c) Taxes on all [sales] special fuel delivery or removal made prior to the discontinuance,
14 sale, or transfer, shall become due and payable on the date of discontinuance, sale, or transfer.
15 (d) The [user-dealer] supplier shall make a report and pay all taxes, interest, and penalties
16 and surrender to the commission the license certificate that was issued to the [user-dealer] supplier
17 by the commission.
18 (6) (a) The tax imposed by this part shall be a lien upon the property of any [user-dealer]
19 supplier liable for an amount of tax that is required to be collected, if the [user-dealer] supplier
20 sells the business, stock of goods, or quits business, and if the [user-dealer] supplier fails to make
21 a final return and payment within 15 days after the date of selling or quitting business.
22 (b) The successor or assigns, if any, shall be required to withhold a sufficient amount of
23 the purchase money to cover the amount of the taxes that are required to be collected and interest
24 or penalties due and paid under Sections 59-1-401 and 59-1-402 until the former owner produces
25 a receipt from the commission showing that the taxes have been paid or a certificate stating that
26 no amount of tax is due. If the purchaser of a business or stock of goods fails to withhold
27 sufficient purchase money, the purchaser shall be personally liable for the payment of the amount
28 that is due.
29 Section 6. Section 59-13-304 is amended to read:
30 59-13-304. Clean special fuel tax -- Certificate required -- Fees for certificates --
31 Inspection of vehicles.

- 10 -

1 (1) (a) A user of special fuel who owns a vehicle powered by a clean fuel as defined under
2 Section 59-13-102, [may receive an exemption from the] shall pay a clean special fuel tax
3 [imposed under Section 59-13-301] as provided under this section for use of clean special fuel.
4 [(b) The commission determines if a user shall receive this exemption.]
5 [(c)] (b) A user who [receives this exemption] qualifies for the clean special fuel tax shall
6 annually purchase from the commission a clean special fuel [tax exemption] certificate for each
7 vehicle owned that is described under Subsection (a).
8 [(d) Special] (c) Clean special fuel [tax exemption] certificates are provided to encourage
9 the use of clean fuels to reduce air pollution.
10 (2) (a) The fee for a clean special fuel [tax exemption] certificate is:
11 (i) $70 for qualified motor vehicles as defined under Section 59-13-102; and
12 (ii) $36 for other vehicles.
13 (b) When any increase or decrease is made in the motor fuel tax under Subsection
14 59-13-201(1)(a), that same percentage of increase or decrease applies to the fee for a certificate
15 under Subsection (2)(a), rounded to the nearest dollar.
16 (c) The commission may require each vehicle to be inspected for safe operation before
17 issuing the [exemption] certificate.
18 (d) Each vehicle shall be equipped with an approved and properly installed carburetion
19 system if it is powered by a fuel that is gaseous at standard atmospheric conditions.
20 Section 7. Section 59-13-305 is amended to read:
21 59-13-305. User report required -- Contents of report -- Signature -- Penalties --
22 Exemptions from requirements -- Change of exemption status -- Duty to notify commission.
23 (1) Unless exempted by Subsection (4) or (6), each user shall file with the commission,
24 on or before the last day of the month following the end of a reporting period, a report on forms
25 prescribed by the commission showing:
26 (a) the amount of fuel purchased and the amount of fuel used during the preceding
27 reporting period by that user in the state; and
28 (b) any other information the commission may require to carry out the purposes of this
29 part.
30 (2) The report shall be signed by the user or a responsible representative. This signature
31 need not be notarized, but when signed is considered to have been made under oath.

- 11 -

1 (3) A penalty is imposed under Section 59-1-401 for failure to file reports as provided in
2 this section for each report not filed, regardless of the imposition of other penalties under this part.
3 (4) (a) Each user that has a registered special fuel-powered motor vehicle other than a
4 qualified motor vehicle and does not have facilities for bulk storage of special fuels is exempt from
5 the requirements of Subsections (1) and (2) and Section 59-13-303 for that motor vehicle.
6 (b) This exemption applies only when the user retains records verifying that all special fuel
7 purchases for the exempt vehicle were taxed [at the pump] as required under this part.
8 (5) (a) Each user that has a registered special fuel-powered motor vehicle other than a
9 qualified motor vehicle and has facilities for bulk storage of special fuels shall declare special fuel
10 tax liability for any nonqualified motor vehicle on the user report required by Subsection (1).
11 (b) Credit shall be given on the report for any special fuel taxes paid [at the pump of
12 licensed user-dealers] on purchases for any nonqualified vehicle. Purchase records must be
13 maintained to substantiate the amount of any credit claimed.
14 (6) A user who purchases a special fuel trip permit for all of its operations for qualified
15 vehicles for the reporting period, except a user having a special fuel permit pursuant to Subsection
16 59-13-303 (2)(a), is exempt from the filing requirements of Subsections (1) and (2).
17 Section 8. Section 59-13-307 is amended to read:
18 59-13-307. Supplier reports -- Signature required -- Penalties.
19 (1) Each [user-dealer] supplier shall file with the commission, on or before the last day of
20 each month, a report on forms prescribed by the commission showing the amount of fuel [sold]
21 delivered or removed, during the preceding calendar month and any other information the
22 commission may require to carry out the purposes of this part.
23 (2) The report shall be signed by the [user-dealer] supplier or a responsible representative.
24 This signature need not be notarized, but when signed is considered to have been made under oath.
25 The report shall be accompanied by a remittance payable to the commission for the amount of
26 special fuel tax due.
27 (3) A penalty is imposed under Section 59-1-401 upon each licensee and bonded
28 [user-dealer] supplier who fails to file any report as prescribed regardless of the imposition of other
29 penalties under this part.
30 Section 9. Section 59-13-308 is amended to read:
31 59-13-308. Delinquency -- Revocation of license or permits -- Penalties -- Interest.

