59-13-201 - Rate -- Tax basis -- Exemptions -- Revenue deposited in the Transportation Fund -- Restricted account for boating uses -- Refunds -- Reduction of tax in limited circumstances.
59-13-201. Rate -- Tax basis -- Exemptions -- Revenue deposited in theTransportation Fund -- Restricted account for boating uses -- Refunds -- Reduction of taxin limited circumstances.
(1) (a) Subject to the provisions of this section, a tax is imposed at the rate of 24-1/2cents per gallon upon all motor fuel that is sold, used, or received for sale or used in this state.
(b) In lieu of the tax imposed under Subsection (1)(a) and subject to the provisions ofthis section, a tax is imposed at the rate of 3/19 of the rate imposed under Subsection (1)(a),rounded up to the nearest penny, upon all motor fuels that meet the definition of clean fuel inSection 59-13-102 and are sold, used, or received for sale or use in this state.
(2) Any increase or decrease in tax rate applies to motor fuel that is imported to the stateor sold at refineries in the state on or after the effective date of the rate change.
(3) (a) No motor fuel tax is imposed upon:
(i) motor fuel that is brought into and sold in this state in original packages as purelyinterstate commerce sales;
(ii) motor fuel that is exported from this state if proof of actual exportation on formsprescribed by the commission is made within 180 days after exportation;
(iii) motor fuel or components of motor fuel that is sold and used in this state anddistilled from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons located in thisstate; or
(iv) motor fuel that is sold to the United States government, this state, or the politicalsubdivisions of this state.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission shall make rules governing the procedures for administering the tax exemptionprovided under Subsection (3)(a)(iv).
(4) The commission may either collect no tax on motor fuel exported from the state or,upon application, refund the tax paid.
(5) (a) All revenue received by the commission under this part shall be deposited dailywith the state treasurer and credited to the Transportation Fund.
(b) An appropriation from the Transportation Fund shall be made to the commission tocover expenses incurred in the administration and enforcement of this part and the collection ofthe motor fuel tax.
(6) (a) The commission shall determine what amount of motor fuel tax revenue isreceived from the sale or use of motor fuel used in motorboats registered under the provisions ofthe State Boating Act, and this amount shall be deposited in a restricted revenue account in theGeneral Fund of the state.
(b) The funds from this account shall be used for the construction, improvement,operation, and maintenance of state-owned boating facilities and for the payment of the costs andexpenses of the Division of Parks and Recreation in administering and enforcing the StateBoating Act.
(7) (a) The United States government or any of its instrumentalities, this state, or apolitical subdivision of this state that has purchased motor fuel from a licensed distributor orfrom a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in thissection is entitled to a refund of the tax and may file with the commission for a quarterly refund.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission shall make rules governing the application and refund provided for in Subsection
(7)(a).
(8) (a) The commission shall refund annually into the Off-Highway Vehicle Account inthe General Fund an amount equal to the lesser of the following:
(i) .5% of the motor fuel tax revenues collected under this section; or
(ii) $1,050,000.
(b) This amount shall be used as provided in Section 41-22-19.
(9) (a) Beginning on April 1, 2001, a tax imposed under this section on motor fuel that issold, used, or received for sale or use in this state is reduced to the extent provided in Subsection(9)(b) if:
(i) a tax imposed on the basis of the sale, use, or receipt for sale or use of the motor fuelis paid to the Navajo Nation;
(ii) the tax described in Subsection (9)(a)(i) is imposed without regard to whether or notthe person required to pay the tax is an enrolled member of the Navajo Nation; and
(iii) the commission and the Navajo Nation execute and maintain an agreement asprovided in this Subsection (9) for the administration of the reduction of tax.
(b) (i) If but for Subsection (9)(a) the motor fuel is subject to a tax imposed by thissection:
(A) the state shall be paid the difference described in Subsection (9)(b)(ii) if thatdifference is greater than $0; and
(B) a person may not require the state to provide a refund, a credit, or similar tax relief ifthe difference described in Subsection (9)(b)(ii) is less than or equal to $0.
(ii) The difference described in Subsection (9)(b)(i) is equal to the difference between:
(A) the amount of tax imposed on the motor fuel by this section; less
(B) the tax imposed and collected by the Navajo Nation on the motor fuel.
(c) For purposes of Subsections (9)(a) and (b), the tax paid to the Navajo Nation under atax imposed by the Navajo Nation on the basis of the sale, use, or receipt for sale or use of motorfuel does not include any interest or penalties a taxpayer may be required to pay to the NavajoNation.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission shall make rules governing the procedures for administering the reduction of taxprovided under this Subsection (9).
(e) The agreement required under Subsection (9)(a):
(i) may not:
(A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
(B) provide a reduction of taxes greater than or different from the reduction described inthis Subsection (9); or
(C) affect the power of the state to establish rates of taxation;
(ii) shall:
(A) be in writing;
(B) be signed by:
(I) the chair of the commission or the chair's designee; and
(II) a person designated by the Navajo Nation that may bind the Navajo Nation;
(C) be conditioned on obtaining any approval required by federal law;
(D) state the effective date of the agreement; and
(E) state any accommodation the Navajo Nation makes related to the construction and
maintenance of state highways and other infrastructure within the Utah portion of the NavajoNation; and
(iii) may:
(A) notwithstanding Section 59-1-403, authorize the commission to disclose to theNavajo Nation information that is:
(I) contained in a document filed with the commission; and
(II) related to the tax imposed under this section;
(B) provide for maintaining records by the commission or the Navajo Nation; or
(C) provide for inspections or audits of distributors, carriers, or retailers located or doingbusiness within the Utah portion of the Navajo Nation.
(f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a taximposed on motor fuel, any change in the reduction of taxes under this Subsection (9) as a resultof the change in the tax rate is not effective until the first day of the calendar quarter after a60-day period beginning on the date the commission receives notice:
(A) from the Navajo Nation; and
(B) meeting the requirements of Subsection (9)(f)(ii).
(ii) The notice described in Subsection (9)(f)(i) shall state:
(A) that the Navajo Nation has changed or will change the tax rate of a tax imposed onmotor fuel;
(B) the effective date of the rate change of the tax described in Subsection (9)(f)(ii)(A);and
(C) the new rate of the tax described in Subsection (9)(f)(ii)(A).
(g) If the agreement required by Subsection (9)(a) terminates, a reduction of tax is notpermitted under this Subsection (9) beginning on the first day of the calendar quarter after a30-day period beginning on the day the agreement terminates.
(h) If there is a conflict between this Subsection (9) and the agreement required bySubsection (9)(a), this Subsection (9) governs.
Amended by Chapter 308, 2010 General Session