By: Williams S.B. No. 1648
(In the Senate - Filed March 8, 2013; March 20, 2013, read
first time and referred to Committee on Finance; May 8, 2013,
reported adversely, with favorable Committee Substitute by the
following vote: Yeas 13, Nays 0; May 8, 2013, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1648 By: Lucio
A BILL TO BE ENTITLED
AN ACT
relating to the motor fuel tax on compressed natural gas and
liquefied natural gas; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislature finds that:
(1) this Act does not impose a new tax;
(2) compressed natural gas and liquefied natural gas
are currently taxed and this Act leaves the tax rate effectively
unchanged;
(3) this Act provides a new collection mechanism for
an existing tax; and
(4) this Act provides a more efficient method of tax
administration for taxpayers and for this state.
SECTION 2. Section 162.001, Tax Code, is amended by
amending Subdivisions (4), (16), (19), (29), (38), (39), (42), and
(43) and adding Subdivisions (19-a), (24-a), (31-a), and (40-a) to
read as follows:
(4) "Aviation fuel dealer" means a person who:
(A) is the operator of an aircraft servicing
facility;
(B) delivers gasoline, [or] diesel fuel,
compressed natural gas, or liquefied natural gas exclusively into
the fuel supply tanks of aircraft or into equipment used solely for
servicing aircraft and used exclusively off-highway; and
(C) does not use, sell, or distribute gasoline,
[or] diesel fuel, compressed natural gas, or liquefied natural gas
on which a fuel tax is required to be collected or paid to this
state.
(16) "Compressed natural gas" means natural gas that
has been compressed [and dispensed into motor fuel storage
containers] and is advertised, offered for sale, sold, suitable for
use, or used as an engine motor fuel.
(19) "Diesel fuel" means kerosene or another liquid,
or a combination of liquids blended together, offered for sale,
sold, used, or capable of use as fuel for the propulsion of a
diesel-powered engine. The term includes products commonly
referred to as kerosene, light cycle oil, #1 diesel fuel, #2 diesel
fuel, dyed or undyed diesel fuel, aviation jet fuel, renewable
diesel, biodiesel, distillate fuel, cutter stock, or heating oil,
but does not include compressed natural gas, liquefied natural gas,
gasoline, aviation gasoline, or liquefied gas.
(19-a) "Diesel gallon equivalent" means:
(A) 6.380 pounds of compressed natural gas; or
(B) 6.060 pounds of liquefied natural gas.
(24-a) "Fleet user" means a person who produces
compressed natural gas or liquefied natural gas or maintains
storage facilities for compressed natural gas or liquefied natural
gas and who delivers all or part of the fuel produced or stored into
the fuel supply tank of a motor vehicle.
(29) "Gasoline" means any liquid or combination of
liquids blended together, offered for sale, sold, used, or capable
of use as fuel for a gasoline-powered engine. The term includes
gasohol, aviation gasoline, and blending agents, but does not
include compressed natural gas, liquefied natural gas, racing
gasoline, diesel fuel, aviation jet fuel, or liquefied gas.
(31-a) "Gasoline gallon equivalent" means:
(A) 5.660 pounds of compressed natural gas; or
(B) 5.370 pounds of liquefied natural gas.
(38) "License holder" means a person licensed by the
comptroller under Section 162.105, 162.205, 162.304, 162.305, [or]
162.306, 162.357, or 162.358.
(39) "Liquefied gas" means all combustible gases that
exist in the gaseous state at 60 degrees Fahrenheit and at a
pressure of 14.7 pounds per square inch absolute, but does not
include compressed natural gas, liquefied natural gas, gasoline, or
diesel fuel.
(40-a) "Liquefied natural gas" mean natural gas that
has been cooled to a liquid state and is advertised, offered for
sale, sold, suitable for use, or used as an engine motor fuel.
(42) "Motor fuel" means gasoline, diesel fuel,
liquefied gas, gasoline blended fuel, compressed natural gas,
liquefied natural gas, and other products that are offered for
sale, sold, used, or capable of use as fuel for a gasoline-powered
engine or a diesel-powered engine.
(43) "Motor fuel transporter" means a person who
transports gasoline, diesel fuel, gasoline blended fuel, aviation
fuel, or any other motor fuel, except liquefied gas, compressed
natural gas, or liquefied natural gas, outside the bulk
transfer/terminal system by means of a transport vehicle, a
railroad tank car, or a marine vessel. The term does not include a
person who:
(A) is licensed under this chapter as a supplier,
permissive supplier, or distributor; and
(B) exclusively transports gasoline, diesel
fuel, gasoline blended fuel, aviation fuel, or any other motor fuel
to which the person retains ownership while the fuel is being
transported by the person.
SECTION 3. Subchapter D, Chapter 162, Tax Code, is amended
by adding Section 162.312 to read as follows:
Sec. 162.312. APPLICABILITY OF SUBCHAPTER TO CERTAIN PUBLIC
TRANSPORTATION PROVIDERS USING COMPRESSED NATURAL GAS OR LIQUEFIED
NATURAL GAS. (a) This section applies only to a person who:
(1) operates motor vehicles used to provide the
services of a transit company, including a metropolitan rapid
transit authority under Chapter 451, Transportation Code, or a
regional transportation authority under Chapter 452,
Transportation Code; and
(2) held a liquefied gas tax decal license on or before
August 31, 2013.
(b) Notwithstanding Subchapter D-1, a person to which this
section applies may:
(1) pay tax as provided by this subchapter on
compressed natural gas or liquefied natural gas delivered into the
fuel supply tank of all motor vehicles described by Subsection
(a)(1) from a refueling facility accessible only to motor vehicles
described by Subsection (a)(1); and
(2) operate those motor vehicles on the public
highways of this state using compressed natural gas or liquefied
natural gas described by Subdivision (1).
