Gas Feuds: Utah-Idaho conflict simmering over proposed gasoline export tax

BOISE, Idaho (KIFI) – Idaho and Utah have been having a not-so-quiet feud over a Utah plan to change its gas tax and share its tax burden with Idaho.

Plans by the Utah lawmakers to potentially place an export tax on gasoline shipped from Utah refineries to surrounding states – including Idaho – are drawing continued pushback from Idaho lawmakers.

In an interview with Local News 8 this week in Boise, Idaho Speaker of the House Mike Moyle said Idaho is proactively responding to the threats.

“I think that Utah will find some sanity and pull back. But we'll see because if they don't, we in Idaho will find ways to make it miserable for them,” Moyle said. 

Idahoans currently pay $2.90 per gallon of gas on average – 13 cents more than drivers in Utah.

The plan in Utah to impose a new tax on refineries for exported fuel could push Idaho prices at the pump even higher.

“So hopefully they do the right thing and don't raise our fuel taxes,” Moyle said. “We'll see though. They have control right because of the refineries. But I think we're in good shape. I think we're talking. We'll find a path.”

The potential restructuring aims to cut Utah's consumer gas tax up to 50 percent.

Moyle warned that the export tax could increase Idaho's gas prices by twenty-five cents a gallon. 

About 75 percent of fuel exported from Utah is purchased by Idaho consumers, according to a draft Joint Memorial from the Idaho House of Representatives and Senate.

“I think that, on the front end, they thought it was going to be really easy to come tax Idahoans and make it miserable for us,” Moyle said. “But there's more to the story, so we'll see what they do. They're supposed to introduce a bill. We'll see what the next rendition is. Once we see that, we'll know how to respond.”

However, Idaho lawmakers told Local News 8 this week they have a feeling it's going to be water – or oil – under the bridge soon, and they are going to work things out with Utah.

“We will find a sensible diplomatic path through the conversation,” said Idaho Rep. Josh Wheeler, R-Ammon, whose district includes Bear Lake County, bordering Utah. “There are some slightly, outlandish ideas being bandied about right now – like charging more for lottery tickets in our border towns, or maybe it's time to tax microchips that come out of Idaho, the same way they're trying to tax fuel that comes out of Utah’s refineries.”

While the bill to restructure Utah's gas tax has not been filed yet, Idaho legislators have introduced a joint memorial opposing Utah's export tax.

The joint memorial states:

•  “Idahoans pay Idaho fuel taxes and are not obligated to pay Utah's fuel taxes except when in Utah;”
• “Article I of the United States Constitution prohibits states from imposing ‘ any imports or duties on imports or exports’ without the consent of Congress;
• “Imposition of such an export tax would result in hundreds of millions of dollars in annual costs borne by Idaho families, farmers, and businesses.”

The memorial is scheduled for debate after its third reading. 

“In the end, I think they're going to recognize what they're trying to do is unconstitutional, and it's time for them to find solutions that are in their state, rather than trying to inflict damage on our Idaho citizens,” Wheeler said.