Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 362 Sixth Substitute (2015GS)

Sponsor

Rep. Anderson, Johnny

Final action

Governor Signed 3/27/2015

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• provides and amends definitions;
• authorizes a county to impose a local option sales and use tax for highways and public transit;
• addresses the use of revenue collected from the local option sales and use tax for highways and public transit;
• requires a political subdivision that receives certain sales and use tax revenue to submit certain information in audits, reviews, compilations, or fiscal reports;
• repeals the cents per gallon tax rate that is imposed on motor fuels and special fuels after a specified date;
• imposes a percentage tax per gallon on motor fuel and special fuel based on the statewide average rack price of a gallon of regular unleaded motor fuel after a specified date;
• establishes procedures for the State Tax Commission to determine the statewide average rack price of a gallon of regular unleaded motor fuel;
• specifies the date that the adjusted fuel tax rate shall take effect each year;
• increases the tax rate of the special fuel tax imposed on compressed natural gas and liquified natural gas;
• imposes a special fuel tax on hydrogen used to operate or propel a motor vehicle on a public highway;
• repeals the requirement to post a tax rate decal on each motor fuel or undyed special fuel pump or dispensing device;
• repeals the cap on the amount of motor fuel tax revenue that is deposited in the Off-highway Vehicle Account;
• requires the Department of Transportation to study the implementation of a road usage charge;

Every vote on this bill

Bill text

TRANSPORTATION INFRASTRUCTURE FUNDING
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Johnny Anderson
Senate Sponsor: 
Alvin B. Jackson
LONG TITLE
General Description:
This bill modifies provisions relating to transportation funding.
Highlighted Provisions:
This bill:
▸ provides and amends definitions;
▸ authorizes a county to impose a local option sales and use tax for highways and
public transit;
▸ addresses the use of revenue collected from the local option sales and use tax for
highways and public transit;
▸ requires a political subdivision that receives certain sales and use tax revenue to
submit certain information in audits, reviews, compilations, or fiscal reports;
▸ repeals the cents per gallon tax rate that is imposed on motor fuels and special fuels
after a specified date;
▸ imposes a percentage tax per gallon on motor fuel and special fuel based on the
statewide average rack price of a gallon of regular unleaded motor fuel after a
specified date;
▸ establishes procedures for the State Tax Commission to determine the statewide
average rack price of a gallon of regular unleaded motor fuel;
▸ specifies the date that the adjusted fuel tax rate shall take effect each year;
▸ increases the tax rate of the special fuel tax imposed on compressed natural gas and
liquified natural gas;
▸ imposes a special fuel tax on hydrogen used to operate or propel a motor vehicle on
a public highway;
▸ repeals the requirement to post a tax rate decal on each motor fuel or undyed special
fuel pump or dispensing device;
▸ repeals the cap on the amount of motor fuel tax revenue that is deposited in the
Off-highway Vehicle Account;
▸ requires the Department of Transportation to study the implementation of a road
usage charge;
▸ amends the apportionment formula for revenues deposited in the class B and class C
roads account; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
This bill provides a coordination clause.
Utah Code Sections Affected:
AMENDS:
51-2a-202
, as enacted by Laws of Utah 2004, Chapter 206
59-12-2203
, as enacted by Laws of Utah 2010, Chapter 263
59-12-2206
, as enacted by Laws of Utah 2010, Chapter 263
59-13-102
, as last amended by Laws of Utah 2012, Chapter 369
59-13-201
, as last amended by Laws of Utah 2010, Chapter 308
59-13-301
, as last amended by Laws of Utah 2011, Chapter 259
63I-1-259
, as last amended by Laws of Utah 2014, Chapter 54
72-2-108
, as last amended by Laws of Utah 2008, Chapter 109
ENACTS:
59-12-2219
, Utah Code Annotated 1953
63I-1-251
, Utah Code Annotated 1953
72-1-212
, Utah Code Annotated 1953
REPEALS:
59-13-104
, as enacted by Laws of Utah 1998, Chapter 253
Utah Code Sections Affected by Coordination Clause:
59-13-301
, as last amended by Laws of Utah 2011, Chapter 259
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
51-2a-202
 is amended to read:
51-2a-202.
Reporting requirements.
(1) The governing board of each entity required to have an audit, review, compilation,
or fiscal report shall ensure that the audit, review, compilation, or fiscal report is:
(a) made at least annually; and
(b) filed with the state auditor within six months of the close of the fiscal year of the
entity.
(2) If the political subdivision, interlocal organization, or other local entity receives
federal funding, the audit, review, or compilation shall be performed in accordance with both
federal and state auditing requirements.
(3) If a political subdivision receives revenue from a sales and use tax imposed under
Section 
59-12-2219
, the political subdivision shall identify the amount of revenue the political
subdivision budgets for transportation and verify compliance with Subsection 
59-12-2219
(10)
in the audit, review, compilation, or fiscal report.
Section 2. Section 
59-12-2203
 is amended to read:
59-12-2203.
Authority to impose a sales and use tax under this part.
(1) As provided in this Subsection (1), one of the following sales and use taxes may be
imposed within the boundaries of a local taxing jurisdiction:
(a) a county, city, or town may impose the sales and use tax authorized by Section
59-12-2213
 in accordance with Section 
59-12-2213
; or
(b) a city or town may impose the sales and use tax authorized by Section 
59-12-2215
in accordance with Section 
59-12-2215
.
