No. 29556: R865-4D. Special Fuel Tax

DAR File No.: 29556
Filed: 02/26/2007, 02:04
Received by: NL

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 59-13-102 provides definitions relating to the motor and special fuel taxes. Section 59-13-301 imposes a tax on special fuels and provides for exemptions to the tax. Section 59-13-302 requires users of special fuel to obtain a license, and provides guidelines for obtaining and maintaining the license. Section 59-13-303 requires special fuel users to obtain a special fuel permit. The section also allows a user to obtain a 96-hour special fuel trip permit, in place of the special fuel permit. Section 59-13-304 provides for a user of clean fuel to obtain a special fuel tax exemption certificate and sets fees for obtaining the certificate. Section 59-13-305 requires the user to file a report with the Tax Commission showing the fuel purchased and used in the state. Section 59-13-307 requires the supplier to file a report with the Tax Commission showing fuel delivered to or removed from the state. Section 59-13-312 requires users and user-dealers to keep records, in a form prescribed by the commission, of all purchases, receipts and sales. Section 59-13-501 allows the commission to enter into cooperative agreements with other states for the exchange of information and auditing of fuels used by fleets of interstate vehicles.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

No written comments have been received.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

Section R865-4D-1 defines "motor vehicle" and "user" for purposes of imposing the special fuels tax. Section R865-4D-2 provides guidance on when the fee for the special fuel tax exemption certificate shall be paid; clarifies when the special fuel tax exemption applies; and outlines the formula for calculating fuel use. Section R865-4D-3 provides procedures for purchase and use of special fuel user-dealer's license. Section R865-4D-5 provides guidance on the use of a special fuel tax entrance permit. Section R865-4D-6 sets forth the record-keeping requirements for special fuel user-dealers. Section R865-4D-18 sets forth the record-keeping requirements for special fuel users. Section R865-4D-19 outlines how a government entity is to obtain a refund for special fuel taxes paid and indicates records needed to support the refund. Section R865-4D-20 indicates the conditions under which the exemption or refund for exported undyed diesel fuel shall apply. Section R865-4D-21 defines "gross gallon" and "net gallon;" requires suppliers to calculate tax liability on a consistent gross gallon or net gallon basis; and specifies that both gross and net amounts must be on all invoices, bills of lading, and special fuel tax returns. Section R865-4D-22 provides procedures for administering the reduction of special fuel tax on fuel that is subject to a tax imposed by the Navajo Nation. Section R865-4D-23 indicates that the commission entered into the International Fuel Tax Agreement effective 01/01/1990. Section R865-4D-24 defines "off-highway" for purposes of determining whether undyed diesel fuel is exempt from fuel tax as fuel used for off-highway purposes. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY UT 84134

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at [e-mail]

Authorized by:

D'Arcy Dixon, Commissioner