Second 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 purchases aviation fuel at the Salt Lake
7 International Airport. 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 Other than at
44 the Salt Lake International Airport $.04 $.03 $.01
45 (b) Tax, less a refund or credit
46 claimed under Section 59-13-404 ,
47 on Each Gallon of Aviation
48 Fuel Purchased for Use by a Certificated
49 Air Carrier at the Salt Lake International
50 Airport $.025 $.015 $.01
51 (c) Tax on Each Gallon of Aviation
52 Fuel Purchased for Use by a Person Other
53 than a Federally Certificated Air Carrier
54 at the Salt Lake International Airport
55 beginning July 1, 1999 $.06 $.02 $.04
56 beginning July 1, 2000 $.08 $.01 $.07

57 beginning July 1, 2001 $.09 $.00 $.09
58 (d) Tax on Each Gallon of Aviation Fuel
59 Purchased for Use by a Person Other
60 than a Federally Certificated Air Carrier
61 Other than at the Salt Lake International Airport
62 beginning July 1, 1999 $.06 $.03 $.03
63 beginning July 1, 2000 $.08 $.03 $.05
64 beginning July 1, 2001 $.09 $.03 $.06
65 [(a)] (e) The allocation to the publicly used airport may be used at the discretion of the
66 airport's governing authority for the purposes specified in Subsection (2)(a).
67 [(b)] (f) Upon appropriation by the Legislature, the allocation to aeronautical operations
68 of the Department of Transportation shall be used as provided in Subsection (2).
69 (4) (a) The commission shall require reports and returns from distributors, retail dealers,
70 and users in order to enable the commission and the Department of Transportation to allocate the
71 revenue to be credited to the Transportation Fund's Restricted Revenue Account for the
72 aeronautical operations of that department and the separate accounts of individual airports.
73 (b) (i) Except as provided by Subsection (4)(b)(ii), any unexpended amount remaining in
74 the account of any publicly used airport on the first day of January, April, July, and October shall
75 be paid to the authority operating the airport.
76 (ii) Aviation fuel tax allocated to any airport owned and operated by a city of the first class
77 shall be paid to the city treasurer on the first day of each month.
78 (c) The state treasurer shall place aviation fuel tax collected on fuel sold at places other
79 than publicly used airports in the Transportation Fund's Restricted Revenue Account for the
80 aeronautical operations of the Department of Transportation.
81 Section 2. Section 59-13-404 is enacted to read:
82 59-13-404. Refunds of aviation fuel tax -- Filing claims -- Commission approval --
83 Rulemaking -- Appeals -- Penalties.
84 (1) A federally certificated air carrier is entitled to a $.015 refund or credit of the aviation
85 fuel tax paid on gallons of aviation fuel purchased at the Salt Lake International Airport, subject
86 to the conditions and limitations provided under this section.
87 (2) (a) A federally certificated air carrier shall file a claim for a refund or credit with the

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