Bill Summary – FastDemocracy

Enrolled Copy                                                                          H.B. 301
                          TRANSPORTATION TAX AMENDMENTS
                                        2023 GENERAL SESSION
                                             STATE OF UTAH
                                   Chief Sponsor: Mike Schultz
                                 Senate Sponsor: Wayne A. Harper
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 LONG TITLE
 General Description:
         This bill reduces the tax on motor fuel, increases vehicle registration fees, and imposes
 a tax on the sale of electricity for electric vehicle charging.
 Highlighted Provisions:
         This bill:
         < increases vehicle registration fees by $7;
         < amends provisions related to and reduces the rate for motor fuel tax;
         < imposes a tax on the sale of electricity at an electric vehicle charging station or an
 electric vehicle charging subscription and deposits the revenue into the
 Transportation Fund; and
         < makes technical changes.
 Money Appropriated in this Bill:
         None
 Other Special Clauses:
         This bill provides a special effective date.
 Utah Code Sections Affected:
 AMENDS:
         41-1a-1206, as last amended by Laws of Utah 2022, Chapters 56, 259
         59-13-201, as last amended by Laws of Utah 2022, Chapter 68
 ENACTS:
         59-30-101, Utah Code Annotated 1953
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        59-30-102, Utah Code Annotated 1953
        59-30-103, Utah Code Annotated 1953
31
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 41-1a-1206 is amended to read:
        41-1a-1206. Registration fees -- Fees by gross laden weight.
        (1) Except as provided in Subsections (2) and (3), at the time application is made for
 registration or renewal of registration of a vehicle or combination of vehicles under this
 chapter, a registration fee shall be paid to the division as follows:
        (a) $46.00 for each motorcycle;
        (b) $44 for each motor vehicle of 12,000 pounds or less gross laden weight, excluding
 motorcycles;
        (c) unless the semitrailer or trailer is exempt from registration under Section 41-1a-202
 or is registered under Section 41-1a-301:
        (i) $31 for each trailer or semitrailer over 750 pounds gross unladen weight; or
        (ii) $28.50 for each commercial trailer or commercial semitrailer of 750 pounds or less
 gross unladen weight;
        (d) (i) $53 for each farm truck over 12,000 pounds, but not exceeding 14,000 pounds
 gross laden weight; plus
        (ii) $9 for each 2,000 pounds over 14,000 pounds gross laden weight;
        (e) (i) $69.50 for each motor vehicle or combination of motor vehicles, excluding farm
 trucks, over 12,000 pounds, but not exceeding 14,000 pounds gross laden weight; plus
        (ii) $19 for each 2,000 pounds over 14,000 pounds gross laden weight;
        (f) (i) $69.50 for each park model recreational vehicle over 12,000 pounds, but not
 exceeding 14,000 pounds gross laden weight; plus
        (ii) $19 for each 2,000 pounds over 14,000 pounds gross laden weight;
        (g) $45 for each vintage vehicle that has a model year of 1981 or newer;
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         (h) in addition to the fee described in Subsection (1)(b):
         (i) an amount equal to the road usage charge cap described in Section 72-1-213.1 for:
         (A) each electric motor vehicle; and
         (B) Each motor vehicle not described in this Subsection (1)(h) that is fueled
 exclusively by a source other than motor fuel, diesel fuel, natural gas, or propane;
         (ii) $21.75 for each hybrid electric motor vehicle; and
         (iii) $56.50 for each plug-in hybrid electric motor vehicle; and
         (i) in addition to the fee described in Subsection (1)(g), for a vintage vehicle that has a
 model year of 1981 or newer, 50 cents.
         (2) (a) At the time application is made for registration or renewal of registration of a
 vehicle under this chapter for a six-month registration period under Section 41-1a-215.5, a
 registration fee shall be paid to the division as follows:
         (i) $34.50 for each motorcycle; and
         (ii) $33.50 for each motor vehicle of 12,000 pounds or less gross laden weight,
 excluding motorcycles.
