States findings of the Legislature, opposes the neighboring state of Utah imposing an export tax on transportation fuels, and urges Utah to reconsider such tax.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE JOINT MEMORIAL NO. 12 BY TRANSPORTATION AND DEFENSE COMMITTEE A JOINT MEMORIAL1 TO THE GOVERNOR OF THE STATE OF UTAH AND TO THE SPEAKER OF THE UTAH HOUSE OF2 REPRESENTATIVES AND TO THE PRESIDENT OF THE UTAH SENATE.3 We, your Memorialists, the House of Representatives and the Sen-4 ate of the State of Idaho assembled in the Second Regular Session of the5 Sixty-eighth Idaho Legislature, do hereby respectfully represent that:6 WHEREAS, President Donald J. Trump signed the Unleashing American7 Energy executive order, which affirms that America's abundant energy re-8 sources are essential to economic prosperity and cautions against policies9 that increase energy costs for American families and businesses; and10 WHEREAS, the states of Idaho and Utah have long maintained a close and11 cooperative relationship grounded in shared free-market principles, re-12 gional collaboration, and mutual economic benefit; and13 WHEREAS, Idaho and Utah have recently formalized an interstate energy14 partnership intended to promote reliable, affordable, and efficient energy15 supply for both states; and16 WHEREAS, the Utah House of Representatives Republican Caucus has pub-17 licly identified, as a legislative priority, a proposal to impose a substan-18 tial export tax on transportation fuels produced in Utah and sold outside its19 borders; and20 WHEREAS, Utah Speaker of the House Mike Schultz has publicly stated21 through social media posts, videos, and interviews, that Utahns pay higher22 gasoline prices because out-of-state consumers, particularly Idaho resi-23 dents, have benefited from Utah's transportation system by not paying fuel24 taxes, despite the fact that Idahoans pay Idaho fuel taxes and are not obli-25 gated to pay Utah's fuel taxes except when in Utah; and26 WHEREAS, the International Fuel Tax Agreement requires commercial mo-27 tor vehicles to apportion and remit fuel taxes among the states based on28 miles traveled in each jurisdiction, and the Utah proposal would result in an29 additional fuel tax obligation for Idaho-based trucking companies operating30 in Utah, creating a duplicative tax burden; and31 WHEREAS, Clause 2, Section 10, Article I of the United States Constitu-32 tion prohibits states from imposing "any Imposts or Duties on Imports or Ex-33 ports" without the consent of Congress, and the Utah proposal raises serious34 constitutional concerns by taxing motor fuel solely because it is exported35 from Utah for use in interstate commerce; and36 WHEREAS, in 2022, the State of Washington considered a comparable ex-37 port tax on fuel sold out of state, but the proposal failed to advance due to38 the same numerous concerns regarding interstate relations; and39 WHEREAS, Idaho imports approximately 70,000 barrels of transportation40 fuels per day from Utah, and an estimated 75% of the fuel subject to the pro-41 posed export tax would be sold to Idaho consumers; and42

2 WHEREAS, imposition of such an export tax would result in hundreds of1 millions of dollars in annual costs borne by Idaho families, farmers, and2 businesses; and3 WHEREAS, Idahoans already pay substantial state fuel taxes to support4 Idaho's transportation system, and the proposed export tax would signifi-5 cantly increase the total fuel tax burden on Idaho citizens and businesses,6 placing Idaho among the most heavily taxed fuel markets in the nation; and7 WHEREAS, a substantial export tax on transportation fuels would dispro-8 portionately and unnecessarily harm Idaho's economy, agricultural sector,9 transportation system, and cost of living; and10 WHEREAS, shifting one state's transportation funding obligations onto11 residents of a neighboring state undermines the trust, cooperation, and12 goodwill that have long defined the Idaho-Utah relationship; and13 WHEREAS, the imposition of an export tax by Utah will almost certainly14 trigger compensatory measures by affected states, resulting in a plague of15 new "tit-for-tat" taxes and fees to be borne by nonresidents; and16 WHEREAS, Idaho and Utah share a mutual interest in maintaining afford-17 able energy prices, strong regional commerce, and a stable transportation18 fuel supply for the benefit of both states and the nation.19 NOW, THEREFORE, BE IT RESOLVED by the members of the Second Regular Ses-20 sion of the Sixty-eighth Idaho Legislature, the House of Representatives and21 the Senate concurring therein, that the Idaho Legislature respectfully but22 firmly opposes any proposal by a neighboring state to impose an export tax on23 transportation fuels that would disproportionately burden Idahoans.24 BE IT FURTHER RESOLVED that the Idaho Legislature urges continued in-25 terstate cooperation and good-faith dialogue to address transportation26 funding and energy policy challenges in a manner that strengthens, rather27 than strains, the long-standing partnership between Idaho and Utah.28 BE IT FURTHER RESOLVED that the Legislature cautions that enactment of29 such an export tax would significantly harm Idaho citizens and risk lasting30 damage to a relationship built on mutual respect, collaboration, and shared31 economic prosperity.32 BE IT FURTHER RESOLVED that the Legislature urges Governor Spencer Cox33 to speak out immediately against the proposed tax and to commit to vetoing34 this unwise and disruptive legislation should it reach his desk.35 BE IT FURTHER RESOLVED that the Legislature will take any and all ac-36 tions necessary to block this new tax on the citizens of Idaho, who should37 never be subject to taxation without representation.38 BE IT FURTHER RESOLVED that the Chief Clerk of the House of Representa-39 tives be, and she is hereby authorized and directed to forward a copy of this40 Memorial to the Honorable Spencer Cox, Governor of the State of Utah; the41 Honorable Mike Schultz, Speaker of the Utah House of Representatives; and42 the Honorable Stuart Adams, President of the Utah Senate.43