Utah Looks To Tax Idaho Farmers & Drivers

A proposal being discussed in the Utah Legislature could have an impact on farmers, motorists and anyone who purchases fuels in Idaho, or other surrounding states.

We're Stuck

Lawmakers in Utah are looking at creating a new tax on fuel refined in Utah but exported for use in other states.  Idaho, which does not have petroleum refineries within its borders, and relies heavily on fuel from Utah.  The Utah plan would shift an estimated $250 million per year in transportation funding costs onto out-of-state fuel users.

“The impact on Idaho's economy and the citizens in the state is a big deal," said Idaho Speaker of the Hour Mike Moyle.  "And we're kind of at a disadvantage because we don't have a refinery in Idaho and we don't produce crude in Idaho, and we're struck. We don't have that advantage.” 

In response, the Idaho House introduced House Joint Memorial 12, calling on all states to refrain from imposing “unconstitutional taxes on neighboring states” and instead continue working together in good faith to meet shared transportation needs.  The memorial was sent directly to the second reading calendar, signaling lawmakers intend to move it quickly to send a clear message to Utah.

Click Here to read HJM 12 in its entirety.

Idaho Fuel Tax Could Increase Over 40 Cents Per Gallon

If Utah’s plan is put in place, Idaho’s fuel tax would increase from the current 32 cents per gallon, which does not include federal tax and other fees, to more than 75 cents per gallon, again, which, again, does not include federal tax.

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