Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 276 First Substitute (2017GS)

Sponsor

Sen. Van Tassell, K.

Final action

Governor Signed 3/21/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• requires the State Tax Commission to annually reduce the amount of a deposit of sales and use tax revenue to the Transportation Investment Fund of 2005 in certain circumstances;
• amends provisions governing the calculation of the statewide average rack price of a gallon of motor fuel for purposes of determining the motor and special fuel tax rate;
• requires the Division of Finance to annually transfer a certain amount of revenue from the Transportation Fund to the Transportation Investment Fund of 2005; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

TRANSPORTATION FUNDING MODIFICATIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Kevin T. Van Tassell
House Sponsor: 
Mike Schultz
LONG TITLE
General Description:
This bill modifies the Motor and Special Fuel Tax Act by amending motor and special
fuel tax provisions.
Highlighted Provisions:
This bill:
▸ requires the State Tax Commission to annually reduce the amount of a deposit of
sales and use tax revenue to the Transportation Investment Fund of 2005 in certain
circumstances;
▸ amends provisions governing the calculation of the statewide average rack price of a
gallon of motor fuel for purposes of determining the motor and special fuel tax rate;
▸ requires the Division of Finance to annually transfer a certain amount of revenue
from the Transportation Fund to the Transportation Investment Fund of 2005; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
59-12-103
, as last amended by Laws of Utah 2016, Chapters 184, 291, 348 and last
amended by Coordination Clause, Laws of Utah 2016, Chapter 291
59-13-201
, as last amended by Laws of Utah 2015, Chapter 275
59-13-301
, as last amended by Laws of Utah 2015, Chapters 275, 467 and last amended
by Coordination Clause, Laws of Utah 2015, Chapter 275
72-2-106
, as last amended by Laws of Utah 2016, Chapter 291
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-12-103
 is amended to read:
59-12-103.
Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
tax revenues.
(1) A tax is imposed on the purchaser as provided in this part for amounts paid or
charged for the following transactions:
(a) retail sales of tangible personal property made within the state;
(b) amounts paid for:
(i) telecommunications service, other than mobile telecommunications service, that
originates and terminates within the boundaries of this state;
(ii) mobile telecommunications service that originates and terminates within the
boundaries of one state only to the extent permitted by the Mobile Telecommunications
Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
(iii) an ancillary service associated with a:
(A) telecommunications service described in Subsection (1)(b)(i); or
(B) mobile telecommunications service described in Subsection (1)(b)(ii);
(c) sales of the following for commercial use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(d) sales of the following for residential use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(e) sales of prepared food;
(f) except as provided in Section 
59-12-104
, amounts paid or charged as admission or
user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
horseback rides, sports activities, or any other amusement, entertainment, recreation,
exhibition, cultural, or athletic activity;
(g) amounts paid or charged for services for repairs or renovations of tangible personal
property, unless Section 
59-12-104
 provides for an exemption from sales and use tax for:
(i) the tangible personal property; and
(ii) parts used in the repairs or renovations of the tangible personal property described
in Subsection (1)(g)(i), regardless of whether:
(A) any parts are actually used in the repairs or renovations of that tangible personal
property; or
(B) the particular parts used in the repairs or renovations of that tangible personal
property are exempt from a tax under this chapter;
(h) except as provided in Subsection 
59-12-104
(7), amounts paid or charged for
assisted cleaning or washing of tangible personal property;
(i) amounts paid or charged for tourist home, hotel, motel, or trailer court
accommodations and services that are regularly rented for less than 30 consecutive days;
(j) amounts paid or charged for laundry or dry cleaning services;
(k) amounts paid or charged for leases or rentals of tangible personal property if within
this state the tangible personal property is:
(i) stored;
(ii) used; or
(iii) otherwise consumed;
(l) amounts paid or charged for tangible personal property if within this state the
tangible personal property is:
(i) stored;
(ii) used; or
(iii) consumed; and
(m) amounts paid or charged for a sale:
(i) (A) of a product transferred electronically; or
(B) of a repair or renovation of a product transferred electronically; and
(ii) regardless of whether the sale provides:
(A) a right of permanent use of the product; or
(B) a right to use the product that is less than a permanent use, including a right:
(I) for a definite or specified length of time; and
(II) that terminates upon the occurrence of a condition.
