Texas Senate Bill SB1772

Texas 2011 - 82nd Regular

• Introduced: 3/11/11
• Refer: 3/23/11

Caption

Relating to computation of the volume of components blended with taxable diesel for the exemption from motor fuels tax.

Impact

The enactment of SB1772 will streamline the procedures surrounding fuel taxation in the state, providing clarity on how exemptions are calculated. By allowing invoices to be rounded, suppliers can more easily comply with tax reporting requirements, potentially leading to increased efficiency in the motor fuels market. This change could positively impact businesses that rely on diesel fuel, particularly in terms of tax compliance and planning.

Summary

Senate Bill 1772 proposes an amendment to the Texas Tax Code, specifically Section 162.204, to facilitate the computation of the volume of components blended with taxable diesel for the purpose of exemptions from the motor fuels tax. This legislation allows for the rounding of the volume of the exempt component to the nearest whole percent when calculating exemptions. This adjustment is aimed at simplifying the process for suppliers and distributors involved in the sale of diesel fuel subject to taxation in Texas.

Sentiment

The general sentiment surrounding SB1772 appears to be largely supportive among stakeholders in the diesel supply industry. Many view the bill as a proactive measure that reduces administrative burdens and potential discrepancies in tax calculations. However, there may be some concerns about ensuring the integrity and oversight of tax exemptions, which could lead to discussions about potential abuses or misreporting by suppliers.

Contention

While SB1772 is primarily seen as a beneficial adjustment, discussions could arise regarding the implications for overall tax revenues from motor fuels. Critics may express concerns that simplifying these calculations could lead to unintended consequences, such as reduced tax revenues if exemptions are not properly monitored. Therefore, ensuring oversight mechanisms in the implementation of this bill may be a point of contention among some legislators and stakeholders.