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7 LONG TITLE
8 General Description:
9 This bill modifies the Motor and Special Fuel Tax Act by amending motor and special
10 fuel tax provisions.
11 Highlighted Provisions:
12 This bill:
13 ▸ requires the State Tax Commission to annually reduce the amount of a deposit of
14 sales and use tax revenue to the Transportation Investment Fund of 2005 in certain
15 circumstances;
16 ▸ amends provisions governing the calculation of the statewide average rack price of a
17 gallon of motor fuel for purposes of determining the motor and special fuel tax rate;
18 ▸ requires the Division of Finance to annually transfer a certain amount of revenue
19 from the Transportation Fund to the Transportation Investment Fund of 2005; and
20 ▸ makes technical and conforming changes.
21 Money Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 This bill provides a special effective date.
25 Utah Code Sections Affected:
26 AMENDS:
27 59-12-103, as last amended by Laws of Utah 2016, Chapters 184, 291, 348 and last
28 amended by Coordination Clause, Laws of Utah 2016, Chapter 291
29 59-13-201, as last amended by Laws of Utah 2015, Chapter 275
30 59-13-301, as last amended by Laws of Utah 2015, Chapters 275, 467 and last amended
31 by Coordination Clause, Laws of Utah 2015, Chapter 275
32 72-2-106, as last amended by Laws of Utah 2016, Chapter 291
33
34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 59-12-103 is amended to read:
36 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
37 tax revenues.
38 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
39 charged for the following transactions:
40 (a) retail sales of tangible personal property made within the state;
41 (b) amounts paid for:
42 (i) telecommunications service, other than mobile telecommunications service, that
43 originates and terminates within the boundaries of this state;
44 (ii) mobile telecommunications service that originates and terminates within the
45 boundaries of one state only to the extent permitted by the Mobile Telecommunications
46 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
47 (iii) an ancillary service associated with a:
48 (A) telecommunications service described in Subsection (1)(b)(i); or
49 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
50 (c) sales of the following for commercial use:
51 (i) gas;
52 (ii) electricity;
53 (iii) heat;
54 (iv) coal;
55 (v) fuel oil; or
56 (vi) other fuels;
57 (d) sales of the following for residential use:
58 (i) gas;
59 (ii) electricity;
60 (iii) heat;
61 (iv) coal;
62 (v) fuel oil; or
63 (vi) other fuels;
64 (e) sales of prepared food;
65 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
66 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
67 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
68 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
69 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
70 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
71 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
72 horseback rides, sports activities, or any other amusement, entertainment, recreation,
73 exhibition, cultural, or athletic activity;
74 (g) amounts paid or charged for services for repairs or renovations of tangible personal
75 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
76 (i) the tangible personal property; and
77 (ii) parts used in the repairs or renovations of the tangible personal property described
78 in Subsection (1)(g)(i), regardless of whether:
79 (A) any parts are actually used in the repairs or renovations of that tangible personal
80 property; or
81 (B) the particular parts used in the repairs or renovations of that tangible personal
82 property are exempt from a tax under this chapter;
83 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
84 assisted cleaning or washing of tangible personal property;
85 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
86 accommodations and services that are regularly rented for less than 30 consecutive days;
87 (j) amounts paid or charged for laundry or dry cleaning services;
88 (k) amounts paid or charged for leases or rentals of tangible personal property if within
89 this state the tangible personal property is:
90 (i) stored;
91 (ii) used; or
92 (iii) otherwise consumed;
93 (l) amounts paid or charged for tangible personal property if within this state the
94 tangible personal property is:
95 (i) stored;
96 (ii) used; or
97 (iii) consumed; and
98 (m) amounts paid or charged for a sale:
99 (i) (A) of a product transferred electronically; or
100 (B) of a repair or renovation of a product transferred electronically; and
101 (ii) regardless of whether the sale provides:
102 (A) a right of permanent use of the product; or
103 (B) a right to use the product that is less than a permanent use, including a right:
104 (I) for a definite or specified length of time; and
105 (II) that terminates upon the occurrence of a condition.
106 (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
107 is imposed on a transaction described in Subsection (1) equal to the sum of:
108 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
109 (A) 4.70%; and
110 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
111 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
112 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
113 State Sales and Use Tax Act; and
114 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
115 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
116 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
117 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
118 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
119 transaction under this chapter other than this part.
120 (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
121 on a transaction described in Subsection (1)(d) equal to the sum of:
122 (i) a state tax imposed on the transaction at a tax rate of 2%; and
123 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
124 transaction under this chapter other than this part.
125 (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
126 on amounts paid or charged for food and food ingredients equal to the sum of:
127 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
128 a tax rate of 1.75%; and
129 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
130 amounts paid or charged for food and food ingredients under this chapter other than this part.
