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H.B. 35

             1     

MOTOR AND SPECIAL FUEL TAX

             2     
AMENDMENTS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Craig A. Frank

             6     
Senate Sponsor: Wayne L. Niederhauser

             7     
             8      LONG TITLE
             9      Committee Note:
             10          The Revenue and Taxation Interim Committee recommended this bill.
             11      General Description:
             12          This bill modifies the Motor and Special Fuel Tax Act by amending provisions relating
             13      to refunds or credits of motor fuel and special fuel taxes.
             14      Highlighted Provisions:
             15          This bill:
             16          .    authorizes the State Tax Commission to refund or credit motor fuel or special fuel
             17      tax paid on motor fuel or special fuel that is mixed with dyed diesel fuel or special
             18      fuel and is required to be re-refined;
             19          .    provides that a claimant of a refund or credit has the burden of proof to establish a
             20      claim for a refund or credit;
             21          .    specifies the evidence that is necessary to receive a refund or credit; and
             22          .    makes technical changes.
             23      Monies Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          This bill takes effect on July 1, 2008.
             27      Utah Code Sections Affected:


             28      AMENDS:
             29          59-13-202.5, as last amended by Laws of Utah 2003, Chapter 178
             30          59-13-322, as last amended by Laws of Utah 2003, Chapter 178
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 59-13-202.5 is amended to read:
             34           59-13-202.5. Refunds of tax due to fire, flood, storm, accident, crime, discharge in
             35      bankruptcy, or mixing of fuels -- Filing claims and affidavits -- Commission approval --
             36      Rulemaking -- Appeals -- Penalties.
             37          (1) (a) A retailer, wholesaler, or licensed distributor, who without fault, sustains a loss
             38      or destruction of 8,000 or more gallons of motor fuel in a single incident due to fire, flood,
             39      storm, accident, or the commission of a crime and who has paid or is required to pay the tax on
             40      the motor fuel as provided by this part, is entitled to a refund or credit of the tax subject to the
             41      conditions and limitations provided under this section.
             42          (b) The claimant shall file a claim for a refund or credit with the commission within 90
             43      days of the incident.
             44          (c) Any part of a loss or destruction eligible for indemnification under an insurance
             45      policy for the taxes paid or required on the loss or destruction of motor fuel is not eligible for a
             46      refund or credit under this section.
             47          (d) Any claimant filing a claim for a refund or credit shall furnish any or all of the
             48      information outlined in this section upon request of the commission.
             49          (e) The burden of proof of loss or destruction is on the claimant who shall provide
             50      evidence of loss or destruction to the satisfaction of the commission.
             51          (f) (i) The claim shall include an affidavit containing the:
             52          (A) name of claimant;
             53          (B) claimant's address;
             54          (C) date, time, and location of the incident;
             55          (D) cause of the incident;
             56          (E) name of the investigating agencies at the scene;
             57          (F) number of gallons actually lost from sale; and
             58          (G) information on any insurance coverages related to the incident.


             59          (ii) The claimant shall support the claim by submitting the original invoices or copy of
             60      the original invoices.
             61          (iii) This original claim and all information contained in it constitutes a permanent file
             62      with the commission in the name of the claimant.
             63          (2) (a) A retailer, wholesaler, or licensed distributor who has paid the tax on motor fuel
             64      as provided by this part is entitled to a refund for taxes paid on that portion of an account that:
             65          (i) relates to 4,500 or more gallons of motor fuel purchased in a single transaction for
             66      which no payment has been received; and
             67          (ii) has been discharged in a bankruptcy proceeding.
             68          (b) The claimant shall file a claim for refund with the commission within 90 days from
             69      the date of the discharge.
             70          (c) Any claimant filing a claim for a refund shall furnish any or all of the information
             71      outlined in this section upon request of the commission.
             72          (d) The burden of proof of discharge is on the claimant who shall provide evidence of
             73      discharge to the satisfaction of the commission.
             74          (e) The claim shall include an affidavit containing the following:
             75          (i) the name of the claimant;
             76          (ii) the claimant's address;
             77          (iii) the name of the debtor that received a discharge in bankruptcy; and
             78          (iv) the portion of the account that is subject to an order granting a discharge.
             79          (f) The claimant shall support the claim by submitting:
             80          (i) the original invoices or a copy of the original invoices; and
             81          (ii) a certified copy of the notice of discharge.
             82          (g) This original claim and all information contained in it constitutes a permanent file
             83      with the commission in the name of the claimant.
             84          (h) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             85      commission shall promulgate rules for the allocation of the discharge under this Subsection (2)
             86      to maximize the claimant's refund amount.
             87          (3) (a) Subject to the conditions and limitations of this section, a retailer, wholesaler, or
             88      licensed distributor is entitled to a refund or credit of motor fuel tax if:
             89          (i) dyed diesel fuel or special fuel is mixed with motor fuel; and


