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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 first
15 class that has a United States customs office on its premises from $.04 to $.026 on
16 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 use funds in the Aeronautics
25 Restricted Account to purchase and operate aircraft for statewide aviation purposes;
27 . makes technical changes.
28 Monies Appropriated in this Bill:
30 Other Special Clauses:
31 This bill takes effect on July 1, 2009.
32 Utah Code Sections Affected:
34 59-13-401, as last amended by Laws of Utah 1999, Chapter 179
35 59-13-402, as last amended by Laws of Utah 2001, Chapter 235
36 72-10-110, as last amended by Laws of Utah 2008, Chapter 206
38 72-2-126, Utah Code Annotated 1953
40 59-13-404, as last amended by Laws of Utah 2008, Chapter 382
42 Be it enacted by the Legislature of the state of Utah:
43 Section 1. Section 59-13-401 is amended to read:
44 59-13-401. Aviation fuel tax -- Rate.
45 (1) A tax is imposed upon aviation fuel at the rates provided in this section.
46 (2) Except as provided by Subsection (3), the tax on aviation fuel shall be[
49 (3) Aviation fuel purchased for use by a federally certificated air carrier is subject to a
50 tax of [
51 (a) 4 cents per gallon[
53 (i) located within a county of the first class; and
54 (ii) that has a United States customs office on its premises; or
55 (b) 2.6 cents per gallon on aviation fuel purchased at an international airport:
56 (i) located within a county of the first class; and
57 (ii) that has a United States customs office on its premises.
58 Section 2. Section 59-13-402 is amended to read:
59 59-13-402. Revenue from taxes deposited with treasurer -- Credit to Aeronautics
60 Restricted Account -- Purposes for which funds may be used -- Allocation of funds --
61 Reports -- Returns required.
62 (1) (a) All revenue received by the commission under this part shall be deposited daily
63 with the state treasurer who shall credit all of the revenue collected to the Transportation Fund.
64 (b) An appropriation from the Transportation Fund shall be made to the commission to
65 cover expenses incurred in the administration and enforcement of this part and the collection of
66 the aviation fuel tax.
67 (c) Refunds to which taxpayers are entitled under this part shall be paid from the
68 Transportation Fund.
69 (2) The state treasurer shall place an amount equal to the total amount received from
70 the sale or use of aviation fuel in the [
72 Account created by Section 72-2-126 .
80 (3) The tax imposed on each gallon of aviation fuel under Section 59-13-401 shall be
81 allocated to the airport where the aviation fuel was sold and to aeronautical operations of the
82 Department of Transportation as follows:
83 Total Allocation to Allocation to
84 Tax Airport Aeronautical
85 Allocated Operations
86 (a) Tax on Each Gallon of Aviation
87 Fuel Purchased for Use by a Federally
88 Certificated Air Carrier Other than at
90 an International Airport Located Within a
91 County of the First Class that has a United
92 States Customs Office on its Premises $.04 $.03 $.01
93 (b) Tax, [
95 on Each Gallon of Aviation
96 Fuel Purchased for Use by a Certificated
97 Air Carrier at [
99 a County of the First Class that has a United
100 States Customs Office on its Premises [
101 (c) Tax on Each Gallon of Aviation
102 Fuel Purchased for Use by a Person Other
103 than a Federally Certificated Air Carrier
104 at [
108 an International Airport Located Within a
109 County of the First Class that has a United
110 States Customs Office on its Premises $.09 $.00 $.09
111 (d) Tax on Each Gallon of Aviation Fuel
112 Purchased for Use by a Person Other
113 than a Federally Certificated Air Carrier
114 Other than at [
118 an International Airport Located Within a
119 County of the First Class that has a United
120 States Customs Office on its Premises $.09 $.03 $.06
121 (e) The allocation to the publicly used airport may be used at the discretion of the
122 airport's governing authority for the [
123 (i) construction, improvements, operation, and maintenance of publicly used airports in
124 the state; and
125 (ii) payment of principal and interest on indebtedness incurred for the purposes
126 described in Subsection (3)(e)(i).
127 (f) Upon appropriation by the Legislature, the allocation to aeronautical operations of
128 the Department of Transportation shall be used as provided in [
129 Restricted Account created by Section 72-2-126 .
130 (4) (a) The commission shall require reports and returns from distributors, retail
131 dealers, and users in order to enable the commission and the Department of Transportation to
132 allocate the revenue to be credited to [
134 (i) the Aeronautics Restricted Account created by Section 72-2-126 ; and
135 (ii) the separate accounts of individual airports.
136 (b) (i) Except as provided by Subsection (4)(b)(ii), any unexpended amount remaining
137 in the account of any publicly used airport on the first day of January, April, July, and October
138 shall be paid to the authority operating the airport.
139 (ii) Aviation fuel tax allocated to any airport owned and operated by a city of the first
140 class shall be paid to the city treasurer on the first day of each month.