(c) This section does not apply to compressed natural gas or
liquefied natural gas delivered into the fuel supply tank of a motor
vehicle from a refueling facility accessible to motor vehicles
other than those described by Subsection (a)(1).
(d) In this subchapter, "liquefied gas" includes compressed
natural gas and liquefied natural gas with respect to the persons to
which this section applies.
(e) The comptroller shall adopt rules necessary to
implement this section.
SECTION 4. Chapter 162, Tax Code, is amended by adding
Subchapter D-1 to read as follows:
SUBCHAPTER D-1. COMPRESSED NATURAL GAS AND LIQUEFIED NATURAL GAS
TAX
Sec. 162.351. TAX IMPOSED; SALE OF FUEL DELIVERED INTO FUEL
SUPPLY TANK OF MOTOR VEHICLE. (a) A tax is imposed on the sale of
compressed natural gas or liquefied natural gas that is delivered
into the fuel supply tank of a motor vehicle in connection with a
sale of the compressed natural gas or liquefied natural gas.
(b) The dealer is liable for the tax imposed under this
section.
(c) The dealer shall add the amount of the tax to the selling
price so that the tax is paid by the purchaser. When the amount of
the tax is added:
(1) it becomes a part of the sales price;
(2) it is a debt of the purchaser to the dealer; and
(3) if unpaid, it is recoverable at law in the same
manner as the original sales price.
(d) The dealer shall provide to the purchaser an invoice or
receipt that states the rate and amount of tax added to the selling
price or indicates that no tax was added to the selling price.
Sec. 162.352. TAX IMPOSED; DELIVERY OF FUEL INTO FUEL
SUPPLY TANK OF MOTOR VEHICLE NOT IN CONNECTION WITH SALE. (a) A
tax is imposed on the delivery of compressed natural gas or
liquefied natural gas into the fuel supply tank of a motor vehicle
by a fleet user or other dealer not in connection with a sale of the
compressed natural gas or liquefied natural gas.
(b) The fleet user or other dealer is liable for the tax
imposed under this section.
Sec. 162.353. TAX RATE; UNIT OF MEASUREMENT. (a) The rate
of the tax under Sections 162.351 and 162.352 is 15 cents for each:
(1) gasoline gallon equivalent or fractional part of
compressed natural gas or liquefied natural gas; or
(2) diesel gallon equivalent or fractional part of
compressed natural gas or liquefied natural gas.
(b) The tax shall be imposed on an amount of compressed
natural gas or liquefied natural gas equal to a:
(1) diesel gallon equivalent of compressed natural
gas, as provided by Section 162.001(19-a)(A), if the natural gas
dispenser lists the price in diesel gallon equivalents and the
natural gas is supplied to the dispenser from a pipeline or other
nonliquefied source;
(2) diesel gallon equivalent of liquefied natural gas,
as provided by Section 162.001(19-a)(B), if the natural gas
dispenser lists the price in diesel gallon equivalents and the
natural gas is supplied to the dispenser from a liquefied source;
(3) gasoline gallon equivalent of compressed natural
gas, as provided by Section 162.001(31-a)(A), if the natural gas
dispenser lists the price in gasoline gallon equivalents and the
natural gas is supplied to the dispenser from a pipeline or other
nonliquefied source; or
(4) gasoline gallon equivalent of liquefied natural
gas, as provided by Section 162.001(31-a)(B), if the natural gas
dispenser lists the price in gasoline gallon equivalents and the
natural gas is supplied to the dispenser from a liquefied source.
Sec. 162.354. BACKUP TAX; LIABILITY. (a) A backup tax is
imposed at the rate prescribed by Section 162.353 on:
(1) a person who obtains a refund of tax on compressed
natural gas or liquefied natural gas by claiming the fuel was used
for an exempt purpose, but actually uses the fuel for a taxable
purpose;
(2) a person who operates a motor vehicle on a public
highway using compressed natural gas or liquefied natural gas on
which tax has not been paid;
(3) a person who sells compressed natural gas or
liquefied natural gas that is delivered into the fuel supply tank of
a motor vehicle, on which tax was not paid, and who knew or had
reason to know that the fuel would be used for a taxable purpose;
and
(4) a person who delivers into the fuel supply tank of
a motor vehicle compressed natural gas or liquefied natural gas on
which tax was not paid and who knew or had reason to know that the
fuel would be used for a taxable purpose.
(b) If the person who operates a motor vehicle described by
Subsection (a)(2) is not the owner or lessee of the motor vehicle,
both the owner or lessee and the operator are liable for the tax.
(c) The tax imposed under Subsection (a)(3) is also imposed
on the ultimate consumer.
(d) The tax imposed under Subsection (a)(4) is also imposed
on the operator of the motor vehicle or the motor vehicle's owner or
lessee.
(e) The tax liability imposed by this section is in addition
to any penalty imposed under this chapter.
Sec. 162.355. FUEL PRESUMED SUBJECT TO TAX. (a) All
compressed natural gas and liquefied natural gas sold by a dealer
and delivered into the fuel supply tank of a motor vehicle is
presumed to be subject to tax, and the dealer is liable for the tax
under Section 162.351(b) and in accordance with Section 162.012
unless the dealer maintains adequate records to establish that the
fuel was exempt from tax under Section 162.356.