131 (d) (i) For a bundled transaction that is attributable to food and food ingredients and
132 tangible personal property other than food and food ingredients, a state tax and a local tax is
133 imposed on the entire bundled transaction equal to the sum of:
134 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
135 (I) the tax rate described in Subsection (2)(a)(i)(A); and
136 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
137 Sales and Use Tax Act, if the location of the transaction as determined under Sections
138 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
139 Additional State Sales and Use Tax Act; and
140 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
141 Sales and Use Tax Act, if the location of the transaction as determined under Sections
142 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
143 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
144 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
145 described in Subsection (2)(a)(ii).
146 (ii) If an optional computer software maintenance contract is a bundled transaction that
147 consists of taxable and nontaxable products that are not separately itemized on an invoice or
148 similar billing document, the purchase of the optional computer software maintenance contract
149 is 40% taxable under this chapter and 60% nontaxable under this chapter.
150 (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
151 transaction described in Subsection (2)(d)(i) or (ii):
152 (A) if the sales price of the bundled transaction is attributable to tangible personal
153 property, a product, or a service that is subject to taxation under this chapter and tangible
154 personal property, a product, or service that is not subject to taxation under this chapter, the
155 entire bundled transaction is subject to taxation under this chapter unless:
156 (I) the seller is able to identify by reasonable and verifiable standards the tangible
157 personal property, product, or service that is not subject to taxation under this chapter from the
158 books and records the seller keeps in the seller's regular course of business; or
159 (II) state or federal law provides otherwise; or
160 (B) if the sales price of a bundled transaction is attributable to two or more items of
161 tangible personal property, products, or services that are subject to taxation under this chapter
162 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
163 higher tax rate unless:
164 (I) the seller is able to identify by reasonable and verifiable standards the tangible
165 personal property, product, or service that is subject to taxation under this chapter at the lower
166 tax rate from the books and records the seller keeps in the seller's regular course of business; or
167 (II) state or federal law provides otherwise.
168 (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
169 seller's regular course of business includes books and records the seller keeps in the regular
170 course of business for nontax purposes.
171 (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
172 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
173 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
174 of tangible personal property, other property, a product, or a service that is not subject to
175 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
176 the seller, at the time of the transaction:
177 (A) separately states the portion of the transaction that is not subject to taxation under
178 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
179 (B) is able to identify by reasonable and verifiable standards, from the books and
180 records the seller keeps in the seller's regular course of business, the portion of the transaction
181 that is not subject to taxation under this chapter.
182 (ii) A purchaser and a seller may correct the taxability of a transaction if:
183 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
184 the transaction that is not subject to taxation under this chapter was not separately stated on an
185 invoice, bill of sale, or similar document provided to the purchaser because of an error or
186 ignorance of the law; and
187 (B) the seller is able to identify by reasonable and verifiable standards, from the books
188 and records the seller keeps in the seller's regular course of business, the portion of the
189 transaction that is not subject to taxation under this chapter.
190 (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
191 in the seller's regular course of business includes books and records the seller keeps in the
192 regular course of business for nontax purposes.
193 (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
194 personal property, products, or services that are subject to taxation under this chapter at
195 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
196 unless the seller, at the time of the transaction:
197 (A) separately states the items subject to taxation under this chapter at each of the
198 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
199 (B) is able to identify by reasonable and verifiable standards the tangible personal
200 property, product, or service that is subject to taxation under this chapter at the lower tax rate
201 from the books and records the seller keeps in the seller's regular course of business.
202 (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
203 seller's regular course of business includes books and records the seller keeps in the regular
204 course of business for nontax purposes.
205 (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
206 rate imposed under the following shall take effect on the first day of a calendar quarter:
207 (i) Subsection (2)(a)(i)(A);
208 (ii) Subsection (2)(b)(i);
209 (iii) Subsection (2)(c)(i); or
210 (iv) Subsection (2)(d)(i)(A)(I).
211 (h) (i) A tax rate increase takes effect on the first day of the first billing period that
212 begins on or after the effective date of the tax rate increase if the billing period for the
213 transaction begins before the effective date of a tax rate increase imposed under:
214 (A) Subsection (2)(a)(i)(A);
215 (B) Subsection (2)(b)(i);
216 (C) Subsection (2)(c)(i); or
217 (D) Subsection (2)(d)(i)(A)(I).
218 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
219 statement for the billing period is rendered on or after the effective date of the repeal of the tax
220 or the tax rate decrease imposed under:
221 (A) Subsection (2)(a)(i)(A);
222 (B) Subsection (2)(b)(i);
223 (C) Subsection (2)(c)(i); or
224 (D) Subsection (2)(d)(i)(A)(I).
225 (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
226 computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
227 change in a tax rate takes effect:
228 (A) on the first day of a calendar quarter; and
229 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
230 (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
231 (A) Subsection (2)(a)(i)(A);
232 (B) Subsection (2)(b)(i);
233 (C) Subsection (2)(c)(i); or
234 (D) Subsection (2)(d)(i)(A)(I).
235 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
236 the commission may by rule define the term "catalogue sale."