141 (c) The state treasurer shall place aviation fuel tax collected on fuel sold at places other
142 than publicly used airports in the [
144 created by Section 72-2-126 .
145 Section 3. Section 72-2-126 is enacted to read:
146 72-2-126. Aeronautics Restricted Account.
147 (1) There is created a restricted account entitled the Aeronautics Restricted Account
148 within the Transportation Fund.
149 (2) The account consists of monies generated from the following revenue sources:
150 (a) aviation fuel tax allocated for aeronautical operations deposited into the account in
151 accordance with Section 59-13-402 ;
152 (b) aircraft registration fees deposited into the account in accordance with Section
153 72-10-110 ;
154 (c) appropriations made to the account by the Legislature;
155 (d) contributions from other public and private sources for deposit into the account;
157 (e) interest earned on account monies.
158 (3) The department shall allocate funds in the account to the separate accounts of
159 individual airports as required under Section 59-13-402 .
160 (4) The department shall use funds in the account for:
161 (a) the construction, improvement, operation, and maintenance of publicly used
162 airports in this state;
163 (b) the payment of principal and interest on indebtedness incurred for the purposes
164 described in Subsection (4)(a);
165 (c) the purchase and operation of aircraft by the department for statewide purposes;
166 (d) the promotion of aeronautics in this state; and
167 (e) the payment of the costs and expenses of the Department of Transportation in
168 administering Title 59, Chapter 13, Part 4, Aviation Fuel Tax, or other law conferring upon it
169 the duty of regulating and supervising aeronautics in this state.
170 Section 4. Section 72-10-110 is amended to read:
171 72-10-110. Aircraft registration information requirements -- Registration fee --
172 Administration -- Partial year registration.
173 (1) All applications for aircraft registration shall contain:
174 (a) a description of the aircraft, including:
175 (i) the manufacturer or builder;
176 (ii) the aircraft registration number, type, year of manufacture, or if an experimental
177 aircraft, the year the aircraft was completed and certified for air worthiness by an inspector of
178 the Federal Aviation Administration; and
179 (iii) gross weight;
180 (b) the name and address of the owner of the aircraft; and
181 (c) where the aircraft is located, or the address where the aircraft is usually used or
183 (2) (a) Except as provided in Subsection (3), at the time application is made for
184 registration or renewal of registration of an aircraft under this chapter, an annual registration
185 fee of 0.4% of the average wholesale value of the aircraft shall be paid.
186 (b) For purposes of calculating the value of the aircraft under Subsection (2)(a), the
187 Tax Commission shall use the average wholesale value as stated in the Aircraft Bluebook Price
189 (3) Notwithstanding Subsection (2):
190 (a) the following aircraft shall pay an annual registration fee of $100:
191 (i) an aircraft not listed in the Aircraft Bluebook Price Digest; or
192 (ii) an experimental aircraft.
193 (b) An aircraft 50 years or older shall pay the lesser of:
194 (i) $100; or
195 (ii) the uniform fee provided for under Subsection (2)(a); and
196 (c) an aircraft that does not have a valid airworthiness certificate for a period of six
197 months or more:
198 (i) may not apply for a certificate of registration required under Section 72-10-109 ; and
199 (ii) is exempt from paying a registration fee until the aircraft has a valid airworthiness
201 (4) (a) The Tax Commission shall provide a registration card to an owner of an aircraft
203 (i) the owner complies with the registration requirements of this section; and
204 (ii) the owner of the aircraft states that the aircraft has a valid airworthiness certificate.
205 (b) An owner of an aircraft shall carry the registration card in the registered aircraft.
206 (5) The registration fees assessed under this chapter shall be collected by the Tax
207 Commission to be distributed as provided in Subsection (6).
208 (6) [
209 chapter, the Tax Commission shall deposit all remaining aircraft registration fees in the
212 Restricted Account created by Section 72-2-126 .
216 (7) Aircraft which are registered under this chapter for less than a full calendar year
217 shall be charged a registration fee which is reduced in proportion to the fraction of the calendar
218 year during which the aircraft is registered in this state.
219 (8) (a) The Utah Division of Aeronautics shall maintain a statewide database of all
220 aircraft based within the state.
221 (b) On or before October 1 of each year, the Utah Division of Aeronautics shall
222 provide the Tax Commission with the data the Tax Commission requires from the database
223 described in Subsection (8)(a).
224 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
225 commission may by rule define the contents of the database described in Subsection (8)(a).
226 (9) The Tax Commission may suspend or revoke a registration if it determines that the
227 required fee has not been paid and the fee is not paid upon reasonable notice and demand.
228 Section 5. Repealer.
229 This bill repeals:
230 Section 59-13-404, Refunds of aviation fuel tax -- Filing claims -- Commission
231 approval -- Rulemaking -- Appeals -- Penalties.
232 Section 6. Effective date.
233 This bill takes effect on July 1, 2009.
Legislative Review Note
as of 1-6-09 11:08 AM