2001 Legislation
Print Friendly

HOUSE BILL NO. 167 – Motor fuels tax, exemptions, rpts


View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History

H0167.........................................by TRANSPORTATION AND DEFENSE
MOTOR FUELS TAX - Amends existing law regarding motor fuel taxes to allow
certain special fuel users who primarily bear the cost of maintaining
certain roads to exclude those roads as highways for all vehicles under
their control; to clarify that certain motor vehicles not licensed for
highway use are entitled to a refund; and to authorize the State Tax
Commission to reduce or eliminate certain reporting requirements from fuel
importers and pipeline terminal operators.
02/07    House intro - 1st rdg - to printing
02/08    Rpt prt - to Transp
02/13    Rpt out - rec d/p - to 2nd rdg
02/14    2nd rdg - to 3rd rdg
02/16    3rd rdg - PASSED - 66-0-4
      AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Bolz, Bradford,
      Bruneel, Callister, Campbell, Chase, Clark, Collins, Crow, Cuddy,
      Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20),
      Gagner, Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck,
      Jaquet, Jones, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher,
      Mader, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce,
      Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali,
      Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stone, Swan,
      Tilman, Trail, Wood, Young, Mr. Speaker
      NAYS -- None
      Absent and excused -- Black, Boe, Marley, Wheeler
    Floor Sponsor -- Cuddy
    Title apvd - to Senate
02/19    Senate intro - 1st rdg - to Transp
03/02    Rpt out - rec d/p - to 2nd rdg
03/05    2nd rdg - to 3rd rdg
03/16    3rd rdg - PASSED - 30-0-5
      AYES -- Andreason, Branch(Bartlett), Boatright, Brandt, Bunderson,
      Cameron, Danielson, Davis, Deide, Dunklin, Frasure, Geddes, Goedde,
      Hawkins, Ingram, Keough, King-Barrutia, Lee, Lodge, Noh, Richardson,
      Risch, Sandy, Schroeder, Sims, Sorensen, Stennett, Thorne, Wheeler,
      NAYS -- None
      Absent and excused -- Burtenshaw, Darrington, Ipsen, Stegner,
    Floor Sponsor -- Thorne
    Title apvd - to House
03/19    To enrol
03/20    Rpt enrol - Sp signed
03/21    Pres signed - to Governor
03/22    Governor signed
         Session Law Chapter 104
         Effective: 07/01/01

