Texas Senate Bill SB1648

Texas 2013 - 83rd Regular

Caption

Relating to the motor fuel tax on compressed natural gas and liquefied natural gas; providing penalties.

Impact

The bill is expected to have significant implications for state laws related to motor fuel taxation. By establishing clear collection mechanisms for the existing tax requirements, SB1648 simplifies the taxation process for both consumers and businesses. It makes the tax liabilities clear for those involved in selling and delivering CNG and LNG, while providing a straightforward path for dealers to comply with tax requirements. The changes in law ensure that all transactions within Texas are taxable unless proven otherwise through adequate record-keeping.

Summary

SB1648 is legislation that addresses the tax implications for the sale and delivery of compressed natural gas (CNG) and liquefied natural gas (LNG) in Texas. The bill does not introduce a new tax, but rather modifies existing tax structures for these types of motor fuels. The legislation sets forth specific tax rates—15 cents for each gasoline gallon equivalent (GGE) and diesel gallon equivalent (DGE) of CNG or LNG delivered into a vehicle's fuel supply tank. This measure is aimed at fostering efficiency in tax administration and ensuring compliance among dealers and users while maintaining revenue levels from existing taxes.

Contention

Debate surrounding SB1648 primarily centers on the fairness and equity of taxing alternative fuels like CNG and LNG, given the growing concerns regarding environmental sustainability and vehicle emissions. Supporters argue that the bill's framework promotes cleaner fuel use and may incentivize more users to shift from gasoline or diesel to more environmentally friendly options. However, opponents may view this taxation as a deterrent to transitioning towards alternative fuels, fearing it could undermine efforts to reduce reliance on fossil fuels and impede initiatives aimed at lowering vehicular emissions.