237 (3) (a) The following state taxes shall be deposited into the General Fund:
238 (i) the tax imposed by Subsection (2)(a)(i)(A);
239 (ii) the tax imposed by Subsection (2)(b)(i);
240 (iii) the tax imposed by Subsection (2)(c)(i); or
241 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
242 (b) The following local taxes shall be distributed to a county, city, or town as provided
243 in this chapter:
244 (i) the tax imposed by Subsection (2)(a)(ii);
245 (ii) the tax imposed by Subsection (2)(b)(ii);
246 (iii) the tax imposed by Subsection (2)(c)(ii); and
247 (iv) the tax imposed by Subsection (2)(d)(i)(B).
248 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
249 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
250 through (g):
251 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
252 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
253 (B) for the fiscal year; or
254 (ii) $17,500,000.
255 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
256 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
257 Department of Natural Resources to:
258 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
259 protect sensitive plant and animal species; or
260 (B) award grants, up to the amount authorized by the Legislature in an appropriations
261 act, to political subdivisions of the state to implement the measures described in Subsections
262 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
263 (ii) Money transferred to the Department of Natural Resources under Subsection
264 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
265 person to list or attempt to have listed a species as threatened or endangered under the
266 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
267 (iii) At the end of each fiscal year:
268 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
269 Conservation and Development Fund created in Section 73-10-24;
270 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
271 Program Subaccount created in Section 73-10c-5; and
272 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
273 Program Subaccount created in Section 73-10c-5.
274 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
275 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
276 created in Section 4-18-106.
277 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
278 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
279 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
280 water rights.
281 (ii) At the end of each fiscal year:
282 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
283 Conservation and Development Fund created in Section 73-10-24;
284 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
285 Program Subaccount created in Section 73-10c-5; and
286 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
287 Program Subaccount created in Section 73-10c-5.
288 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
289 in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
290 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
291 (ii) In addition to the uses allowed of the Water Resources Conservation and
292 Development Fund under Section 73-10-24, the Water Resources Conservation and
293 Development Fund may also be used to:
294 (A) conduct hydrologic and geotechnical investigations by the Division of Water
295 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
296 quantifying surface and ground water resources and describing the hydrologic systems of an
297 area in sufficient detail so as to enable local and state resource managers to plan for and
298 accommodate growth in water use without jeopardizing the resource;
299 (B) fund state required dam safety improvements; and
300 (C) protect the state's interest in interstate water compact allocations, including the
301 hiring of technical and legal staff.
302 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
303 in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
304 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
305 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
306 in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
307 created in Section 73-10c-5 for use by the Division of Drinking Water to:
308 (i) provide for the installation and repair of collection, treatment, storage, and
309 distribution facilities for any public water system, as defined in Section 19-4-102;
310 (ii) develop underground sources of water, including springs and wells; and
311 (iii) develop surface water sources.
312 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
313 2006, the difference between the following amounts shall be expended as provided in this
314 Subsection (5), if that difference is greater than $1:
315 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
316 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
317 (ii) $17,500,000.
318 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
319 (A) transferred each fiscal year to the Department of Natural Resources as dedicated
320 credits; and
321 (B) expended by the Department of Natural Resources for watershed rehabilitation or
322 restoration.
323 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
324 in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
325 created in Section 73-10-24.
326 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
327 remaining difference described in Subsection (5)(a) shall be:
328 (A) transferred each fiscal year to the Division of Water Resources as dedicated
329 credits; and
330 (B) expended by the Division of Water Resources for cloud-seeding projects
331 authorized by Title 73, Chapter 15, Modification of Weather.
332 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
333 in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
334 created in Section 73-10-24.
335 (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
336 remaining difference described in Subsection (5)(a) shall be deposited into the Water
337 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
338 Division of Water Resources for:
339 (i) preconstruction costs:
340 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
341 26, Bear River Development Act; and
342 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
343 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
344 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
345 Chapter 26, Bear River Development Act;
346 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
347 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
348 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
349 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
350 (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
351 Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
352 transferred each year as dedicated credits to the Division of Water Rights to cover the costs
353 incurred for employing additional technical staff for the administration of water rights.
354 (f) At the end of each fiscal year, any unexpended dedicated credits described in