(b) All compressed natural gas and liquefied natural gas
delivered into the fuel supply tank of a motor vehicle by a fleet
user or other dealer not in connection with a sale is presumed to be
subject to tax, and the fleet user or other dealer is liable for the
tax under Section 162.352(b) and in accordance with Section 162.012
unless the fleet user or other dealer maintains adequate records to
establish that the fuel was exempt from tax under Section 162.356.
Sec. 162.356. EXEMPTIONS. The tax imposed by this
subchapter does not apply to compressed natural gas or liquefied
natural gas delivered into the fuel supply tank of:
(1) a motor vehicle operated exclusively by the United
States, provided that the exemption does not apply with respect to
fuel delivered into the fuel supply tank of a motor vehicle of a
person operating under a contract with the United States;
(2) a motor vehicle operated exclusively by a public
school district in this state;
(3) a motor vehicle operated exclusively by 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 fuel only to
provide those services;
(4) a motor vehicle operated exclusively by a
volunteer fire department in this state;
(5) a motor vehicle operated exclusively by a county
in this state;
(6) a motor vehicle operated exclusively by a
nonprofit electric cooperative corporation organized under Chapter
161, Utilities Code;
(7) a motor vehicle operated exclusively by a
nonprofit telephone cooperative corporation organized under
Chapter 162, Utilities Code;
(8) a motor vehicle that is not registered for use on
the public highways of this state and that is used exclusively
off-highway; or
(9) off-highway equipment, a stationary engine, a
motorboat, an aircraft, equipment used solely for servicing
aircraft and used exclusively off-highway, a locomotive, or any
device other than a motor vehicle operated or intended to be
operated on the public highways.
Sec. 162.357. DEALER'S LICENSE. (a) A person may not sell
compressed natural gas or liquefied natural gas that is delivered
into the fuel supply tank of a motor vehicle and on which tax is
imposed under Section 162.351 unless the person holds a compressed
natural gas and liquefied natural gas dealer's license issued by
the comptroller.
(b) A person may not deliver compressed natural gas or
liquefied natural gas into the fuel supply tank of a motor vehicle
not in connection with a sale and on which tax is imposed under
Section 162.352, or otherwise conduct the activities of a fleet
user, unless the person holds a compressed natural gas and
liquefied natural gas dealer's license issued by the comptroller.
(c) A person may not conduct the activities of an aviation
fuel dealer who delivers compressed natural gas or liquefied
natural gas unless the person holds a compressed natural gas and
liquefied natural gas dealer's license issued by the comptroller.
(d) A compressed natural gas and liquefied natural gas
dealer's license is permanent and is valid during the period the
license holder has in force and effect the required bond or security
and furnishes timely reports and supplements as required, or until
the license is surrendered by the license holder or canceled by the
comptroller. The comptroller shall cancel a license under this
subsection if the license holder has not reported a delivery of
compressed natural gas or liquefied natural gas during the previous
nine months.
(e) A compressed natural gas and liquefied natural gas
dealer's license is not transferable.
Sec. 162.358. INTERSTATE TRUCKER'S LICENSE. (a) An
interstate trucker's license authorizes a person who operates a
motor vehicle described by Section 162.001(36) and fueled by
compressed natural gas or liquefied natural gas to report and pay
the tax and take a credit or claim a refund as provided by this
subchapter.
(b) An interstate trucker's license is valid from the date
of issuance until December 31 of each calendar year or until the
license is surrendered by the license holder or canceled by the
comptroller. The comptroller may renew an interstate trucker's
license each calendar year if the license holder furnishes timely
reports as required.
(c) An interstate trucker's license is not transferable.
Sec. 162.359. LICENSE APPLICATION PROCEDURE. An applicant
for a license under this subchapter must file an application using a
form adopted by the comptroller that contains:
(1) the name under which the applicant transacts or
intends to transact business;
(2) the applicant's principal office, residence, or
place of business in this state, or other location of the applicant;
(3) if the applicant is not an individual, the names of
the principal officers of an applicant corporation, or the names of
the members of an applicant partnership, and the office, street, or
post office addresses of each; and
(4) other information required by the comptroller.
Sec. 162.360. ISSUANCE AND DISPLAY OF LICENSE. (a) If the
comptroller approves a license application, the comptroller shall
issue a license to the applicant. A license holder shall post the
license in a conspicuous place or keep the license available for
inspection at the license holder's principal place of business. A
license holder shall keep a copy of the license at each place of
business or other place of storage from which compressed natural
gas or liquefied natural gas is sold or delivered.
(b) An interstate trucker's license holder shall reproduce
the license and carry a photocopy with each motor vehicle being
operated in or traveling to or from this state.
Sec. 162.361. BOND AND OTHER SECURITY FOR TAXES. (a) The
comptroller shall determine the amount of security required of a
dealer, taking into consideration the amount of tax that has or is
expected to become due from the person, any past history of the
person as a license holder under this chapter or its predecessor,
and the necessity to protect this state against the failure to pay
the tax as the tax becomes due.
(b) The comptroller may require a license holder to post a
bond if the comptroller determines it is necessary for the license
holder to post security to protect the revenues of this state. A
license holder must post a bond equal to two times the maximum
amount of tax that could accrue on compressed natural gas or
liquefied natural gas produced, purchased, acquired, sold, or
delivered during a reporting period. The minimum bond for a person
described by Section 162.357(a) is $30,000. The comptroller shall
prescribe the minimum bond for a person described by Section
162.357(b) or (c) who is not described by Section 162.357(a). The
maximum bond is $600,000 unless the comptroller believes there is
undue risk of loss of tax revenues, in which event the comptroller
may require one or more bonds or securities in a total amount
exceeding $600,000.