             90          (ii) the retailer, wholesaler, or licensed distributor:
             91          (A) returns the mixed motor fuel to the refinery for re-refining; and
             92          (B) has paid or is required to pay the tax on the motor fuel as provided by this part.
             93          (b) The claimant shall file a claim for a refund or credit with the commission within 90
             94      days of the date the motor fuel was re-refined.
             95          (c) Any claimant filing a claim for a refund or credit shall furnish any or all of the
             96      information outlined in this section upon request of the commission.
             97          (d) The burden of proof of the re-refinement of the motor fuel is on the claimant who
             98      shall provide evidence of re-refinement of the motor fuel to the satisfaction of the commission.
             99          (e) (i) The claim shall include an affidavit containing the:
             100          (A) name of claimant;
             101          (B) claimant's address;
             102          (C) date, time, and location of the incident;
             103          (D) nature of the incident; and
             104          (E) number of gallons actually required to be re-refined.
             105          (ii) The claimant shall support the claim by submitting written verification from a
             106      refinery that:
             107          (A) the motor fuel mixed with the dyed diesel fuel or special fuel was re-refined; and
             108          (B) motor fuel tax was paid on the re-refined motor fuel.
             109          (iii) The claim filed pursuant to Subsection (3)(b) and all information contained in it
             110      constitutes a permanent file with the commission in the name of the claimant.
             111          [(3)] (4) (a) Upon commission approval of the claim for a refund, the commission shall
             112      pay the amount found due to the claimant.
             113          (b) The total amount of claims for refunds shall be paid from the Transportation Fund.
             114          [(4)] (5) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             115      Act, the commission may:
             116          (i) promulgate rules to enforce this part[,]; and [may]
             117          (ii) refuse to accept unsubstantiated evidence for the claim.
             118          (b) If the commission is not satisfied with the evidence submitted in connection with
             119      the claim, it may:
             120          (i) reject the claim; or


             121          (ii) require additional evidence.
             122          [(5)] (6) Any person aggrieved by the decision of the commission with respect to a
             123      refund or credit may file a request for agency action, requesting a hearing before the
             124      commission.
             125          [(6)] (7) (a) Any person who makes any false claim, report, or statement, either as
             126      claimant, agent, or creditor, with intent to defraud or secure a refund or credit to which the
             127      claimant is not entitled, is subject to the criminal penalties provided under Section 59-1-401 ,
             128      and the commission shall initiate the filing of a complaint for alleged violations of this part.
             129          (b) In addition to [these] the penalties under Subsection (7)(a), the person may not
             130      receive any refund or credit as a claimant or as a creditor of a claimant for refund or credit for a
             131      period of five years.
             132          [(7)] (8) Any refund or credit made under this section does not affect any deduction
             133      allowed under Section 59-13-207 .
             134          Section 2. Section 59-13-322 is amended to read:
             135           59-13-322. Refunds of tax due to fire, flood, storm, accident, crime, or discharge
             136      in bankruptcy, or mixing of fuels -- Filing claims and affidavits -- Commission approval
             137      -- Rulemaking -- Appeals -- Penalties.
             138          (1) (a) A retailer, wholesaler, or licensed supplier, who without fault, sustains a loss or
             139      destruction of 7,000 or more gallons of diesel fuel in a single incident due to fire, flood, storm,
             140      accident, or the commission of a crime and who has paid or is required to pay the tax on the
             141      special fuel as provided by this part, is entitled to a refund or credit of the tax subject to the
             142      conditions and limitations provided under this section.
             143          (b) The claimant shall file a claim for a refund or credit with the commission within 90
             144      days of the incident.
             145          (c) Any part of a loss or destruction eligible for indemnification under an insurance
             146      policy for the taxes paid or required on the loss or destruction of special fuel is not eligible for
             147      a refund or credit under this section.
             148          (d) Any claimant filing a claim for a refund or credit shall furnish any or all of the
             149      information outlined in this section upon request of the commission.
             150          (e) The burden of proof of loss or destruction is on the claimant who shall provide
             151      evidence of loss or destruction to the satisfaction of the commission.