355 Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
356 Fund created in Section 73-10-24.
357 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
358 amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
359 (1) for the fiscal year shall be deposited as follows:
360 (a) for fiscal year 2016-17 only, 100% of the revenue described in this Subsection (6)
361 shall be deposited into the Transportation Investment Fund of 2005 created by Section
362 72-2-124;
363 (b) for fiscal year 2017-18 only:
364 (i) 80% of the revenue described in this Subsection (6) shall be deposited into the
365 Transportation Investment Fund of 2005 created by Section 72-2-124; and
366 (ii) 20% of the revenue described in this Subsection (6) shall be deposited into the
367 Water Infrastructure Restricted Account created by Section 73-10g-103;
368 (c) for fiscal year 2018-19 only:
369 (i) 60% of the revenue described in this Subsection (6) shall be deposited into the
370 Transportation Investment Fund of 2005 created by Section 72-2-124; and
371 (ii) 40% of the revenue described in this Subsection (6) shall be deposited into the
372 Water Infrastructure Restricted Account created by Section 73-10g-103;
373 (d) for fiscal year 2019-20 only:
374 (i) 40% of the revenue described in this Subsection (6) shall be deposited into the
375 Transportation Investment Fund of 2005 created by Section 72-2-124; and
376 (ii) 60% of the revenue described in this Subsection (6) shall be deposited into the
377 Water Infrastructure Restricted Account created by Section 73-10g-103;
378 (e) for fiscal year 2020-21 only:
379 (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
380 Transportation Investment Fund of 2005 created by Section 72-2-124; and
381 (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
382 Water Infrastructure Restricted Account created by Section 73-10g-103; and
383 (f) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
384 in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
385 created by Section 73-10g-103.
386 (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
387 Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
388 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
389 created by Section 72-2-124:
390 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
391 the revenues collected from the following taxes, which represents a portion of the
392 approximately 17% of sales and use tax revenues generated annually by the sales and use tax
393 on vehicles and vehicle-related products:
394 (A) the tax imposed by Subsection (2)(a)(i)(A);
395 (B) the tax imposed by Subsection (2)(b)(i);
396 (C) the tax imposed by Subsection (2)(c)(i); and
397 (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
398 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
399 current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
400 (D) that exceeds the amount collected from the sales and use taxes described in Subsections
401 (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
402 (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
403 the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
404 lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
405 generated in the current fiscal year than the total percentage of sales and use taxes deposited in
406 the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
407 (7)(a) equal to the product of:
408 (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
409 previous fiscal year; and
410 (B) the total sales and use tax revenue generated by the taxes described in Subsections
411 (7)(a)(i)(A) through (D) in the current fiscal year.
412 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
413 Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
414 described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
415 Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
416 Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
417 (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
418 from the sales and use taxes described in Subsections (7)(a)(i)(A) through (D) was deposited
419 under Subsection (7)(a), the Division of Finance shall annually deposit 17% of the revenues
420 collected from the sales and use taxes described in Subsections (7)(a)(i)(A) through (D) in the
421 current fiscal year under Subsection (7)(a).
422 (8) (a) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited
423 under Subsections (6) and (7), for the 2016-17 fiscal year only, the Division of Finance shall
424 deposit $64,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into
425 the Transportation Investment Fund of 2005 created by Section 72-2-124.
426 (b) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
427 Subsections (6) and (7), for the 2017-18 fiscal year only, the Division of Finance shall deposit
428 $63,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
429 Transportation Investment Fund of 2005 created by Section 72-2-124.
430 (c) (i) Notwithstanding Subsection (3)(a), [
431 under Subsections (6) and (7), and subject to Subsection (8)(c)(ii), for a fiscal year beginning
432 on or after July 1, 2018, the [
433 Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
434 listed under Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the
435 following taxes:
436 [
437 [
438 [
439 [
440 (ii) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
441 reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(c)(i)
442 by an amount that is equal to 35% of the amount of revenue generated in the current fiscal year
443 by the portion of the tax imposed on motor and special fuel that is sold, used, or received for
444 sale or use in this state that exceeds 29.4 cents per gallon.
445 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
446 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
447 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
448 (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c),
449 in addition to any amounts deposited under Subsections (6), (7), and (8), and for the 2016-17
450 fiscal year only, the Division of Finance shall deposit into the Transportation Investment Fund
451 of 2005 created by Section 72-2-124 the amount of tax revenue generated by a .05% tax rate on
452 the transactions described in Subsection (1).
453 (b) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c), and in
454 addition to any amounts deposited under Subsections (6), (7), and (8), the Division of Finance
455 shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
456 amount of revenue described as follows:
457 (i) for fiscal year 2017-18 only, 83.33% of the amount of revenue generated by a .05%
458 tax rate on the transactions described in Subsection (1);
459 (ii) for fiscal year 2018-19 only, 66.67% of the amount of revenue generated by a .05%
460 tax rate on the transactions described in Subsection (1);
461 (iii) for fiscal year 2019-20 only, 50% of the amount of revenue generated by a .05%
462 tax rate on the transactions described in Subsection (1);
463 (iv) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a
464 .05% tax rate on the transactions described in Subsection (1); and
465 (v) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
466 tax rate on the transactions described in Subsection (1).
467 (c) For purposes of Subsections (10)(a) and (b), the Division of Finance may not
468 deposit into the Transportation Investment Fund of 2005 any tax revenue generated by amounts
469 paid or charged for food and food ingredients, except for tax revenue generated by a bundled
470 transaction attributable to food and food ingredients and tangible personal property other than
471 food and food ingredients described in Subsection (2)(d).
472 (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
473 fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
474 construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
475 Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
476 generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
477 created in Section 63N-2-512.
