S.B. 253

1

MOTOR FUEL TAX INCREASE
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: LeRay McAllister
5 AN ACT RELATING TO REVENUE AND TAXATION; AMENDING CERTAIN FUEL TAX
6 PROVISION; MAKING TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE
7 DATE.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 59-13-201, as last amended by Chapter 78, Laws of Utah 1995
11 59-13-301, as last amended by Chapter 79, Laws of Utah 1994
12 59-13-304, as last amended by Chapters 79 and 113, Laws of Utah 1994
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 59-13-201 is amended to read:
15 59-13-201. Rate -- Tax basis -- Exemptions -- Revenue deposited in the
16 Transportation Fund -- 1987 increase used for repairs only -- Restricted account for boating
17 uses -- Refunds.
18 (1) (a) A tax is imposed at the rate of [19] 24 1/2 cents per gallon upon all motor fuel that
19 is sold, used, or received for sale or use in this state. [If any change is made in this tax amount,
20 the tax on fuel under Subsection (1)(b), Subsection 59-13-301(1)(a), and the fee for a special fuel
21 tax exemption certificate under Subsection 59-13-304(2)(a) are increased or decreased by the same
22 percentage of change as is made to the tax under this Subsection (1)(a).]
23 (b) A tax is imposed at the rate of [3 cents per gallon] 3/19 of the rate imposed under
24 Subsection (1)(a), rounded up to the nearest penny, upon all motor fuels that meet the definition
25 of clean fuel in Section 59-13-102 and are sold, used, or received for sale or use in this state. [If
26 any change is made to the motor fuel tax under Subsection (1)(a), the tax under this Subsection
27 (1)(b) is increased or decreased by the same percentage of change, rounded up to the next penny.]

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

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1 (7) (a) The United States government or any of its instrumentalities, this state, or a
2 political subdivision of this state that has purchased motor fuel from a licensed distributor or from
3 a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in this section is
4 entitled to a refund of the tax and may file with the commission for a quarterly refund.
5 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
6 commission shall make rules governing the application and refund provided for in Subsection (a).
7 (8) (a) The commission shall refund annually into the Off-Highway Vehicle Account in
8 the General Fund an amount equal to the lesser of the following:
9 (i) .5% of the motor fuel tax revenues collected under this section; or
10 (ii) $600,000.
11 (b) This amount shall be used as provided in Section 41-22-19.
12 (c) Subsection (8) sunsets on July 1, 2010.
13 Section 2. Section 59-13-301 is amended to read:
14 59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer and
15 credited to Transportation Fund.
16 (1) [(a)] A tax is imposed at the same rate [of 19 cents per gallon] imposed under
17 Subsection 59-13-201(1)(a) on the sale or use of special fuel other than clean [special] fuel, which
18 is exempt upon the purchase of an exemption certificate under Section 59-13-304.
19 [(b) If any change is made in the motor fuel tax rate under Subsection 59-13-201(1)(a), the
20 tax rate under Subsection (1)(a) of this section is increased or decreased by the same percentage
21 of change.]
22 (2) No tax is imposed upon special fuel which:
23 (a) is sold or used for any purpose other than to operate or propel a motor vehicle upon the
24 public highways of the state, but this exemption applies only in those cases where the purchasers
25 or the users of special fuel establish to the satisfaction of the commission that the special fuel was
26 used for purposes other than to operate a motor vehicle upon the public highways of the state;
27 (b) is sold to the United States government or any of its instrumentalities or to this state
28 or any of its political subdivisions; or
29 (c) is sold and delivered into a motor vehicle for which the owner or operator possesses
30 an unexpired special fuel tax exemption certificate issued to that owner or operator by the
31 commission as provided in Section 59-13-304 for vehicles powered by certain special fuels.

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1 (3) The special fuel tax shall be paid by the user-dealer where the special fuel is sold
2 within the state and delivered directly into the fuel supply tank of a motor vehicle unless a current
3 special fuel exemption certificate has been issued for the motor vehicle under Section 59-13-304.
4 (4) (a) The special fuel tax shall be paid by every user who is required by Sections
5 59-13-303 and 59-13-305 to obtain a special fuel permit and file special fuel tax reports.
6 (b) The user shall receive a refund for special fuel taxes paid to the user-dealer on
7 purchases made which are delivered into vehicles and for which special fuel tax liability is
8 reported.
9 (5) (a) All revenue received by the commission from taxes and license fees under this part
10 shall be deposited daily with the state treasurer and credited to the Transportation Fund.
11 [(b) The revenue received from the five cent per gallon increase effective April 1, 1987,
12 shall be used for the repair of highways, roads, and streets.]
13 [(c)] (b) An appropriation from the Transportation Fund shall be made to the commission
14 to cover expenses incurred in the administration and enforcement of this part and the collection
15 of the special fuel tax.
16 Section 3. Section 59-13-304 is amended to read:
17 59-13-304. Exemptions from special fuel tax -- Certificate required -- Fees for
18 certificates -- Inspection of vehicles.
19 (1) (a) A user of special fuel who owns a vehicle powered by a clean fuel as defined under
20 Section 59-13-102, may receive an exemption from the special fuel tax imposed under Section
21 59-13-301.
22 (b) The commission determines if a user shall receive this exemption.
23 (c) A user who receives this exemption shall annually purchase from the commission a
24 special fuel tax exemption certificate for each vehicle owned that is described under Subsection
25 (a).
26 (d) Special fuel tax exemption certificates are provided to encourage the use of clean fuels
27 to reduce air pollution.
28 (2) (a) The fee for a special fuel tax exemption certificate is:
29 (i) [$70] 70/.19 of the tax per gallon imposed under Subsection 59-13-201(1)(a), rounded
30 up to the nearest dollar, for qualified motor vehicles as defined under Section 59-13-102; and
31 (ii) [$36] 36/.19 of the tax per gallon imposed under Subsection 59-13-201(1)(a), rounded

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1 up to the nearest dollar, for other vehicles.
2 [(b) When any increase or decrease is made in the motor fuel tax under Subsection
3 59-13-201(1)(a), that same percentage of increase or decrease applies to the fee for a certificate
4 under Subsection (2)(a), rounded to the nearest dollar.]
5 [(c)] (b) The commission may require each vehicle to be inspected for safe operation
6 before issuing the exemption certificate.
7 [(d)] (c) Each vehicle shall be equipped with an approved and properly installed
8 carburetion system if it is powered by a fuel that is gaseous at standard atmospheric conditions.
9 Section 4. Effective date.
10 This act takes effect on July 1, 1997.




Legislative Review Note
as of 3-3-97 4:59 PM

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

Office of Legislative Research and General Counsel

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