- 12 -

1 If any user or [user-dealer] supplier becomes delinquent in tax payments under this part,
2 all licenses or permits issued under this part are automatically revoked. In addition, the
3 commission shall impose a penalty determined under Section 59-1-401. The amount of the
4 delinquent tax and the penalty shall bear interest at the rate and in the manner prescribed in Section
5 59-1-402.
6 Section 10. Section 59-13-310 is amended to read:
7 59-13-310. Special fuel from out of state -- Reports required -- Contents of reports.
8 (1) Every person who delivers special fuel from outside the state to any consignee within
9 the state shall file with the commission on or before the last day of each month a report on forms
10 prescribed by the commission showing:
11 (a) all deliveries of special fuel within the state during the preceding month; and
12 (b) the points of origin and original destination.
13 (2) Where any consignment of special fuel was diverted in transit and delivered within this
14 state, the carrier making [final] delivery of this consignment shall report to the commission:
15 (a) the place of [final] the delivery of the consignment;
16 (b) to whom the consignment was delivered;
17 (c) the number of gallons of special fuel transported or delivered;
18 (d) the date of delivery and the name of the consignor and of the consignee; and
19 (e) any other information the commission may require.
20 Section 11. Section 59-13-312 is amended to read:
21 59-13-312. User and supplier reports on special fuel -- Commission examination of
22 reports -- Auditing requirements -- Deposit of funds with treasurer as dedicated credits.
23 (1) Each user, [user-dealer] supplier, and any other person importing, manufacturing,
24 refining, dealing in, transporting, or storing fuel shall keep a record, in the form prescribed by the
25 commission, of all deliveries, removals, purchases, receipts, sales, meter readings, inventories, and
26 distribution of special fuel. The records shall include copies of all invoices or bills of all sales, and
27 are subject to inspection by the commission or its authorized representative during regular business
28 hours. All records shall be preserved for a period of three years.
29 (2) Any user claiming a refund for taxes paid to a [user-dealer] supplier shall retain on file
30 a receipt or invoice, or a microfilm or microfiche of the receipt or invoice, evidencing the purchase
31 of special fuel and the payment of the tax. The commission may require the user to furnish

- 13 -

1 summaries or copies of original documentation substantiating the amount of refund claimed.
2 (3) (a) The commission or its authorized representative may examine the books, papers,
3 records, and equipment of any [user-dealer] supplier, user, or person dealing in, transporting, or
4 storing special fuel and may investigate the character of the disposition which any person makes
5 of special fuel in order to determine whether all taxes due are being properly reported and paid.
6 (b) The fact that the books, papers, records, and equipment are not maintained in this state
7 at the time of demand does not cause the commission to lose any right of examination under this
8 part when and where the records become available.
9 (4) If the payer of this tax or the person dealing in special fuel does not maintain records
10 in this state so that an audit of the records may be made by the commission or its representative,
11 that person may be required to:
12 (a) forward the necessary records to the commission for examination; or
13 (b) pay the necessary expenses for an auditor of the commission to travel to the location
14 of the records outside of this state to make an examination.
15 (5) Any funds collected under this section shall be deposited with the state treasurer and
16 are dedicated credits for the commission.
17 Section 12. Section 59-13-313 is amended to read:
18 59-13-313. Commission to enforce the laws -- Estimations of tax -- Penalties -- Notice
19 of determinations -- Information sharing with other states -- Assessment procedures.
20 (1) (a) The commission is charged with the enforcement of this part and may prescribe
21 rules relating to administration and enforcement of this part.
22 (b) The commission may coordinate with state and federal agencies in the enforcement of
23 this part.
24 (c) Enforcement procedures may include checking diesel fuel dye compliance of storage
25 facilities and tanks of vehicles, in a manner consistent with state and federal law.
26 (2) (a) If the commission has reason to question the report filed or the amount of special
27 fuel tax paid to the state by any user or [user-dealer] supplier, it may compute and determine the
28 amount to be paid based upon the best information available to it.
29 (b) Any added amount of special fuel tax determined to be due under this section shall
30 have added to it a penalty as provided under Section 59-1-401, and shall bear interest at the rate
31 and in the manner prescribed in Section 59-1-402.