(2) As provided in this Subsection (2), one of the following sales and use taxes may be
imposed within the boundaries of a local taxing jurisdiction:
(a) a county, city, or town may impose the sales and use tax authorized by Section
59-12-2214
 in accordance with Section 
59-12-2214
; or
(b) a county may impose the sales and use tax authorized by Section 
59-12-2216
 in
accordance with Section 
59-12-2216
.
(3) As provided in this Subsection (3), one of the following sales and use taxes may be
imposed within the boundaries of a local taxing jurisdiction:
(a) a county may impose the sales and use tax authorized by Section 
59-12-2217
 in
accordance with Section 
59-12-2217
; or
(b) a county, city, or town may impose the sales and use tax authorized by Section
59-12-2218
 in accordance with Section 
59-12-2218
.
(4) A county may impose the sales and use tax authorized by Section 
59-12-2219
 in
accordance with Section 
59-12-2219
.
Section 3. Section 
59-12-2206
 is amended to read:
59-12-2206.
Administration, collection, and enforcement of a sales and use tax
under this part -- Transmission of revenues monthly by electronic funds transfer --
Transfer of revenues to a public transit district or eligible political subdivision.
(1) Except as provided in Subsection (2), the commission shall administer, collect, and
enforce a sales and use tax imposed under this part.
(2) The commission shall administer, collect, and enforce a sales and use tax imposed
under this part in accordance with:
(a) the same procedures used to administer, collect, and enforce a tax under:
(i) Part 1, Tax Collection; or
(ii) Part 2, Local Sales and Use Tax Act; and
(b) Chapter 1, General Taxation Policies.
(3) A sales and use tax under this part is not subject to Subsections 
59-12-205
(2)
through (6).
(4) Subject to Section 
59-12-2207
 and except as provided in Subsection (5) or another
provision of this part, the state treasurer shall transmit revenues collected within a county, city,
or town from a sales and use tax under this part to the county, city, or town legislative body
monthly by electronic funds transfer.
(5) Subject to Section 
59-12-2207
, the state treasurer shall transfer revenues collected
within a county, city, or town from a sales and use tax under this part directly to a public transit
district organized under Title 17B, Chapter 2a, Part 8, Public Transit District Act, 
or an eligible
political subdivision as defined in Section 
59-12-2219
,
 if the county, city, or town legislative
body:
(a) provides written notice to the state treasurer requesting the transfer; and
(b) designates the public transit district 
or eligible political subdivision
 to which the
county, city, or town legislative body requests the state treasurer to transfer the revenues.
Section 4. Section 
59-12-2219
 is enacted to read:
 59-12-2219.
County option sales and use tax for highways and public transit --
Base -- Rate -- Distribution and expenditure of revenue -- Revenue may not supplant
existing budgeted transportation revenue.
(1) As used in this section:
(a) "Class B road" means the same as that term is defined in Section 
72-3-103
.
(b) "Class C road" means the same as that term is defined in Section 
72-3-104
.
(c) "Eligible political subdivision" means a political subdivision that:
(i) on May 12, 2015, provides public transit services;
(ii) is not a public transit district; and
(iii) is not annexed into a public transit district.
(d) "Public transit district" means a public transit district organized under Title 17B,
Chapter 2a, Part 8, Public Transit District Act.
(2) Subject to the other provisions of this part, a county legislative body may impose a
sales and use tax of .25% on the transactions described in Subsection 
59-12-103
(1) within the
county, including the cities and towns within the county.
(3) The commission shall distribute sales and use tax revenue collected under this
section as provided in Subsections (4) through (7).
(4) If the entire boundary of a county that imposes a sales and use tax under this section
is annexed into a single public transit district, the commission shall distribute the sales and use
tax revenue collected within the county as follows:
(a) .10% shall be transferred to the public transit district in accordance with Section
59-12-2206
;
(b) .10% shall be distributed as provided in Subsection (6); and
(c) .05% shall be distributed to the county legislative body.
(5) If the entire boundary of a county that imposes a sales and use tax under this section
is not annexed into a single public transit district, or if there is not a public transit district
within the county, the commission shall distribute the sales and use tax revenue collected
within the county as follows:
(a) for a city or town within the county that is annexed into a single public transit
district, the commission shall distribute the sales and use tax revenue collected within that city
or town as follows:
(i) .10% shall be transferred to the public transit district in accordance with Section
59-12-2206
;
(ii) .10% shall be distributed as provided in Subsection (6); and
(iii) .05% shall be distributed to the county legislative body;
(b) for an eligible political subdivision within the county, the commission shall
distribute the sales and use tax revenue collected within that eligible political subdivision as
follows:
(i) .10% shall be transferred to the eligible political subdivision in accordance with
Section 
59-12-2206
;
(ii) .10% shall be distributed as provided in Subsection (6); and
(iii) .05% shall be distributed to the county legislative body; and
(c) the commission shall distribute the sales and use tax revenue, except for the sales
and use tax revenue described in Subsections (5)(a) and (b), as follows:
(i) .10% shall be distributed as provided in Subsection (6); and
(ii) .15% shall be distributed to the county legislative body.