(c) A license holder who has filed a bond or other security
under this subchapter is entitled, on request, to have the
comptroller return, refund, or release the bond or security if in
the judgment of the comptroller the person has for four consecutive
years continuously complied with the conditions of the bond or
other security filed under this subchapter. However, if the
comptroller determines that the revenues of this state would be
jeopardized by the return, refund, or release of the bond or
security, the comptroller may elect not to return, refund, or
release the bond or security and may reimpose a requirement of a
bond or other security as the comptroller determines necessary to
protect the revenues of this state.
(d) A bond must be a continuing instrument, must constitute
a new and separate obligation in the penal sum named in the bond for
each calendar year or portion of a year while the bond is in force,
and must remain in effect until the surety on the bond is released
and discharged.
(e) Instead of filing a surety bond, an applicant for a
license may substitute the following security:
(1) cash in the form of United States currency in an
amount equal to the required bond to be deposited in a suspense
account of the state treasury;
(2) an assignment to the comptroller of a certificate
of deposit in any bank or savings and loan association in this state
that is a member of the Federal Deposit Insurance Corporation in an
amount at least equal to the bond amount required; or
(3) an irrevocable letter of credit to the comptroller
from any bank or savings and loan association in this state that is
a member of the Federal Deposit Insurance Corporation in an amount
of credit at least equal to the bond amount required.
(f) If the amount of an existing bond becomes insufficient
or a security becomes unsatisfactory or unacceptable, the
comptroller may require the license holder to file a new or an
additional bond or security.
(g) A surety bond or other form of security may not be
released until the comptroller determines by examination or audit
that a tax, penalty, or interest liability does not exist. The
comptroller shall release the cash or securities not later than the
60th day after the date the comptroller determines that liability
does not exist.
(h) The comptroller may use the cash or certificate of
deposit security to satisfy a final determination of delinquent
liability or a judgment secured in any action by this state to
recover compressed natural gas or liquefied natural gas taxes,
costs, penalties, and interest found to be due to this state by a
person on whose behalf the cash or certificate of deposit security
was deposited.
(i) The comptroller shall release and discharge from
liability to this state a surety on a bond furnished by a license
holder on the 31st day after the date on which the surety files with
the comptroller a written request to be released and discharged.
The request does not relieve, release, or discharge the surety from
a liability that already accrued or that accrues before the
expiration of the 30-day period. The comptroller, promptly on
receipt of the request, shall notify the license holder who
furnished the bond, and unless the license holder, before the
expiration date of the existing security, files with the
comptroller a new bond with a surety company authorized to do
business under the laws of this state, or other authorized
security, in the amount required by this section, the comptroller
shall cancel the license in the manner provided by this chapter.
(j) The comptroller shall immediately notify the issuer of a
letter of credit of a final determination of the license holder's
delinquent liability or a judgment secured in any action by this
state to recover compressed natural gas or liquefied natural gas
taxes, costs, penalties, and interest found to be due this state by
a license holder on whose behalf the letter of credit was issued.
The letter of credit allowed as security under this section must
contain a statement that the issuer agrees to respond to the
comptroller's notice of liability with amounts to satisfy the
comptroller's delinquency claim against the license holder.
(k) A license holder may request an examination or audit to
obtain release of the security when the license holder relinquishes
the license or when the license holder wants to substitute one form
of security for an existing one.
Sec. 162.362. RETURNS AND PAYMENTS; ALLOWANCES. (a) A
licensed dealer, on or before the 25th day of the month following
the end of each calendar quarter, shall file a report and remit the
amount of tax due. A licensed dealer who has not made taxable
deliveries during the reporting period shall file with the
comptroller a report that includes those facts or that information.
(b) If a licensed dealer files a report and remits the tax
due on or before the due date under Subsection (a), one percent of
the tax due is allocated to the licensed dealer for the expense of
collecting, accounting for, reporting, and timely remitting the
taxes collected and for keeping the records. The licensed dealer
shall deduct the allocated amount from the tax due when paying the
tax to this state.
(c) A licensed interstate trucker, on or before the 25th day
of the month following the end of each calendar quarter, shall file
a report and remit the amount of tax due. A report shall be filed
with the comptroller on forms provided for that purpose and must
contain the number of miles traveled in this state, the number of
miles traveled outside this state, and other information required
by the comptroller. An interstate trucker who is required to file a
report under this section and who has not made interstate trips or
used compressed natural gas or liquefied natural gas in motor
vehicles in this state during the reporting period shall file with
the comptroller a report that includes those facts or that
information.
(d) If a licensed interstate trucker files a report and
remits the tax due on or before the due date under Subsection (c),
one-half of one percent of the tax paid on compressed natural gas
and liquefied natural gas used in this state by the interstate
trucker is allocated to the interstate trucker for the expense of
accounting for, reporting, and timely remitting the taxes due and
for keeping the records. The licensed interstate trucker shall
deduct the allocated amount from the tax due when paying the tax to
this state. If the allocated amount exceeds the amount of tax due,
the interstate trucker may file a refund claim with the
comptroller.
