DAR File No. 32335

Tax Commission, Auditing

R865-4D-6

Invoices pursuant to Utah Code Ann. Sections 59-13-301 and 59-13-313

NOTICE OF PROPOSED RULE

DAR File No.: 32335
Filed: 01/29/2009, 12:15
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 106 (2008 General Session) imposed a special fuels tax on compressed natural gas (CNG) and repealed the clean special fuel certificate effective 01/01/2009. (DAR NOTE: H.B. 106 (2008) is found at Chapter 153, Laws of Utah 2008, and was effective 01/01/2009.)

Summary of the rule or change:

The proposed amendment deletes language that referred to a tax on CNG in the form of a clean special fuel certificate since: 1) CNG is now subject to a special fuels tax; and 2) there is no longer a clean special fuel certificate.

State statutory or constitutional authorization for this rule:

Sections 59-13-301 and 59-13-313

Anticipated cost or savings to:

the state budget:

None--Any fiscal impact was taken into account in H.B. 106 (2008).

local governments:

None--Any fiscal impact was taken into account in H.B. 106 (2008).

small businesses and persons other than businesses:

None--Any fiscal impact was taken into account in H.B. 106 (2008).

Compliance costs for affected persons:

None--Retailers will no longer need to retain a clean special fuel certificate number.

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

There are no anticipated fiscal impacts. D'Arcy Dixon, Commissioner

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

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY UT 84134

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:

03/17/2009

This rule may become effective on:

03/24/2009

Authorized by:

D'Arcy Dixon, Commissioner

R865. Tax Commission, Auditing.

R865-4D. Special Fuel Tax.

R865-4D-6. Invoices Pursuant to Utah Code Ann. Sections 59-13-301 and 59-13-313.

A. If requested, a retail dealer must issue to a purchaser of special fuel an invoice that indicates the fuel taxes that have been included in the price of purchased fuel. This invoice shall serve as evidence that the special fuel tax has been paid.

B. Invoices must be numbered consecutively, made in duplicate, and contain the following information:

1. name and address of seller;

2. place of sale;

3. date of sale;

4. name and address of purchaser;

5. fuel type;

6. number of gallons sold;

7. unit number or other vehicle identification if delivered into a motor vehicle;

8. type of container delivered into if not a motor vehicle;

9. invoice number; and

10. amount and type of state tax paid on the special fuel, if any.

C. A retail dealer must charge sales tax on diesel fuel that is exempt from special fuel tax unless the retail dealer has received and retains on file a properly completed sales and use tax exemption certificate indicating that the transaction is exempt from sales tax.

D. A retail dealer that sells propane exempt from special fuel tax, but subject to sales tax, must at the time of each sale and delivery keep a record of the exempt sale. This record shall be in the form of an invoice or a log, and shall serve as evidence that the sale is exempt from special fuel tax.

1. If the record is in the form of an invoice, it shall contain the information required under B.

2. If the record is in the form of a log, it shall contain the following information:

a) name and address of the retail dealer;

b) date of sale;

c) amount of propane sold; and

d) purchaser's name.

E. A retail dealer that sells propane[, compressed natural gas,] or electricity exempt from sales tax shall retain the following information for each exempt sale:

1. the make, year, and license number of the vehicle;

2. the name and address of the purchaser; and

3. the quantity (e.g., number of gallons) sold[; and

4. the clean special fuel certificate number].

F. A retail dealer is not required to obtain an exemption certificate from a purchaser of dyed diesel fuel indicating that the dyed diesel fuel will be used for purposes other than to operate a motor vehicle upon the highways of the state if the retail dealer complies with the notice requirement under 26 C.F.R. Section 48.4082-2.

G. A retail dealer may not sell dyed diesel fuel exempt from special fuel tax if the retail dealer knows that the fuel will be used to operate a motor vehicle upon the highways of the state.

 

KEY: taxation, fuel, special fuel

Date of Enactment or Last Substantive Amendment: [January 1], 2009

Notice of Continuation: February 26, 2007

Authorizing, and Implemented or Interpreted Law: 59-13-301; 59-13-313