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 167
  1                                        AN ACT
 10    Be It Enacted by the Legislature of the State of Idaho:
 11        SECTION 1.  That Section 63-2401, Idaho Code, be, and the same  is  hereby
 12    amended to read as follows:
 13        63-2401.  DEFINITIONS. In this chapter:
 14        (1)  "Aircraft engine fuel" means:
 15        (a)  Aviation  gasoline,  defined  as any mixture of volatile hydrocarbons
 16        used in aircraft reciprocating engines; and
 17        (b)  Jet fuel, defined as any mixture of  volatile  hydrocarbons  used  in
 18        aircraft turbojet and turboprop engines.
 19        (2)  "Bond" means:
 20        (a)  A  surety  bond, in an amount required by this chapter, duly executed
 21        by a surety company licensed and authorized to do business in  this  state
 22        conditioned upon faithful performance of all requirements of this chapter,
 23        including  the payment of all taxes, penalties and other obligations aris-
 24        ing out of the provisions of this chapter; or
 25        (b)  A deposit with the commission by any person required to  be  licensed
 26        pursuant  to this chapter under terms and conditions as the commission may
 27        prescribe, of a like amount of lawful money of the United States or  bonds
 28        or  other  obligations  of  the  United States, the state of Idaho, or any
 29        county of the state; or
 30        (c)  An irrevocable letter of credit issued to the commission  by  a  bank
 31        doing business in this state payable to the state upon failure of the per-
 32        son on whose behalf it is issued to remit any payment due under the provi-
 33        sions of this chapter.
 34        (3)  "Commercial  motor boat" means any boat, equipped with a motor, which
 35    is wholly or partly used in a profit-making enterprise  or  in  an  enterprise
 36    conducted with the intent of making a profit.
 37        (4)  "Commission" means the state tax commission of the state of Idaho.
 38        (5)  "Distributor"  means any person who receives gasoline, special fuels,
 39    and/or aircraft fuel in this state, and includes a special fuels  dealer.  Any
 40    person  who sells or receives gaseous fuels will not be considered a distribu-
 41    tor unless the gaseous fuel is delivered into the fuel supply tank or tanks of
 42    a motor vehicle not then owned or controlled by him.
 43        (6)  "Dyed fuel" means diesel fuel that is dyed pursuant  to  requirements
  1    of the internal revenue service, or the environmental protection agency.
  2        (7)  "Exported"  means delivered by truck or rail across the boundaries of
  3    this state by or for the seller or purchaser from a place of  origin  in  this
  4    state.
  5        (8)  "Gasohol"  means  gasoline  containing  a mixture of no more than ten
  6    percent (10%) blend anhydrous ethanol.
  7        (9)  "Gasoline" means any mixture of volatile hydrocarbons suitable  as  a
  8    fuel  for  the  propulsion  of  motor vehicles or motor boats. "Gasoline" also
  9    means aircraft engine fuels when used for the operation or propulsion of motor
 10    vehicles or motor boats and includes gasohol, but  does  not  include  special
 11    fuels.
 12        (10) "Highways"  means  every  place of whatever nature open to the use of
 13    the public as a matter of right for the purpose of vehicular travel  which  is
 14    maintained  by  the  state of Idaho or an agency or taxing subdivision or unit
 15    thereof or the federal government or an  agency  or  instrumentality  thereof.
 16    Provided,  however, if the cost of maintaining a roadway is primarily borne by
 17    a special fuels user who operates  motor  vehicles  over  twenty-six  thousand
 18    (26,000)  pounds  maximum  gross  weight on that roadway pursuant to a written
 19    contract during any period of time that a special fuels tax liability  accrues
 20    to  the  user, such a roadway shall not be considered a "highway" for any pur-
 21    pose related to calculating  that  user's  special  fuel's  tax  liability  or
 22    refund.
 23        (11) "Imported"  means delivered by truck or rail across the boundaries of
 24    this state by or for the seller or purchaser from a place  of  origin  outside
 25    this state.
 26        (12) "International  fuel tax agreement" and "IFTA" mean the international
 27    fuel tax agreement required by the  intermodal  surface  transportation  effi-
 28    ciency  act  of 1991, Public Law 102-240, 105 Stat. 1914, including subsequent
 29    amendments to that agreement.
 30        (13) "Jurisdiction" means a state of the United States,  the  District  of
 31    Columbia, or a province or territory of Canada.
 32        (14) "Licensed  distributor"  means  any  distributor  who  has obtained a
 33    license under the provisions of section 63-2427A, Idaho Code.
 34        (15) "Motor fuel" means gasoline, special fuels, aircraft engine fuels  or
 35    any  other  fuels  suitable for the operation or propulsion of motor vehicles,
 36    motor boats or aircraft.
 37        (16) "Motor vehicle" means every self-propelled vehicle designed for oper-
 38    ation, or required to be licensed for operation, upon a highway.
 39        (17) "Person" means any individual, firm, fiduciary, copartnership,  asso-
 40    ciation, corporation, governmental instrumentality including the state and all
 41    of  its agencies and political subdivisions, or any other group or combination
 42    acting as a unit, and the plural as well as the singular  number,  unless  the
 43    intent  to  give  a more limited meaning is disclosed by the context. Whenever
 44    used in any clause prescribing and imposing a fine or imprisonment,  or  both,
 45    the  term "person" as applied to an association means the partners or members,