(6) (a) Subject to Subsection (6)(b), the commission shall make the distributions
required by Subsections (4)(b), (5)(a)(ii), (5)(b)(ii), and (5)(c)(i) as follows:
(i) 50% of the total revenue collected under Subsections (4)(b), (5)(a)(ii), (5)(b)(ii), and
(5)(c)(i) within the counties that impose a tax under this section shall be distributed to the
unincorporated areas, cities, and towns within those counties on the basis of the percentage that
the population of each unincorporated area, city, or town bears to the total population of all of
the counties that impose a tax under this section; and
(ii) 50% of the total revenue collected under Subsections (4)(b), (5)(a)(ii), (5)(b)(ii),
and (5)(c)(i) within the counties that impose a tax under this section shall be distributed to the
unincorporated areas, cities, and towns within those counties on the basis of the location of the
transaction as determined under Sections 
59-12-211
 through 
59-12-215
.
(b) (i) Population for purposes of this Subsection (6) shall be determined on the basis
of the most recent official census or census estimate of the United States Census Bureau.
(ii) If a needed population estimate is not available from the United States Census
Bureau, population figures shall be derived from an estimate from the Utah Population
Estimates Committee created by executive order of the governor.
(7) (a) If a public transit district is organized after the date a county legislative body
first imposes a tax under this section, a change in a distribution required by this section may
not take effect until the first distribution the commission makes under this section after a
90-day period that begins on the date the commission receives written notice from the public
transit district of the organization of the public transit district.
(b) If an eligible political subdivision intends to provide public transit service within a
county after the date a county legislative body first imposes a tax under this section, a change
in a distribution required by this section may not take effect until the first distribution the
commission makes under this section after a 90-day period that begins on the date the
commission receives written notice from the eligible political subdivision stating that the
eligible political subdivision intends to provide public transit service within the county.
(8) A county, city, or town may expend revenue collected from a tax under this section,
except for revenue the commission distributes in accordance with Subsection (4)(a), (5)(a)(i),
or (5)(b)(i), for:
(a) a class B road;
(b) a class C road;
(c) traffic and pedestrian safety, including for a class B road or class C road, for:
(i) a sidewalk;
(ii) curb and gutter;
(iii) a safety feature;
(iv) a traffic sign;
(v) a traffic signal;
(vi) street lighting; or
(vii) a combination of Subsections (8)(c)(i) through (vi);
(d) the construction, maintenance, or operation of an active transportation facility that
is for nonmotorized vehicles and multimodal transportation and connects an origin with a
destination;
(e) public transit system services; or
(f) a combination of Subsections (8)(a) through (e).
(9) A public transit district or an eligible political subdivision may expend revenue the
commission distributes in accordance with Subsection (4)(a), (5)(a)(i), or (5)(b)(i), for capital
expenses and service delivery expenses of the public transit district or eligible political
subdivision.
(10) (a) Revenue collected from a sales and use tax under this section may not be used
to supplant existing general fund appropriations that a county, city, or town has budgeted for
transportation as of the date the tax becomes effective for a county, city, or town.
(b) The limitation under Subsection (10)(a) does not apply to a designated
transportation capital or reserve account a county, city, or town may have established prior to
the date the tax becomes effective.
Section 5. Section 
59-13-102
 is amended to read:
59-13-102.
Definitions.
As used in this chapter:
(1) "Aviation fuel" means fuel that is sold at airports and used exclusively for the
operation of aircraft.
(2) "Clean fuel" means:
(a) the following special fuels:
(i) propane;
(ii) compressed natural gas;
(iii) liquified natural gas; [
or
]
(iv) electricity; or
(v) hydrogen; or
(b) any motor or special fuel that meets the clean fuel vehicle standards in the federal
Clean Air Act Amendments of 1990, Title II.
(3) "Commission" means the State Tax Commission.
(4) "Consumer Price Index" means the Consumer Price Index for All Urban
Consumers as published by the Bureau of Labor Statistics of the United States Department of
Labor.
[
(4)
] 
(5)
 (a) "Diesel fuel" means any liquid that is commonly or commercially known,
offered for sale, or used as a fuel in diesel engines.
(b) "Diesel fuel" includes any combustible liquid, by whatever name the liquid may be
known or sold, when the liquid is used in an internal combustion engine for the generation of
power to operate a motor vehicle licensed to operate on the highway, except fuel that is subject
to the tax imposed in Part 2, Motor Fuel, and Part 4, Aviation Fuel, of this chapter.
(6) "Diesel gallon equivalent" means 6.06 pounds of liquified natural gas.
[
(5)
] 
(7)
 "Distributor" means any person in this state who:
(a) imports or causes to be imported motor fuel for use, distribution, or sale, whether at
retail or wholesale;
(b) produces, refines, manufactures, or compounds motor fuel in this state for use,
distribution, or sale in this state;
(c) is engaged in the business of purchasing motor fuel for resale in wholesale
quantities to retail dealers of motor fuel and who accounts for his own motor fuel tax liability;
or
(d) for purposes of Part 4, Aviation Fuel, only, makes retail sales of aviation fuel to:
(i) federally certificated air carriers; and
(ii) other persons.