Sec. 162.363. RECORDS. (a) A dealer shall keep a record
showing:
(1) compressed natural gas and liquefied natural gas
inventories at the first of each month;
(2) the amount of natural gas compressed by the dealer
and the amount of natural gas liquefied by the dealer;
(3) all compressed natural gas and liquefied natural
gas purchased or received, showing the name of the seller and the
date of each purchase or receipt;
(4) all compressed natural gas and liquefied natural
gas sold and delivered into the fuel supply tank of a motor vehicle,
showing the date of the sale;
(5) all compressed natural gas and liquefied natural
gas sold but not delivered into the fuel supply tank of a motor
vehicle, showing the date of the sale;
(6) all compressed natural gas and liquefied natural
gas delivered into the fuel supply tank of a motor vehicle not in
connection with a sale, showing the date of the delivery;
(7) all compressed natural gas and liquefied natural
gas delivered into the fuel supply tank of a motor vehicle or other
equipment exempt from tax under Section 162.356 or sold to the
operator of a motor vehicle or owner of equipment exempt from tax
under Section 162.356, showing the name of the operator of the
vehicle or the owner of the equipment and the date of the delivery
or sale; and
(8) all compressed natural gas and liquefied natural
gas lost by fire, theft, or accident.
(b) An interstate trucker shall keep a record of:
(1) the total miles traveled in all states by all
vehicles traveling to or from this state and the total quantity of
compressed natural gas and liquefied natural gas consumed in those
vehicles; and
(2) the total miles traveled in this state and the
total quantity of compressed natural gas or liquefied natural gas
purchased and delivered into the fuel supply tanks of motor
vehicles in this state.
(c) The records required by this section must be kept until
the fourth anniversary of the date they are created and are open to
inspection at all times by the comptroller and the attorney
general.
(d) In addition to the records specifically required by this
subchapter, a license holder or a person required to hold a license
shall keep any other records required by the comptroller.
Sec. 162.364. DUTIES OF PERSONS HOLDING TAX PAYMENTS.
(a) A person who receives or collects tax under this subchapter
holds the amount received or collected in trust for the benefit of
this state and has a fiduciary duty to remit to the comptroller the
amount of tax received or collected.
(b) A dealer who receives a payment of tax under this
subchapter may not apply the payment of tax to a debt that the
person making the payment owes for compressed natural gas or
liquefied natural gas purchased from the dealer.
(c) A person required to receive or collect a tax under this
subchapter is liable for and shall pay the tax in the manner
provided by this subchapter.
Sec. 162.365. REFUND OR CREDIT FOR CERTAIN TAXES PAID.
(a) A license holder may take a credit on a return for the period
in which the purchase occurred, and a person who does not hold a
license under this subchapter may file a refund claim with the
comptroller if the license holder or person paid tax on compressed
natural gas or liquefied natural gas and the license holder or
person:
(1) is the United States government and the fuel was
delivered into the fuel supply tank of a motor vehicle operated
exclusively by the United States, provided that a credit or refund
is not allowed for fuel delivered into the fuel supply tank of a
motor vehicle operated by a person operating under a contract with
the United States;
(2) is a public school district in this state and the
fuel was delivered into the fuel supply tank of a motor vehicle
operated exclusively by the district;
(3) is a commercial transportation company that
provides public school transportation services to a school district
under Section 34.008, Education Code, and the fuel was delivered
into the fuel supply tank of a motor vehicle used to provide those
services;
(4) is a volunteer fire department in this state and
the fuel was delivered into the fuel supply tank of a motor vehicle
operated exclusively by the department;
(5) is a county in this state and the fuel was
delivered into the fuel supply tank of a motor vehicle operated
exclusively by the county;
(6) is a nonprofit electric cooperative corporation
organized under Chapter 161, Utilities Code, and the fuel was
delivered into the fuel supply tank of a motor vehicle operated
exclusively by the electric cooperative;
(7) is a nonprofit telephone cooperative corporation
organized under Chapter 162, Utilities Code, and the fuel was
delivered into the fuel supply tank of a motor vehicle operated
exclusively by the telephone cooperative;
(8) uses the fuel in off-highway equipment, in a
stationary engine, in a motorboat, in an aircraft, in equipment
used solely for servicing aircraft and used exclusively
off-highway, in a locomotive, or for other nonhighway purposes and
not in a motor vehicle operated or intended to be operated on the
public highways; or
(9) uses the fuel in a motor vehicle that is operated
exclusively off-highway, except for incidental travel on the public
highways as determined by the comptroller, provided that a credit
or refund may not be allowed for the portion used in the incidental
highway travel.
(b) A licensed interstate trucker may take a credit on a
return for the period in which the purchase occurred if the licensed
interstate trucker paid tax on compressed natural gas or liquefied
natural gas and uses the fuel outside this state in commercial
vehicles operated under an interstate trucker license, provided
that a credit taken under this subsection must be taken within the
limitation period provided by Section 162.369.
(c) A transit company that paid tax on the purchase of
compressed natural gas or liquefied natural gas may apply to the
comptroller for and obtain a refund in an amount equal to one cent
per gasoline gallon equivalent of compressed natural gas or diesel
gallon equivalent of liquefied natural gas used in transit
vehicles.
(d) The right to receive a refund or take a credit under this
section is not assignable.
(e) The comptroller may adopt rules specifying procedures
and requirements that must be followed to take a credit or receive a
refund under this section.
Sec. 162.366. CREDIT FOR BAD DEBT OR NONPAYMENT. (a) A
licensed dealer may take a credit on a return filed under this
subchapter if:
(1) the dealer paid the taxes imposed by this
subchapter on compressed natural gas or liquefied natural gas sold
on account;
(2) the dealer determines that the account is
uncollectible and worthless; and
(3) the account is written off as a bad debt on the
dealer's accounting books.
(b) The return on which the credit is taken must state, if
applicable, the name of the person whose account has been written
off as a bad debt or who failed to remit the tax and any other
information required by the comptroller. The amount of the credit
that may be taken under Subsection (a) may be equal to but may not
exceed the amount of taxes paid on the compressed natural gas or
liquefied natural gas to which the written-off account applies.