478 (12) (a) Notwithstanding Subsection (3)(a), for the 2016-17 fiscal year only, the
479 Division of Finance shall deposit $26,000,000 of the revenues generated by the taxes listed
480 under Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
481 (b) Notwithstanding Subsection (3)(a), for the 2017-18 fiscal year only, the Division of
482 Finance shall deposit $27,000,000 of the revenues generated by the taxes listed under
483 Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
484 (13) Notwithstanding Subsections (4) through (12), an amount required to be expended
485 or deposited in accordance with Subsections (4) through (12) may not include an amount the
486 Division of Finance deposits in accordance with Section 59-12-103.2.
487 Section 2. Section 59-13-201 is amended to read:
488 59-13-201. Rate -- Tax basis -- Exemptions -- Revenue deposited into the
489 Transportation Fund -- Restricted account for boating uses -- Refunds -- Reduction of tax
490 in limited circumstances.
491 [
492
493
494 [
495
496 the statewide average rack price of a gallon of motor fuel per gallon upon all motor fuel that is
497 sold, used, or received for sale or used in this state.
498 [
499 Subsection [
500 Subsection [
501 statewide average rack price of a gallon of regular unleaded motor fuel, excluding federal and
502 state excise taxes, for the 12 months ending on the previous June 30 as published by an oil
503 pricing service.
504 [
505 Subsection [
506 Subsection [
507 statewide average rack price of a gallon of regular unleaded motor fuel, excluding federal and
508 state excise taxes, for the 36 months ending on the previous June 30 as published by an oil
509 pricing service.
510 [
511 statewide average rack price of a gallon of motor fuel determined under Subsection (1)(b)[
512 may not be less than [
513 [
514
515
516 the minimum statewide average rack price of a gallon of motor fuel described in Subsection
517 [
518 motor fuel for the previous calendar year and adding an amount equal to the greater of:
519 [
520 price of a gallon of motor fuel for the previous calendar year by the actual percent change
521 during the previous fiscal year in the Consumer Price Index; and
522 [
523 [
524 commission under Subsection (1)(b)[
525 (iv) The minimum statewide average rack price of a gallon of motor fuel described and
526 adjusted under Subsections (1)(c)(i) and (ii) may not exceed the maximum statewide average
527 rack price of a gallon of motor fuel under Subsection (1)(c)(iii).
528 [
529 (A) determine the statewide average rack price of a gallon of motor fuel in accordance
530 with [
531 (B) adjust the fuel tax rate imposed under Subsection [
532 nearest one-tenth of a cent, based on the determination under Subsection (1)(b)[
533 (C) publish the adjusted fuel tax as a cents per gallon rate; and
534 (D) post or otherwise make public the adjusted fuel tax rate as determined in
535 Subsection [
536 under Subsection [
537 [
538 under Subsection [
539 [
540 provisions of this section, a tax is imposed at the rate of 3/19 of the rate imposed under
541 Subsection (1)(a) [
542 definition of clean fuel in Section 59-13-102 and are sold, used, or received for sale or use in
543 this state.
544 (2) Any increase or decrease in tax rate applies to motor fuel that is imported to the
545 state or sold at refineries in the state on or after the effective date of the rate change.
546 (3) (a) No motor fuel tax is imposed upon:
547 (i) motor fuel that is brought into and sold in this state in original packages as purely
548 interstate commerce sales;
549 (ii) motor fuel that is exported from this state if proof of actual exportation on forms
550 prescribed by the commission is made within 180 days after exportation;
551 (iii) motor fuel or components of motor fuel that is sold and used in this state and
552 distilled from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons located in
553 this state; or
554 (iv) motor fuel that is sold to the United States government, this state, or the political
555 subdivisions of this state.
556 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
557 commission shall make rules governing the procedures for administering the tax exemption
558 provided under Subsection (3)(a)(iv).
559 (4) The commission may either collect no tax on motor fuel exported from the state or,
560 upon application, refund the tax paid.
561 (5) (a) All revenue received by the commission under this part shall be deposited daily
562 with the state treasurer and credited to the Transportation Fund.
563 (b) An appropriation from the Transportation Fund shall be made to the commission to
564 cover expenses incurred in the administration and enforcement of this part and the collection of
565 the motor fuel tax.
566 (6) (a) The commission shall determine what amount of motor fuel tax revenue is
567 received from the sale or use of motor fuel used in motorboats registered under the provisions
568 of the State Boating Act, and this amount shall be deposited in a restricted revenue account in
569 the General Fund of the state.
570 (b) The funds from this account shall be used for the construction, improvement,
571 operation, and maintenance of state-owned boating facilities and for the payment of the costs
572 and expenses of the Division of Parks and Recreation in administering and enforcing the State
573 Boating Act.
574 (7) (a) The United States government or any of its instrumentalities, this state, or a
575 political subdivision of this state that has purchased motor fuel from a licensed distributor or
576 from a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in this
577 section is entitled to a refund of the tax and may file with the commission for a quarterly
578 refund.
