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H.B. 261 Enrolled
7 LONG TITLE
8 General Description:
9 This bill modifies the Motor and Special Fuel Tax Act and the Transportation Code by
10 amending provisions relating to funding for aeronautical operations.
11 Highlighted Provisions:
12 This bill:
13 . reduces the aviation fuel tax rate that a federally certificated air carrier pays on
14 aviation fuel purchased at an international airport located within a county of the
15 first class that has a United States customs office on its premises from $.04 to
16 $.025 on each gallon of aviation fuel;
17 . repeals the $.015 per gallon aviation fuel tax refund or credit for federally
18 certificated air carriers on gallons of aviation fuel purchased at an international
19 airport located within a county of the first class that has a United States customs
20 office on its premises;
21 . creates the Aeronautics Restricted Account within the Transportation Fund;
22 . provides that certain aviation fuel tax revenue and aircraft registration fees shall be
23 deposited into the Aeronautics Restricted Account;
24 . provides that the Department of Transportation may not use funds in the
25 Aeronautics Restricted Account to purchase aircraft for certain purposes; and
26 . makes technical changes.
27 Monies Appropriated in this Bill:
29 Other Special Clauses:
30 This bill takes effect on July 1, 2009.
31 Utah Code Sections Affected:
33 59-13-401, as last amended by Laws of Utah 1999, Chapter 179
34 59-13-402, as last amended by Laws of Utah 2001, Chapter 235
35 72-10-110, as last amended by Laws of Utah 2008, Chapter 206
37 72-2-126, Utah Code Annotated 1953
39 59-13-404, as last amended by Laws of Utah 2008, Chapter 382
41 Be it enacted by the Legislature of the state of Utah:
42 Section 1. Section 59-13-401 is amended to read:
43 59-13-401. Aviation fuel tax -- Rate.
44 (1) A tax is imposed upon aviation fuel at the rates provided in this section.
45 (2) Except as provided by Subsection (3), the tax on aviation fuel shall be[
48 (3) Aviation fuel purchased for use by a federally certificated air carrier is subject to a
49 tax of [
50 (a) 4 cents per gallon[
52 (i) located within a county of the first class; and
53 (ii) that has a United States customs office on its premises; or
54 (b) 2.5 cents per gallon on aviation fuel purchased at an international airport:
55 (i) located within a county of the first class; and
56 (ii) that has a United States customs office on its premises.
57 Section 2. Section 59-13-402 is amended to read:
58 59-13-402. Revenue from taxes deposited with treasurer -- Credit to Aeronautics
59 Restricted Account -- Purposes for which funds may be used -- Allocation of funds --
60 Reports -- Returns required.
61 (1) (a) All revenue received by the commission under this part shall be deposited daily
62 with the state treasurer who shall credit all of the revenue collected to the Transportation Fund.
63 (b) An appropriation from the Transportation Fund shall be made to the commission to
64 cover expenses incurred in the administration and enforcement of this part and the collection
65 of the aviation fuel tax.
66 (c) Refunds to which taxpayers are entitled under this part shall be paid from the
67 Transportation Fund.
68 (2) The state treasurer shall place an amount equal to the total amount received from
69 the sale or use of aviation fuel in the [
71 Account created by Section 72-2-126 .
79 (3) The tax imposed on each gallon of aviation fuel under Section 59-13-401 shall be
80 allocated to the airport where the aviation fuel was sold and to aeronautical operations of the
81 Department of Transportation as follows:
82 Total Allocation to Allocation to
83 Tax Airport Aeronautical
84 Allocated Operations
85 (a) Tax on Each Gallon of Aviation
86 Fuel Purchased for Use by a Federally
87 Certificated Air Carrier Other than at
89 an International Airport Located Within a
90 County of the First Class that has a United
91 States Customs Office on its Premises $.04 $.03 $.01
92 (b) Tax[
94 on Each Gallon of Aviation
95 Fuel Purchased for Use by a Certificated
96 Air Carrier at [
98 a County of the First Class that has a United
99 States Customs Office on its Premises $.025 $.015 $.01
100 (c) Tax on Each Gallon of Aviation
101 Fuel Purchased for Use by a Person Other
102 than a Federally Certificated Air Carrier
103 at [
107 an International Airport Located Within a
108 County of the First Class that has a United
109 States Customs Office on its Premises $.09 $.00 $.09
110 (d) Tax on Each Gallon of Aviation Fuel
111 Purchased for Use by a Person Other
112 than a Federally Certificated Air Carrier
113 Other than at [
117 an International Airport Located Within a
118 County of the First Class that has a United
119 States Customs Office on its Premises $.09 $.03 $.06
120 (e) The allocation to the publicly used airport may be used at the discretion of the
121 airport's governing authority for the [
122 (i) construction, improvements, operation, and maintenance of publicly used airports
123 in the state; and
124 (ii) payment of principal and interest on indebtedness incurred for the purposes
125 described in Subsection (3)(e)(i).
126 (f) Upon appropriation by the Legislature, the allocation to aeronautical operations of
127 the Department of Transportation shall be used as provided in [
128 Aeronautics Restricted Account created by Section 72-2-126 .
129 (4) (a) The commission shall require reports and returns from distributors, retail
130 dealers, and users in order to enable the commission and the Department of Transportation to
131 allocate the revenue to be credited to [
133 (i) the Aeronautics Restricted Account created by Section 72-2-126 ; and
134 (ii) the separate accounts of individual airports.