(c) If, after a credit is taken under Subsection (a), the
account on which the credit was based is paid, or if the comptroller
otherwise determines that the credit was not authorized by
Subsection (a), the dealer who took the credit shall pay the unpaid
taxes plus a penalty of 10 percent of the amount of the unpaid taxes
and interest at the rate provided by Section 111.060 beginning on
the day the report showing the credit was filed and ending on the
date the taxes and penalty are paid.
(d) This section does not apply to a sale of compressed
natural gas or liquefied natural gas for which payment is made
through the use and acceptance of a credit card.
(e) A credit under this section must be taken at the time the
account is written off as a bad debt, but may only be taken before
the expiration of the applicable limitation period as provided by
Chapter 111.
(f) The comptroller may take action against a person in
relation to whom a dealer has taken a credit for collection of the
tax owed and for penalty and interest as provided by Chapter 111.
Sec. 162.367. CLAIMS FOR REFUNDS. (a) A refund claim must
be filed on a form provided by the comptroller, be supported by the
original invoice issued by the dealer, and contain:
(1) the stamped or preprinted name and address of the
dealer;
(2) the name of the purchaser or person who received
the delivery of fuel;
(3) the date of delivery of the fuel;
(4) the date the invoice was issued, if different from
the date of fuel delivery;
(5) the number of gasoline gallon equivalents of
compressed natural gas or diesel gallon equivalents of liquefied
natural gas delivered;
(6) the rate and amount of tax, separately stated from
the selling price; and
(7) the type of vehicle or equipment into which the
fuel is delivered.
(b) The purchaser or person who received the delivery of
compressed natural gas or liquefied natural gas must obtain the
original invoice from the dealer not later than the 30th day after
the date the fuel is delivered. If the purchase or delivery of fuel
is made through an automated method in which the purchase or
delivery is automatically applied to the purchaser or recipient's
account, one invoice may be issued at the time of billing that
covers multiple purchases or deliveries made during a 30-day
billing cycle.
(c) The comptroller shall pay a refund by warrant to a
person who files a valid refund claim.
(d) A person who files a claim for a tax refund on compressed
natural gas or liquefied natural gas used for a purpose for which a
tax refund is not authorized or who files an invoice supporting a
refund claim on which the date, figures, or any material
information has been falsified or altered forfeits the person's
right to the entire amount of the refund claim filed unless the
claimant provides proof satisfactory to the comptroller that the
incorrect refund claim filed was due to a clerical or mathematical
calculation error.
(e) After examining the refund claim and before issuing a
refund warrant, the comptroller shall deduct from the amount of the
refund the one percent originally deducted by the dealer under
Section 162.362(b).
Sec. 162.368. REFUND FOR CERTAIN METROPOLITAN RAPID TRANSIT
AUTHORITIES. (a) Except as otherwise provided by this section, a
metropolitan rapid transit authority operating under Chapter 451,
Transportation Code, that is a party to a contract governed by
Section 34.008, Education Code, is entitled to a refund of taxes
paid under this subchapter for compressed natural gas or liquefied
natural gas delivered into the fuel supply tank of a motor vehicle
used to provide services under the contract and may file a refund
claim with the comptroller for the amount of those taxes.
(b) The refund claim under Subsection (a) must contain
information regarding:
(1) vehicle mileage;
(2) hours of service provided;
(3) fuel consumed;
(4) the total number of student passengers per route;
and
(5) the total number of non-student passengers per
route.
(c) If in any month of a school year the number of
non-student passengers is greater than five percent of the total
passengers for any single route under a contract governed by
Section 34.008, Education Code, the metropolitan rapid transit
authority is not entitled to a refund of taxes paid under this
subchapter for the route for that month.
(d) A metropolitan rapid transit authority that requests a
refund under this section shall maintain all supporting
documentation relating to the refund until the sixth anniversary of
the date of the request.
Sec. 162.369. WHEN COMPRESSED NATURAL GAS OR LIQUEFIED
NATURAL GAS TAX REFUND OR CREDIT MAY BE FILED. (a) Except as
otherwise provided by this section, a claim for a refund must be
filed with the comptroller before the first anniversary of the
first day of the calendar month following the purchase, use, or
delivery of compressed natural gas or liquefied natural gas,
whichever period expires latest.
(b) If the amount of credit that a licensed interstate
trucker is entitled to take under Section 162.365(b) exceeds the
amount of tax due on that reporting period, the excess credit amount
may be claimed on any of three successive quarterly returns
following the period in which the credit was established, or the
licensed interstate trucker may seek a refund from the comptroller
on or before the due date of the third successive quarterly return
following the period in which the credit was established. A credit
that is not claimed within the period prescribed by this subsection
expires.
(c) If the comptroller assesses a dealer for a tax-free sale
that is taxable, and the dealer subsequently collects the tax from
the purchaser, the purchaser may file a refund claim before the
first anniversary of the date the dealer's deficiency assessment
becomes final if the purchaser used the fuel in an exempt manner.
(d) A dealer who determines taxes were erroneously reported
and remitted or who paid more taxes than were due because of a
mistake of fact or law may take a credit on the quarterly tax report
on which the error occurred and the tax payment was made to the
comptroller. The credit must be taken before the expiration of the
applicable period of limitation as provided by Chapter 111.
SECTION 5. Subchapter F, Chapter 162, Tax Code, is amended
by adding Section 162.506 to read as follows:
Sec. 162.506. ALLOCATION OF COMPRESSED NATURAL GAS AND
LIQUEFIED NATURAL GAS TAX. On or before the fifth workday after the
end of each month, the comptroller, after making deductions for
refund purposes and for the administration and enforcement of this
chapter, shall allocate the remainder of the taxes collected under
Subchapter D-1 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.