 46    and as applied to corporations, the officers.
 47        (18) "Recreational vehicle" means  a  snowmobile  as  defined  in  section
 48    67-7101,  Idaho Code; a motor driven cycle or motorcycle as defined in section
 49    49-114, Idaho Code; and any vehicular type unit either as an integral part of,
 50    or required for the movement of, units defined in section  39-4105(15),  Idaho
 51    Code.
 52        (19) "Retail  dealer" means any person engaged in the retail sale of motor
 53    fuels to the public or for use in the state.
 54        (20) "Special fuels" means:
 55        (a)  All fuel suitable as fuel for diesel engines;
  1        (b)  A compressed or liquified gas obtained as a  byproduct  in  petroleum
  2        refining  or natural gasoline manufacture, such as butane, isobutane, pro-
  3        pane, propylene, butylenes, and their mixtures; and
  4        (c)  Natural gas, either liquid or gas, and hydrogen, used for the genera-
  5        tion  of power for the operation or propulsion of motor vehicles.
  6        (21) "Special fuels dealer" means "distributor" under  subsection  (5)  of
  7    this section.
  8        (22) "Special  fuels  user"  means any person who uses or consumes special
  9    fuels for the operation or propulsion of motor vehicles owned or controlled by
 10    him upon the highways of this state.
 11        (23) "Use" means either:
 12        (a)  The receipt, delivery or placing of fuels by a  licensed  distributor
 13        or  a special fuels dealer into the fuel supply tank or tanks of any motor
 14        vehicle not owned or controlled by him while the vehicle  is  within  this
 15        state; or
 16        (b)  The  consumption  of  fuels in the operation or propulsion of a motor
 17        vehicle on the highways of this state.
 18        SECTION 2.  That Section 63-2410, Idaho Code, be, and the same  is  hereby
 19    amended to read as follows:
 20        63-2410.  REFUND  OF GASOLINE TAX PROCEDURE. (1) Any person who shall pur-
 21    chase fifty (50) gallons or more, and use the gasoline in motor vehicles oper-
 22    ated on highways outside of the state  of  Idaho  where  a  duplicate  tax  is
 23    assessed  for  the  same gasoline, shall be entitled to refund when a claim is
 24    presented to the commission in the manner required  in  subsection  (5)(c)  of
 25    this section. Claimant shall present to the commission a statement accompanied
 26    by  a  verification  of  the use determined by an audit of his operations con-
 27    ducted as prescribed by the tax commission; or his claim may  be  verified  by
 28    the  filing  of  a receipt or proof showing the payment of tax on the gasoline
 29    used in any other state.
 30        (2)  Any person who shall purchase within any one (1) calendar year  fifty
 31    (50)  gallons or more of gasoline used for the purposes described in this sub-
 32    section shall be entitled to be refunded the amount of gasoline tax previously
 33    paid on that gasoline. Exempt uses are:
 34        (a)  Operating stationary gasoline engines;
 35        (b)  Propelling equipment or vehicles, other than  motor  vehicles,  which
 36        are not licensed to be operated on a highway; and
 37        (c)  Operating commercial motor boats.
 38        (3)  No refund of gasoline tax shall be allowed for any gasoline which is:
 39        (a)  Used  in  motor vehicles required to be licensed or used in any motor
 40        vehicle exempt from registration by reason of the ownership or  residence;
 41        or
 42        (b)  Aircraft engine fuel placed in aircraft, provided however, if tax has
 43        been  paid  at  the  rate  provided in section 63-2405, Idaho Code, on any
 44        motor fuel placed in the fuel supply tank of an aircraft the user  of  the
 45        fuel  may apply for a refund of the difference between the tax paid on the
 46        fuel and the tax imposed in section 63-2408, Idaho Code; or
 47        (c)  Gasoline used in recreational vehicles; or
 48        (d)  Gasoline used in noncommercial motor boats or in boats operated by  a
 49        governmental entity.
 50        (4)  Any  licensed  distributor  paying  the  gasoline tax and/or aircraft
 51    engine fuel tax to the state of Idaho erroneously shall be allowed a credit or
 52    refund of the amount of tax paid by him if a written claim for refund is filed
 53    with the commission within three (3) years after the  date  those  taxes  were
  1    paid.  Such credit or refund shall include interest at the rate established in
  2    section 63-3045, Idaho Code, computed from the date taxes to  be  refunded  or
  3    credited were paid to the commission.
  4        (5)  (a) All  claims for refund of gasoline taxes arising under subsection
  5        (1), (2) or (3)(b) of this section shall be filed in conjunction with  the
  6        claimant's  income  tax return due pursuant to chapter 30, title 63, Idaho
  7        Code. The gasoline tax refund claimed shall be tax paid on gasoline  actu-
  8        ally  purchased  during  the  taxable  year to which the income tax return
  9        relates. The gasoline tax refund due shall be  offset  against  any  other
 10        taxes,  penalties  or  interest  due before any balance is refunded by the
 11        commission to the claimant. Subject to a limitation as to  the  amount  of
 12        refund  to be claimed as the commission may provide by rule, refund claims
 13        may be submitted and paid on a monthly basis and reconciled on the  income
 14        tax return when it is filed.
 15        (b)  If  a  claimant  is  not  required  to file an income tax return, the
 16        refund claim shall be made on forms and in the manner  as  the  commission
 17        may  provide.  The  claim  shall relate to taxes paid on gasoline actually
 18        purchased in the calendar year preceding the filing and the claim shall be
