First Substitute S.B. 49

Senator John L. Valentine proposes to substitute the following bill:

1 AVIATION FUEL TAX
2 2001 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: John L. Valentine
5 This act modifies the Revenue and Taxation Code by authorizing a partial tax refund or
6 credit for a federally certificated air carrier who annually purchases more than 90,000,000
7 gallons of aviation fuel. This act reallocates certain aviation fuel tax proceeds. This act takes
8 effect on July 1, 2001.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 59-13-402, as last amended by Chapter 179, Laws of Utah 1999
12 ENACTS:
13 59-13-404, Utah Code Annotated 1953
14 Be it enacted by the Legislature of the state of Utah:
15 Section 1. Section 59-13-402 is amended to read:
16 59-13-402. Revenue from taxes deposited with treasurer -- Credit to Aeronautics
17 Restricted Account -- Purposes for which funds may be used -- Allocation of funds -- Reports
18 -- Returns required.
19 (1) (a) All revenue received by the commission under this part shall be deposited daily
20 with the state treasurer who shall credit all of the revenue collected to the Transportation Fund.
21 (b) An appropriation from the Transportation Fund shall be made to the commission to
22 cover expenses incurred in the administration and enforcement of this part and the collection of
23 the aviation fuel tax.
24 (c) Refunds to which taxpayers are entitled under this part shall be paid from the
25 Transportation Fund.

26 (2) The state treasurer shall place an amount equal to the total amount received from the
27 sale or use of aviation fuel in the Transportation Fund's Restricted Revenue Account for
28 aeronautical operations of the Department of Transportation for:
29 (a) the construction, improvement, operation, and maintenance of publicly used airports
30 in this state and the payment of principal and interest on indebtedness incurred for those purposes;
31 (b) the promotion of aeronautics in this state; and
32 (c) the payment of the costs and expenses of the Department of Transportation in
33 administering this part or other law conferring upon it the duty of regulating and supervising
34 aeronautics in this state.
35 (3) The tax imposed on each gallon of aviation fuel under Section 59-13-401 shall be
36 allocated to the airport where the aviation fuel was sold and to aeronautical operations of the
37 Department of Transportation as follows:
38 Total Allocation to Allocation to
39 Tax Airport Aeronautical
40 Allocated Operations
41 (a) Tax on Each Gallon of Aviation
42 Fuel Purchased for Use by a Federally
43 Certificated Air Carrier $.04 $.03 $.01
44 (b) Tax, less a refund or credit
45 claimed under Section 59-13-404 ,
46 on Each Gallon of Aviation
47 Fuel Purchased for Use by a Certificated
48 Air Carrier of more than 90,000,000
49 Gallons $.01 $.00 $.01
50 (c) Tax on Each Gallon of Aviation
51 Fuel Purchased for Use by a Person Other
52 than a Federally Certificated Air Carrier
53 at the Salt Lake International Airport
54 beginning July 1, 1999 $.06 $.02 $.04
55 beginning July 1, 2000 $.08 $.01 $.07
56 beginning July 1, 2001 $.09 $.00 $.09

57 (d) Tax on Each Gallon of Aviation Fuel
58 Purchased for Use by a Person Other
59 than a Federally Certificated Air Carrier
60 Other than at the Salt Lake International Airport
61 beginning July 1, 1999 $.06 $.03 $.03
62 beginning July 1, 2000 $.08 $.03 $.05
63 beginning July 1, 2001 $.09 $.03 $.06
64 [(a)] (e) The allocation to the publicly used airport may be used at the discretion of the
65 airport's governing authority for the purposes specified in Subsection (2)(a).
66 [(b)] (f) Upon appropriation by the Legislature, the allocation to aeronautical operations
67 of the Department of Transportation shall be used as provided in Subsection (2).
68 (4) (a) The commission shall require reports and returns from distributors, retail dealers,
69 and users in order to enable the commission and the Department of Transportation to allocate the
70 revenue to be credited to the Transportation Fund's Restricted Revenue Account for the
71 aeronautical operations of that department and the separate accounts of individual airports.
72 (b) (i) Except as provided by Subsection (4)(b)(ii), any unexpended amount remaining in
73 the account of any publicly used airport on the first day of January, April, July, and October shall
74 be paid to the authority operating the airport.
75 (ii) Aviation fuel tax allocated to any airport owned and operated by a city of the first class
76 shall be paid to the city treasurer on the first day of each month.
77 (c) The state treasurer shall place aviation fuel tax collected on fuel sold at places other
78 than publicly used airports in the Transportation Fund's Restricted Revenue Account for the
79 aeronautical operations of the Department of Transportation.
80 Section 2. Section 59-13-404 is enacted to read:
81 59-13-404. Refunds of aviation fuel tax -- Filing claims -- Commission approval --
82 Rulemaking -- Appeals -- Penalties.
83 (1) A federally certificated air carrier is entitled to a $.03 refund or credit of the aviation
84 fuel tax paid on gallons of aviation fuel purchased annually for its use in excess of 90,000,000
85 gallons, subject to the conditions and limitations provided under this section.
86 (2) (a) A federally certificated air carrier shall file a claim for a refund or credit with the
87 commission within 90 days of the end of the tax year for which a claim is made.

88 (b) A federally certificated air carrier filing a claim for a refund or credit shall furnish any
89 or all of the information outlined in this section upon request of the commission.
90 (3) (a) The claim shall include an application containing:
91 (i) the name of the federally certificated air carrier claimant;
92 (ii) the number of gallons actually purchased; and
93 (iii) any other information required by the commission to support the claim.
94 (b) This original claim and all information contained in it, constitutes a permanent file with
95 the commission in the name of the federally certificated air carrier claimant.
96 (4) Upon commission approval of the claim for a refund, the commission shall pay the
97 amount found due to the federally certificated air carrier claimant. The total amount of claims for
98 refunds shall be paid from the Transportation Fund.
99 (5) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
100 the commission may promulgate rules to enforce this part, and may refuse to accept
101 unsubstantiated evidence for the claim.
102 (b) If the commission is not satisfied with the evidence submitted in connection with the
103 claim, it may reject the claim or require additional evidence.
104 (6) A federally certificated air carrier aggrieved by the decision of the commission with
105 respect to a refund or credit may file a request for agency action, requesting a hearing before the
106 commission.
107 (7) A federally certificated air carrier who makes any false claim, report, or statement,
108 with intent to defraud or secure a refund or credit to which the claimant is not entitled, is subject
109 to the criminal penalties provided under Section 59-1-401 , and the commission shall initiate the
110 filing of a complaint for alleged violations of this part. In addition to these penalties, the federally
111 certificated air carrier may not receive any refund or credit as a claimant for a period of five years.
112 Section 3. Effective date.
113 This act takes effect on July 1, 2001.