[
(6)
] 
(8)
 "Dyed diesel fuel" means diesel fuel that is dyed in accordance with 26 U.S.C.
Sec. 4082 or United States Environmental Protection Agency or Internal Revenue Service
regulations and that is considered destined for nontaxable off-highway use.
[
(7)
] 
(9)
 "Exchange agreement" means an agreement between licensed suppliers where
one is a position holder in a terminal who agrees to deliver taxable special fuel to the other
supplier or the other supplier's customer at the loading rack of the terminal where the delivering
supplier holds an inventory position.
[
(8)
] 
(10)
 "Federally certificated air carrier" means a person who holds a certificate
issued by the Federal Aviation Administration authorizing the person to conduct an all-cargo
operation or scheduled operation, as defined in 14 C.F.R. Sec. 110.2.
[
(9)
] 
(11)
 "Fuels" means any gas, liquid, solid, mixture, or other energy source which is
generally used in an engine or motor for the generation of power, including aviation fuel, clean
fuel, diesel fuel, motor fuel, and special fuel.
(12) "Gasoline gallon equivalent" means:
(a) 5.660 pounds of compressed natural gas; or
(b) 2.198 pounds of hydrogen.
[
(10)
] 
(13)
 "Highway" means every way or place, of whatever nature, generally open to
the use of the public for the purpose of vehicular travel notwithstanding that the way or place
may be temporarily closed for the purpose of construction, maintenance, or repair.
[
(11)
] 
(14)
 "Motor fuel" means fuel that is commonly or commercially known or sold
as gasoline or gasohol and is used for any purpose, but does not include aviation fuel.
[
(12)
] 
(15)
 "Motor fuels received" means:
(a) motor fuels that have been loaded at the refinery or other place into tank cars,
placed in any tank at the refinery from which any withdrawals are made directly into tank
trucks, tank wagons, or other types of transportation equipment, containers, or facilities other
than tank cars, or placed in any tank at the refinery from which any sales, uses, or deliveries not
involving transportation are made directly; or
(b) motor fuels that have been imported by any person into the state from any other
state or territory by tank car, tank truck, pipeline, or any other conveyance at the time when,
and the place where, the interstate transportation of the motor fuel is completed within the state
by the person who at the time of the delivery is the owner of the motor fuel.
(16) "Oil pricing service" means an organization that:
(a) publishes wholesale petroleum prices within the United States;
(b) publishes at least 25,000 rack prices on a daily basis; and
(c) receives daily gasoline and diesel prices from at least 100,000 retail outlets in the
United States and Canada.
[
(13)
] 
(17)
 (a) "Qualified motor vehicle" means a special fuel-powered motor vehicle
used, designed, or maintained for transportation of persons or property which:
(i) has a gross vehicle weight or registered gross vehicle weight exceeding 26,000
pounds;
(ii) has three or more axles regardless of weight; or
(iii) is used in a combination of vehicles when the weight of the combination of
vehicles exceeds 26,000 pounds gross vehicle weight.
(b) "Qualified motor vehicle" does not include a recreational vehicle not used in
connection with any business activity.
[
(14)
] 
(18)
 "Rack," as used in Part 3, Special Fuel, means a deck, platform, or open bay
which consists of a series of metered pipes and hoses for the delivery or removal of diesel fuel
from a refinery or terminal into a motor vehicle, rail car, or vessel.
[
(15)
] 
(19)
 "Removal," as used in Part 3, Special Fuel, means the physical transfer of
diesel fuel from a production, manufacturing, terminal, or refinery facility and includes use of
diesel fuel. Removal does not include:
(a) loss by evaporation or destruction; or
(b) transfers between refineries, racks, or terminals.
[
(16)
] 
(20)
 (a) "Special fuel" means any fuel regardless of name or character that:
(i) is usable as fuel to operate or propel a motor vehicle upon the public highways of
the state; and
(ii) is not taxed under the category of aviation or motor fuel.
(b) Special fuel includes:
(i) fuels that are not conveniently measurable on a gallonage basis; and
(ii) diesel fuel.
[
(17)
] 
(21)
 "Supplier," as used in Part 3, Special Fuel, means a person who:
(a) imports or acquires immediately upon importation into this state diesel fuel from
within or without a state, territory, or possession of the United States or the District of
Columbia;
(b) produces, manufactures, refines, or blends diesel fuel in this state;
(c) otherwise acquires for distribution or sale in this state, diesel fuel with respect to
which there has been no previous taxable sale or use; or
(d) is in a two party exchange where the receiving party is deemed to be the supplier.
[
(18)
] 
(22)
 "Terminal," as used in Part 3, Special Fuel, means a facility for the storage
of diesel fuel which is supplied by a motor vehicle, pipeline, or vessel and from which diesel
fuel is removed for distribution at a rack.
[
(19)
] 
(23)
 "Two party exchange" means a transaction in which special fuel is
transferred between licensed suppliers pursuant to an exchange agreement.
[
(20)
] 
(24)
 "Undyed diesel fuel" means diesel fuel that is not subject to the dyeing
requirements in accordance with 26 U.S.C. Sec. 4082 or United States Environmental
Protection Agency or Internal Revenue Service regulations.
