IFTA licenses apply to qualified motor vehicles traveling in more than one jurisdiction. IFTA decals are $4.00 per set.
IFTA licenses may be revoked when a taxpayer fails to file a return, files a return without remitting payment, or does not comply with IFTA record keeping requirements. To reinstate an IFTA license:
Special Fuel User permits apply to qualified motor vehicles traveling within the borders of Utah or based in a non-IFTA state. If a carrier has a bulk special fuel storage tank and has non-IFTA qualified vehicles (see Definitions, above), the carrier must have a special fuel user permit. There is no cost for Special Fuel User permits or decals.
Only IFTA issues temporary permits and it is highly unlikely that an operator would need one. Utah issues a Utah Special Fuel trip permit for $25.00. The permit is valid for 96 hours or until you leave the state, whichever happens first.
All carriers with qualified motor vehicles (with existing permits) have been allowed a two-month grace period (or until February 28) to possess the current year Special Fuel User permit or IFTA license and decals.
Due to legislative changes that went into effect January 2003, quarterly returns are no longer required for Special Fuel Users who certify on an annual basis that they pay tax on all fuel at the time of purchase and comply with record keeping requirements. Special Fuel Users are still required to have a Special Fuel User permit and renew annually on a calendar year basis. At the time of renewal, they will be asked to certify on Form TC-938, Special Fuel User Renewal Application and Decal Request, that fuel tax has been paid on all fuel and that they will comply with record keeping requirements.
The penalties and interest for filing a later return are as follows:
Special Fuel Users who pay fuel tax at the time of purchase and then use the fuel for a purpose exempt from fuel tax must file Form TC-942 to claim a refund.
IFTA has a three year statute of limitations on refunds.
If you don't file a Utah IFTA return and need to claim an exemption for fuel tax on gallons used off-highway, use one of the following returns:
A government entity is defined as the United States, this state, a political subdivision of this state, or an Indian tribe acting in its tribal capacity, not Indian businesses, see Administrative Rule R865-13G-10.
Motor fuel and special fuel are handled differently.
Licensed distributor may sell fuel tax exempt to government entities if no fuel tax has been assessed. A licensed distributor will put the exempt government gallons sold on their motor fuel return (TC-109) line 9. Line 9 requires an attachment of schedule TC-110G and copies of invoices.
If the motor fuel sold to the government entity has the fuel tax assessed the government entity may file a refund request with the Tax Commission by completing form TC-114M.
Special fuel tax is due on undyed diesel fuel and untaxed special fuel blended with undyed diesel fuel when first removed from the refinery or entering the state. Once the special fuel tax has been assessed only the government entity may request a refund by completing form TC-114S.
Note: If the state government entity or political subdivision participates in the State Fuel Network, with a Gascard issued by the Fleet Services, the motor fuel or special fuel refund must be requested through Fleet Services not the Tax Commission, even if the purchase is outside the State Fuel Network.
An Environmental Assurance fee is assessed on the first sale of a petroleum product. Beginning July 1, 2003, the rate is .005.
Retailers or consumers who are owners or operators of stationary storage tanks not participating in the Department Environmental Quality's underground tanks program are exempt from this fee if the following conditions are met:
The owners or operators who do not meet both of the above conditions to purchase the fuel exempt from the environmental assurance fee, may qualify for a refund from the Tax Commission for the fees paid. See form TC-113.
Bio-diesel is treated the same as diesel as far as fuel taxes are concerned.
Starting January 1, 2009 a fuel tax is imposed on the purchase of compressed natural gas (CNG) for vehicles. The supplier reports and pays the tax. The owner or lessor of natural gas compression equipment is considered to be the supplier of CNG.
The tax rate is 8.5 cents per Gasoline Gallon Equivalent (GGE = 120 Cu. Ft.) dispensed into vehicles for highway use.
The CNG supplier must obtain a fuel license by filing form TC-107, Fuel License Application. Information about license types is listed on the form.
A buyer of natural gas for compression may provide form TC-721CNG, Exemption Certificate for Compressed Natural Gas, to the natural gas supplier. The CNG exemption certificate exempts all natural gas purchases from sales tax, CNG tax and municipal energy sales and use tax at the time of purchase. However, the buyer must have a sales and use tax account and a municipal energy sales and use tax account and report the following to the Tax Commission:
No special fuel tax is imposed on CNG that is:
Note: The supplier must collect tax on these sales. The purchaser may request a refund from the Tax Commission.
Federal, Utah state and local government entities may file for a refund of Utah fuel taxes paid on CNG for government use by filing form TC-114S, Application for Government Special Fuel Tax Refund. This refund applies only to CNG purchased for the government’s official and exclusive use in government vehicles and equipment. Sale or delivery to individuals or to other businesses operating under government contract, for personal use, for retail sale, or any other distribution to third parties does not qualify for this refund.
You must keep original records supporting all sales, purchases, deliveries, meter readings, etc. for three years. The records must include copies of all invoices and bills of sale.
If you need help or more information, call the Tax Commission at 801-297-3525 or 1-800-662-4335 extension 3525 outside the Salt Lake Area.
