Texas 2015 - 84th Regular

Texas House Bill HB501 Compare Versions

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1	1	84R1244 ADM-D
2	2	By: Guillen H.B. No. 501
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the exemption of rural transit districts from motor
8	8	fuel taxes.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 162.104(a), Tax Code, is amended to read
11	11	as follows:
12	12	(a) The tax imposed by this subchapter does not apply to
13	13	gasoline:
14	14	(1) sold to the United States for its exclusive use,
15	15	provided that the exemption does not apply with respect to fuel sold
16	16	or delivered to a person operating under a contract with the United
17	17	States;
18	18	(2) sold to a public school district in this state for
19	19	the district's exclusive use;
20	20	(3) sold to a commercial transportation company or a
21	21	metropolitan rapid transit authority operating under Chapter 451,
22	22	Transportation Code, that provides public school transportation
23	23	services to a school district under Section 34.008, Education Code,
24	24	and that uses the gasoline only to provide those services;
25	25	(4) exported by either a licensed supplier or a
26	26	licensed exporter from this state to any other state, provided
27	27	that:
28	28	(A) for gasoline in a situation described by
29	29	Subsection (d), the bill of lading indicates the destination state
30	30	and the supplier collects the destination state tax; or
31	31	(B) for gasoline in a situation described by
32	32	Subsection (e), the bill of lading indicates the destination state,
33	33	the gasoline is subsequently exported, and the exporter is licensed
34	34	in the destination state to pay that state's tax and has an
35	35	exporter's license issued under this subchapter;
36	36	(5) moved by truck or railcar between licensed
37	37	suppliers or licensed permissive suppliers and in which the
38	38	gasoline removed from the first terminal comes to rest in the second
39	39	terminal, provided that the removal from the second terminal rack
40	40	is subject to the tax imposed by this subchapter;
41	41	(6) delivered or sold into a storage facility of a
42	42	licensed aviation fuel dealer from which gasoline will be delivered
43	43	solely into the fuel supply tanks of aircraft or aircraft servicing
44	44	equipment, or sold from one licensed aviation fuel dealer to
45	45	another licensed aviation fuel dealer who will deliver the aviation
46	46	fuel exclusively into the fuel supply tanks of aircraft or aircraft
47	47	servicing equipment;
48	48	(7) exported to a foreign country if the bill of lading
49	49	indicates the foreign destination and the fuel is actually exported
50	50	to the foreign country; [or]
51	51	(8) sold to a volunteer fire department in this state
52	52	for the department's exclusive use; or
53	53	(9) sold to a rural transit district created under
54	54	Chapter 458, Transportation Code, that uses the gasoline
55	55	exclusively to provide public transportation.
56	56	SECTION 2. Sections 162.125(a) and (g), Tax Code, are
57	57	amended to read as follows:
58	58	(a) A license holder may take a credit on a return for the
59	59	period in which the sale occurred if the license holder paid tax on
60	60	the purchase of gasoline and subsequently resells the gasoline
61	61	without collecting the tax to:
62	62	(1) the United States government for its exclusive
63	63	use, provided that a credit is not allowed for gasoline used by a
64	64	person operating under contract with the United States;
65	65	(2) a public school district in this state for the
66	66	district's exclusive use;
67	67	(3) an exporter licensed under this subchapter if the
68	68	seller is a licensed supplier or distributor and the exporter
69	69	subsequently exports the gasoline to another state;
70	70	(4) a licensed aviation fuel dealer if the seller is a
71	71	licensed distributor; [or]
72	72	(5) a commercial transportation company or a
73	73	metropolitan rapid transit authority operating under Chapter 451,
74	74	Transportation Code, that provides public school transportation
75	75	services to a school district under Section 34.008, Education Code,
76	76	and that uses the gasoline exclusively to provide those services;
77	77	or
78	78	(6) a rural transit district created under Chapter
79	79	458, Transportation Code, that uses the gasoline exclusively to
80	80	provide public transportation.