- 14 -

1 (c) The commission shall give to the user or [user-dealer] supplier written notice of its
2 determination. The notice may be served personally or by mail when addressed to the user or
3 [user-dealer] supplier at the user or [user-dealer's] supplier's last-known address as it appears in
4 the records of the commission.
5 (3) The commission may, upon the duly received request of the officials to whom the
6 enforcement of the special fuel laws of any other state are entrusted, forward to those officials any
7 information which the commission may have in its possession relative to the delivery, removal,
8 production, manufacture, refining, compounding, receipt, sale, use, transportation, or shipment of
9 special fuel by any person.
10 (4) A proceeding to assess the tax under this part may not begin more than three years after
11 the filing of any report, except in the case of fraud a proceeding to assess the tax may begin at any
12 time.
13 Section 13. Section 59-13-314 is amended to read:
14 59-13-314. Special fuel vehicle permit required before registration of vehicle.
15 Before registering any motor vehicle which is operated by special fuels, the registered
16 owner or lessee of the vehicle shall obtain a valid special fuel vehicle permit for the current year
17 or a valid clean special fuel [tax exemption] certificate as provided by Section 59-13-304.
18 Section 14. Section 59-13-316 is amended to read:
19 59-13-316. Neglect or refusal to report -- Estimations -- Penalties -- Notice to user or
20 supplier.
21 (1) If any user or [user-dealer] supplier neglects or refuses to make a report required by
22 this part, the commission shall make an estimate based on the best information available to it, for
23 the months in which the user or [user-dealer] supplier failed to make a report, or for the amount
24 of special fuel sold or used by the user or [user-dealer] supplier subject to the special fuel tax.
25 (2) On the basis of the estimate, the commission shall compute and determine the amount
26 required to be paid to the state, adding to this sum a penalty as provided under Section 59-1-401,
27 and interest at the rate and in the manner prescribed in Section 59-1-402.
28 (3) The commission shall give to the user or [user-dealer] supplier written notice of the
29 estimate and determination personally, or by mail when addressed to the user or [user-dealer]
30 supplier at the user or [user-dealer's] supplier's last-known address.
31 Section 15. Section 59-13-317 is amended to read:

- 15 -

1 59-13-317. Delinquency -- Collection procedures.
2 (1) (a) In the event that any user or [user-dealer] supplier is delinquent in the payment of
3 any obligation imposed by this part, the commission may give notice of the amount of the
4 delinquency by registered mail to all persons having in their possession or under their control, any
5 credits or other personal property belonging to the user or [user-dealer] supplier, or owing any
6 debts to the user or [user-dealer] supplier.
7 (b) At the time of receipt of the notice and thereafter, any person so notified may not
8 transfer or make other disposition of the credits, personal property, or debts until the commission
9 has consented to a transfer or disposition or until ten days have elapsed from and after the receipt
10 of the notice.
11 (c) Any person so notified shall, within five days after the receipt of the notice, advise the
12 commission of any and all credits, personal property, or debts in their possession, under their
13 control, or owing by them.
14 (2) (a) If any user or [user-dealer] supplier is delinquent in the payment of the obligations
15 imposed by this chapter, the commission may at once bring an action to determine the amount of
16 tax and collect all sums due the state from any user or [user-dealer] supplier.
17 (b) In any suit brought to enforce the rights of the state, a certificate by the commission
18 showing the delinquency is prima facie evidence of the levy of the special fuel tax, of the
19 delinquency, and of compliance with this part in relation to the computation and levy of the special
20 fuel tax.
21 (c) In this action a writ of attachment may be issued, and no bond or affidavit previous to
22 the issuing of the attachment may be required.
23 Section 16. Section 59-13-320 is amended to read:
24 59-13-320. Penalties for violations of the special fuel tax provisions.
25 (1) The following offenses, unless otherwise provided, are class B misdemeanors:
26 (a) failing or refusing to pay the tax imposed by this part;
27 (b) engaging in business in this state as a [user-dealer] supplier without being the holder
28 of an uncancelled license to engage in this business;
29 (c) operating a motor vehicle, which requires special fuel, upon the highways of this state
30 without a valid special fuel vehicle permit;
31 (d) failing to make any of the reports required by this part;

- 16 -

1 (e) making any false statement in any application, report, or statement required by this
2 part;
3 (f) refusing to permit the commission or any employee to examine records as provided by
4 this part;
5 (g) failing to keep proper records of quantities of fuel received, produced, refined,
6 manufactured, compounded, used, or delivered in this state as required by this part;
7 (h) making any false statement in connection with an application for the refund of any
8 moneys or taxes provided in this part; or
9 (i) violating any of the provisions of this part for which no penalty is provided.
10 (2) Any person required to make, render, sign, or verify any report and who makes any
11 false or fraudulent report with intent to defeat or evade the assessment required by law to be made,
12 is subject to a criminal violation under Section 59-1-401.
13 (3) The remedies of the state are cumulative and no action taken by the commission or any
14 of its officers to pursue any remedy may be construed to be an election on the part of the state to
15 exclude any other allowed by law.
16 Section 17. Effective date.
17 This act takes effect on July 1, 1997.




Legislative Review Note
as of 3-3-97 5:01 PM

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

Office of Legislative Research and General Counsel

- 17 -