Print Friendly HOUSE BILL NO. 167 – Motor fuels tax, exemptions, rpts
HOUSE BILL NO. 167
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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
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 167
BY TRANSPORTATION AND DEFENSE COMMITTEE
1 AN ACT
2 RELATING TO MOTOR FUELS TAX; AMENDING SECTION 63-2401, IDAHO CODE, TO MODIFY
3 THE DEFINITION OF "HIGHWAY" TO ALLOW CERTAIN OPERATORS TO EXCLUDE CERTAIN
4 ROADS AS HIGHWAYS; AMENDING SECTION 63-2410, IDAHO CODE, TO CLARIFY THE
5 EXEMPTION FOR FUEL USED IN UNLICENSED VEHICLES; AND AMENDING SECTION
6 63-2436, IDAHO CODE, TO AUTHORIZE THE STATE TAX COMMISSION TO REDUCE
7 INFORMATION REPORTING FROM CERTAIN CARRIERS; AND AMENDING SECTION 63-2437,
8 IDAHO CODE, TO AUTHORIZE THE STATE TAX COMMISSION TO REDUCE INFORMATION
9 REPORTING FROM FUEL TERMINALS.
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
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
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
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
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;
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-
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
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 a Any 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
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.
Name: Dan John/Ted Spangler
Agency: State Tax Commission
STATEMENT OF PURPOSE/FISCAL NOTE H 16