[
(21)
] 
(25)
 "Use," as used in Part 3, Special Fuel, means the consumption of special
fuel for the operation or propulsion of a motor vehicle upon the public highways of the state
and includes the reception of special fuel into the fuel supply tank of a motor vehicle.
[
(22)
] 
(26)
 "User," as used in Part 3, Special Fuel, means any person who uses special
fuel within this state in an engine or motor for the generation of power to operate or propel a
motor vehicle upon the public highways of the state.
[
(23)
] 
(27)
 "Ute tribal member" means an enrolled member of the Ute tribe.
[
(24)
] 
(28)
 "Ute tribe" means the Ute Indian Tribe of the Uintah and Ouray
Reservation.
[
(25)
] 
(29)
 "Ute trust land" means the lands:
(a) of the Uintah and Ouray Reservation that are held in trust by the United States for
the benefit of:
(i) the Ute tribe;
(ii) an individual; or
(iii) a group of individuals; or
(b) specified as trust land by agreement between the governor and the Ute tribe meeting
the requirements of Subsections 
59-13-201.5
(3) and 
59-13-301.5
(3).
Section 6. Section 
59-13-201
 is amended to read:
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.
(1) (a) Subject to the provisions of this section 
and through December 31, 2015
, a tax
is imposed at the rate of 24-1/2 cents per gallon upon all motor fuel that is sold, used, or
received for sale or used in this state.
(b) (i) Subject to the provisions of this section and beginning on January 1, 2016, a tax
is imposed at the rate of 12% of the statewide average rack price of a gallon of motor fuel per
gallon upon all motor fuel that is sold, used, or received for sale or used in this state.
(ii) (A) Until December 31, 2018, and subject to the requirements under Subsection
(1)(b)(iii), the statewide average rack price of a gallon of motor fuel under Subsection (1)(b)(i)
shall be determined by calculating the previous fiscal year statewide average rack price of a
gallon of regular unleaded motor fuel, excluding federal and state excise taxes, for the 12
months ending on the previous June 30 as published by an oil pricing service.
(B) Beginning on January 1, 2019, and subject to the requirements under Subsection
(1)(b)(iii), the statewide average rack price of a gallon of motor fuel under Subsection (1)(b)(i)
shall be determined by calculating the previous three fiscal years statewide average rack price
of a gallon of regular unleaded motor fuel, excluding federal and state excise taxes, for the 36
months ending on the previous June 30 as published by an oil pricing service.
(iii) (A) Subject to the requirement in Subsection (1)(b)(iii)(B), the statewide average
rack price of a gallon of motor fuel determined under Subsection (1)(b)(ii) may not be less than
$2.45 per gallon.
(B) Beginning on a calendar year following the year that the actual statewide average
rack price of a gallon of motor fuel reaches $2.45 before applying the minimum under
Subsection (1)(b)(iii)(A), the commission shall, on January 1, annually adjust the minimum
statewide average rack price of a gallon of motor fuel described in Subsection (1)(b)(iii)(A) by
taking the minimum statewide average rack price of a gallon of motor fuel for the previous
calendar year and adding an amount equal to the greater of:
(I) an amount calculated by multiplying the minimum average rack price of a gallon of
motor fuel for the previous calendar year by the actual percent change during the previous
fiscal year in the Consumer Price Index; and
(II) 0.
(C) The statewide average rack price of a gallon of motor fuel determined by the
commission under Subsection (1)(b)(ii) may not exceed $3.33 per gallon.
(iv) The commission shall annually:
(A) determine the statewide average rack price of a gallon of motor fuel in accordance
with Subsection (1)(b)(ii);
(B) adjust the fuel tax rate imposed under Subsection (1)(b)(i), rounded to the nearest
one-tenth of a cent, based on the determination under Subsection (1)(b)(ii);
(C) publish the adjusted fuel tax as a cents per gallon rate; and
(D) post or otherwise make public the adjusted fuel tax rate as determined in
Subsection (1)(b)(iv)(B) no later than 60 days prior to the annual effective date under
Subsection (1)(b)(v).
(v) The tax rate imposed under this Subsection (1)(b) and adjusted as required under
Subsection (1)(b)(iv) shall take effect on January 1 of each year.
[
(b)
] 
(c)
 In lieu of the tax imposed under Subsection (1)(a) 
or (b)
 and subject to the
provisions of this section, a tax is imposed at the rate of 3/19 of the rate imposed under
Subsection (1)(a) 
or (b)
, rounded up to the nearest penny, upon all motor fuels that meet the
definition of clean fuel in Section 
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
state or 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 purely
interstate commerce sales;
(ii) motor fuel that is exported from this state if proof of actual exportation on forms
prescribed 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 and
distilled from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons located in
this state; or
(iv) motor fuel that is sold to the United States government, this state, or the political
subdivisions of this state.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall make rules governing the procedures for administering the tax exemption
provided 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 daily
with the state treasurer and credited to the Transportation Fund.
(b) An appropriation from the Transportation Fund shall be made to the commission to
cover expenses incurred in the administration and enforcement of this part and the collection of
the motor fuel tax.
(6) (a) The commission shall determine what amount of motor fuel tax revenue is
received from the sale or use of motor fuel used in motorboats registered under the provisions
of the State Boating Act, and this amount shall be deposited in a restricted revenue account in
the General 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
and expenses of the Division of Parks and Recreation in administering and enforcing the State
Boating Act.
