S.B. 130

1

FUEL TAX REFUNDS FOR LOSS OR
2 DESTRUCTION
3 2000 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: John L. Valentine
6 AN ACT RELATING TO REVENUE AND TAXATION; PROVIDING FOR CERTAIN
7 REFUNDS OR CREDITS FOR FUEL TAXES DUE TO LOSS OF FUEL BY CERTAIN
8 DESTRUCTION; PROVING PROCEDURES AND LIMITATIONS; PROVIDING PENALTIES;
9 AND PROVIDING AN EFFECTIVE DATE.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 ENACTS:
12 59-13-202.5, Utah Code Annotated 1953
13 59-13-322, Utah Code Annotated 1953
14 Be it enacted by the Legislature of the state of Utah:
15 Section 1. Section 59-13-202.5 is enacted to read:
16 59-13-202.5. Refunds of tax due to fire, flood, storm, or accident -- Filing claims and
17 affidavits -- Commission approval -- Rulemaking -- Appeals -- Penalties.
18 (1) A retailer, wholesaler, or licensed distributor, who without fault, sustains a loss or
19 destruction of 8,000 or more gallons of motor fuel in a single incident due to fire, flood, storm,
20 accident, or the commitment of a crime and who has paid or is required to pay the tax on the motor
21 fuel as provided by this part, is entitled to a refund or credit of the tax subject to the conditions and
22 limitations provided under this section.
23 (2) (a) The claimant shall file a claim for a refund or credit with the commission within
24 90 days of the incident.
25 (b) Any part of a loss or destruction eligible for indemnification under an insurance policy
26 for the taxes paid or required on the loss or destruction of motor fuel is not eligible for a refund
27 or credit under this section.

28 (c) Any claimant filing a claim for a refund or credit shall furnish any or all of the
29 information outlined in this section upon request of the commission.
30 (d) The burden of proof of loss or destruction is on the claimant who shall provide
31 evidence of loss or destruction to the satisfaction of the commission.
32 (3) (a) The claim shall include an affidavit containing the:
33 (i) name of claimant;
34 (ii) claimant's address;
35 (iii) date, time, and location of the incident;
36 (iv) cause of the incident;
37 (v) name of the investigating agencies at the scene;
38 (vi) number of gallons actually lost from sale; and
39 (vii) information on any insurance coverages related to the incident.
40 (b) The claimant shall support the claim by submitting the original invoices or copy of the
41 original invoices.
42 (c) This original claim and all information contained in it, constitutes a permanent file with
43 the commission in the name of the claimant.
44 (4) Upon commission approval of the claim for a refund, the S [ Division of Finance ]
44a COMMISSION s shall pay
45 the amount found due to the claimant. The total amount of claims for refunds shall be paid from
46 the Transportation Fund.
47 (5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
48 commission may promulgate rules to enforce this part, and may refuse to accept unsubstantiated
49 evidence for the claim. If the commission is not satisfied with the evidence submitted in
50 connection with the claim, it may reject the claim or require additional evidence.
51 (6) Any person aggrieved by the decision of the commission with respect to a refund or
52 credit may file a request for agency action, requesting a hearing before the commission.
53 (7) Any person who makes any false claim, report, or statement, either as claimant, agent,
54 or creditor, with intent to defraud or secure a refund or credit to which the claimant is not entitled,
55 is subject to the criminal penalties provided under Section 59-1-401 , and the commission shall
56 initiate the filing of a complaint for alleged violations of this part. In addition to these penalties,
57 the person may not receive any refund or credit as a claimant or as a creditor of a claimant for
58 refund or credit for a period of five years.

59 (8) Any refund or credit made under this section does not affect any deduction allowed
60 under Section 59-13-207 .
61 Section 2. Section 59-13-322 is enacted to read:
62 59-13-322. Refunds of tax due to fire, flood, storm, or accident -- Filing claims and
63 affidavits -- Commission approval -- Rulemaking -- Appeals -- Penalties.
64 (1) A retailer, wholesaler, or licensed supplier, who without fault, sustains a loss or
65 destruction of S [ 8,000 ] 7,000 s or more gallons of diesel fuel in a single incident due to fire, flood, storm,
66 accident, or the commitment of a crime and who has paid or is required to pay the tax on the
67 special fuel as provided by this part, is entitled to a refund or credit of the tax subject to the
68 conditions and limitations provided under this section.
69 (2) (a) The claimant shall file a claim for a refund or credit with the commission within
70 90 days of the incident.
71 (b) Any part of a loss or destruction eligible for indemnification under an insurance policy
72 for the taxes paid or required on the loss or destruction of special fuel is not eligible for a refund
73 or credit under this section.
74 (c) Any claimant filing a claim for a refund or credit shall furnish any or all of the
75 information outlined in this section upon request of the commission.
76 (d) The burden of proof of loss or destruction is on the claimant who shall provide
77 evidence of loss or destruction to the satisfaction of the commission.
78 (3) (a) The claim shall include an affidavit containing the:
79 (i) name of claimant;
80 (ii) claimant's address;
81 (iii) date, time, and location of the incident;
82 (iv) cause of the incident;
83 (v) name of the investigating agencies at the scene;
84 (vi) number of gallons actually lost from sale; and
85 (vii) information on any insurance coverages related to the incident.
86 (b) The claimant shall support the claim by submitting the original invoices or copy of the
87 original invoices.
88 (c) This original claim and all information contained in it, constitutes a permanent file with
89 the commission in the name of the claimant.

90 (4) Upon commission approval of the claim for a refund, the S [ Division of Finance ]
90a COMMISSION s shall pay
91 the amount found due to the claimant. The total amount of claims for refunds shall be paid from
92 the Transportation Fund.
93 (5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
94 commission may promulgate rules to enforce this part, and may refuse to accept unsubstantiated
95 evidence for the claim. If the commission is not satisfied with the evidence submitted in
96 connection with the claim, it may reject the claim or require additional evidence.
97 (6) Any person aggrieved by the decision of the commission with respect to a refund or
98 credit may file a request for agency action, requesting a hearing before the commission.
99 (7) Any person who makes any false claim, report, or statement, either as claimant, agent,
100 or creditor, with intent to defraud or secure a refund or credit to which the claimant is not entitled,
101 is subject to the criminal penalties provided under Section 59-1-401 , and the commission shall
102 initiate the filing of a complaint for alleged violations of this part. In addition to these penalties,
103 the person may not receive any refund or credit as a claimant or as a creditor of a claimant for
104 refund or credit for a period of five years.
105 Section 3. Effective date.
106 This act takes effect on July 1, 2000.




Legislative Review Note
as of 1-13-00 2:28 PM

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

Office of Legislative Research and General Counsel