Print Friendly HOUSE BILL NO. 475 – Fuels tax, certain ATVs exempt
HOUSE BILL NO. 475
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H0475.........................................by TRANSPORTATION AND DEFENSE
FUELS TAX - Amends existing fuels tax law to provide that gasoline used to
propel all-terrain vehicles not required to be registered under motor
vehicle law or under recreational activities law is exempt from fuel tax;
to provide for refunds payable on such fuel; and to expand the definition
of "recreational vehicle" to include all-terrain vehicles.
01/15 House intro - 1st rdg - to printing
01/16 Rpt prt - to Transp
01/21 Rpt out - rec d/p - to 2nd rdg
01/22 2nd rdg - to 3rd rdg
01/26 3rd rdg - PASSED - 56-10-4
AYES -- Barraclough, Barrett, Bauer, Bayer, Bedke, Bell, Black,
Block, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Cuddy, Deal,
Denney, Douglas, Edmunson, Ellsworth, Eskridge, Field(18), Field(23),
Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg, Kulczyk,
Lake, Langford, McGeachin, McKague, Meyer, Miller, Moyle, Nielsen,
Raybould, Ridinger, Ring, Roberts, Rydalch, Sayler, Schaefer,
Shepherd, Shirley, Skippen, Smith(24), Smylie, Snodgrass, Stevenson,
Wills, Wood, Mr. Speaker
NAYS -- Andersen, Boe, Martinez, Mitchell, Naccarato, Pasley-Stuart,
Ringo, Robison, Smith(30), Trail
Absent and excused -- Crow, Eberle, Langhorst, Sali
Floor Sponsor - Roberts
Title apvd - to Senate
01/27 Senate intro - 1st rdg - to Transp
03/03 Rpt out - rec d/p - to 2nd rdg
03/04 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 27-0-8
AYES -- Andreason, Bailey, Bunderson, Burtenshaw, Calabretta,
Compton, Darrington, Gannon, Geddes, Goedde, Hill, Ingram, Kennedy,
Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams,
Pearce, Richardson, Schroeder, Sorensen, Stegner, Sweet, Werk
NAYS -- None
Absent and excused -- Brandt, Burkett, Cameron, Davis, Noble, Noh,
Floor Sponsor - Bailey
Title apvd - to House
03/16 To enrol
03/17 Rpt enrol - Sp signed
03/18 Pres signed - To Governor
03/23 Governor signed
Session Law Chapter 235
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 475
BY TRANSPORTATION AND DEFENSE COMMITTEE
1 AN ACT
2 RELATING TO FUELS TAX AND REFUNDS; AMENDING SECTION 63-2401, IDAHO CODE, TO
3 EXPAND THE DEFINITION OF "RECREATIONAL VEHICLE" TO INCLUDE ALL-TERRAIN
4 VEHICLES; AND AMENDING SECTION 63-2410, IDAHO CODE, TO PROVIDE THAT GASO-
5 LINE USED TO PROPEL ALL-TERRAIN VEHICLES NOT REQUIRED TO BE REGISTERED
6 UNDER MOTOR VEHICLE LAW OR UNDER RECREATIONAL ACTIVITIES LAW IS EXEMPT
7 FROM FUEL TAX AND TO PROVIDE FOR REFUNDS PAYABLE ON FUEL USED IN ALL-
8 TERRAIN VEHICLES NOT REQUIRED TO BE REGISTERED UNDER MOTOR VEHICLE LAW OR
9 UNDER RECREATIONAL ACTIVITIES LAW.
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) "Biodiesel" means any fuel or mixture of fuels that is:
20 (a) Derived in whole or in part from agricultural products or animal fats
21 or the wastes of such products; and
22 (b) Suitable for use as fuel in diesel engines.
