84R7745 GRM-F
By: Reynolds H.B. No. 3634
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a municipality to impose a local tax on
the sale of certain motor fuel and to the use of the tax revenue by
the municipality; authorizing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 3, Tax Code, is amended by adding Chapter 329 to read as follows:
CHAPTER 329. MUNICIPAL MOTOR FUEL SALES TAX FOR TRANSPORTATION
PURPOSES
Sec. 329.001. DEFINITIONS. In this chapter:
(1) "Compressed natural gas" has the meaning assigned
by Section 162.001.
(2) "Dealer" has the meaning assigned by Section
162.001.
(3) "Diesel fuel" has the meaning assigned by Section
162.001.
(4) "Diesel gallon equivalent" has the meaning
assigned by Section 162.001.
(5) "Gasoline" has the meaning assigned by Section
162.001.
(6) "Gasoline gallon equivalent" has the meaning
assigned by Section 162.001.
(7) "Liquefied natural gas" has the meaning assigned
by Section 162.001.
(8) "Motor fuel" means gasoline, diesel fuel,
compressed natural gas, or liquefied natural gas.
(9) "Motor vehicle" has the meaning assigned by
Section 162.001.
(10) "Net gallon" has the meaning assigned by Section
162.001.
(11) "Public highway" has the meaning assigned by
Section 162.001.
(12) "Sale" has the meaning assigned by Section
162.001.
Sec. 329.002. TAX ON SALE OF MOTOR FUEL AUTHORIZED.
Notwithstanding Section 162.014, Tax Code, a municipality, by
ordinance adopted by the governing body of the municipality, may
impose a tax on the sale of motor fuel sold in the municipality to
propel a motor vehicle on the public highways of this state if
imposition of the tax is approved at an election called for that
purpose and held in the municipality.
Sec. 329.003. RATE OF TAX. The tax authorized by this
chapter may be imposed in increments of one cent for each net gallon
of gasoline or diesel fuel or each gasoline gallon equivalent or
diesel gallon equivalent of compressed natural gas or liquefied
natural gas sold in the municipality to propel a motor vehicle on
the public highways of this state, with a maximum rate of five cents
for each net gallon, gasoline gallon equivalent, or diesel gallon
equivalent.
Sec. 329.004. ADOPTION ELECTION PROCEDURE. (a) An
election to adopt the tax authorized by this chapter is called by an
ordinance adopted by the governing body of the municipality.
(b) At an election to adopt the tax, the ballot shall be
prepared to permit voting for or against the proposition: "The
adoption of a local tax on the sale of motor fuel in (insert name of
municipality) at the maximum rate of five cents per gallon."
Sec. 329.005. COMPUTATION OF TAX. (a) A person, including
a dealer, who makes a sale of motor fuel in a municipality
authorized to impose the tax to a person who uses the motor fuel to
propel a motor vehicle on the public highways of this state shall
collect the tax authorized by this chapter for the benefit of the
municipality.
(b) The seller shall add the amount of the tax authorized by
this chapter to the selling price of motor fuel, and the tax is a
part of the motor fuel price, is a debt owed to the seller, and is
recoverable at law in the same manner as the fuel charge for motor
fuel.
(c) The tax authorized by this chapter is in addition to the
tax imposed by Chapter 162.
Sec. 329.006. EXEMPTIONS APPLICABLE. The exemptions
provided by Sections 162.104, 162.204, and 162.356 apply to the tax
authorized by this chapter.
Sec. 329.007. EFFECTIVE DATE OF TAX. After the imposition
of the tax has been approved in a municipality, the governing body
of the municipality shall issue an ordinance prescribing the date
the adoption of the tax will take effect. The tax may not be
collected before the 90th day after the date the election results
are canvassed.
Sec. 329.008. COLLECTION AND ENFORCEMENT OF TAX. (a) A
person, including a dealer, required to collect the tax authorized
by this chapter shall report and send the taxes to the comptroller
as provided by the comptroller.
(b) The comptroller or municipality, as appropriate, may
prescribe monetary penalties, including interest charges, for
failure to keep records required by this chapter, to report when
required, or to pay the tax when due.
Sec. 329.009. REFUND. (a) A person who has paid the tax
authorized by this chapter on motor fuel used by the person for a
purpose other than to propel a motor vehicle on the public highways
of this state or for a use exempted under Section 329.006 may file a
claim for a refund.
(b) The comptroller shall prescribe the procedures a person
must use to obtain a refund under this section.
Sec. 329.010. ALLOCATION OF TAXES. (a) Not later than the
last day of the first month following each calendar quarter, the
comptroller shall send to the municipality an amount equal to
three-fourths of the taxes collected during that calendar quarter
after payment of all refunds allowed by law and expenses of
collection.
(b) The comptroller shall deposit one-fourth of the taxes
collected to the credit of the available school fund.
Sec. 329.011. USE OF TAX PROCEEDS. Except as provided by
Section 329.010, a municipality may use net tax revenue received
under this chapter only for:
(1) the construction, maintenance, repair, and
rehabilitation of streets, roads, intersections, thoroughfares,
and bridges located in the municipality; and
(2) the purchase, installation, maintenance, and
operation of traffic improvements, including signs, signals, and
other mechanical, digital, or electronic traffic control devices,
located in the municipality.
SECTION 2. This Act takes effect September 1, 2015.