(2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
is imposed on a transaction described in Subsection (1) equal to the sum of:
(i) a state tax imposed on the transaction at a tax rate equal to the sum of:
(A) 4.70%; and
(B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
and Use Tax Act, if the location of the transaction as determined under Sections 
59-12-211
through 
59-12-215
 is in a county in which the state imposes the tax under Part 18, Additional
State Sales and Use Tax Act; and
(II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
and Use Tax Act, if the location of the transaction as determined under Sections 
59-12-211
through 
59-12-215
 is in a city, town, or the unincorporated area of a county in which the state
imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
on a transaction described in Subsection (1)(d) equal to the sum of:
(i) a state tax imposed on the transaction at a tax rate of 2%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
on amounts paid or charged for food and food ingredients equal to the sum of:
(i) a state tax imposed on the amounts paid or charged for food and food ingredients at
a tax rate of 1.75%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
amounts paid or charged for food and food ingredients under this chapter other than this part.
(d) (i) For a bundled transaction that is attributable to food and food ingredients and
tangible personal property other than food and food ingredients, a state tax and a local tax is
imposed on the entire bundled transaction equal to the sum of:
(A) a state tax imposed on the entire bundled transaction equal to the sum of:
(I) the tax rate described in Subsection (2)(a)(i)(A); and
(II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
Sales and Use Tax Act, if the location of the transaction as determined under Sections
59-12-211
 through 
59-12-215
 is in a county in which the state imposes the tax under Part 18,
Additional State Sales and Use Tax Act; and
(Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
Sales and Use Tax Act, if the location of the transaction as determined under Sections
59-12-211
 through 
59-12-215
 is in a city, town, or the unincorporated area of a county in which
the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
described in Subsection (2)(a)(ii).
(ii) If an optional computer software maintenance contract is a bundled transaction that
consists of taxable and nontaxable products that are not separately itemized on an invoice or
similar billing document, the purchase of the optional computer software maintenance contract
is 40% taxable under this chapter and 60% nontaxable under this chapter.
(iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
transaction described in Subsection (2)(d)(i) or (ii):
(A) if the sales price of the bundled transaction is attributable to tangible personal
property, a product, or a service that is subject to taxation under this chapter and tangible
personal property, a product, or service that is not subject to taxation under this chapter, the
entire bundled transaction is subject to taxation under this chapter unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangible
personal property, product, or service that is not subject to taxation under this chapter from the
books and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise; or
(B) if the sales price of a bundled transaction is attributable to two or more items of
tangible personal property, products, or services that are subject to taxation under this chapter
at different rates, the entire bundled transaction is subject to taxation under this chapter at the
higher tax rate unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangible
personal property, product, or service that is subject to taxation under this chapter at the lower
tax rate from the books and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise.
(iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in the regular
course of business for nontax purposes.
(e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
of tangible personal property, other property, a product, or a service that is not subject to
taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
the seller, at the time of the transaction:
(A) separately states the portion of the transaction that is not subject to taxation under
this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
(B) is able to identify by reasonable and verifiable standards, from the books and
records the seller keeps in the seller's regular course of business, the portion of the transaction
that is not subject to taxation under this chapter.
(ii) A purchaser and a seller may correct the taxability of a transaction if:
(A) after the transaction occurs, the purchaser and the seller discover that the portion of
the transaction that is not subject to taxation under this chapter was not separately stated on an
invoice, bill of sale, or similar document provided to the purchaser because of an error or
ignorance of the law; and
(B) the seller is able to identify by reasonable and verifiable standards, from the books
and records the seller keeps in the seller's regular course of business, the portion of the
transaction that is not subject to taxation under this chapter.
(iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
in the seller's regular course of business includes books and records the seller keeps in the
regular course of business for nontax purposes.
