Utah Department of Administrative Services Division of Administrative Rules

Tax Commission, Auditing

Rule R865-4D

Special Fuel Tax

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 35598
Filed: 01/03/2012 10:37:38 AM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

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

Section 59-13-102 provides definitions relating to the motor and special fuel taxes. Section 59-13-301 imposes a tax on special fuels and provides for exemptions to the tax. Section 59-13-305(1) requires the user to file a report with the Tax Commission showing the fuel purchased and used in the state. Section 59-13-307 requires the supplier to file a report with the Tax Commission showing fuel delivered to or removed from the state. Section 59-13-312 requires users and user-dealers to keep records in a form prescribed by the commission, of all purchases, receipts and sales. Section 59-13-501 allows the commission to enter into cooperative agreements with other states for the exchange of information and auditing of fuels used by fleets of interstate vehicles. Section 59-13-313 requires the Commission to enforce special fuels tax laws and prescribe rules as necessary to enforce those laws.

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

None.

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

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

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

Direct questions regarding this rule to:

• Christa Johnson at the above address, by phone at 801-297-3901, by FAX at 801-297-3907, or by Internet E-mail at cj@utah.gov

Authorized by:

Michael Cragun, Tax Commissioner

Effective:

01/03/2012