579 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
580 commission shall make rules governing the application and refund provided for in Subsection
581 (7)(a).
582 (8) (a) The commission shall refund annually into the Off-Highway Vehicle Account in
583 the General Fund an amount equal to .5% of the motor fuel tax revenues collected under this
584 section.
585 (b) This amount shall be used as provided in Section 41-22-19.
586 (9) (a) Beginning on April 1, 2001, a tax imposed under this section on motor fuel that
587 is sold, used, or received for sale or use in this state is reduced to the extent provided in
588 Subsection (9)(b) if:
589 (i) a tax imposed on the basis of the sale, use, or receipt for sale or use of the motor
590 fuel is paid to the Navajo Nation;
591 (ii) the tax described in Subsection (9)(a)(i) is imposed without regard to whether or
592 not the person required to pay the tax is an enrolled member of the Navajo Nation; and
593 (iii) the commission and the Navajo Nation execute and maintain an agreement as
594 provided in this Subsection (9) for the administration of the reduction of tax.
595 (b) (i) If but for Subsection (9)(a) the motor fuel is subject to a tax imposed by this
596 section:
597 (A) the state shall be paid the difference described in Subsection (9)(b)(ii) if that
598 difference is greater than $0; and
599 (B) a person may not require the state to provide a refund, a credit, or similar tax relief
600 if the difference described in Subsection (9)(b)(ii) is less than or equal to $0.
601 (ii) The difference described in Subsection (9)(b)(i) is equal to the difference between:
602 (A) the amount of tax imposed on the motor fuel by this section; less
603 (B) the tax imposed and collected by the Navajo Nation on the motor fuel.
604 (c) For purposes of Subsections (9)(a) and (b), the tax paid to the Navajo Nation under
605 a tax imposed by the Navajo Nation on the basis of the sale, use, or receipt for sale or use of
606 motor fuel does not include any interest or penalties a taxpayer may be required to pay to the
607 Navajo Nation.
608 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
609 commission shall make rules governing the procedures for administering the reduction of tax
610 provided under this Subsection (9).
611 (e) The agreement required under Subsection (9)(a):
612 (i) may not:
613 (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
614 (B) provide a reduction of taxes greater than or different from the reduction described
615 in this Subsection (9); or
616 (C) affect the power of the state to establish rates of taxation;
617 (ii) shall:
618 (A) be in writing;
619 (B) be signed by:
620 (I) the chair of the commission or the chair's designee; and
621 (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
622 (C) be conditioned on obtaining any approval required by federal law;
623 (D) state the effective date of the agreement; and
624 (E) state any accommodation the Navajo Nation makes related to the construction and
625 maintenance of state highways and other infrastructure within the Utah portion of the Navajo
626 Nation; and
627 (iii) may:
628 (A) notwithstanding Section 59-1-403, authorize the commission to disclose to the
629 Navajo Nation information that is:
630 (I) contained in a document filed with the commission; and
631 (II) related to the tax imposed under this section;
632 (B) provide for maintaining records by the commission or the Navajo Nation; or
633 (C) provide for inspections or audits of distributors, carriers, or retailers located or
634 doing business within the Utah portion of the Navajo Nation.
635 (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
636 imposed on motor fuel, any change in the reduction of taxes under this Subsection (9) as a
637 result of the change in the tax rate is not effective until the first day of the calendar quarter after
638 a 60-day period beginning on the date the commission receives notice:
639 (A) from the Navajo Nation; and
640 (B) meeting the requirements of Subsection (9)(f)(ii).
641 (ii) The notice described in Subsection (9)(f)(i) shall state:
642 (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
643 motor fuel;
644 (B) the effective date of the rate change of the tax described in Subsection (9)(f)(ii)(A);
645 and
646 (C) the new rate of the tax described in Subsection (9)(f)(ii)(A).
647 (g) If the agreement required by Subsection (9)(a) terminates, a reduction of tax is not
648 permitted under this Subsection (9) beginning on the first day of the calendar quarter after a
649 30-day period beginning on the day the agreement terminates.
650 (h) If there is a conflict between this Subsection (9) and the agreement required by
651 Subsection (9)(a), this Subsection (9) governs.
652 Section 3. Section 59-13-301 is amended to read:
653 59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer
654 and credited to Transportation Fund -- Reduction of tax in limited circumstances.
655 (1) (a) Except as provided in Subsections (2), (3), (11), and (12) and Section
656 59-13-304, a tax is imposed at the same rates imposed under [
657 59-13-201(1)(a) [
658 (i) removal of undyed diesel fuel from any refinery;
659 (ii) removal of undyed diesel fuel from any terminal;
660 (iii) entry into the state of any undyed diesel fuel for consumption, use, sale, or
661 warehousing;
662 (iv) sale of undyed diesel fuel to any person who is not registered as a supplier under
663 this part unless the tax has been collected under this section;
664 (v) any untaxed special fuel blended with undyed diesel fuel; or
665 (vi) use of untaxed special fuel other than propane or electricity.