(f) (i) If the sales price of a transaction is attributable to two or more items of tangible
personal property, products, or services that are subject to taxation under this chapter at
different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
unless the seller, at the time of the transaction:
(A) separately states the items subject to taxation under this chapter at each of the
different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
(B) is able to identify by reasonable and verifiable standards the tangible personal
property, product, or service that is subject to taxation under this chapter at the lower tax rate
from the books and records the seller keeps in the seller's regular course of business.
(ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in the regular
course of business for nontax purposes.
(g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
rate imposed under the following shall take effect on the first day of a calendar quarter:
(i) Subsection (2)(a)(i)(A);
(ii) Subsection (2)(b)(i);
(iii) Subsection (2)(c)(i); or
(iv) Subsection (2)(d)(i)(A)(I).
(h) (i) A tax rate increase takes effect on the first day of the first billing period that
begins on or after the effective date of the tax rate increase if the billing period for the
transaction begins before the effective date of a tax rate increase imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(d)(i)(A)(I).
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
statement for the billing period is rendered on or after the effective date of the repeal of the tax
or the tax rate decrease imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(d)(i)(A)(I).
(i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
change in a tax rate takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
(ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(d)(i)(A)(I).
(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may by rule define the term "catalogue sale."
(3) (a) The following state taxes shall be deposited into the General Fund:
(i) the tax imposed by Subsection (2)(a)(i)(A);
(ii) the tax imposed by Subsection (2)(b)(i);
(iii) the tax imposed by Subsection (2)(c)(i); or
(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
(b) The following local taxes shall be distributed to a county, city, or town as provided
in this chapter:
(i) the tax imposed by Subsection (2)(a)(ii);
(ii) the tax imposed by Subsection (2)(b)(ii);
(iii) the tax imposed by Subsection (2)(c)(ii); and
(iv) the tax imposed by Subsection (2)(d)(i)(B).
(4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
through (g):
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
(B) for the fiscal year; or
(ii) $17,500,000.
(b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
Department of Natural Resources to:
(A) implement the measures described in Subsections 
79-2-303
(3)(a) through (d) to
protect sensitive plant and animal species; or
(B) award grants, up to the amount authorized by the Legislature in an appropriations
act, to political subdivisions of the state to implement the measures described in Subsections
79-2-303
(3)(a) through (d) to protect sensitive plant and animal species.
(ii) Money transferred to the Department of Natural Resources under Subsection
(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
person to list or attempt to have listed a species as threatened or endangered under the
Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
(iii) At the end of each fiscal year:
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
Conservation and Development Fund created in Section 
73-10-24
;
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
Program Subaccount created in Section 
73-10c-5
; and
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
Program Subaccount created in Section 
73-10c-5
.
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
created in Section 
4-18-106
.
(d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
water rights.
(ii) At the end of each fiscal year:
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
Conservation and Development Fund created in Section 
73-10-24
;
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
Program Subaccount created in Section 
73-10c-5
; and
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
Program Subaccount created in Section 
73-10c-5
.
(e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
Development Fund created in Section 
73-10-24
 for use by the Division of Water Resources.
(ii) In addition to the uses allowed of the Water Resources Conservation and
Development Fund under Section 
73-10-24
, the Water Resources Conservation and
Development Fund may also be used to:
(A) conduct hydrologic and geotechnical investigations by the Division of Water
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
quantifying surface and ground water resources and describing the hydrologic systems of an
area in sufficient detail so as to enable local and state resource managers to plan for and
accommodate growth in water use without jeopardizing the resource;
(B) fund state required dam safety improvements; and
(C) protect the state's interest in interstate water compact allocations, including the
hiring of technical and legal staff.
(f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
created in Section 
73-10c-5
 for use by the Water Quality Board to fund wastewater projects.
(g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
created in Section 
73-10c-5
 for use by the Division of Drinking Water to:
(i) provide for the installation and repair of collection, treatment, storage, and
distribution facilities for any public water system, as defined in Section 
19-4-102
;
(ii) develop underground sources of water, including springs and wells; and
(iii) develop surface water sources.
(5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2006, the difference between the following amounts shall be expended as provided in this
Subsection (5), if that difference is greater than $1:
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
(ii) $17,500,000.
