Utah State Tax Commission

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International Fuel Tax Agreement (IFTA)/Utah Special Fuel User

Qualified motor vehicles operating within the borders of Utah must have a Special Fuel User permit. Special fuel user decals are not required in Utah, but can be obtained to assist carriers that are traveling through the Utah ports of entry without leaving Utah. There is no fee for special fuel user decals. These non-IFTA qualified vehicles are over 26,000 gross vehicle weight (or 3 axles) or are under 26,001 gross vehicle weight and the user has bulk fuel usage. Qualified vehicles do not include off-road machinery. To apply for a Special Fuel User Permit and decals complete Form TC-920.

Effective January 1, 2003, Special Fuel Users who pay Utah tax when they purchase fuel should indicate this on the TC-920/TC-920S application. Special fuel users that pay tax when they purchase fuel are not required to file quarterly TC-922 IFTA/SFU returns. They are only required to submit a TC-937 Renewal Application, with a signed fuel certification statement, to renew their license and request decals for the upcoming year.

Special fuel users that do not pay Utah tax when fuel is purchased are required to report their miles traveled and fuel gallons purchased on a quarterly Fuel Tax Return International Fuel Tax Agreement (IFTA) and Special Fuel User Tax, Form TC-922. Special fuel users will complete the return and associated schedules depending upon one of the following three situations:

1. Miles traveled by the fleet are highway miles and all fuel is purchased at a service station. Total gallons purchased are entered on line 6, in both column f, Taxable Gallons; and column g, Fuel Tax-Paid Gallons. All other columns can be left blank. Make sure the return is signed and dated.
2. Miles traveled by the fleet are highway miles and vehicles in the fleet have power take-off units (PTOs).Taxable gallons are entered on line 6, in column f. You must calculate taxable gallons by dividing taxable miles (column e) by the average miles per gallon (MPG) from section 5, the Fuel Summary. Gallons purchased at service stations or dispensed from bulk fuel storage are entered on line 6, column g, Fuel Tax-Paid Gallons. To claim credit for special fuel tax and pay sales tax only, complete part B and part C, on Schedule A, Sales Tax Due on Undyed Diesel Fuel, Form TC-922A. Credit for PTOs is claimed on Schedule B, Credit for Tax Paid on Exempt Fuel for Utah-Based Carriers, Form TC-922B. Parts A, C and D must be completed . Both schedules must be filed with the return. If bulk fuel is used then part A of schedule A must also be completed.
3. Miles traveled by the fleet include PTOs and off-highway miles. The average miles per gallon for the fleet must be calculated. To determine MPG, divide the total miles traveled by the total tax-paid gallons used (include any bulk fuel) . Calculate MPG to three decimal places, then round to two. For example: 125,000 miles ÷ 22,000 gallons = 5.682 rounded to 5.68 MPG. With the MPG complete line 6, of the fuel tax return for each jurisdiction. All fuel entering the fuel supply tank of a motor vehicle must be included in the MPG calculation.
   1. Taxable gallons (column f) is calculated by dividing the miles traveled by the average MPG. In our example 125,000 miles ÷ 5.68 MPG = 22,007 taxable gallons.
   2. Fuel Tax-Paid Gallons (column g) is fuel purchased at the service station and any bulk fuel used.
   3. Tax Due or (Credit) is calculated by multiplying the Net Taxable Gallons (column f - column g) by the Utah fuel tax rate 0.245. For our example 3,182 - 22,000 = (18,818) net taxable gallons x 0.245 = (4,610) credit.
   4. Complete parts A, B, and C of Schedule B, Credit for Tax Paid on Exempt Fuel for Utah-Based Carriers, Form TC-922B.

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Individual Vehicle Records

Note: Records must be maintained even if you are not required to file a quarterly return.

Mileage Records

Utah miles must be separated into taxable (highway) and nontaxable (off-highway) miles. Adequate mileage records will contain the following information:

Date of trip (starting and ending) Trip origin and destination Total trip miles Vehicle fleet number Routes of travel

Unit number or vehicle ID number Beginning and ending odometer or hubometer Fuel purchased or drawn from bulk fuel Registrant's name

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Fuel Records - Over-the-Road Purchases

Complete records must be maintained for all fuel purchased, received, and used. Taxable fuel reported includes gasoline, diesel, propane, blended fuels (gasohol and ethanol), compressed natural gas, liquid petroleum, and kerosene. Separate totals must be compiled for each fuel type. Records for bulk purchases must be maintained separately. Fuel purchase receipts should contain the following information:

The date of purchase or receipt of fuel Price per gallon or total amount of sale The name and address of the person from whom the fuel was purchased or received

The plate or ID number of the vehicle or equipment into which the fuel was placed The number of gallons received Purchaser's name The type of fuel

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