135 (b) (i) Except as provided by Subsection (4)(b)(ii), any unexpended amount remaining
136 in the account of any publicly used airport on the first day of January, April, July, and October
137 shall be paid to the authority operating the airport.
138 (ii) Aviation fuel tax allocated to any airport owned and operated by a city of the first
139 class shall be paid to the city treasurer on the first day of each month.
140 (c) The state treasurer shall place aviation fuel tax collected on fuel sold at places other
141 than publicly used airports in the [
143 created by Section 72-2-126 .
144 Section 3. Section 72-2-126 is enacted to read:
145 72-2-126. Aeronautics Restricted Account.
146 (1) There is created a restricted account entitled the Aeronautics Restricted Account
147 within the Transportation Fund.
148 (2) The account consists of monies generated from the following revenue sources:
149 (a) aviation fuel tax allocated for aeronautical operations deposited into the account in
150 accordance with Section 59-13-402 ;
151 (b) aircraft registration fees deposited into the account in accordance with Section
152 72-10-110 ;
153 (c) appropriations made to the account by the Legislature;
154 (d) contributions from other public and private sources for deposit into the account;
156 (e) interest earned on account monies.
157 (3) The department shall allocate funds in the account to the separate accounts of
158 individual airports as required under Section 59-13-402 .
159 (4) The department shall use funds in the account for:
160 (a) the construction, improvement, operation, and maintenance of publicly used
161 airports in this state;
162 (b) the payment of principal and interest on indebtedness incurred for the purposes
163 described in Subsection (4)(a);
164 (c) operation of the division of aeronautics;
165 (d) the promotion of aeronautics in this state;
166 (e) the payment of the costs and expenses of the Department of Transportation in
167 administering Title 59, Chapter 13, Part 4, Aviation Fuel Tax, or other law conferring upon it
168 the duty of regulating and supervising aeronautics in this state; and
169 (f) the support of aerial search and rescue operations.
170 (5) (a) Monies in the account may not be used by the department for the purchase of
171 aircraft for purposes other than those described in Subsections (4)(a) through (f).
172 (b) Monies in the account may not be used to provide or subsidize direct operating
173 costs of travel for purposes other than those described in Subsections (4)(a) through(f).
174 Section 4. Section 72-10-110 is amended to read:
175 72-10-110. Aircraft registration information requirements -- Registration fee --
176 Administration -- Partial year registration.
177 (1) All applications for aircraft registration shall contain:
178 (a) a description of the aircraft, including:
179 (i) the manufacturer or builder;
180 (ii) the aircraft registration number, type, year of manufacture, or if an experimental
181 aircraft, the year the aircraft was completed and certified for air worthiness by an inspector of
182 the Federal Aviation Administration; and
183 (iii) gross weight;
184 (b) the name and address of the owner of the aircraft; and
185 (c) where the aircraft is located, or the address where the aircraft is usually used or
187 (2) (a) Except as provided in Subsection (3), at the time application is made for
188 registration or renewal of registration of an aircraft under this chapter, an annual registration
189 fee of 0.4% of the average wholesale value of the aircraft shall be paid.
190 (b) For purposes of calculating the value of the aircraft under Subsection (2)(a), the
191 Tax Commission shall use the average wholesale value as stated in the Aircraft Bluebook Price
193 (3) Notwithstanding Subsection (2):
194 (a) the following aircraft shall pay an annual registration fee of $100:
195 (i) an aircraft not listed in the Aircraft Bluebook Price Digest; or
196 (ii) an experimental aircraft.
197 (b) An aircraft 50 years or older shall pay the lesser of:
198 (i) $100; or
199 (ii) the uniform fee provided for under Subsection (2)(a); and
200 (c) an aircraft that does not have a valid airworthiness certificate for a period of six
201 months or more:
202 (i) may not apply for a certificate of registration required under Section 72-10-109 ;
204 (ii) is exempt from paying a registration fee until the aircraft has a valid airworthiness
206 (4) (a) The Tax Commission shall provide a registration card to an owner of an aircraft
208 (i) the owner complies with the registration requirements of this section; and
209 (ii) the owner of the aircraft states that the aircraft has a valid airworthiness certificate.
210 (b) An owner of an aircraft shall carry the registration card in the registered aircraft.
211 (5) The registration fees assessed under this chapter shall be collected by the Tax
212 Commission to be distributed as provided in Subsection (6).
213 (6) [
214 chapter, the Tax Commission shall deposit all remaining aircraft registration fees in the
217 Restricted Account created by Section 72-2-126 .
221 (7) Aircraft which are registered under this chapter for less than a full calendar year
222 shall be charged a registration fee which is reduced in proportion to the fraction of the
223 calendar year during which the aircraft is registered in this state.
224 (8) (a) The Utah Division of Aeronautics shall maintain a statewide database of all
225 aircraft based within the state.
226 (b) On or before October 1 of each year, the Utah Division of Aeronautics shall
227 provide the Tax Commission with the data the Tax Commission requires from the database
228 described in Subsection (8)(a).
229 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
230 commission may by rule define the contents of the database described in Subsection (8)(a).
231 (9) The Tax Commission may suspend or revoke a registration if it determines that the
232 required fee has not been paid and the fee is not paid upon reasonable notice and demand.
233 Section 5. Repealer.
234 This bill repeals:
235 Section 59-13-404, Refunds of aviation fuel tax -- Filing claims -- Commission
236 approval -- Rulemaking -- Appeals -- Penalties.
237 Section 6. Effective date.
238 This bill takes effect on July 1, 2009.
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