             152          (f) (i) The claim shall include an affidavit containing the:
             153          (A) name of claimant;
             154          (B) claimant's address;
             155          (C) date, time, and location of the incident;
             156          (D) cause of the incident;
             157          (E) name of the investigating agencies at the scene;
             158          (F) number of gallons actually lost from sale; and
             159          (G) information on any insurance coverages related to the incident.
             160          (ii) The claimant shall support the claim by submitting the original invoices or copy of
             161      the original invoices.
             162          (iii) This original claim and all information contained in it constitutes a permanent file
             163      with the commission in the name of the claimant.
             164          (2) (a) A retailer, wholesaler, or licensed distributor who has paid the tax on special
             165      fuel as provided by this part is entitled to a refund for taxes paid on that portion of an account
             166      that:
             167          (i) relates to 4,500 or more gallons of special fuel purchased in a single transaction for
             168      which no payment has been received; and
             169          (ii) has been discharged in a bankruptcy proceeding.
             170          (b) The claimant shall file a claim for refund with the commission within 90 days from
             171      the date of the discharge.
             172          (c) Any claimant filing a claim for a refund shall furnish any or all of the information
             173      outlined in this section upon request of the commission.
             174          (d) The burden of proof of discharge is on the claimant who shall provide evidence of
             175      discharge to the satisfaction of the commission.
             176          (e) The claim shall include an affidavit containing the following:
             177          (i) the name of the claimant;
             178          (ii) the claimant's address;
             179          (iii) the name of the debtor that received a discharge in bankruptcy; and
             180          (iv) the portion of the account that is subject to an order granting a discharge.
             181          (f) The claimant shall support the claim by submitting:
             182          (i) the original invoices or a copy of the original invoices; and


             183          (ii) a certified copy of the notice of discharge.
             184          (g) This original claim and all information contained in it constitutes a permanent file
             185      with the commission in the name of the claimant.
             186          (h) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             187      commission shall promulgate rules for the allocation of the discharge under this Subsection (2)
             188      to maximize the claimant's refund amount.
             189          (3) (a) Subject to the conditions and limitations of this section, a retailer, wholesaler, or
             190      licensed distributor is entitled to a refund or credit of special fuel tax if:
             191          (i) dyed diesel fuel or special fuel is mixed with special fuel; and
             192          (ii) the retailer, wholesaler, or licensed distributor:
             193          (A) returns the mixed special fuel to the refinery for re-refining; and
             194          (B) has paid or is required to pay the tax on the special fuel as provided by this part.
             195          (b) The claimant shall file a claim for a refund or credit with the commission within 90
             196      days of the date the special fuel was re-refined.
             197          (c) Any claimant filing a claim for a refund or credit shall furnish any or all of the
             198      information outlined in this section upon request of the commission.
             199          (d) The burden of proof of the re-refinement of the special fuel is on the claimant who
             200      shall provide evidence of re-refinement of the special fuel to the satisfaction of the
             201      commission.
             202          (e) (i) The claim shall include an affidavit containing the:
             203          (A) name of claimant;
             204          (B) claimant's address;
             205          (C) date, time, and location of the incident;
             206          (D) nature of the incident; and
             207          (E) number of gallons of special fuel actually required to be re-refined.
             208          (ii) The claimant shall support the claim by submitting written verification from a
             209      refinery that:
             210          (A) the special fuel mixed with the dyed diesel fuel or special fuel was re-refined; and
             211          (B) special fuel tax was paid on the re-refined special fuel.
             212          (iii) The claim filed pursuant to Subsection (3)(b) and all information contained in it
             213      constitutes a permanent file with the commission in the name of the claimant.


             214          [(3)] (4) (a) Upon commission approval of the claim for a refund, the commission shall
             215      pay the amount found due to the claimant.
             216          (b) The total amount of claims for refunds shall be paid from the Transportation Fund.
             217          [(4)] (5) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             218      Act, the commission may:
             219          (i) promulgate rules to enforce this part[,]; and [may]
             220          (ii) refuse to accept unsubstantiated evidence for the claim.
             221          (b) If the commission is not satisfied with the evidence submitted in connection with
             222      the claim, it may:
             223          (i) reject the claim; or
             224          (ii) require additional evidence.
             225          [(5)] (6) Any person aggrieved by the decision of the commission with respect to a
             226      refund or credit may file a request for agency action, requesting a hearing before the
             227      commission.
             228          [(6)] (7) (a) Any person who makes any false claim, report, or statement, either as
             229      claimant, agent, or creditor, with intent to defraud or secure a refund or credit to which the
             230      claimant is not entitled, is subject to the criminal penalties provided under Section 59-1-401 ,
             231      and the commission shall initiate the filing of a complaint for alleged violations of this part.
             232          (b) In addition to [these] the penalties under Subsection (7)(a), the person may not
             233      receive any refund or credit as a claimant or as a creditor of a claimant for refund or credit for a
             234      period of five years.
             235          Section 3. Effective date.
             236          This bill takes effect on July 1, 2008.




Legislative Review Note
    as of 10-30-07 7:43 AM


Office of Legislative Research and General Counsel


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