23 (3) "Bond" means:
24 (a) A surety bond, in an amount required by this chapter, duly executed
25 by a surety company licensed and authorized to do business in this state
26 conditioned upon faithful performance of all requirements of this chapter,
27 including the payment of all taxes, penalties and other obligations aris-
28 ing out of the provisions of this chapter; or
29 (b) A deposit with the commission by any person required to be licensed
30 pursuant to this chapter under terms and conditions as the commission may
31 prescribe, of a like amount of lawful money of the United States or bonds
32 or other obligations of the United States, the state of Idaho, or any
33 county of the state; or
34 (c) An irrevocable letter of credit issued to the commission by a bank
35 doing business in this state payable to the state upon failure of the per-
36 son on whose behalf it is issued to remit any payment due under the provi-
37 sions of this chapter.
38 (4) "Commercial motor boat" means any boat, equipped with a motor, which
39 is wholly or partly used in a profit-making enterprise or in an enterprise
40 conducted with the intent of making a profit.
41 (5) "Commission" means the state tax commission of the state of Idaho.
42 (6) "Distributor" means any person who receives motor fuel in this state,
43 and includes a special fuels dealer. Any person who sells or receives gaseous
1 fuels will not be considered a distributor unless the gaseous fuel is deliv-
2 ered into the fuel supply tank or tanks of a motor vehicle not then owned or
3 controlled by him.
4 (7) "Dyed fuel" means diesel fuel that is dyed pursuant to requirements
5 of the internal revenue service, or the environmental protection agency.
6 (8) "Exported" means delivered by truck or rail across the boundaries of
7 this state by or for the seller or purchaser from a place of origin in this
9 (9) "Gasohol" means gasoline containing a mixture of no more than ten
10 percent (10%) blend anhydrous ethanol.
11 (10) "Gasoline" means any mixture of volatile hydrocarbons suitable as a
12 fuel for the propulsion of motor vehicles or motor boats. "Gasoline" also
13 means aircraft engine fuels when used for the operation or propulsion of motor
14 vehicles or motor boats and includes gasohol, but does not include special
16 (11) "Highways" means every place of whatever nature open to the use of
17 the public as a matter of right for the purpose of vehicular travel which is
18 maintained by the state of Idaho or an agency or taxing subdivision or unit
19 thereof or the federal government or an agency or instrumentality thereof.
20 Provided, however, if the cost of maintaining a roadway is primarily borne by
21 a special fuels user who operates motor vehicles on that roadway pursuant to a
22 written contract during any period of time that a special fuels tax liability
23 accrues to the user, such a roadway shall not be considered a "highway" for
24 any purpose related to calculating that user's special fuel's tax liability or
26 (12) "Imported" means delivered by truck or rail across the boundaries of
27 this state by or for the seller or purchaser from a place of origin outside
28 this state.
29 (13) "International fuel tax agreement" and "IFTA" mean the international
30 fuel tax agreement required by the intermodal surface transportation effi-
31 ciency act of 1991, Public Law 102-240, 105 Stat. 1914, and referred to in
32 title 49, U.S.C., section 31701, including subsequent amendments to that
34 (14) "Jurisdiction" means a state of the United States, the District of
35 Columbia, a province or territory of Canada, or a state, territory or agency
36 of Mexico in the event that the state, territory or agency participates in the
37 international fuel tax agreement.
38 (15) "Licensed distributor" means any distributor who has obtained a
39 license under the provisions of section 63-2427A, Idaho Code.
40 (16) "Motor fuel" means gasoline, special fuels, aircraft engine fuels or
41 any other fuels suitable for the operation or propulsion of motor vehicles,
42 motor boats or aircraft.
43 (17) "Motor vehicle" means every self-propelled vehicle designed for oper-
44 ation, or required to be licensed for operation, upon a highway.
45 (18) "Person" means any individual, firm, fiduciary, copartnership, asso-
46 ciation, limited liability company, corporation, governmental instrumentality
47 including the state and all of its agencies and political subdivisions, or any
48 other group or combination acting as a unit, and the plural as well as the
49 singular number, unless the intent to give a more limited meaning is disclosed
50 by the context. Whenever used in any clause prescribing and imposing a fine or
51 imprisonment, or both, the term "person" as applied to an association means
52 the partners or members, and as applied to corporations, the officers.
