Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 301 Third Substitute (2023GS)

Sponsor

Rep. Schultz, M.

Final action

Governor Signed 3/22/2023

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• increases vehicle registration fees by $7;
• amends provisions related to and reduces the rate for motor fuel tax;
• imposes a tax on the sale of electricity at an electric vehicle charging station or an electric vehicle charging subscription and deposits the revenue into the Transportation Fund; and
• makes technical changes.

Every vote on this bill

Bill text

TRANSPORTATION TAX AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Mike Schultz
Senate Sponsor: 
Wayne A. Harper
LONG TITLE
General Description:
This bill reduces the tax on motor fuel, increases vehicle registration fees, and imposes
a tax on the sale of electricity for electric vehicle charging.
Highlighted Provisions:
This bill:
▸ increases vehicle registration fees by $7;
▸ amends provisions related to and reduces the rate for motor fuel tax;
▸ imposes a tax on the sale of electricity at an electric vehicle charging station or an
electric vehicle charging subscription and deposits the revenue into the
Transportation Fund; and
▸ makes technical changes. 
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
41-1a-1206
, as last amended by Laws of Utah 2022, Chapters 56, 259
59-13-201
, as last amended by Laws of Utah 2022, Chapter 68
ENACTS:
59-30-101
, Utah Code Annotated 1953
59-30-102
, Utah Code Annotated 1953
59-30-103
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
41-1a-1206
 is amended to read:
41-1a-1206.
Registration fees -- Fees by gross laden weight.
(1) Except as provided in Subsections (2) and (3), at the time application is made for
registration or renewal of registration of a vehicle or combination of vehicles under this
chapter, a registration fee shall be paid to the division as follows:
(a) $46.00 for each motorcycle;
(b) $44 for each motor vehicle of 12,000 pounds or less gross laden weight, excluding
motorcycles;
(c) unless the semitrailer or trailer is exempt from registration under Section 
41-1a-202
or is registered under Section 
41-1a-301
:
(i) $31 for each trailer or semitrailer over 750 pounds gross unladen weight; or
(ii) $28.50 for each commercial trailer or commercial semitrailer of 750 pounds or less
gross unladen weight;
(d) (i) $53 for each farm truck over 12,000 pounds, but not exceeding 14,000 pounds
gross laden weight; plus
(ii) $9 for each 2,000 pounds over 14,000 pounds gross laden weight;
(e) (i) $69.50 for each motor vehicle or combination of motor vehicles, excluding farm
trucks, over 12,000 pounds, but not exceeding 14,000 pounds gross laden weight; plus
(ii) $19 for each 2,000 pounds over 14,000 pounds gross laden weight;
(f) (i) $69.50 for each park model recreational vehicle over 12,000 pounds, but not
exceeding 14,000 pounds gross laden weight; plus
(ii) $19 for each 2,000 pounds over 14,000 pounds gross laden weight;
(g) $45 for each vintage vehicle that has a model year of 1981 or newer;
(h) in addition to the fee described in Subsection (1)(b):
(i) an amount equal to the road usage charge cap described in Section 
72-1-213.1
 for:
(A) each electric motor vehicle; and
(B) Each motor vehicle not described in this Subsection (1)(h) that is fueled
exclusively by a source other than motor fuel, diesel fuel, natural gas, or propane;
(ii) $21.75 for each hybrid electric motor vehicle; and
(iii) $56.50 for each plug-in hybrid electric motor vehicle; and
(i) in addition to the fee described in Subsection (1)(g), for a vintage vehicle that has a
model year of 1981 or newer, 50 cents.
(2) (a) At the time application is made for registration or renewal of registration of a
vehicle under this chapter for a six-month registration period under Section 
41-1a-215.5
, a
registration fee shall be paid to the division as follows:
(i) $34.50 for each motorcycle; and
(ii) $33.50 for each motor vehicle of 12,000 pounds or less gross laden weight,
excluding motorcycles.
(b) In addition to the fee described in Subsection (2)(a)(ii), for registration or renewal
of registration of a vehicle under this chapter for a six-month registration period under Section
41-1a-215.5
 a registration fee shall be paid to the division as follows:
(i) an amount equal to the road usage charge cap described in Section 
72-1-213
.1 for:
(A) each electric motor vehicle; and
(B) each motor vehicle not described in this Subsection (2)(b) that is fueled exclusively
by a source other than motor fuel, diesel fuel, natural gas, or propane;
(ii) $16.50 for each hybrid electric motor vehicle; and
(iii) $43.50 for each plug-in hybrid electric motor vehicle.
(3) 
(a) Beginning on January 1, 2024, at the time of registration:
(i) in addition to the amounts described in Subsections (1)(a), (1)(b), (1)(c)(i),
(1)(c)(ii), (1)(d)(i), (1)(e)(i), (1)(f)(i), (1)(g), (1)(h), (4)(a), and (7), the individual shall also pay
an additional $7 as part of the registration fee; and
(ii) in addition to the amounts described in Subsection (2)(a), the individual shall also
pay an additional $5 as part of the registration fee.
[
(a)
] 
(b)
 (i) Beginning on January 1, 2019, the commission shall, on January 1,
