Tax Commission, Auditing

Section R865-13G-10

Exemption For Purchase of Motor Fuels by State and Local Government Agencies Pursuant to Utah Code Ann. Section 59-13-201

Notice of Proposed Rule

(Amendment)

DAR File No.: 35146
Filed: 08/11/2011 02:31:41 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed amendment updates the section to match the current agency practice.

Summary of the rule or change:

The proposed amendment provides that a licensed motor fuels distributor that claims a deduction of Utah motor fuels tax as a result of sales to the state must retain a copy of the relevant sales invoice, but is not required to attach any such invoices to the motor fuels tax return, and makes technical changes.

State statutory or constitutional authorization for this rule:

• Section 59-13-201

Anticipated cost or savings to:

the state budget:

None--The amendments update the rule to match current processes.

local governments:

None--The amendments update the rule to match current processes.

small businesses:

None--The amendments update the rule to match current processes.

persons other than small businesses, businesses, or local governmental entities:

None--The amendments update the rule to match current processes.

Compliance costs for affected persons:

None--The amendments update the rule to match current processes.

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

This amendment creates no fiscal impact because it conforms the rule to agency practice.

Michael Cragun, 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:

• 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

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:

10/03/2011

This rule may become effective on:

10/10/2011

Authorized by:

Michael Cragun, Tax Commissioner

R865. Tax Commission, Auditing.

R865-13G. Motor Fuel Tax.

R865-13G-10. Exemption For Purchase of Motor Fuels by State and Local Government Agencies Pursuant to Utah Code Ann. Section 59-13-201.

[A.](1) Sales to an Indian tribe for its exclusive use, acting in its tribal capacity, are exempt from taxation. Sales to individual tribal members, to Indian businesses operating on or off tribal territory, or to other nontribal organizations for personal use, retail sales purposes, or distribution to third parties do not qualify for the exemption for sales to Indian tribes.

[B.](2) Licensed distributors may claim the exemption on sales to government agencies by taking the deduction on their motor fuel tax return for the month in which the sales occurred.

[1.](a) Nonlicensed distributors making qualifying sales to government agencies must obtain credit for the exemption through the return of the licensed distributor supplying them with the fuel for the sales.

[2.](b) [Each]A licensed distributor shall support each sale claimed as a deduction [must be supported with]by retaining a copy of the sales invoice[ attached to the return]. The sales invoice must be in proper form and must contain sufficient information to substantiate the exemption status of the sale according to this rule.

[C.](3) The fuel tax exemption for motor fuel sold to the United States, this state, or a political subdivision of this state shall be administered in the form of a refund if the government entity purchases the motor fuel after the tax imposed by Title 59, Chapter 13, Part 2 was paid. For refund procedures, see rule R865-13G-13.

 

KEY: taxation, motor fuel, gasoline, environment

Date of Enactment or Last Substantive Amendment: [September 14, 2004]2011

Notice of Continuation: March 9, 2007

Authorizing, and Implemented or Interpreted Law: 59-13-201; 59-13-202; 59-13-203.1; 59-13-204; 59-13-208; 59-13-210; 59-13-404