         (b) In addition to the fee described in Subsection (2)(a)(ii), for registration or renewal
 of registration of a vehicle under this chapter for a six-month registration period under Section
 41-1a-215.5 a registration fee shall be paid to the division as follows:
         (i) an amount equal to the road usage charge cap described in Section 72-1-213.1 for:
         (A) each electric motor vehicle; and
         (B) each motor vehicle not described in this Subsection (2)(b) that is fueled exclusively
 by a source other than motor fuel, diesel fuel, natural gas, or propane;
         (ii) $16.50 for each hybrid electric motor vehicle; and
         (iii) $43.50 for each plug-in hybrid electric motor vehicle.
         (3) (a) Beginning on January 1, 2024, at the time of registration:
         (i) in addition to the amounts described in Subsections (1)(a), (1)(b), (1)(c)(i),
 (1)(c)(ii), (1)(d)(i), (1)(e)(i), (1)(f)(i), (1)(g), (1)(h), (4)(a), and (7), the individual shall also pay
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 an additional $7 as part of the registration fee; and
         (ii) in addition to the amounts described in Subsection (2)(a), the individual shall also
 pay an additional $5 as part of the registration fee.
         [(a)] (b) (i) Beginning on January 1, 2019, the commission shall, on January 1,
 annually adjust the registration fees described in Subsections (1)(a), (1)(b), (1)(c)(i), (1)(c)(ii),
 (1)(d)(i), (1)(e)(i), (1)(f)(i), (1)(g), (2)(a), (3)(a), (4)(a), and (7), by taking the registration fee
 rate for the previous year and adding an amount equal to the greater of:
         (A) an amount calculated by multiplying the registration fee of the previous year by the
 actual percentage change during the previous fiscal year in the Consumer Price Index; and
         (B) 0.
         (ii) Beginning on January 1, 2024, the commission shall, on January 1, annually adjust
 the registration fees described in Subsections (1)(h)(ii) and (iii) and (2)(b)(ii) and (iii) by taking
 the registration fee rate for the previous year and adding an amount equal to the greater of:
         (A) an amount calculated by multiplying the registration fee of the previous year by the
 actual percentage change during the previous fiscal year in the Consumer Price Index; and
         (B) 0.
         [(b)] (c) The amounts calculated as described in Subsection [(3)(a)] (3)(b) shall be
 rounded up to the nearest 25 cents.
         (4) (a) The initial registration fee for a vintage vehicle that has a model year of 1980 or
 older is $40.
         (b) A vintage vehicle that has a model year of 1980 or older is exempt from the
 renewal of registration fees under Subsection (1).
         (c) A vehicle with a Purple Heart special group license plate issued in accordance with
 Section 41-1a-421 is exempt from the registration fees under Subsection (1).
         (d) A camper is exempt from the registration fees under Subsection (1).
         (5) If a motor vehicle is operated in combination with a semitrailer or trailer, each
 motor vehicle shall register for the total gross laden weight of all units of the combination if the
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        Enrolled Copy                                                                           H.B. 301
 total gross laden weight of the combination exceeds 12,000 pounds.
        (6) (a) Registration fee categories under this section are based on the gross laden
 weight declared in the licensee's application for registration.
        (b) Gross laden weight shall be computed in units of 2,000 pounds. A fractional part
 of 2,000 pounds is a full unit.
        (7) The owner of a commercial trailer or commercial semitrailer may, as an alternative
 to registering under Subsection (1)(c), apply for and obtain a special registration and license
 plate for a fee of $130.
        (8) Except as provided in Section 41-6a-1642, a truck may not be registered as a farm
 truck unless:
        (a) the truck meets the definition of a farm truck under Section 41-1a-102; and
        (b) (i) the truck has a gross vehicle weight rating of more than 12,000 pounds; or
        (ii) the truck has a gross vehicle weight rating of 12,000 pounds or less and the owner
 submits to the division a certificate of emissions inspection or a waiver in compliance with
 Section 41-6a-1642.
        (9) A violation of Subsection (8) is an infraction that shall be punished by a fine of not
 less than $200.
        (10) Trucks used exclusively to pump cement, bore wells, or perform crane services
 with a crane lift capacity of five or more tons, are exempt from 50% of the amount of the fees
 required for those vehicles under this section.
        Section 2. Section 59-13-201 is amended to read:
        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) (a) (i) Subject to the provisions of this section and except as provided in Subsection
 (1)(e), a tax is imposed at the rate of [16.5%] 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
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 used in this state.