annually adjust the registration fees described in Subsections (1)(a), (1)(b), (1)(c)(i), (1)(c)(ii),
(1)(d)(i), (1)(e)(i), (1)(f)(i), (1)(g), (2)(a), 
(3)(a),
 (4)(a), and (7), by taking the registration fee
rate for the previous year and adding an amount equal to the greater of:
(A) an amount calculated by multiplying the registration fee of the previous year by the
actual percentage change during the previous fiscal year in the Consumer Price Index; and
(B) 0.
(ii) Beginning on January 1, 2024, the commission shall, on January 1, annually adjust
the registration fees described in Subsections (1)(h)(ii) and (iii) and (2)(b)(ii) and (iii) by taking
the registration fee rate for the previous year and adding an amount equal to the greater of:
(A) an amount calculated by multiplying the registration fee of the previous year by the
actual percentage change during the previous fiscal year in the Consumer Price Index; and
(B) 0.
[
(b)
] 
(c)
 The amounts calculated as described in Subsection [
(3)(a)
] 
(3)(b)
 shall be
rounded up to the nearest 25 cents.
(4) (a) The initial registration fee for a vintage vehicle that has a model year of 1980 or
older is $40.
(b) A vintage vehicle that has a model year of 1980 or older is exempt from the
renewal of registration fees under Subsection (1).
(c) A vehicle with a Purple Heart special group license plate issued in accordance with
Section 
41-1a-421
 is exempt from the registration fees under Subsection (1).
(d) A camper is exempt from the registration fees under Subsection (1).
(5) If a motor vehicle is operated in combination with a semitrailer or trailer, each
motor vehicle shall register for the total gross laden weight of all units of the combination if the
total gross laden weight of the combination exceeds 12,000 pounds.
(6) (a) Registration fee categories under this section are based on the gross laden
weight declared in the licensee's application for registration.
(b) Gross laden weight shall be computed in units of 2,000 pounds. A fractional part
of 2,000 pounds is a full unit.
(7) The owner of a commercial trailer or commercial semitrailer may, as an alternative
to registering under Subsection (1)(c), apply for and obtain a special registration and license
plate for a fee of $130.
(8) Except as provided in Section 
41-6a-1642
, a truck may not be registered as a farm
truck unless:
(a) the truck meets the definition of a farm truck under Section 
41-1a-102
; and
(b) (i) the truck has a gross vehicle weight rating of more than 12,000 pounds; or
(ii) the truck has a gross vehicle weight rating of 12,000 pounds or less and the owner
submits to the division a certificate of emissions inspection or a waiver in compliance with
Section 
41-6a-1642
.
(9) A violation of Subsection (8) is an infraction that shall be punished by a fine of not
less than $200.
(10) Trucks used exclusively to pump cement, bore wells, or perform crane services
with a crane lift capacity of five or more tons, are exempt from 50% of the amount of the fees
required for those vehicles under this section.
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) 
(i)
 Subject to the provisions of this section and except as provided in Subsection
(1)(e), a tax is imposed at the rate of [
16.5%
] 
14.2%
 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) Notwithstanding Subsection (1)(a)(i), for the period beginning on July 1, 2023, and
ending on December 31, 2023, the rate described in Subsection (1)(a)(i) shall be 34.5 cents per
gallon.
(b) (i) Until December 31, 2018, and subject to the requirements under Subsection
(1)(c), the statewide average rack price of a gallon of motor fuel under Subsection (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.
(ii) Beginning on January 1, 2019, and subject to the requirements under Subsection
(1)(c), the statewide average rack price of a gallon of motor fuel under Subsection (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.
(c) (i) Subject to the requirement in Subsection (1)(c)(ii), the statewide average rack
price of a gallon of motor fuel determined under Subsection (1)(b) may not be less than $1.78
per gallon.
(ii) Beginning on 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)(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:
(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
(B) 0.
(iii) The statewide average rack price of a gallon of motor fuel determined by the
commission under Subsection (1)(b) may not exceed [
$2.43 per gallon.
]
:
(A) for a calendar year beginning on January 1, 2024, $2.57 per gallon;
(B) for a calendar year beginning on January 1, 2025, $2.71 per gallon;
(C) for a calendar year beginning on January 1, 2026, $2.82 per gallon; and
(D) for a calendar year beginning on January 1, 2028, and thereafter, $2.96 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).
(d) (i) The commission shall annually:
(A) determine the statewide average rack price of a gallon of motor fuel in accordance
with Subsections (1)(b) and (c);
(B) adjust the fuel tax rate imposed under Subsection (1)(a), rounded to the nearest
one-tenth of a cent, based on the determination under Subsection (1)(b);
