Relating to the motor fuel tax on compressed natural gas and liquefied natural gas; providing penalties; imposing a tax.
The bill's amendment directly affects the Texas Tax Code by establishing a comprehensive framework for the taxation of CNG and LNG. It clarifies the roles and responsibilities of fuel dealers and users, particularly in how taxes are collected and reported. By formalizing these processes, HB 2148 intends to improve the efficiency of tax collection and compliance in the state, thereby enhancing revenue generation for public services. Local governments and public transportation entities that operate vehicles using CNG and LNG are included in this regulatory scheme, allowing for possible refunds under certain conditions.
House Bill 2148 aims to amend the existing laws relating to the motor fuel tax specifically for compressed natural gas (CNG) and liquefied natural gas (LNG). The bill proposes a new collection mechanism for the current tax, without increasing the tax rate. It implements a tax rate of 15 cents for each gallon equivalent of CNG and LNG, promoting efficient tax administration while ensuring compliance among taxpayers. The bill also details various obligations for dealers and fleet users, emphasizing strict record-keeping to facilitate effective tax collection and administration.
Notable points of contention regarding HB 2148 involve concerns from stakeholders about the implications of tracking fuel usage and maintaining compliance with the new record-keeping requirements. Some transportation authorities have expressed worries about the administrative burden that could come with implementing these changes. Additionally, the bill includes provisions for criminal and civil penalties for violations related to tax compliance, which could lead to apprehensions among fuel dealers regarding potential liabilities. Despite these concerns, proponents argue that the bill will benefit the environment by promoting cleaner fuel alternatives.