82R3707 ALL-D
By: Martinez H.B. No. 2074
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from the motor fuel tax for railway
engines and the allocation of revenue; providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 162.204, Tax Code, is amended by
amending Subsection (a) and adding Subsection (g) to read as
follows:
(a) The tax imposed by this subchapter does not apply to:
(1) diesel fuel sold to the United States for its
exclusive use, provided that the exemption does not apply to diesel
fuel sold or delivered to a person operating under a contract with
the United States;
(2) diesel fuel sold to a public school district in
this state for the district's exclusive use;
(3) diesel fuel sold to a commercial transportation
company or a metropolitan rapid transit authority operating under
Chapter 451, Transportation Code, that provides public school
transportation services to a school district under Section 34.008,
Education Code, and that uses the diesel fuel only to provide those
services;
(4) diesel fuel exported by either a licensed supplier
or a licensed exporter from this state to any other state, provided
that:
(A) for diesel fuel in a situation described by
Subsection (d), the bill of lading indicates the destination state
and the supplier collects the destination state tax; or
(B) for diesel fuel in a situation described by
Subsection (e), the bill of lading indicates the destination state,
the diesel fuel is subsequently exported, and the exporter is
licensed in the destination state to pay that state's tax and has an
exporter's license issued under this subchapter;
(5) diesel fuel moved by truck or railcar between
licensed suppliers or licensed permissive suppliers and in which
the diesel fuel removed from the first terminal comes to rest in the
second terminal, provided that the removal from the second terminal
rack is subject to the tax imposed by this subchapter;
(6) diesel fuel delivered or sold into a storage
facility of a licensed aviation fuel dealer from which the diesel
fuel will be delivered solely into the fuel supply tanks of aircraft
or aircraft servicing equipment, or sold from one licensed aviation
fuel dealer to another licensed aviation fuel dealer who will
deliver the diesel fuel exclusively into the fuel supply tanks of
aircraft or aircraft servicing equipment;
(7) diesel fuel exported to a foreign country if the
bill of lading indicates the foreign destination and the fuel is
actually exported to the foreign country;
(8) dyed diesel fuel sold or delivered by a supplier to
another supplier and dyed diesel fuel sold or delivered by a
supplier or distributor into the bulk storage facility of a dyed
diesel fuel bonded user or to a purchaser who provides a signed
statement as provided by Section 162.206;
(9) the volume of water, fuel ethanol, renewable
diesel, biodiesel, or mixtures thereof that are blended together
with taxable diesel fuel when the finished product sold or used is
clearly identified on the retail pump, storage tank, and sales
invoice as a combination of diesel fuel and water, fuel ethanol,
renewable diesel, biodiesel, or mixtures thereof;
(10) dyed diesel fuel sold by a supplier or permissive
supplier to a distributor, or by a distributor to another
distributor;
(11) dyed diesel fuel delivered by a license holder
into the fuel supply tanks of [railway engines,] motorboats[,] or
refrigeration units or other stationary equipment powered by a
separate motor from a separate fuel supply tank;
(12) dyed kerosene when delivered by a supplier,
distributor, or importer into a storage facility at a retail
business from which all deliveries are exclusively for heating,
cooking, lighting, or similar nonhighway use;
(13) diesel fuel used by a person, other than a
political subdivision, who owns, controls, operates, or manages a
commercial motor vehicle as defined by Section 548.001,
Transportation Code, if the fuel:
(A) is delivered exclusively into the fuel supply
tank of the commercial motor vehicle; and
(B) is used exclusively to transport passengers
for compensation or hire between points in this state on a fixed
route or schedule; or
(14) diesel fuel sold to a volunteer fire department
in this state for the department's exclusive use.
(g) Notwithstanding any other provision of this chapter, a
person may not make a tax-free purchase of dyed diesel fuel for
delivery into the fuel supply tank of a railway engine. Sections
162.205(b), 162.206, 162.231, 162.233, and 162.403(32) do not apply
to a purchase described by this subsection.
SECTION 2. Section 162.227, Tax Code, is amended by adding
Subsection (i) to read as follows:
(i) A person who paid tax on diesel fuel delivered into the
fuel supply tank of a railway engine may claim a credit or seek a
refund with the comptroller if the person uses the diesel fuel to
operate the railway engine in another state.
SECTION 3. Section 162.504, Tax Code, is amended to read as
follows:
Sec. 162.504. ALLOCATION OF DIESEL FUEL TAX. (a) On or
before the fifth workday after the end of each month, the
comptroller, after making deductions for refund purposes, for the
administration and enforcement of this chapter, and for the amounts
allocated under Subsection (b) and Section 162.5025, shall allocate
the remainder of the taxes collected under Subchapter C as follows:
(1) one-fourth of the taxes shall be deposited to the
credit of the available school fund; and
(2) three-fourths of the taxes shall be deposited to
the credit of the state highway fund.
(b) On or before the fifth workday after the end of each
month, the comptroller, after making deductions for refund
purposes, shall allocate taxes collected under Subchapter C on dyed
or undyed diesel fuel delivered into the fuel tanks of railway
engines to the credit of the Texas rail relocation and improvement
fund.
SECTION 4. This Act takes effect September 1, 2011.