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H.B. 261

             1     

AVIATION AMENDMENTS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne A. Harper

             5     
Senate Sponsor: Wayne L. Niederhauser

             6     
             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;
             26      and
             27          .    makes technical changes.


             28      Monies Appropriated in this Bill:
             29          None
             30      Other Special Clauses:
             31          This bill takes effect on July 1, 2009.
             32      Utah Code Sections Affected:
             33      AMENDS:
             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
             37      ENACTS:
             38          72-2-126, Utah Code Annotated 1953
             39      REPEALS:
             40          59-13-404, as last amended by Laws of Utah 2008, Chapter 382
             41     
             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[: (a)
             47      beginning July 1, 1999, six cents per gallon; (b) beginning July 1, 2000, eight cents per gallon;
             48      and (c) beginning July 1, 2001, nine cents] 9 cents per gallon.
             49          (3) Aviation fuel purchased for use by a federally certificated air carrier is subject to a
             50      tax of [four cents]:
             51          (a) 4 cents per gallon[.] on aviation fuel purchased other than at an international
             52      airport:
             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 [Transportation Fund's Restricted Revenue Account for
             71      aeronautical operations of the Department of Transportation for:] Aeronautics Restricted
             72      Account created by Section 72-2-126 .
             73          [(a) the construction, improvement, operation, and maintenance of publicly used
             74      airports in this state and the payment of principal and interest on indebtedness incurred for
             75      those purposes;]
             76          [(b) the promotion of aeronautics in this state; and]
             77          [(c) the payment of the costs and expenses of the Department of Transportation in
             78      administering this part or other law conferring upon it the duty of regulating and supervising
             79      aeronautics in this state.]
             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
             89          [the Salt Lake International Airport]


             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        $.01
             93          (b) Tax, [less a refund or credit]
             94          [claimed under Section 59-13-404 ,]
             95          on Each Gallon of Aviation
             96          Fuel Purchased for Use by a Certificated
             97          Air Carrier at [the Salt Lake International]
             98          [Airport] an International Airport Located Within
             99          a County of the First Class that has a United
             100          States Customs Office on its Premises     [$.025    ] $.026    $.015    [$.01] $.011
             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 [the Salt Lake International Airport]
             105          [beginning July 1, 1999            $.06        $.02        $.04]
             106          [beginning July 1, 2000            $.08        $.01        $.07]
             107          [beginning July 1, 2001]
             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 [the Salt Lake International Airport]
             115          [beginning July 1, 1999            $.06        $.03        $.03]
             116          [beginning July 1, 2000            $.08        $.03        $.05]
             117          [beginning July 1, 2001]
             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 [purposes specified in Subsection (2)(a).]:
             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 [Subsection (2)] the Aeronautics
             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 [the Transportation Fund's Restricted Revenue Account
             133      for the aeronautical operations of that department]:
             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 [Transportation Fund's Restricted Revenue Account for the
             143      aeronautical operations of the Department of Transportation] Aeronautics Restricted Account
             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;
             156      and
             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
             182      based.


             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
             188      Digest.
             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
             200      certificate.
             201          (4) (a) The Tax Commission shall provide a registration card to an owner of an aircraft
             202      if:
             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) [(a)] After deducting the costs of administering all aircraft registrations under this
             209      chapter, the Tax Commission shall deposit all remaining aircraft registration fees in the
             210      [Transportation Fund's Restricted Revenue Account for aeronautical operations of the
             211      Department of Transportation to be used as provided in Subsection 59-13-402 (2)] Aeronautics
             212      Restricted Account created by Section 72-2-126 .
             213          [(b) All interest earned on monies in the Transportation Fund's Restricted Revenue


             214      Account shall be deposited into the Transportation Fund's Restricted Revenue Account for
             215      aeronautical operations.]
             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.




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    as of 1-6-09 11:08 AM


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