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Utah House approves bill to adjust state fuel tax where Navajo Nation levies its own tax
Summary
The House passed SB22 on Feb. 14, 2001, allowing a partial return of motor/special fuel tax revenues when the Navajo Nation also taxes fuel, a measure sponsors said restores $74,000 to the state’s coffers and aims to clarify intergovernmental fiscal arrangements.
The Utah House of Representatives voted Feb. 14 to pass Senate Bill 22, a measure changing state treatment of motor and special fuel taxes when the Navajo Nation also imposes a tax. Representative King, the floor sponsor, told colleagues the bill ‘‘has a positive fiscal note of $74,000’’ tied to an interlocal agreement that would return 6.5¢ per gallon to the state.
Supporters said the change addresses a competitive distortion in border communities where motorists pay both state and tribal taxes and helps fund infrastructure on the Navajo reservation. Representative King said the Navajo Nation has chosen to tax fuel on its reservation and, through the interlocal agreement, agreed to return a portion to the state to support road maintenance and other needs.
Opponents raised questions about sovereignty and precedent. Representative Seitz said he was not opposed but warned the measure could set a broader precedent for relations with sovereign tribes. Representative Snow pressed the sponsor to explain why the fiscal picture differed from last year, and King replied that the current bill restores some revenue rather than taking it away, noting differences in how fuel is purchased and taxed on the reservation.
The House approved SB22 by voice and recorded vote, 52 yes to 18 no. The bill was publicly read by title, signed by the Speaker and entered on the journal the same day.
What’s next: With House passage, SB22 moves forward in the enactment process as recorded in the House journal entry for Feb. 14, 2001.