(b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
(A) transferred each fiscal year to the Department of Natural Resources as dedicated
credits; and
(B) expended by the Department of Natural Resources for watershed rehabilitation or
restoration.
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
created in Section 
73-10-24
.
(c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
remaining difference described in Subsection (5)(a) shall be:
(A) transferred each fiscal year to the Division of Water Resources as dedicated
credits; and
(B) expended by the Division of Water Resources for cloud-seeding projects
authorized by Title 73, Chapter 15, Modification of Weather.
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
created in Section 
73-10-24
.
(d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
remaining difference described in Subsection (5)(a) shall be deposited into the Water
Resources Conservation and Development Fund created in Section 
73-10-24
 for use by the
Division of Water Resources for:
(i) preconstruction costs:
(A) as defined in Subsection 
73-26-103
(6) for projects authorized by Title 73, Chapter
26, Bear River Development Act; and
(B) as defined in Subsection 
73-28-103
(8) for the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
(ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
Chapter 26, Bear River Development Act;
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
(iv) other uses authorized under Sections 
73-10-24
, 
73-10-25.1
, and 
73-10-30
, and
Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
(e) After making the transfers required by Subsections (5)(b) and (c) and subject to
Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
transferred each year as dedicated credits to the Division of Water Rights to cover the costs
incurred for employing additional technical staff for the administration of water rights.
(f) At the end of each fiscal year, any unexpended dedicated credits described in
Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
Fund created in Section 
73-10-24
.
(6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
(1) for the fiscal year shall be deposited as follows:
(a) for fiscal year 2016-17 only, 100% of the revenue described in this Subsection (6)
shall be deposited into the Transportation Investment Fund of 2005 created by Section
72-2-124
;
(b) for fiscal year 2017-18 only:
(i) 80% of the revenue described in this Subsection (6) shall be deposited into the
Transportation Investment Fund of 2005 created by Section 
72-2-124
; and
(ii) 20% of the revenue described in this Subsection (6) shall be deposited into the
Water Infrastructure Restricted Account created by Section 
73-10g-103
;
(c) for fiscal year 2018-19 only:
(i) 60% of the revenue described in this Subsection (6) shall be deposited into the
Transportation Investment Fund of 2005 created by Section 
72-2-124
; and
(ii) 40% of the revenue described in this Subsection (6) shall be deposited into the
Water Infrastructure Restricted Account created by Section 
73-10g-103
;
(d) for fiscal year 2019-20 only:
(i) 40% of the revenue described in this Subsection (6) shall be deposited into the
Transportation Investment Fund of 2005 created by Section 
72-2-124
; and
(ii) 60% of the revenue described in this Subsection (6) shall be deposited into the
Water Infrastructure Restricted Account created by Section 
73-10g-103
;
(e) for fiscal year 2020-21 only:
(i) 20% of the revenue described in this Subsection (6) shall be deposited into the
Transportation Investment Fund of 2005 created by Section 
72-2-124
; and
(ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
Water Infrastructure Restricted Account created by Section 
73-10g-103
; and
(f) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
created by Section 
73-10g-103
.
(7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
created by Section 
72-2-124
:
(i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
the revenues collected from the following taxes, which represents a portion of the
approximately 17% of sales and use tax revenues generated annually by the sales and use tax
on vehicles and vehicle-related products:
(A) the tax imposed by Subsection (2)(a)(i)(A);
(B) the tax imposed by Subsection (2)(b)(i);
(C) the tax imposed by Subsection (2)(c)(i); and
(D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
(ii) an amount equal to 30% of the growth in the amount of revenues collected in the
current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
(D) that exceeds the amount collected from the sales and use taxes described in Subsections
(7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
(b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
generated in the current fiscal year than the total percentage of sales and use taxes deposited in
the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
(7)(a) equal to the product of:
(A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
previous fiscal year; and
(B) the total sales and use tax revenue generated by the taxes described in Subsections
(7)(a)(i)(A) through (D) in the current fiscal year.
