DAR File No. 27389

Tax Commission, Auditing

R865-4D-24

Off-Highway Use of Undyed Diesel Fuel Pursuant to Utah Code Ann. Section 59-13-301

NOTICE OF PROPOSED RULE

DAR File No.: 27389
Filed: 09/01/2004, 02:56
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-13-301 provides that special fuel taxes paid for undyed diesel fuel used off-highway shall be refunded. That section also requires the Tax Commission to make rules governing the application and refund for off-highway use of undyed diesel fuel.

Summary of the rule or change:

The proposed section indicates when undyed diesel fuel is considered off-highway use, and the documentation that must accompany a refund request for off-highway use of undyed diesel fuel.

State statutory or constitutional authorization for this rule:

Section 59-13-301

Anticipated cost or savings to:

the state budget:

Insignificant increase in state revenues as this slightly narrows the conditions that satisfy off-highway use.

local governments:

This is a state tax only, and therefore, there are no costs or savings to local government.

other persons:

Insignificant cost as this slightly narrows the conditions that satisfy off-highway use.

Compliance costs for affected persons:

Depending on an individual's use of fuel, this proposed amendment may decrease the individual's refund for off-highway use of undyed diesel fuel.

Comments by the department head on the fiscal impact the rule may have on businesses:

Businesses may see a slight decrease in the tax refunded for off highway use since this clarification slightly narrows the conditions that allow for a refund.

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

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/15/2004

This rule may become effective on:

10/16/2004

Authorized by:

Pam Hendrickson, Commissioner

RULE TEXT

R865. Tax Commission, Auditing.

R865-4D. Special Fuel Tax.

R865-4D-24. Off-Highway Use of Undyed Diesel Fuel Pursuant to Utah Code Ann. Section 59-13-301.

A. 1. "Off-highway," for purposes of determining whether undyed diesel fuel is used in a vehicle off-highway, means every way or place, of whatever nature, that is not generally open to the use of the public for the purpose of vehicular travel.

2. "Off-highway" does not include:

a) a parking lot that the public may use; or

b) the curbside of a highway.

B. The following documentation must accompany a refund request for special fuel tax paid on undyed diesel fuel used in a vehicle off-highway:

1. evidence that clearly indicates that the undyed diesel fuel was used in a vehicle off-highway;

2. the specific address of the off-highway use with a detailed description of the off-highway nature of the location;

3. the amount of time in which the vehicle used the fuel off-highway;

4. the amount of fuel the vehicle used off-highway; and

5. the make and model, weight, and miles per gallon of the vehicle used off-highway.

KEY: taxation, fuel, special fuel

[September 25, 2003]2004

Notice of Continuation March 15, 2002

59-13-301

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.