           (ii) Notwithstanding Subsection (1)(a)(i), for the period beginning on July 1, 2023, and
 ending on December 31, 2023, the rate described in Subsection (1)(a)(i) shall be 34.5 cents per
 gallon.
           (b) (i) Until December 31, 2018, and subject to the requirements under Subsection
 (1)(c), the statewide average rack price of a gallon of motor fuel under Subsection (1)(a) shall
 be determined by calculating the previous fiscal year statewide average rack price of a gallon of
 regular unleaded motor fuel, excluding federal and state excise taxes, for the 12 months ending
 on the previous June 30 as published by an oil pricing service.
           (ii) Beginning on January 1, 2019, and subject to the requirements under Subsection
 (1)(c), the statewide average rack price of a gallon of motor fuel under Subsection (1)(a) shall
 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.
           (c) (i) Subject to the requirement in Subsection (1)(c)(ii), the statewide average rack
 price of a gallon of motor fuel determined under Subsection (1)(b) may not be less than $1.78
 per gallon.
           (ii) Beginning on January 1, 2019, the commission shall, on January 1, annually adjust
 the minimum statewide average rack price of a gallon of motor fuel described in Subsection
 (1)(c)(i) by 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:
           (A) 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
           (B) 0.
           (iii) The statewide average rack price of a gallon of motor fuel determined by the
 commission under Subsection (1)(b) may not exceed [$2.43 per gallon.]:
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        Enrolled Copy                                                                               H.B. 301
         (A) for a calendar year beginning on January 1, 2024, $2.57 per gallon;
         (B) for a calendar year beginning on January 1, 2025, $2.71 per gallon;
         (C) for a calendar year beginning on January 1, 2026, $2.82 per gallon; and
         (D) for a calendar year beginning on January 1, 2028, and thereafter, $2.96 per gallon.
         (iv) The minimum statewide average rack price of a gallon of motor fuel described and
 adjusted under Subsections (1)(c)(i) and (ii) may not exceed the maximum statewide average
 rack price of a gallon of motor fuel under Subsection (1)(c)(iii).
         (d) (i) The commission shall annually:
         (A) determine the statewide average rack price of a gallon of motor fuel in accordance
 with Subsections (1)(b) and (c);
         (B) adjust the fuel tax rate imposed under Subsection (1)(a), rounded to the nearest
 one-tenth of a cent, based on the determination under Subsection (1)(b);
         (C) publish the adjusted fuel tax as a cents per gallon rate; and
         (D) post or otherwise make public the adjusted fuel tax rate as determined in
 Subsection (1)(d)(i)(B) no later than 60 days before the annual effective date under Subsection
 (1)(d)(ii).
         (ii) The tax rate imposed under this Subsection (1) and adjusted as required under
 Subsection (1)(d)(i) shall take effect on January 1 of each year.
         (e) In lieu of the tax imposed under Subsection (1)(a) and subject to the provisions of
 this section, a tax is imposed at the rate of 3/19 of the rate imposed under Subsection (1)(a),
 rounded up to the nearest penny, upon all motor fuels that meet the definition of clean fuel in
 Section 59-13-102 and are sold, used, or received for sale or use in this state.
         (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) (a) No motor fuel tax is imposed upon:
         (i) motor fuel that is brought into and sold in this state in original packages as purely
 interstate commerce sales;
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         (ii) 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;
         (iii) 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
         (iv) motor fuel that is sold to the United States government, this state, or the political
 subdivisions of this state.
         (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
 commission shall make rules governing the procedures for administering the tax exemption
 provided under Subsection (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) (a) All revenue received by the commission under this part shall be deposited daily
 with the state treasurer and credited to the Transportation Fund.
         (b) 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) (a) 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 Title 73,
 Chapter 18, State Boating Act, and this amount shall be deposited into a restricted revenue
 account in the General Fund of the state.
         (b) 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) (a) 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
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        Enrolled Copy                                                                              H.B. 301
 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.
           (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
 commission shall make rules governing the application and refund provided for in Subsection
 (7)(a).
           (8) (a) The commission shall refund annually into the Off-highway Vehicle Account in
 the General Fund an