(7) (a) The United States government or any of its instrumentalities, this state, or a
political subdivision of this state that has purchased motor fuel from a licensed distributor or
from a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in this
section 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, the
commission 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 in
the 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
is sold, 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
fuel is paid to the Navajo Nation;
(ii) the tax described in Subsection (9)(a)(i) is imposed without regard to whether or
not the 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 as
provided 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 this
section:
(A) the state shall be paid the difference described in Subsection (9)(b)(ii) if that
difference is greater than $0; and
(B) a person may not require the state to provide a refund, a credit, or similar tax relief
if the 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
a tax imposed by the Navajo Nation on the basis of the sale, use, or receipt for sale or use of
motor fuel does not include any interest or penalties a taxpayer may be required to pay to the
Navajo Nation.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall make rules governing the procedures for administering the reduction of tax
provided 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
in this 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 Navajo
Nation; and
(iii) may:
(A) notwithstanding Section 
59-1-403
, authorize the commission to disclose to the
Navajo 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
doing business 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 tax
imposed on motor fuel, any change in the reduction of taxes under this Subsection (9) as a
result of the change in the tax rate is not effective until the first day of the calendar quarter after
a 60-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 on
motor 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 not
permitted under this Subsection (9) beginning on the first day of the calendar quarter after a
30-day period beginning on the day the agreement terminates.
(h) If there is a conflict between this Subsection (9) and the agreement required by
Subsection (9)(a), this Subsection (9) governs.
Section 7. Section 
59-13-301
 is amended to read:
59-13-301.
Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer
and credited to Transportation Fund -- Reduction of tax in limited circumstances.
(1) (a) Except as provided in Subsections (2), (3), (11), and (12) and Section
59-13-304
, a tax is imposed at the same [
rate
] 
rates
 imposed under [
Subsection
] 
Subsections
59-13-201
(1)(a) 
and (b)
 on the:
(i) removal of undyed diesel fuel from any refinery;
(ii) removal of undyed diesel fuel from any terminal;
(iii) entry into the state of any undyed diesel fuel for consumption, use, sale, or
warehousing;
(iv) sale of undyed diesel fuel to any person who is not registered as a supplier under
this part unless the tax has been collected under this section;
(v) any untaxed special fuel blended with undyed diesel fuel; or
(vi) use of untaxed special fuel other than propane or electricity.
(b) The tax imposed under this section shall only be imposed once upon any special
fuel.
(2) (a) No special fuel tax is imposed or collected upon dyed diesel fuel which:
(i) is sold or used for any purpose other than to operate or propel a motor vehicle upon
the public highways of the state, but this exemption applies only in those cases where the
purchasers or the users of special fuel establish to the satisfaction of the commission that the
special fuel was used for purposes other than to operate a motor vehicle upon the public
highways of the state; or
(ii) is sold to this state or any of its political subdivisions.
(b) No special fuel tax is imposed on undyed diesel fuel or clean fuel that is:
(i) sold to the United States government or any of its instrumentalities or to this state or
any of its political subdivisions;
(ii) exported from this state if proof of actual exportation on forms prescribed by the
commission is made within 180 days after exportation;
(iii) used in a vehicle off-highway;
(iv) used to operate a power take-off unit of a vehicle;
(v) used for off-highway agricultural uses;
(vi) used in a separately fueled engine on a vehicle that does not propel the vehicle
upon the highways of the state; or
(vii) used in machinery and equipment not registered and not required to be registered
for highway use.
(3) No tax is imposed or collected on special fuel if it is:
(a) (i) purchased for business use in machinery and equipment not registered and not
required to be registered for highway use; and
(ii) used pursuant to the conditions of a state implementation plan approved under Title
19, Chapter 2, Air Conservation Act; or
(b) propane or electricity.
(4) Upon request of a buyer meeting the requirements under Subsection (3), the
Division of Air Quality shall issue an exemption certificate that may be shown to a seller.
(5) The special fuel tax shall be paid by the supplier.
(6) (a) The special fuel tax shall be paid by every user who is required by Sections
59-13-303
 and 
59-13-305
 to obtain a special fuel user permit and file special fuel tax reports.
(b) The user shall receive a refundable credit for special fuel taxes paid on purchases
which are delivered into vehicles and for which special fuel tax liability is reported.
(7) (a) Except as provided under Subsections (7)(b) and (c), all revenue received by the
commission from taxes and license fees under this part shall be deposited daily with the state
treasurer and credited to the Transportation Fund.
(b) An appropriation from the Transportation Fund shall be made to the commission to
cover expenses incurred in the administration and enforcement of this part and the collection of
the special fuel tax.
(c) Five dollars of each special fuel user trip permit fee paid under Section 
59-13-303
may be used by the commission as a dedicated credit to cover the costs of electronic
credentialing as provided in Section 
41-1a-303
.
(8) The commission may either collect no tax on special fuel exported from the state
or, upon application, refund the tax paid.
(9) (a) The United States government or any of its instrumentalities, this state, or a
political subdivision of this state that has purchased special fuel from a supplier or from a retail
dealer of special fuel and has paid the tax on the special fuel as provided in this section is
entitled to a refund of the tax and may file with the commission for a quarterly refund in a
manner prescribed by the commission.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall make rules governing the application and refund provided for in Subsection
(9)(a).
