59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer and credited to Transportation Fund -- Reduction of tax in limited circumstances.
(1) Except as provided in Subsections,,,, andand Section, a tax is imposed at the same rate imposed under Subsectionon the: (1)(b) (2) (3) (11) (12) 59-13-301.5 59-13-201(1)(a) removal of undyed diesel fuel from any refinery; removal of undyed diesel fuel from any terminal; entry into the state of any undyed diesel fuel for consumption, use, sale, or warehousing; 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; any untaxed special fuel blended with undyed diesel fuel; or use of untaxed special fuel other than propane or electricity. For the special fuel tax rate beginning on July 1, 2026, and ending on December 31, 2026: the adjustment described in Subsectiondoes not apply; and 59-13-201(1)(a)(ii) the commission shall apply the same rate in place as of January 1, 2026. The tax imposed under this section shall only be imposed once upon any special fuel.
(2) No special fuel tax is imposed or collected upon dyed diesel fuel which: 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 is sold to this state or any of its political subdivisions. No special fuel tax is imposed on undyed diesel fuel or clean fuel that is: sold to the United States government or any of its instrumentalities or to this state or any of its political subdivisions; exported from this state if proof of actual exportation on forms prescribed by the commission is made within 180 days after exportation; used in a vehicle off-highway; used to operate a power take-off unit of a vehicle; used for off-highway agricultural uses; used in a separately fueled engine on a vehicle that does not propel the vehicle upon the highways of the state; or 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: purchased for business use in machinery and equipment not registered and not required to be registered for highway use; and used in accordance with the conditions of a state implementation plan approved under; or Title 19, Chapter 2, Air Conservation Act propane or electricity.
(4) Upon request of a buyer meeting the requirements under Subsection, the Division of Air Quality shall issue an exemption certificate that may be shown to a seller. (3)
(5) The special fuel tax shall be paid by the supplier.
(6) The special fuel tax shall be paid by every user who is required by Sectionsandto obtain a special fuel user permit and file special fuel tax reports. 59-13-303 59-13-305 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) Except as provided under Subsectionsand, 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. (7)(b) (c) 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. Five dollars of each special fuel user trip permit fee paid under Sectionmay be used by the commission as a dedicated credit to cover the costs of electronic credentialing as provided in Section. 59-13-303 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) 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. 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 (9)(a)
(10) The purchaser shall pay the tax on diesel fuel or clean fuel purchased for uses under Subsections,,,,, andand apply for a refund for the tax paid as provided in Subsectionand this Subsection. (2)(b)(i) (iii) (iv) (v) (vi) (vii) (9) (10) In accordance with, the commission shall make rules governing the application and refund for off-highway and nonhighway uses provided under Subsections,,, and. Title 63G, Chapter 3, Utah Administrative Rulemaking Act (2)(b)(iii) (iv) (vi) (vii) 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 tax imposed under this section on special fuel is reduced to the extent provided in Subsectionif: (11)(b) the Navajo Nation imposes a tax on the special fuel; 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 (11)(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. (11) If but for Subsectionthe special fuel is subject to a tax imposed by this section: (11)(a) the state shall be paid the difference described in Subsectionif that difference is greater than $0; and (11)(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. (11)(b)(ii) The difference described in Subsectionis equal to the difference between: (11)(b)(i) the amount of tax imposed on the special fuel by this section; less the tax imposed and collected by the Navajo Nation on the special fuel. For purposes of Subsectionsand, 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. (11)(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 (11) The agreement required under Subsection: (11)(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 (11) 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 suppliers, 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 special fuel, any change in the amount of 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: (11) from the Navajo Nation; and meeting the requirements of Subsection. (11)(f)(ii) The notice described in Subsectionshall state: (11)(f)(i) that the Navajo Nation has changed or will change the tax rate of a tax imposed on special fuel; the effective date of the rate change of the tax described in Subsection; and (11)(f)(ii)(A) the new rate of the tax described in Subsection. (11)(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. (11)(a) (11) If there is a conflict between this Subsectionand the agreement required by Subsection, this Subsectiongoverns. (11) (11)(a) (11)
(12) Beginning on January 1, 2026, and subject to Subsectionsand, a tax imposed under this section on compressed natural gas is imposed at a rate of $0.212 per gallon equivalent. (12)(a)(ii) (iii) Beginning on January 1, 2027, the commission shall, on January 1, annually adjust the rate of a tax imposed under this section on compressed natural gas by taking the rate for the previous calendar year and adding an amount equal to the greater of: an amount calculated by multiplying the rate of a tax imposed under this section on compressed natural gas for the previous calendar year by the actual percent change during the previous fiscal year in the Consumer Price Index; and 0 The rate of a tax imposed under this section on compressed natural gas determined by the commission under Subsectionmay not exceed 22-1/2 cents per gasoline gallon equivalent. (12)(a)(ii) Beginning on January 1, 2026, and subject to Subsectionsand, a tax imposed under this section on liquified natural gas is imposed at a rate of $0.212 per gallon equivalent. (12)(b)(ii) (iii) Beginning on January 1, 2027, the commission shall, on January 1, annually adjust the rate of a tax imposed under this section on liquified natural gas by taking the rate for the previous calendar year and adding an amount equal to the greater of: an amount calculated by multiplying the rate of a tax imposed under this section on liquified natural gas for the previous calendar year by the actual percent change during the previous fiscal year in the Consumer Price Index; and 0 The rate of a tax imposed under this section on liquified natural gas determined by the commission under Subsectionmay not exceed 22-1/2 cents per diesel gallon equivalent. (12)(b)(ii) Beginning on January 1, 2026, and subject to Subsectionsand, 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 $0.212 per gallon equivalent. (12)(c)(ii) (iii) Beginning on January 1, 2027, the commission shall, on January 1, annually adjust the rate of a tax imposed under this section on hydrogen used to operate or propel a motor vehicle upon the public highways of the state by taking the rate for the previous calendar year and adding an amount equal to the greater of: an amount calculated by multiplying the rate of a tax imposed under this section on hydrogen used to operate or propel a motor vehicle upon the public highways of the state for the previous calendar year by the actual percent change during the previous fiscal year in the Consumer Price Index; and 0 The rate of a tax imposed under this section on hydrogen used to operate or propel a motor vehicle upon the public highways of the state determined by the commission under Subsectionmay not exceed 22-1/2 cents per gasoline gallon equivalent. (12)(c)(ii) The commission shall annually: adjust the fuel tax rates imposed under Subsections,, and, rounded to the nearest one-tenth of a cent; (12)(a)(ii) (b)(ii) (c)(ii) 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. (12)(d)(i)(A) (12)(d)(ii) The tax rates imposed under this Subsectionand adjusted as required under Subsectionshall take effect on January 1 of each year. (12) (12)(d)(i)