 19        filed on or before April 15 following the close of the calendar year.
 20        (c)  Claims for refunds under subsection (1) or (2) of this section  shall
 21        be  filed within the time and in the manner prescribed in section 63-3072,
 22        Idaho Code. Such credit or refund  shall  include  interest  at  the  rate
 23        established  in section 63-3045, Idaho Code, computed from sixty (60) days
 24        following the later of the due date of the claimed refund under subsection
 25        (5)(a) or (5)(b) of this section or the filing of the claim.
 26        (d)  The commission may require that all  claims  be  accompanied  by  the
 27        original  signed  invoice  or invoices issued to the claimant, showing the
 28        total amount of gasoline on which a refund is claimed and the reason,  the
 29        amount  of  the tax and any additional information required by the commis-
 30        sion. Each separate delivery shall constitute a purchase  and  a  separate
 31        invoice  shall  be prepared, at least in duplicate, to cover the delivery.
 32        All invoices, except those prepared by  a  computer  or  similar  machine,
 33        shall be prepared in ink or double-spaced carbon shall be used between the
 34        original and first duplicate.
 35        (6)  (a) Should the commission find that the claim contains errors, it may
 36        correct  the  claim  and  approve  it  as corrected, or the commission may
 37        require the claimant to file an amended claim. The commission may  require
 38        any person who makes a claim for refund to furnish a statement under oath,
 39        giving  his  occupation,  description of the machine or equipment in which
 40        the gasoline was used, the place where used and any other  information  as
 41        the  commission  may  require. If the commission determines that any claim
 42        has been fraudulently presented, or is supported by an invoice or invoices
 43        fraudulently made or altered, or that any statement in the claim or  affi-
 44        davit  is willfully false and made for the purpose of misleading, the com-
 45        mission may reject the claim in full. If the claim is rejected,  the  com-
 46        mission  may suspend the claimant's right to any refund for purchases made
 47        during a period not to exceed one (1) year beginning  with  the  date  the
 48        rejected claim was filed, and it shall take all other action deemed appro-
 49        priate.
 50        (b)  The  commission  has authority, in order to establish the validity of
 51        any claim, to examine the books and records of the claimant for that  pur-
 52        pose, and failure of the claimant to accede to the demand for the examina-
 53        tion may constitute a waiver of all rights to the refund claimed.
 54        (7)  In  the  event  of the loss or destruction of the original invoice or
 55    invoices, the person claiming a refund may submit  a  duplicate  copy  of  the
  1    invoice  certified  by  the vendor, but payment based on the duplicate invoice
  2    shall not be made until one (1) year  after the date on which the gasoline was
  3    purchased.
  4        SECTION 3.  That Section 63-2436, Idaho Code, be, and the same  is  hereby
  5    amended to read as follows:
  6        63-2436.  REPORTS  OF  IMPORTATIONS BY CARRIER -- CONTENTS. The commission
  7    may require aAny railroad or other common carrier, or contract carrier, or any
  8    person, other than a licensee, who makes delivery in this state of  any  gaso-
  9    line,  aircraft engine fuel or special fuels shall to report in writing to the
 10    commission, not later than the last day of each calendar month, all the deliv-
 11    eries for the preceding calendar month. The commission may require information
 12    in the reports shall to include the place of origin and place  of  destination
 13    of  the  gasoline,  aircraft engine fuel or special fuels delivered, the names
 14    and addresses of consignors and consignees, loading ticket numbers, number  of
 15    gallons delivered, and any other information the commission may require.
 16        SECTION  4.  That  Section 63-2437, Idaho Code, be, and the same is hereby
 17    amended to read as follows:
 18        63-2437.  INSTATE PIPELINE TERMINAL AND STORAGE  REPORTS.  The  commission
 19    may require a A monthly report for from each pipeline terminal located in this
 20    state  shall be submitted to the commission not later than the last day of the
 21    same next succeeding calendar month. The commission may require information in
 22    the report shall to include the date of withdrawal,  bill  of  lading  number,
 23    manifest  number,  or  loading  ticket  number and the origin, consignee, con-
 24    signor, transportation company, and number of gallons separately indicated  of
 25    gasoline,  aircraft engine fuel and special fuels and any other information as
 26    the commission may require.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                          R.S.  10467

This bill makes changes to the motor fuels tax statutes: 

1. It modifies the definition of "highway" to allow loggers who pay
   the cost of maintaining logging road to exclude such roads as
   highways for all vehicles and not just for those over 26,000
2.  It modifies the provision for refunds of tax paid on fuel used
    off-highway to more clearly distinguish between licensed and
    unlicensed motor vehicles.  As presently worded the statute
    appears to deny refunds of unlicensed motor vehicles used off-
3.  Authorizes the State Tax Commission to reduce or eliminate
    reports currently mandated by statutes from fuel terminal
    operators and carriers importing fuel.   

                           FISCAL NOTE


Name:  Dan John/Ted Spangler
Agency:  State Tax Commission
Phone:  334-7530