(ii) In any fiscal year in which the portion of the sales and use taxes deposited under
Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
(iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
from the sales and use taxes described in Subsections (7)(a)(i)(A) through (D) was deposited
under Subsection (7)(a), the Division of Finance shall annually deposit 17% of the revenues
collected from the sales and use taxes described in Subsections (7)(a)(i)(A) through (D) in the
current fiscal year under Subsection (7)(a).
(8) (a) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited
under Subsections (6) and (7), for the 2016-17 fiscal year only, the Division of Finance shall
deposit $64,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into
the Transportation Investment Fund of 2005 created by Section 
72-2-124
.
(b) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
Subsections (6) and (7), for the 2017-18 fiscal year only, the Division of Finance shall deposit
$63,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
Transportation Investment Fund of 2005 created by Section 
72-2-124
.
(c) 
(i)
 Notwithstanding Subsection (3)(a), [
and
] in addition to the amounts deposited
under Subsections (6) and (7), 
and subject to Subsection (8)(c)(ii),
 for a fiscal year beginning
on or after July 1, 2018, the [
Division of Finance
] 
commission
 shall annually deposit into the
Transportation Investment Fund of 2005 created by Section 
72-2-124
 a portion of the taxes
listed under Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the
following taxes:
[
(i)
] 
(A)
 the tax imposed by Subsection (2)(a)(i)(A);
[
(ii)
] 
(B)
 the tax imposed by Subsection (2)(b)(i);
[
(iii)
] 
(C)
 the tax imposed by Subsection (2)(c)(i); and
[
(iv)
] 
(D)
 the tax imposed by Subsection (2)(d)(i)(A)(I).
(ii) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(c)(i)
by an amount that is equal to 35% of the amount of revenue generated in the current fiscal year
by the portion of the tax imposed on motor and special fuel that is sold, used, or received for
sale or use in this state that exceeds 29.4 cents per gallon.
(9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
created by Section 
35A-8-1009
 and expended as provided in Section 
35A-8-1009
.
(10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c),
in addition to any amounts deposited under Subsections (6), (7), and (8), and for the 2016-17
fiscal year only, the Division of Finance shall deposit into the Transportation Investment Fund
of 2005 created by Section 
72-2-124
 the amount of tax revenue generated by a .05% tax rate on
the transactions described in Subsection (1).
(b) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c), and in
addition to any amounts deposited under Subsections (6), (7), and (8), the Division of Finance
shall deposit into the Transportation Investment Fund of 2005 created by Section 
72-2-124
 the
amount of revenue described as follows:
(i) for fiscal year 2017-18 only, 83.33% of the amount of revenue generated by a .05%
tax rate on the transactions described in Subsection (1);
(ii) for fiscal year 2018-19 only, 66.67% of the amount of revenue generated by a .05%
tax rate on the transactions described in Subsection (1);
(iii) for fiscal year 2019-20 only, 50% of the amount of revenue generated by a .05%
tax rate on the transactions described in Subsection (1);
(iv) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a
.05% tax rate on the transactions described in Subsection (1); and
(v) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
tax rate on the transactions described in Subsection (1).
(c) For purposes of Subsections (10)(a) and (b), the Division of Finance may not
deposit into the Transportation Investment Fund of 2005 any tax revenue generated by amounts
paid or charged for food and food ingredients, except for tax revenue generated by a bundled
transaction attributable to food and food ingredients and tangible personal property other than
food and food ingredients described in Subsection (2)(d).
(11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
fiscal year during which the Division of Finance receives notice under Section 
63N-2-510
 that
construction on a qualified hotel, as defined in Section 
63N-2-502
, has begun, the Division of
Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
created in Section 
63N-2-512
.
(12) (a) Notwithstanding Subsection (3)(a), for the 2016-17 fiscal year only, the
Division of Finance shall deposit $26,000,000 of the revenues generated by the taxes listed
under Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 
35A-8-308
.
(b) Notwithstanding Subsection (3)(a), for the 2017-18 fiscal year only, the Division of
Finance shall deposit $27,000,000 of the revenues generated by the taxes listed under
Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 
35A-8-308
.
