Utah’s current fuel taxes are:
|Tax Type||Current Rates|
|Motor and special fuels (except CNG and LNG)||24.5 cents per gallon|
|CNG and LNG||8.5 cents per gallon equivalent|
Non-federally certificated air carriers
Federally certificated air carriers
Federally certificated air carriers if purchased at Salt Lake International Airport
9 cents per gallon
4 cents per gallon
2.5 cents per gallon
|Environmental Assurance Fee||Prior to January 1, 2015, 1/2 cents per gallon (.5 cents) on the first sale or use of petroleum products in Utah. After December 31, 2014, 13/20 cents per gallon (.65 cents) on the first sale or use of petroleum products in Utah.|
All tax code laws are at http://le.utah.gov/~code/code.htm. The following sections pertain to fuel taxes:
Licenses are required for the following entities. Use the form(s) below to apply.
|Special fuel suppliers||Fuel tax license||TC-69|
|Motor or aviation fuel distributors||Fuel tax license||TC-69|
|Owners or lessors of equipment used to compress natural gas for highway use||Compressed Natural Gas (CNG)||TC-69|
|Owners or lessors of equipment used to dispense liquefied natural gas for highway use||Liquefied Natural Gas (LNG)||TC-69|
|Owners/operators of qualified vehicles based out of Utah||Special Fuel User/IFTA||TC-69MC|
|Owners/operators of qualified vehicles not based out of but operating in Utah||
Fuel license not required, but the vehicle must:
|Suppliers with first sale or use in Utah of a petroleum product that is a liquid at 60 degrees Fahrenheit||Environmental assurance fee account (Account required, but no license is issued.)||TC-69|
In some cases a bond is required when applying for a fuel tax license. See the Fuel Supplier License application (TC-69) for more information.
You file all fuel taxes monthly (except IFTA and special fuel user; see motorcarrier.utah.gov).
No. Gasoline (motor fuel) is licensed at the distributor level. You must have a license if you:
Individuals who sell gasoline at the retail level (at the pump) only have to be licensed if they also meet distributor requirements.
No. Special Fuel tax is collected and remitted at the refiner level. You must have a license if you:
Individuals who sell special fuel at the retail level (at the pump) only have to be licensed if they also meet distributor requirements.
You must keep all records for at least 3 years.
Utah no longer issues clean special fuel certificates.
The fuel tax is imposed on the CNG & LNG supplier (owner or lessor of natural gas compression or LNG dispensing equipment).
CNG or LNG buyers can give form TC-721CNG, Exemption Certificate for Compressed Natural Gas, to the natural gas supplier. This certificate exempts all natural gas purchases from sales tax, CNG or LNG tax and municipal energy sales and use tax at the time of purchase.
Note: Buyers must have a fuel tax account, sales and use tax account and a municipal energy sales and use tax account to report:
Clear diesel and bio-diesel are taxed as special fuels at the standard rate.
Clear diesel is subject to fuel tax, but not sales tax and is intended for the operation of motor vehicles on public roadways.
Dyed diesel is not subject to fuel tax, but is subject to sales and use tax. It is intended for use in:
Dyed diesel is not intended for use in cars, trucks or other vehicles driven on the road. Using dyed diesel to operate motor vehicles on public roadways is subject to federal and state penalties. See §59-13-320.5. Dyed diesel used for off-highway purposes is subject to sales tax rather than fuel tax.
Off highway is a controlled area not generally open to the public. See Tax Commission Rule R865-4D-2.
Give the following information to the Utah State Tax Commission and the Internal Revenue Service (IRS):
Contact the Utah State Tax Commission in writing or by phone (fraud, waste and abuse hotline at 801-297-6719). Send IRS form 3949A, Information Referral, to the IRS.
Fuel tax is assessed on fuel used for motor vehicle operation on Utah public highways or waterways and on fuel used in aircraft.
Some fuel types, entities using fuel, or uses of fuel are exempt from fuel taxes. However, sales and use tax then applies unless the product, entity, or use is also exempt from sales and use tax.
Exempt fuel types include:
Exempt entities include:
Exempt uses of fuel include:
Note: Form TC-116 should be filed electronically at taxexpress.utah.gov.
|If you are:||Claim the refund:|
|A licensed fuel supplier||On your tax return* or TC-116|
|An unlicensed owner of non-participating fuel tanks requesting a refund for Environmental Assurance Fee||On form TC-116|
|Storing environmental assurance fee paid gallons in participating tanks that are eligible for a rebate of the fee||On form TC-116|
|A Utah state government agency using a Fleet Services Gascard||By contacting Fleet Services|
|A Utah state government agency not using a Fleet services Gascard||On form TC-116|
|A clear diesel exporter who is not a licensed Utah special fuel supplier||On form TC-116|
|An agricultural producer||On your income tax return|
|Licensed with IFTA or as a special fuel user||On your IFTA return; see motorcarrier.utah.gov|
|Using special fuel in machinery, a PTO, or off-highway and are not a government agency, agricultural producer, or licensed with IFTA||On form TC-942|
*Licensed suppliers must claim credit for non-participating tanks on TC-109 and schedules.
Contact the Tax Commission for additional information:
|Form Number||Form Title|
|TC-69||Utah State Business and Tax Registration|
|TC-106||Selection of Reporting Basis for Motor Fuel and Special Fuel Gallons|
|TC-109 and schedules||Utah Fuel Tax Return. This form is e-file only; file using Taxpayer Access Point (TAP)|
|TC-111||Petroleum Products Carrier Report|
|TC-112||Proof of Exportation for Motor Fuel, Undyed Diesel and Other Petroleum Products|
|Utah Application for Fuel Tax Refund (Non-Licensed)|
|TC-721AV||Aviation Fuel Tax Reduction Certificate|
|TC-721CNG||Exemption Certificate for Compressed Natural Gas|
|TC-721E||Environmental Assurance Fee Exemption Certificate|