666 (b) The tax imposed under this section shall only be imposed once upon any special
667 fuel.
668 (2) (a) No special fuel tax is imposed or collected upon dyed diesel fuel which:
669 (i) is sold or used for any purpose other than to operate or propel a motor vehicle upon
670 the public highways of the state, but this exemption applies only in those cases where the
671 purchasers or the users of special fuel establish to the satisfaction of the commission that the
672 special fuel was used for purposes other than to operate a motor vehicle upon the public
673 highways of the state; or
674 (ii) is sold to this state or any of its political subdivisions.
675 (b) No special fuel tax is imposed on undyed diesel fuel or clean fuel that is:
676 (i) sold to the United States government or any of its instrumentalities or to this state or
677 any of its political subdivisions;
678 (ii) exported from this state if proof of actual exportation on forms prescribed by the
679 commission is made within 180 days after exportation;
680 (iii) used in a vehicle off-highway;
681 (iv) used to operate a power take-off unit of a vehicle;
682 (v) used for off-highway agricultural uses;
683 (vi) used in a separately fueled engine on a vehicle that does not propel the vehicle
684 upon the highways of the state; or
685 (vii) used in machinery and equipment not registered and not required to be registered
686 for highway use.
687 (3) No tax is imposed or collected on special fuel if it is:
688 (a) (i) purchased for business use in machinery and equipment not registered and not
689 required to be registered for highway use; and
690 (ii) used pursuant to the conditions of a state implementation plan approved under Title
691 19, Chapter 2, Air Conservation Act; or
692 (b) propane or electricity.
693 (4) Upon request of a buyer meeting the requirements under Subsection (3), the
694 Division of Air Quality shall issue an exemption certificate that may be shown to a seller.
695 (5) The special fuel tax shall be paid by the supplier.
696 (6) (a) The special fuel tax shall be paid by every user who is required by Sections
697 59-13-303 and 59-13-305 to obtain a special fuel user permit and file special fuel tax reports.
698 (b) The user shall receive a refundable credit for special fuel taxes paid on purchases
699 which are delivered into vehicles and for which special fuel tax liability is reported.
700 (7) (a) Except as provided under Subsections (7)(b) and (c), all revenue received by the
701 commission from taxes and license fees under this part shall be deposited daily with the state
702 treasurer and credited to the Transportation Fund.
703 (b) An appropriation from the Transportation Fund shall be made to the commission to
704 cover expenses incurred in the administration and enforcement of this part and the collection of
705 the special fuel tax.
706 (c) Five dollars of each special fuel user trip permit fee paid under Section 59-13-303
707 may be used by the commission as a dedicated credit to cover the costs of electronic
708 credentialing as provided in Section 41-1a-303.
709 (8) The commission may either collect no tax on special fuel exported from the state
710 or, upon application, refund the tax paid.
711 (9) (a) The United States government or any of its instrumentalities, this state, or a
712 political subdivision of this state that has purchased special fuel from a supplier or from a retail
713 dealer of special fuel and has paid the tax on the special fuel as provided in this section is
714 entitled to a refund of the tax and may file with the commission for a quarterly refund in a
715 manner prescribed by the commission.
716 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
717 commission shall make rules governing the application and refund provided for in Subsection
718 (9)(a).
719 (10) (a) The purchaser shall pay the tax on diesel fuel or clean fuel purchased for uses
720 under Subsections (2)(b)(i), (iii), (iv), (v), (vi), and (vii) and apply for a refund for the tax paid
721 as provided in Subsection (9) and this Subsection (10).
722 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
723 commission shall make rules governing the application and refund for off-highway and
724 nonhighway uses provided under Subsections (2)(b)(iii), (iv), (vi), and (vii).
725 (c) A refund of tax paid under this part on diesel fuel used for nonhighway agricultural
726 uses shall be made in accordance with the tax return procedures under Section 59-13-202.
727 (11) (a) Beginning on April 1, 2001, a tax imposed under this section on special fuel is
728 reduced to the extent provided in Subsection (11)(b) if:
729 (i) the Navajo Nation imposes a tax on the special fuel;
730 (ii) the tax described in Subsection (11)(a)(i) is imposed without regard to whether the
731 person required to pay the tax is an enrolled member of the Navajo Nation; and
732 (iii) the commission and the Navajo Nation execute and maintain an agreement as
733 provided in this Subsection (11) for the administration of the reduction of tax.
734 (b) (i) If but for Subsection (11)(a) the special fuel is subject to a tax imposed by this
735 section:
736 (A) the state shall be paid the difference described in Subsection (11)(b)(ii) if that
737 difference is greater than $0; and
738 (B) a person may not require the state to provide a refund, a credit, or similar tax relief
739 if the difference described in Subsection (11)(b)(ii) is less than or equal to $0.
740 (ii) The difference described in Subsection (11)(b)(i) is equal to the difference
741 between:
742 (A) the amount of tax imposed on the special fuel by this section; less
743 (B) the tax imposed and collected by the Navajo Nation on the special fuel.