(13) Notwithstanding Subsections (4) through (12), an amount required to be expended
or deposited in accordance with Subsections (4) through (12) may not include an amount the
Division of Finance deposits in accordance with Section 
59-12-103.2
.
Section 2. Section 
59-13-201
 is amended to read:
59-13-201.
Rate -- Tax basis -- Exemptions -- Revenue deposited into 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)
] 
(1) (a)
 Subject to the provisions of this section and [
beginning on January 1,
] 
except as provided in Subsection (1)(e)
, a tax is imposed at the rate of [
12%
] 
16.5%
 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) 
] 
(b) (i)
 Until December 31, 2018, and subject to the requirements under
Subsection [
(1)(b)(iii)
] 
(1)(c)
, the statewide average rack price of a gallon of motor fuel under
Subsection [
(1)(b)(i)
] 
(1)(a)
 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)
] 
(ii)
 Beginning on January 1, 2019, and subject to the requirements under
Subsection [
(1)(b)(iii)
] 
(1)(c)
, the statewide average rack price of a gallon of motor fuel under
Subsection [
(1)(b)(i)
] 
(1)(a)
 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)
] 
(c) (i)
 Subject to the requirement in Subsection [
(1)(b)(iii)(B)
] 
(1)(c)(ii)
, the
statewide average rack price of a gallon of motor fuel determined under Subsection (1)(b)[
(ii)
]
may not be less than [
$2.45
] 
$1.78
 per gallon.
[
(B)
] 
(ii)
 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)
] 
January 1, 2019
, 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)
] 
(1)(c)(i)
 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)
] 
(A)
 an amount calculated by multiplying the minimum 
statewide
 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)
] 
(B)
 0.
[
(C)
] 
(iii)
 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
] 
$2.43
 per gallon.
(iv) The minimum statewide average rack price of a gallon of motor fuel described and
adjusted under Subsections (1)(c)(i) and (ii) may not exceed the maximum statewide average
rack price of a gallon of motor fuel under Subsection (1)(c)(iii).
[
(iv)
] 
(d) (i)
 The commission shall annually:
(A) determine the statewide average rack price of a gallon of motor fuel in accordance
with [
Subsection (1)(b)(ii)
] 
Subsections (1)(b) and (c)
;
(B) adjust the fuel tax rate imposed under Subsection [
(1)(b)(i)
] 
(1)(a)
, 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)
] 
(1)(d)(i)(B)
 no later than 60 days prior to the annual effective date
under Subsection [
(1)(b)(v)
] 
(1)(d)(ii)
.
[
(v)
] 
(ii)
 The tax rate imposed under this Subsection (1)[
(b)
] and adjusted as required
under Subsection [
(1)(b)(iv)
] 
(1)(d)(i)
 shall take effect on January 1 of each year.
[
(c)
] 
(e)
 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 .5% of the motor fuel tax revenues collected under this
section.
(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 3. 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 rates imposed under [
Subsections
] 
Subsection
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) A tax imposed under this section on compressed natural gas 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.
(b) A tax imposed under this section on liquified natural gas is imposed at a rate of:
(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 4. Section 
72-2-106
 is amended to read:
72-2-106.
Appropriation and transfers from Transportation Fund.
(1) On and after July 1, 1981, there is appropriated from the Transportation Fund to the
use of the department an amount equal to two-elevenths of the taxes collected from the motor
fuel tax and the special fuel tax, exclusive of the formula amount appropriated to the B and C
road fund and the collector road fund, to be used for highway rehabilitation.
(2) For a fiscal year beginning on or after July 1, 2016, the Division of Finance shall
annually transfer an amount equal to the amount of revenue generated by a tax imposed on
motor and special fuel that is sold, used, or received for sale or used in this state at a rate of 1.8
cents per gallon to the Transportation Investment Fund of 2005 created by Section 
72-2-124
.
(3) For a fiscal year beginning on or after July 1, 2019, the Division of Finance shall
annually transfer to the Transportation Investment Fund of 2005 created by Section 
72-2-124
an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
or use in this state that exceeds 29.4 cents per gallon.
Section 5. 
Effective date.
This bill takes effect on July 1, 2017.