(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)(d)(i)(B) no later than 60 days before the annual effective date under Subsection
(1)(d)(ii).
(ii) The tax rate imposed under this Subsection (1) and adjusted as required under
Subsection (1)(d)(i) shall take effect on January 1 of each year.
(e) In lieu of the tax imposed under Subsection (1)(a) 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),
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 Title 73,
Chapter 18, State Boating Act, and this amount shall be deposited into 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 Outdoor Recreation in administering and enforcing Title 73,
Chapter 18, 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 
59-30-101
 is enacted to read:
CHAPTER 30. ELECTRIC VEHICLE CHARGING TAX
Part 1. Electric Vehicle Charging Tax
 59-30-101.
Definitions.
As used in this chapter:
(1) "Charging station" means equipment designed to deliver electric energy to an
electric vehicle for a fee.
(2) "Charging station operator" means a person who owns or operates a charging
station in the state.
(3) "Charging station subscription" means a service for which a person pays a charging
station operator a subscription fee for a reduced charging rate or unlimited charging during the
subscription period.
(4) "Electric vehicle" means a qualifying electric vehicle or qualifying plug-in hybrid
vehicle.
(5) "Qualifying electric vehicle" means the same as that term is defined in Section
11-42a-102
.
(6) "Qualifying plug-in hybrid vehicle" means the same as that term is defined in
Section 
11-42a-102
.
Section 4. Section 
59-30-102
 is enacted to read:
 59-30-102.
Imposition -- Rate -- Revenue distribution.
(1) There is levied a tax upon the retail sale of:
(a) electric current sold by a charging station operator to charge or recharge an electric
vehicle; and
(b) a charging station subscription by a charging station operator to charge or recharge
an electric vehicle.
(2) The tax levied under Subsection (1) is imposed at a rate of 12.5% for a charging
station operator that charges:
(a) per kilowatt hour as described in Subsection (4)(a);
(b) per hour as described in Subsection (4)(a);
(c) a subscription fee for charging services as described in Subsection (4)(b); or
(d) a combination of Subsections (2)(a) through (c).
(3) (a) A charging station operator shall remit a return on the tax imposed in
Subsection (1) in an electronic format approved by the commission on the same schedule as the
charging station operator's sales and use tax filing.
(b) The tax amount reported on the return described in Subsection (3)(a) is due and
payable according to the same terms and schedule as the charging station operator's sales and
use tax remittance schedule.
(4) (a) For a charging station operator that charges a fee per kilowatt hour, the charging
station operator shall furnish with each sale an itemized invoice, including:
(i) the name of the charging station operator;
(ii) the date of sale;
(iii) the number of kilowatt hours sold, or the length of time using the charging station;
(iv) the sales price per kilowatt hour, or per hour for use of the charging station; and
(v) the total sales price of the transaction.
(b) For a charging station operator that charges a fee for a charging station
subscription, the charging station operator shall furnish with each sale an itemized invoice,
including:
(i) the name of the charging station operator;
(ii) the date of sale;
(iii) the subscription price; and
(iv) the total sales price of the transaction.
(c) In addition to the information required in Subsection (4)(a) or (b), a charging
station operator shall ensure that an invoice indicates on a separate line the tax imposed under
Subsection (1).
(5) In addition to the tax required by this part, a charging station operator shall pay a
penalty as provided in Section 
59-1-401
, plus interest at the rate and in the manner prescribed
in Section 
59-1-402
, if the charging station operator subject to this section fails to:
(a) pay the tax prescribed by this section by the due date described in Subsection (3); or
(b) file a return required by this section by the due date described in Subsection (3).
(6) The commission shall deposit revenue from the tax imposed in Subsection (1) into
the Transportation Fund.
Section 5. Section 
59-30-103
 is enacted to read:
 59-30-103.
Collection of electric vehicle charging tax.
(1) The commission shall administer, collect, and enforce a tax under this chapter in
accordance with:
(a) Chapter 1, General Taxation Policies; and
(b) the same procedures used to administer, collect, and enforce the tax under Chapter
12, Part 1, Tax Collection.
(2) A charging station operator required to collect a tax under this chapter may retain
6% of any amounts the seller is required to remit to the commission under this chapter for the
costs of collecting the tax.
(3) The commission shall retain and deposit an administrative charge in accordance
with Section 
59-1-306
 from the revenues the commission collects from a tax under this
chapter.
Section 6. 
Effective date.
(1) Except as provided in Subsection (2), this bill takes effect on January 1, 2024.
(2) The amendments to Section 
59-13-201
 in this bill take effect on July 1, 2023.