Utah State Bulletin, January 15, 2012, Vol. 2012, No. 2

FIVE-YEAR NOTICES OF REVIEW AND STATEMENTS OF CONTINUATION DAR File No. 35603hydrocarbons located in this state; deliveries to governmentagencies; and exports. Provides instructions for thedistribution of funds. Section 59-13-202 entitles any personwho purchases motor fuel for the use of stationary or selfpropelled machinery used for nonhighway farm operation to arefund of motor fuel tax paid, and provides methods forobtaining the refund. Section 59-13-203.1 requires that anyindividual desiring to distribute motor fuel in the state of Utahobtain a license from the Tax Commission. Also sets forthrequirements of the form of the license application. Requiresbonding as a prerequisite for a license; indicates how theamount of the bond shall be determined. Section 59-13-204states that licensed distributors who receive motor fuel areliable for motor fuel tax, and shall compute the tax on the totaltaxable amount of motor fuels received. Also provides amethod for distributors to sell motor fuel tax exempt to otherdistributors. Section 59-13-208 requires that every carrierdelivering fuel within the state of Utah from outside the stateshall report in writing all deliveries made during the pastmonth. Section 59-13-210 allows tax commission to createrules to enforce the motor fuel laws. Requires commission toexamine returns and recompute monthly reports of sales, asnecessary, estimate the amount of tax due, collect delinquenttax, refund overpayments, and provide for judicial review ofdissatisfied taxpayer claims.SUMMARY OF WRITTEN COMMENTS RECEIVED DURINGAND SINCE THE LAST FIVE YEAR REVIEW OF THE RULEFROM INTERESTED PERSONS SUPPORTING OROPPOSING THE RULE: None.REASONED JUSTIFICATION FOR THE CONTINUATION OFTHE RULE, INCLUDING REASONS WHY THE AGENCYDISAGREES WITH COMMENTS IN OPPOSITION TO THERULE, IF ANY: Section R865-13G-1 defines "carrier" withregard to motor fuel deliveries. Requires that every carrierdelivering motor fuels within this state submit written reportsconcerning all deliveries from outside Utah. Section R865-13G-3 provides criteria for determining whether a sale ofmotor fuel meets the export exemption from motor fuels tax.Rule also requires that each export sale of motor fuel besupported by records. Section R865-13G-5 allows motor fueldealers that sell motor fuel in wholesale quantities to becomea licensed distributor. Allows licensed distributor to purchasemotor fuel tax exempt if he satisfies certain conditions.Section R865-13G-6 upon tax commission approval, exemptsfrom motor fuel tax volatile or inflammable liquids that qualifyas motor fuels, but are not useable in their present state ininternal combustion engines. Section R865-13G-8 clarifiesdefinition of "agricultural purposes", for purposes of allowingtax refund for persons engaged in commercial agriculturalwork. Section R865-13G-9 clarifies exemption from motorfuel tax for motor fuels refined in Utah from solidhydrocarbons. Section R865-13G-10 provides procedures fordistributors that make sales to government agencies to claimthe fuel tax exemption for sales to government agencies.Clarifies the exemption from motor fuel tax for sale of motorfuel to Indian tribes and government agencies. SectionR865-13G-11 defines "gross gallon" and "net gallon" for usein calculating motor fuel tax liability. Rule requires that alllicensed distributors calculate motor fuel tax using eithergross gallon or net gallon basis. Requires distributors toinform tax commission of choice then exclusively use thisbasis of calculation for 12 months without alternating.Section R865-13G-13 sets procedure for government entitiesto apply for a refund for motor fuel taxes paid; lists therecords required to be maintained for purchases on which therefund is claimed. Section R865-13G-15 providesprocedures for administering the reduction of motor fuel taxauthorized under Section 59-13-201. Therefore, this ruleshould be continued.THE FULL TEXT OF THIS RULE MAY BE INSPECTED,DURING REGULAR BUSINESS HOURS, AT:TAX COMMISSIONAUDITING210 N 1950 WSALT LAKE CITY, UT 84134or at the Division of Administrative Rules.DIRECT QUESTIONS REGARDING THIS RULE TO:♦ Christa Johnson by phone at 801-297-3901, by FAX at 801-297-3907, or by Internet E-mail at cj@utah.govAUTHORIZED BY: Michael Cragun, Tax CommissionerEFFECTIVE: 01/03/2012Tax Commission, AuditingR865-14WMineral Producers' Withholding TaxFIVE-YEAR NOTICE OF REVIEW AND STATEMENTOF CONTINUATIONDAR FILE NO.: 35604FILED: 01/03/2012NOTICE OF REVIEW AND STATEMENT OFCONTINUATIONCONCISE EXPLANATION OF THE PARTICULARSTATUTORY PROVISIONS UNDER WHICH THE RULE ISENACTED AND HOW THESE PROVISIONS AUTHORIZEOR REQUIRE THE RULE: Section 59-6-101 defines termsused in this chapter. Section 59-6-102 requires a producer towithhold an amount equal to 5% of payments made for theproduction of minerals in this state and provides for a creditfor a person from whom payment has been withheld. Section59-6-103 requires producers to file a return with thecommission on forms prescribed by the commission. Section59-6-104 provides that the provisions of the income taxwithholding, Title 59, Chapter 10, Part 4, shall apply to thischapter.132 UTAH STATE BULLETIN, January 15, 2012, Vol. 2012, No. 2