53 (19) "Recreational vehicle" means a snowmobile as defined in section
54 67-7101, Idaho Code; a motor driven cycle or motorcycle as defined in section
55 49-114, Idaho Code; and any recreational vehicle as defined in section 49-119,
1 Idaho Code; and an all-terrain vehicle as defined in section 67-7101, Idaho
3 (20) "Retail dealer" means any person engaged in the retail sale of motor
4 fuels to the public or for use in the state.
5 (21) "Special fuels" means:
6 (a) All fuel suitable as fuel for diesel engines;
7 (b) A compressed or liquified gas obtained as a byproduct in petroleum
8 refining or natural gasoline manufacture, such as butane, isobutane, pro-
9 pane, propylene, butylenes, and their mixtures; and
10 (c) Natural gas, either liquid or gas, and hydrogen, used for the genera-
11 tion of power for the operation or propulsion of motor vehicles.
12 (22) "Special fuels dealer" means "distributor" under subsection (6) of
13 this section.
14 (23) "Special fuels user" means any person who uses or consumes special
15 fuels for the operation or propulsion of motor vehicles owned or controlled by
16 him upon the highways of this state.
17 (24) "Use" means either:
18 (a) The receipt, delivery or placing of fuels by a licensed distributor
19 or a special fuels dealer into the fuel supply tank or tanks of any motor
20 vehicle not owned or controlled by him while the vehicle is within this
21 state; or
22 (b) The consumption of fuels in the operation or propulsion of a motor
23 vehicle on the highways of this state.
24 SECTION 2. That Section 63-2410, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 63-2410. REFUND OF GASOLINE TAX PROCEDURE. (1) Any person who shall pur-
27 chase fifty (50) gallons or more, and use the gasoline in motor vehicles oper-
28 ated on highways outside of the state of Idaho where a duplicate tax is
29 assessed for the same gasoline, shall be entitled to refund when a claim is
30 presented to the commission in the manner required in subsection (5)(c) of
31 this section. Claimant shall present to the commission a statement accompanied
32 by a verification of the use determined by an audit of his operations con-
33 ducted as prescribed by the tax commission; or his claim may be verified by
34 the filing of a receipt or proof showing the payment of tax on the gasoline
35 used in any other state.
36 (2) Any person who shall purchase within any one (1) calendar year fifty
37 (50) gallons or more of gasoline used for the purposes described in this sub-
38 section shall be entitled to be refunded the amount of gasoline tax previously
39 paid on that gasoline. Exempt uses are:
40 (a) Operating stationary gasoline engines;
41 (b) Propelling equipment or vehicles which are not licensed to be oper-
42 ated on a highway; and
43 (c) Operating commercial motor boats; and
44 (d) Propelling an all-terrain vehicle that is not required to be regis-
45 tered pursuant to chapter 4, title 49, Idaho Code, or chapter 71, title
46 67, Idaho Code.
47 (3) No refund of gasoline tax shall be allowed for any gasoline which is:
48 (a) Used in motor vehicles required to be licensed or used in any motor
49 vehicle exempt from registration by reason of the ownership or residence;
51 (b) Aircraft engine fuel placed in aircraft, provided however, if tax has
52 been paid at the rate provided in section 63-2405, Idaho Code, on any
53 motor fuel placed in the fuel supply tank of an aircraft the user of the
1 fuel may apply for a refund of the difference between the tax paid on the
2 fuel and the tax imposed in section 63-2408, Idaho Code; or
3 (c) Gasoline uUsed in recreational vehicles except all-terrain vehicles
4 exempted as provided in subsection (2)(d) of this section; or
5 (d) Gasoline uUsed in noncommercial motor boats or in boats operated by a
6 governmental entity.
7 (4) Any licensed distributor paying the gasoline tax and/or aircraft
8 engine fuel tax to the state of Idaho erroneously shall be allowed a credit or
9 refund of the amount of tax paid by him if a written claim for refund is filed
10 with the commission within three (3) years after the date those taxes were
11 paid. Such credit or refund shall include interest at the rate established in
12 section 63-3045, Idaho Code, computed from the date taxes to be refunded or
13 credited were paid to the commission.
