The impact of HB3900 is significant as it modifies existing laws to tighten tax collection mechanisms on motor fuels and to enforce compliance among distributors and suppliers. Specifically, it outlines the responsibilities of licensed suppliers in collecting taxes at the time of sale, and includes provisions for penalties related to wrongful tax-free sales. These changes aim to ensure that tax revenues from motor fuels are accurately collected and reported, potentially increasing state revenue.
Summary
House Bill 3900 addresses various aspects of the taxation of motor fuels in Texas, amending several sections of the Tax Code to clarify tax obligations, refund procedures, and regulations concerning motor fuel transactions. The bill introduces new definitions related to motor fuels, regulations for suppliers, distributors, and users of dyed diesel fuel, and the associated tax liabilities based on the transactions involving motor fuels such as gasoline and diesel.
Contention
Notable points of contention surrounding the bill focus on the requirements imposed on fuel distributors and suppliers, particularly regarding the documentation for tax exemptions and the penalties for violations. Opponents of the bill may argue that the added compliance requirements could hurt small suppliers by increasing their operational burdens. Furthermore, there may be concerns about the implications of stricter penalties for late tax payments or inaccuracies in reporting, which may disproportionately impact smaller entities that lack the resources to navigate complex regulatory requirements.
Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.
Relating to a county motor fuels tax in certain counties for mobility improvement projects; providing authority to impose the tax, issue bonds, and impose penalties.
Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.
Relating to a county motor fuels tax in certain counties for mobility improvement projects; providing authority to impose the tax, issue bonds, and impose penalties.
Relating to a county motor fuels tax in certain counties for mobility improvement projects; providing authority to impose the tax, issue bonds, and impose penalties.
Relating to local funding for mobility improvement and transportation projects; providing authority to impose a tax, issue bonds, and impose penalties.
Relating to the regulation of certain facilities and operators engaged in the motor fuel transport or export business; requiring an occupational license; authorizing a fee; creating criminal offenses; authorizing a civil penalty.