SECTION 6. Subsection (a), Section 162.402, Tax Code, is
amended to read as follows:
(a) A person forfeits to the state a civil penalty of not
less than $25 and not more than $200 if the person:
(1) refuses to stop and permit the inspection and
examination of a motor vehicle transporting or using motor fuel on
demand of a peace officer or the comptroller;
(2) operates a motor vehicle in this state without a
valid interstate trucker's license or a trip permit when the person
is required to hold one of those licenses or permits;
(3) operates a liquefied gas-propelled motor vehicle
that is required to be licensed in this state, including motor
vehicles equipped with dual carburetion, and does not display a
current liquefied gas tax decal or multistate fuels tax agreement
decal;
(4) makes a tax-free sale or delivery of liquefied gas
into the fuel supply tank of a motor vehicle that does not display a
current Texas liquefied gas tax decal;
(5) makes a taxable sale or delivery of liquefied gas
without holding a valid dealer's license;
(6) makes a tax-free sale or delivery of liquefied gas
into the fuel supply tank of a motor vehicle bearing out-of-state
license plates;
(7) makes a delivery of liquefied gas into the fuel
supply tank of a motor vehicle bearing Texas license plates and no
Texas liquefied gas tax decal, unless licensed under a multistate
fuels tax agreement;
(8) transports gasoline or diesel fuel in any cargo
tank that has a connection by pipe, tube, valve, or otherwise with
the fuel injector or carburetor of, or with the fuel supply tank
feeding the fuel injector or carburetor of, the motor vehicle
transporting the product;
(9) sells or delivers gasoline or diesel fuel from any
fuel supply tank connected with the fuel injector or carburetor of a
motor vehicle;
(10) owns or operates a motor vehicle for which
reports or mileage records are required by this chapter without an
operating odometer or other device in good working condition to
record accurately the miles traveled;
(11) furnishes to a licensed supplier or distributor a
signed statement for purchasing diesel fuel tax-free and then uses
the tax-free diesel fuel to operate a diesel-powered motor vehicle
on a public highway;
(12) fails or refuses to comply with or violates a
provision of this chapter;
(13) fails or refuses to comply with or violates a
comptroller's rule for administering or enforcing this chapter;
(14) is an importer who does not obtain an import
verification number when required by this chapter; [or]
(15) purchases motor fuel for export, on which the tax
imposed by this chapter has not been paid, and subsequently diverts
or causes the motor fuel to be diverted to a destination in this
state or any other state or country other than the originally
designated state or country without first obtaining a diversion
number;
(16) delivers compressed natural gas or liquefied
natural gas into the fuel supply tank of a motor vehicle and the
person does not hold a valid compressed natural gas and liquefied
natural gas dealer's license; or
(17) makes a tax-free delivery of compressed natural
gas or liquefied natural gas into the fuel supply tank of a motor
vehicle, unless the delivery is exempt from tax under Section
162.356.
SECTION 7. Section 162.403, Tax Code, is amended to read as
follows:
Sec. 162.403. CRIMINAL OFFENSES. Except as provided by
Section 162.404, a person commits an offense if the person:
(1) refuses to stop and permit the inspection and
examination of a motor vehicle transporting or using motor fuel on
the demand of a peace officer or the comptroller;
(2) is required to hold a valid trip permit or
interstate trucker's license, but operates a motor vehicle in this
state without a valid trip permit or interstate trucker's license;
(3) operates a liquefied gas-propelled motor vehicle
that is required to be licensed in this state, including a motor
vehicle equipped with dual carburetion, and does not display a
current liquefied gas tax decal or multistate fuels tax agreement
decal;
(4) transports gasoline or diesel fuel in any cargo
tank that has a connection by pipe, tube, valve, or otherwise with
the fuel injector or carburetor or with the fuel supply tank feeding
the fuel injector or carburetor of the motor vehicle transporting
the product;
(5) sells or delivers gasoline or diesel fuel from a
fuel supply tank that is connected with the fuel injector or
carburetor of a motor vehicle;
(6) owns or operates a motor vehicle for which reports
or mileage records are required by this chapter without an
operating odometer or other device in good working condition to
record accurately the miles traveled;
(7) sells or delivers dyed diesel fuel for the
operation of a motor vehicle on a public highway;
(8) uses dyed diesel fuel for the operation of a motor
vehicle on a public highway except as allowed under Section
162.235;
(9) makes a tax-free sale or delivery of liquefied gas
into the fuel supply tank of a motor vehicle that does not display a
current Texas liquefied gas tax decal;
(10) makes a sale or delivery of liquefied gas on which
the person knows the tax is required to be collected, if at the time
the sale is made the person does not hold a valid dealer's license;
(11) makes a tax-free sale or delivery of liquefied
gas into the fuel supply tank of a motor vehicle bearing
out-of-state license plates;
(12) makes a delivery of liquefied gas into the fuel
supply tank of a motor vehicle bearing Texas license plates and no
Texas liquefied gas tax decal, unless licensed under a multistate
fuels tax agreement;
(13) refuses to permit the comptroller or the attorney
general to inspect, examine, or audit a book or record required to
be kept by a license holder, other user, or any person required to
hold a license under this chapter;
(14) refuses to permit the comptroller or the attorney
general to inspect or examine any plant, equipment, materials, or
premises where motor fuel is produced, processed, blended, stored,
sold, delivered, or used;
(15) refuses to permit the comptroller, the attorney
general, an employee of either of those officials, a peace officer,
an employee of the Texas Commission on Environmental Quality, or an
employee of the Department of Agriculture to measure or gauge the
contents of or take samples from a storage tank or container on
premises where motor fuel is produced, processed, blended, stored,
