Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.
Impact
The implementation of SB757 will amend Section 162.227 of the Texas Tax Code. It introduces a provision allowing for a tax credit or refund based on diesel consumption that can be precisely measured, thereby promoting accountability and efficiency in how diesel fuel is taxed in relation to its use for auxiliary equipment. Moreover, the bill distinguishes between acceptable uses of fuel for auxiliary power and basic idling or air conditioning usage, thus ensuring that the legislation directly focuses on the intended operational efficiencies.
Summary
SB757 aims to provide a credit or refund for diesel fuel taxes paid on diesel fuel utilized in Texas by auxiliary power units or power take-off equipment on motor vehicles. By allowing both license holders and individuals without licenses to claim credits or refunds, the bill seeks to help incentivize the use of auxiliary power units, which are often employed to power equipment without idling the vehicle’s main engine. This change is expected to enhance energy efficiency and reduce emissions associated with diesel fuel consumption in the transportation sector.
Contention
Debate surrounding SB757 may arise over concerns about accurately measuring the fuel used by auxiliary power units versus that consumed through routine idling. Proponents may argue that the bill clarifies tax provisions and supports greener transportation practices, while critics could point to potential misuse of credits and the complexities of enforcing these regulations. The bill also has implications for the state's approach to diesel fuel taxation and its broader environmental objectives.
Notable_points
SB757 explicitly clarifies that credits or refunds will not be permitted for diesel fuel used for idling vehicles simply for comfort purposes, such as air conditioning, which can be a point of contention among stakeholders who feel there should be exceptions for comfort in extreme weather conditions.
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.