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) Subject to Subsectionand the provisions of this section and except as provided in Subsection, a tax is imposed at the rate of 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. (1)(a)(ii) (1)(e) Beginning on July 1, 2026, and ending on December 31, 2026, the commission shall apply a tax rate of $0.319 per gallon upon all motor fuel that is sold, used, or received for sale or used in this state. Subject to the requirements under Subsection, the statewide average rack price of a gallon of motor fuel under Subsectionshall 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. (1)(c) (1)(a) Subject to the requirement in Subsection, the three-year rolling average of the statewide average rack price of a gallon of motor fuel determined under Subsectionmay not be less than $1.78 per gallon. (1)(c)(ii) (1)(b) The commission shall, on January 1, annually adjust the minimum statewide average rack price of a gallon of motor fuel described in Subsectionby 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: (1)(c)(i) 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 0 The statewide average rack price of a gallon of motor fuel determined by the commission under Subsectionmay not exceed: (1)(b) for a calendar year beginning on January 1, 2026, $2.82 per gallon; and for a calendar year beginning on January 1, 2028, and thereafter, $2.96 per gallon. The minimum statewide average rack price of a gallon of motor fuel described and adjusted under Subsectionsandmay not exceed the maximum statewide average rack price of a gallon of motor fuel under Subsection. (1)(c)(i) (ii) (1)(c)(iii) The commission shall annually: determine the three-year rolling average of the statewide average rack price of a gallon of motor fuel in accordance with Subsectionsand; (1)(b) (c) adjust the fuel tax rate imposed under Subsection, rounded to the nearest one-tenth of a cent, based on the determination under Subsection; (1)(a) (1)(b) publish the adjusted fuel tax as a cents per gallon rate; and post or otherwise make public the adjusted fuel tax rate as determined in Subsectionno later than 60 days before the annual effective date under Subsection. (1)(d)(i)(B) (1)(d)(ii) The tax rate imposed under this Subsectionand adjusted as required under Subsectionshall take effect on January 1 of each year. (1) (1)(d)(i) In lieu of the tax imposed under Subsectionand subject to the provisions of this section, a tax is imposed at the rate of 3/19 of the rate imposed under Subsection, rounded up to the nearest penny, upon all motor fuels that meet the definition of clean fuel in Sectionand are sold, used, or received for sale or use in this state. (1)(a) (1)(a) 59-13-102
(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) No motor fuel tax is imposed upon: motor fuel that is brought into and sold in this state in original packages as purely interstate commerce sales; 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; 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 motor fuel that is sold to the United States government, this state, or the political subdivisions of this state. In accordance with, the commission shall make rules governing the procedures for administering the tax exemption provided under Subsection. Title 63G, Chapter 3, Utah Administrative Rulemaking Act (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) All revenue received by the commission under this part shall be deposited daily with the state treasurer and credited to the Transportation Fund. 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) 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, and this amount shall be deposited into a restricted revenue account in the General Fund of the state. Title 73, Chapter 18, State Boating Act 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) 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. In accordance with, the commission shall make rules governing the application and refund provided for in Subsection. Title 63G, Chapter 3, Utah Administrative Rulemaking Act (7)(a)
(8) 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. This amount shall be used as provided in Section. 41-22-19
(9) 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 Subsectionif: (9)(b) 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; the tax described in Subsectionis imposed without regard to whether the person required to pay the tax is an enrolled member of the Navajo Nation; and (9)(a)(i) the commission and the Navajo Nation execute and maintain an agreement as provided in this Subsectionfor the administration of the reduction of tax. (9) If but for Subsectionthe motor fuel is subject to a tax imposed by this section: (9)(a) the state shall be paid the difference described in Subsectionif that difference is greater than $0; and (9)(b)(ii) a person may not require the state to provide a refund, a credit, or similar tax relief if the difference described in Subsectionis less than or equal to $0. (9)(b)(ii) The difference described in Subsectionis equal to the difference between: (9)(b)(i) the amount of tax imposed on the motor fuel by this section; less the tax imposed and collected by the Navajo Nation on the motor fuel. For purposes of Subsectionsand, 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. (9)(a) (b) In accordance with, the commission shall make rules governing the procedures for administering the reduction of tax provided under this Subsection. Title 63G, Chapter 3, Utah Administrative Rulemaking Act (9) The agreement required under Subsection: (9)(a) may not: authorize the state to impose a tax in addition to a tax imposed under this chapter; provide a reduction of taxes greater than or different from the reduction described in this Subsection; or (9) affect the power of the state to establish rates of taxation; shall: be in writing; be signed by the chair of the commission or the chair's designee, and a person designated by the Navajo Nation that may bind the Navajo Nation; be conditioned on obtaining any approval required by federal law; state the effective date of the agreement; and 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 may: notwithstanding Section, authorize the commission to disclose to the Navajo Nation information that is contained in a document filed with the commission, and related to the tax imposed under this section; 59-1-403 provide for maintaining records by the commission or the Navajo Nation; or provide for inspections or audits of distributors, carriers, or retailers located or doing business within the Utah portion of the Navajo Nation. If the Navajo Nation changes the tax rate of a tax imposed on motor fuel, any change in the reduction of taxes under this Subsectionas 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: (9) from the Navajo Nation; and meeting the requirements of Subsection. (9)(f)(ii) The notice described in Subsectionshall state: (9)(f)(i) that the Navajo Nation has changed or will change the tax rate of a tax imposed on motor fuel; the effective date of the rate change of the tax described in Subsection; and (9)(f)(ii)(A) the new rate of the tax described in Subsection. (9)(f)(ii)(A) If the agreement required by Subsectionterminates, a reduction of tax is not permitted under this Subsectionbeginning on the first day of the calendar quarter after a 30-day period beginning on the day the agreement terminates. (9)(a) (9) If there is a conflict between this Subsectionand the agreement required by Subsection, this Subsectiongoverns. (9) (9)(a) (9)