sold, delivered, or used;
(16) is a license holder, a person required to be
licensed, or another user and fails or refuses to make or deliver to
the comptroller a report required by this chapter to be made and
delivered to the comptroller;
(17) is an importer who does not obtain an import
verification number when required by this chapter;
(18) purchases motor fuel for export, on which the tax
imposed by this chapter has not been paid, and subsequently diverts
or causes the motor fuel to be diverted to a destination in this
state or any other state or country other than the originally
designated state or country without first obtaining a diversion
number;
(19) conceals motor fuel with the intent of engaging
in any conduct proscribed by this chapter or refuses to make sales
of motor fuel on the volume-corrected basis prescribed by this
chapter;
(20) refuses, while transporting motor fuel, to stop
the motor vehicle the person is operating when called on to do so by
a person authorized to stop the motor vehicle;
(21) refuses to surrender a motor vehicle and cargo
for impoundment after being ordered to do so by a person authorized
to impound the motor vehicle and cargo;
(22) mutilates, destroys, or secretes a book or record
required by this chapter to be kept by a license holder, other user,
or person required to hold a license under this chapter;
(23) is a license holder, other user, or other person
required to hold a license under this chapter, or the agent or
employee of one of those persons, and makes a false entry or fails
to make an entry in the books and records required under this
chapter to be made by the person or fails to retain a document as
required by this chapter;
(24) transports in any manner motor fuel under a false
cargo manifest or shipping document, or transports in any manner
motor fuel to a location without delivering at the same time a
shipping document relating to that shipment;
(25) engages in a motor fuel transaction that requires
that the person have a license under this chapter without then and
there holding the required license;
(26) makes and delivers to the comptroller a report
required under this chapter to be made and delivered to the
comptroller, if the report contains false information;
(27) forges, falsifies, or alters an invoice or
shipping document prescribed by law;
(28) makes any statement, knowing said statement to be
false, in a claim for a tax refund filed with the comptroller;
(29) furnishes to a licensed supplier or distributor a
signed statement for purchasing diesel fuel tax-free and then uses
the tax-free diesel fuel to operate a diesel-powered motor vehicle
on a public highway;
(30) holds an aviation fuel dealer's license and makes
a taxable sale or use of any gasoline or diesel fuel;
(31) fails to remit any tax funds collected or
required to be collected by a license holder, another user, or any
other person required to hold a license under this chapter;
(32) makes a sale of dyed diesel fuel tax-free into a
storage facility of a person who:
(A) is not licensed as a distributor, as an
aviation fuel dealer, or as a dyed diesel fuel bonded user; or
(B) does not furnish to the licensed supplier or
distributor a signed statement prescribed in Section 162.206;
(33) makes a sale of gasoline tax-free to any person
who is not licensed as an aviation fuel dealer;
(34) purchases any motor fuel tax-free when not
authorized to make a tax-free purchase under this chapter;
(35) purchases motor fuel with the intent to evade any
tax imposed by this chapter or accepts a delivery of motor fuel by
any means and does not at the same time accept or receive a shipping
document relating to the delivery;
(36) transports motor fuel for which a cargo manifest
or shipping document is required to be carried without possessing
or exhibiting on demand by an officer authorized to make the demand
a cargo manifest or shipping document containing the information
required to be shown on the manifest or shipping document;
(37) imports, sells, uses, blends, distributes, or
stores motor fuel within this state on which the taxes imposed by
this chapter are owed but have not been first paid to or reported by
a license holder, another user, or any other person required to hold
a license under this chapter;
(38) blends products together to produce a blended
fuel that is offered for sale, sold, or used and that expands the
volume of the original product to evade paying applicable motor
fuel taxes; [or]
(39) evades or attempts to evade in any manner a tax
imposed on motor fuel by this chapter;
(40) delivers compressed natural gas or liquefied
natural gas into the fuel supply tank of a motor vehicle and the
person does not hold a valid compressed natural gas and liquefied
natural gas dealer's license; or
(41) makes a tax-free delivery of compressed natural
gas or liquefied natural gas into the fuel supply tank of a motor
vehicle, unless the delivery is exempt from tax under Section
162.356.
SECTION 8. Subsection (b), Section 162.405, Tax Code, is
amended to read as follows:
(b) An offense under Section 162.403(9), (10), (11), (12),
(13), (14), (15), (16), (17), [or] (18), (40), or (41) is a Class B
misdemeanor.
SECTION 9. As soon as practicable before, on, or after the
effective date of this Act, the comptroller of public accounts
shall:
(1) adopt any rules necessary to implement the changes
in law made by this Act; and
(2) begin accepting applications for and issuing
compressed natural gas and liquefied natural gas dealer's licenses
and interstate trucker's licenses under Sections 162.357 and
162.358, Tax Code, as added by this Act, that become effective on or
after the effective date of this Act.
SECTION 10. A person who holds a liquefied gas tax decal
license under Section 162.305, Tax Code, that is valid on or after
the effective date of this Act, for a vehicle fueled by compressed
natural gas or liquefied natural gas may, not later than December
31, 2013, apply to the comptroller of public accounts for and obtain
a pro rata refund of the unused portion of the advanced taxes paid
for the period after the effective date of this Act. The
comptroller shall provide application forms for refunds under this
section.
SECTION 11. The changes in law made by this Act do not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 12. This Act takes effect September 1, 2013.
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