(10) (a) The purchaser shall pay the tax on diesel fuel or clean fuel purchased for uses
under Subsections (2)(b)(i), (iii), (iv), (v), (vi), and (vii) and apply for a refund for the tax paid
as provided in Subsection (9) and this Subsection (10).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall make rules governing the application and refund for off-highway and
nonhighway uses provided under Subsections (2)(b)(iii), (iv), (vi), and (vii).
(c) A refund of tax paid under this part on diesel fuel used for nonhighway agricultural
uses shall be made in accordance with the tax return procedures under Section 
59-13-202
.
(11) (a) Beginning on April 1, 2001, a tax imposed under this section on special fuel is
reduced to the extent provided in Subsection (11)(b) if:
(i) the Navajo Nation imposes a tax on the special fuel;
(ii) the tax described in Subsection (11)(a)(i) is imposed without regard to whether the
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 as
provided in this Subsection (11) for the administration of the reduction of tax.
(b) (i) If but for Subsection (11)(a) the special fuel is subject to a tax imposed by this
section:
(A) the state shall be paid the difference described in Subsection (11)(b)(ii) if that
difference is greater than $0; and
(B) a person may not require the state to provide a refund, a credit, or similar tax relief
if the difference described in Subsection (11)(b)(ii) is less than or equal to $0.
(ii) The difference described in Subsection (11)(b)(i) is equal to the difference
between:
(A) the amount of tax imposed on the special fuel by this section; less
(B) the tax imposed and collected by the Navajo Nation on the special fuel.
(c) For purposes of Subsections (11)(a) and (b), the tax paid to the Navajo Nation on
the special fuel does not include any interest or penalties a taxpayer may be required to pay to
the Navajo Nation.
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall make rules governing the procedures for administering the reduction of tax
provided under this Subsection (11).
(e) The agreement required under Subsection (11)(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
in this Subsection (11); 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 Navajo
Nation; and
(iii) may:
(A) notwithstanding Section 
59-1-403
, authorize the commission to disclose to the
Navajo 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 suppliers, distributors, carriers, or retailers
located or doing business 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 tax
imposed on special fuel, any change in the amount of the reduction of taxes under this
Subsection (11) as a result of the change in the tax rate is not effective until the first day of the
calendar quarter after a 60-day period beginning on the date the commission receives notice:
(A) from the Navajo Nation; and
(B) meeting the requirements of Subsection (11)(f)(ii).
(ii) The notice described in Subsection (11)(f)(i) shall state:
(A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
special fuel;
(B) the effective date of the rate change of the tax described in Subsection
(11)(f)(ii)(A); and
(C) the new rate of the tax described in Subsection (11)(f)(ii)(A).
(g) If the agreement required by Subsection (11)(a) terminates, a reduction of tax is not
permitted under this Subsection (11) beginning on the first day of the calendar quarter after a
30-day period beginning on the day the agreement terminates.
(h) If there is a conflict between this Subsection (11) and the agreement required by
Subsection (11)(a), this Subsection (11) governs.
(12) (a) [
Beginning on January 1, 2009, a
] 
A
 tax imposed under this section on
compressed natural gas is imposed at a [
reduced
] rate of [
8-1/2 cents per gasoline gallon
equivalent to be increased or decreased proportionately with any increase or decrease in the rate
in Subsection 
59-13-201
(1)(a).
]
:
(i) until June 30, 2016, 10-1/2 cents per gasoline gallon equivalent;
(ii) beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per gasoline gallon
equivalent;
(iii) beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per gasoline
gallon equivalent; and
(iv) beginning on or after July 1, 2018, 16-1/2 cents per gasoline gallon equivalent.
(b) [
Beginning on July 1, 2011, a
] 
A
 tax imposed under this section on liquified natural
gas is imposed at a [
reduced
] rate of [
8-1/2 cents per gasoline gallon equivalent to be increased
or decreased proportionately with any increase or decrease in the rate in Subsection
59-13-201(1)(a).
]
:
(i) until June 30, 2016, 10-1/2 cents per diesel gallon equivalent;
(ii) beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per diesel gallon
equivalent;
(iii) beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per diesel gallon
equivalent; and
(iv) beginning on or after July 1, 2018, 16-1/2 cents per diesel gallon equivalent.
(c) A tax imposed under this section on hydrogen used to operate or propel a motor
vehicle upon the public highways of the state is imposed at a rate of:
(i) until June 30, 2016, 10-1/2 cents per gasoline gallon equivalent;
(ii) beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per gasoline gallon
equivalent;
(iii) beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per gasoline
gallon equivalent; and
(iv) beginning on or after July 1, 2018, 16-1/2 cents per gasoline gallon equivalent.
Section 8. Section 
63I-1-251
 is enacted to read:
 63I-1-251.
Repeal dates, Title 51.
Subsection 
51-2a-202
(3) is repealed on June 30, 2020.
Section 9. Section 
63I-1-259
 is amended to read:
63I-1-259.
Repeal dates, Title 59.
(1) Subsection 
59-2-924
(3)(g) is repealed on December 31, 2016.
(2) Section 
59-2-924.3
 is repealed on December 31, 2016.
