Texas Senate Bill SB1495

Texas 2009 - 81st Regular

• Out of Senate Committee: 3/31/09
• Voted on by Senate: 4/9/09
• Out of House Committee: 5/1/09
• Voted on by House: 5/7/09
• Governor Action: 6/19/09
• Enrolled: 6/1/09
• Passed: 6/19/09

Caption

Relating to the taxation of motor fuels; providing penalties.

Impact

The implications of SB1495 are significant as it modifies the enforcement and tracking of motor fuel taxes in Texas. By requiring taxes to be prominently stated on invoices and shipping documents, the bill enhances transparency regarding fuel tax obligations. This could lead to improved compliance rates by making it clearer to purchasers what taxes are applied to their fuel purchases. Additionally, the bill lays out penalties for non-compliance, which helps uphold the importance of tax collection for the state budget.

Summary

Senate Bill 1495 focuses on the taxation of motor fuels, specifically diesel and gasoline. It introduces amendments to the existing tax code, restructuring the way taxes are applied and collected on fuel transactions. The bill imposes taxes on various stages including the removal of fuels from terminals, blending processes, and sales, ensuring that taxes are collected at the point of use by the ultimate consumer instead of the point of sale. This structure aims to clarify the financial responsibilities of different parties involved in the fuel supply chain.

Contention

While the bill received bipartisan support during the legislative process, there are underlying concerns regarding the additional responsibilities placed on suppliers and distributors. Opponents have raised questions about the potential burden this may impose on small fuel retailers, who may find it challenging to manage the complexities of tax collection and reporting mandated by the new law. Moreover, there are fears that increased compliance requirements could lead to elevated fuel prices as businesses pass on the costs of compliance to consumers.