744 (c) For purposes of Subsections (11)(a) and (b), the tax paid to the Navajo Nation on
745 the special fuel does not include any interest or penalties a taxpayer may be required to pay to
746 the Navajo Nation.
747 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
748 commission shall make rules governing the procedures for administering the reduction of tax
749 provided under this Subsection (11).
750 (e) The agreement required under Subsection (11)(a):
751 (i) may not:
752 (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
753 (B) provide a reduction of taxes greater than or different from the reduction described
754 in this Subsection (11); or
755 (C) affect the power of the state to establish rates of taxation;
756 (ii) shall:
757 (A) be in writing;
758 (B) be signed by:
759 (I) the chair of the commission or the chair's designee; and
760 (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
761 (C) be conditioned on obtaining any approval required by federal law;
762 (D) state the effective date of the agreement; and
763 (E) state any accommodation the Navajo Nation makes related to the construction and
764 maintenance of state highways and other infrastructure within the Utah portion of the Navajo
765 Nation; and
766 (iii) may:
767 (A) notwithstanding Section 59-1-403, authorize the commission to disclose to the
768 Navajo Nation information that is:
769 (I) contained in a document filed with the commission; and
770 (II) related to the tax imposed under this section;
771 (B) provide for maintaining records by the commission or the Navajo Nation; or
772 (C) provide for inspections or audits of suppliers, distributors, carriers, or retailers
773 located or doing business within the Utah portion of the Navajo Nation.
774 (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
775 imposed on special fuel, any change in the amount of the reduction of taxes under this
776 Subsection (11) as a result of the change in the tax rate is not effective until the first day of the
777 calendar quarter after a 60-day period beginning on the date the commission receives notice:
778 (A) from the Navajo Nation; and
779 (B) meeting the requirements of Subsection (11)(f)(ii).
780 (ii) The notice described in Subsection (11)(f)(i) shall state:
781 (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
782 special fuel;
783 (B) the effective date of the rate change of the tax described in Subsection
784 (11)(f)(ii)(A); and
785 (C) the new rate of the tax described in Subsection (11)(f)(ii)(A).
786 (g) If the agreement required by Subsection (11)(a) terminates, a reduction of tax is not
787 permitted under this Subsection (11) beginning on the first day of the calendar quarter after a
788 30-day period beginning on the day the agreement terminates.
789 (h) If there is a conflict between this Subsection (11) and the agreement required by
790 Subsection (11)(a), this Subsection (11) governs.
791 (12) (a) A tax imposed under this section on compressed natural gas is imposed at a rate
792 of:
793 (i) until June 30, 2016, 10-1/2 cents per gasoline gallon equivalent;
794 (ii) beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per gasoline gallon
795 equivalent;
796 (iii) beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per gasoline
797 gallon equivalent; and
798 (iv) beginning on or after July 1, 2018, 16-1/2 cents per gasoline gallon equivalent.
799 (b) A tax imposed under this section on liquified natural gas is imposed at a rate of:
800 (i) until June 30, 2016, 10-1/2 cents per diesel gallon equivalent;
801 (ii) beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per diesel gallon
802 equivalent;
803 (iii) beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per diesel gallon
804 equivalent; and
805 (iv) beginning on or after July 1, 2018, 16-1/2 cents per diesel gallon equivalent.
806 (c) A tax imposed under this section on hydrogen used to operate or propel a motor
807 vehicle upon the public highways of the state is imposed at a rate of:
808 (i) until June 30, 2016, 10-1/2 cents per gasoline gallon equivalent;
809 (ii) beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per gasoline gallon
810 equivalent;
811 (iii) beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per gasoline
812 gallon equivalent; and
813 (iv) beginning on or after July 1, 2018, 16-1/2 cents per gasoline gallon equivalent.
814 Section 4. Section 72-2-106 is amended to read:
815 72-2-106. Appropriation and transfers from Transportation Fund.
816 (1) On and after July 1, 1981, there is appropriated from the Transportation Fund to the
817 use of the department an amount equal to two-elevenths of the taxes collected from the motor
818 fuel tax and the special fuel tax, exclusive of the formula amount appropriated to the B and C
819 road fund and the collector road fund, to be used for highway rehabilitation.
820 (2) For a fiscal year beginning on or after July 1, 2016, the Division of Finance shall
821 annually transfer an amount equal to the amount of revenue generated by a tax imposed on
822 motor and special fuel that is sold, used, or received for sale or used in this state at a rate of 1.8
823 cents per gallon to the Transportation Investment Fund of 2005 created by Section 72-2-124.
824 (3) For a fiscal year beginning on or after July 1, 2019, the Division of Finance shall
825 annually transfer to the Transportation Investment Fund of 2005 created by Section 72-2-124
826 an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
827 the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
828 or use in this state that exceeds 29.4 cents per gallon.
829 Section 5. Effective date.
830 This bill takes effect on July 1, 2017.