(3) Section 
59-9-102.5
 is repealed December 31, 2020.
(4) Subsection 
59-12-2219
(10) is repealed on June 30, 2020.
Section 10. Section 
72-1-212
 is enacted to read:
 72-1-212.
Road usage charge study -- Recommendations.
The department shall:
(1) continue to study a road usage charge mileage-based revenue system, including a
potential demonstration program, as an alternative to the motor and special tax; and
(2) make recommendations to the Legislature and other policymaking bodies on the
potential use and future implementation of a road usage charge within the state.
Section 11. Section 
72-2-108
 is amended to read:
72-2-108.
Apportionment of funds available for use on class B and class C roads
-- Bonds.
(1) For purposes of this section:
(a) "Graveled road" means a road:
(i) that is:
(A) graded; and
(B) drained by transverse drainage systems to prevent serious impairment of the road
by surface water;
(ii) that has an improved surface; and
(iii) that has a wearing surface made of:
(A) gravel;
(B) broken stone;
(C) slag;
(D) iron ore;
(E) shale; or
(F) other material that is:
(I) similar to a material described in Subsection (1)(a)(iii)(A) through (E); and
(II) coarser than sand.
(b) "Paved road" includes a graveled road with a chip seal surface.
(c) "Road mile" means a one-mile length of road, regardless of:
(i) the width of the road; or
(ii) the number of lanes into which the road is divided.
(d) "Weighted mileage" means the sum of the following:
(i) paved road miles multiplied by five; 
and
[
(ii) graveled road miles multiplied by two; and
]
[
(iii)
] 
(ii)
 all other road type road miles multiplied by [
one
] 
two
.
(2) Subject to the provisions of Subsections (3) through (5), funds in the class B and
class C roads account shall be apportioned among counties and municipalities in the following
manner:
(a) 50% in the ratio that the class B roads weighted mileage within each county and
class C roads weighted mileage within each municipality bear to the total class B and class C
roads weighted mileage within the state; and
(b) 50% in the ratio that the population of a county or municipality bears to the total
population of the state as of the last official federal census or the United States Bureau of
Census estimate, whichever is most recent, except that if population estimates are not available
from the United States Bureau of Census, population figures shall be derived from the estimate
from the Utah Population Estimates Committee.
(3) For purposes of Subsection (2)(b), "the population of a county" means:
(a) the population of a county outside the corporate limits of municipalities in that
county, if the population of the county outside the corporate limits of municipalities in that
county is not less than 14% of the total population of that county, including municipalities; and
(b) if the population of a county outside the corporate limits of municipalities in the
county is less than 14% of the total population:
(i) the aggregate percentage of the population apportioned to municipalities in that
county shall be reduced by an amount equal to the difference between:
(A) 14%; and
(B) the actual percentage of population outside the corporate limits of municipalities in
that county; and
(ii) the population apportioned to the county shall be 14% of the total population of
that county, including incorporated municipalities.
(4) (a) If an apportionment under Subsection (2) 
for fiscal year 2014
 to a county or
municipality with a population of less than 14,000 is less than 120% of the amount apportioned
to the county or municipality from the class B and class C roads account for fiscal year
1996-97, the department shall:
(i) reapportion the funds under Subsection (2) to ensure that the county or municipality
receives an amount equal to [
120% of
] the amount apportioned to the county or municipality
from the class B and class C roads account for fiscal year 1996-97 
multiplied by the percentage
increase in the class B and class C roads account from fiscal year 1996-97 to the most recently
completed fiscal year
; and
(ii) decrease proportionately as provided in Subsection (4)(b) the apportionments to
counties and municipalities for which the reapportionment under Subsection (4)(a)(i) does not
apply.
(b) The aggregate amount of the funds that the department shall decrease
proportionately from the apportionments under Subsection (4)(a)(ii) is an amount equal to the
aggregate amount reapportioned to counties and municipalities under Subsection (4)(a)(i).
(5) (a) In addition to the apportionment adjustments made under Subsection (4), a
county or municipality that qualifies for reapportioned money under Subsection (4)(a)(i) shall
receive the percentage change in the class B and class C roads account compounded annually
beginning in fiscal year 2006-07.
(b) The adjustment under Subsection (5)(a) shall be made in the same way as provided
in Subsection (4)(a)(ii) and (b).
(6) The governing body of any municipality or county may issue bonds redeemable up
to a period of 10 years under Title 11, Chapter 14, Local Government Bonding Act, to pay the
costs of constructing, repairing, and maintaining class B or class C roads and may pledge class
B or class C road funds received pursuant to this section to pay principal, interest, premiums,
and reserves for the bonds.
Section 12. 
Repealer.
This bill repeals:
Section 
59-13-104
,
Tax rate decals -- Posted on pump.
Section 13. 
Effective date.
This bill takes effect on July 1, 2015.
Section 14. 
 Coordinating H.B. 362 with H.B. 406 -- Substantive amendments.
If this H.B. 362 and H.B. 406, Natural Gas Vehicle Amendments, both pass and
become law, it is the intent of the Legislature that the Office of Legislative Research and
General Counsel, in preparing the Utah Code database for publication, replace all references to
"gasoline gallon equivalent" in Subsection 
59-13-301
(12)(b) with "diesel gallon equivalent."