14 (5) (a) All claims for refund of gasoline taxes arising under subsection
15 (1), (2) or (3)(b) of this section shall be filed in conjunction with the
16 claimant's income tax return due pursuant to chapter 30, title 63, Idaho
17 Code. The gasoline tax refund claimed shall be tax paid on gasoline actu-
18 ally purchased during the taxable year to which the income tax return
19 relates. The gasoline tax refund due shall be offset against any other
20 taxes, penalties or interest due before any balance is refunded by the
21 commission to the claimant. Subject to a limitation as to the amount of
22 refund to be claimed as the commission may provide by rule, refund claims
23 may be submitted and paid on a monthly basis and reconciled on the income
24 tax return when it is filed.
25 (b) If a claimant is not required to file an income tax return, the
26 refund claim shall be made on forms and in the manner as the commission
27 may provide. The claim shall relate to taxes paid on gasoline actually
28 purchased in the calendar year preceding the filing and the claim shall be
29 due on or before April 15 following the close of the calendar year.
30 (c) Claims for refunds under subsection (1) or (2) of this section shall
31 be filed in the manner prescribed in section 63-3072, Idaho Code. Such
32 credit or refund shall include interest at the rate established in section
33 63-3045, Idaho Code, computed from sixty (60) days following the later of
34 the due date of the claimed refund under subsection (5)(a) or (5)(b) of
35 this section or the filing of the claim. No refund shall be paid under
36 this section unless a written claim for such refund has been filed with
37 the commission within three (3) years after the due date, including exten-
38 sions, of the income tax return in regard to which the claim relates or
39 the due date of the claim established in paragraph (b) of this subsection
41 (d) The commission may require that all claims be accompanied by the
42 original signed invoice or invoices issued to the claimant, showing the
43 total amount of gasoline on which a refund is claimed and the reason, the
44 amount of the tax and any additional information required by the commis-
45 sion. Each separate delivery shall constitute a purchase and a separate
46 invoice shall be prepared, at least in duplicate, to cover the delivery.
47 All invoices, except those prepared by a computer or similar machine,
48 shall be prepared in ink or double-spaced carbon shall be used between the
49 original and first duplicate.
50 (6) (a) Should the commission find that the claim contains errors, it may
51 correct the claim and approve it as corrected, or the commission may
52 require the claimant to file an amended claim. The commission may require
53 any person who makes a claim for refund to furnish a statement under oath,
54 giving his occupation, description of the machine or equipment in which
55 the gasoline was used, the place where used and any other information as
1 the commission may require. If the commission determines that any claim
2 has been fraudulently presented, or is supported by an invoice or invoices
3 fraudulently made or altered, or that any statement in the claim or affi-
4 davit is willfully false and made for the purpose of misleading, the com-
5 mission may reject the claim in full. If the claim is rejected, the com-
6 mission may suspend the claimant's right to any refund for purchases made
7 during a period not to exceed one (1) year beginning with the date the
8 rejected claim was filed, and it shall take all other action deemed appro-
10 (b) The commission has authority, in order to establish the validity of
11 any claim, to examine the books and records of the claimant for that pur-
12 pose, and failure of the claimant to accede to the demand for the examina-
13 tion may constitute a waiver of all rights to the refund claimed.
14 (7) In the event of the loss or destruction of the original invoice or
15 invoices, the person claiming a refund may submit a duplicate copy of the
16 invoice certified by the vendor, but payment based on the duplicate invoice
17 shall not be made until one (1) year after the date on which the gasoline was
STATEMENT OF PURPOSE
The bill amends the motor fuels tax statutes to clarify when
refunds are payable on fuel used in all-terrain vehicles(ATV)
not required to be licensed or to have a recreational permit.
The effect is to eliminate the difference between three-wheel
and four-wheel ATVs. Currently fuel used in three-wheel ATVs is
taxable but tax on fuel used in four-wheel ATVs (if not licensed)
can be refunded.
Additional $20,000 motor fuel tax will qualify for refund. This
does not affect the general fund.
Name: Dan John/Ted Spangler, State Tax Commission
STATEMENT OF PURPOSE/FISCAL NOTE H 475