81	81	(g) A transit company that paid tax on the purchase of
82	82	gasoline, and is not otherwise entitled to a refund of that tax
83	83	under this subchapter, may seek a refund with the comptroller in an
84	84	amount equal to one cent per gallon for gasoline used in transit
85	85	vehicles.
86	86	SECTION 3. Subchapter B, Chapter 162, Tax Code, is amended
87	87	by adding Section 162.1276 to read as follows:
88	88	Sec. 162.1276. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS.
89	89	(a) A rural transit district created under Chapter 458,
90	90	Transportation Code, is entitled to a refund of taxes paid under
91	91	this subchapter for gasoline used to provide public transportation
92	92	and may file a refund claim with the comptroller for the amount of
93	93	those taxes.
94	94	(b) The refund claim under Subsection (a) must contain
95	95	information regarding:
96	96	(1) vehicle mileage;
97	97	(2) hours of service provided; and
98	98	(3) fuel consumed.
99	99	(c) A rural transit district that requests a refund under
100	100	this section shall maintain all supporting documentation relating
101	101	to the refund until the sixth anniversary of the date of the
102	102	request.
103	103	SECTION 4. Section 162.204(a), Tax Code, is amended to read
104	104	as follows:
105	105	(a) The tax imposed by this subchapter does not apply to:
106	106	(1) diesel fuel sold to the United States for its
107	107	exclusive use, provided that the exemption does not apply to diesel
108	108	fuel sold or delivered to a person operating under a contract with
109	109	the United States;
110	110	(2) diesel fuel sold to a public school district in
111	111	this state for the district's exclusive use;
112	112	(3) diesel fuel sold to a commercial transportation
113	113	company or a metropolitan rapid transit authority operating under
114	114	Chapter 451, Transportation Code, that provides public school
115	115	transportation services to a school district under Section 34.008,
116	116	Education Code, and that uses the diesel fuel only to provide those
117	117	services;
118	118	(4) diesel fuel exported by either a licensed supplier
119	119	or a licensed exporter from this state to any other state, provided
120	120	that:
121	121	(A) for diesel fuel in a situation described by
122	122	Subsection (d), the bill of lading indicates the destination state
123	123	and the supplier collects the destination state tax; or
124	124	(B) for diesel fuel in a situation described by
125	125	Subsection (e), the bill of lading indicates the destination state,
126	126	the diesel fuel is subsequently exported, and the exporter is
127	127	licensed in the destination state to pay that state's tax and has an
128	128	exporter's license issued under this subchapter;
129	129	(5) diesel fuel moved by truck or railcar between
130	130	licensed suppliers or licensed permissive suppliers and in which
131	131	the diesel fuel removed from the first terminal comes to rest in the
132	132	second terminal, provided that the removal from the second terminal
133	133	rack is subject to the tax imposed by this subchapter;
134	134	(6) diesel fuel delivered or sold into a storage
135	135	facility of a licensed aviation fuel dealer from which the diesel
136	136	fuel will be delivered solely into the fuel supply tanks of aircraft
137	137	or aircraft servicing equipment, or sold from one licensed aviation
138	138	fuel dealer to another licensed aviation fuel dealer who will
139	139	deliver the diesel fuel exclusively into the fuel supply tanks of
140	140	aircraft or aircraft servicing equipment;
141	141	(7) diesel fuel exported to a foreign country if the
142	142	bill of lading indicates the foreign destination and the fuel is
143	143	actually exported to the foreign country;
144	144	(8) dyed diesel fuel sold or delivered by a supplier to
145	145	another supplier and dyed diesel fuel sold or delivered by a
146	146	supplier or distributor into the bulk storage facility of a dyed
147	147	diesel fuel bonded user or to a purchaser who provides a signed
148	148	statement as provided by Section 162.206;
149	149	(9) the volume of water, fuel ethanol, renewable
150	150	diesel, biodiesel, or mixtures thereof that are blended together
151	151	with taxable diesel fuel when the finished product sold or used is
152	152	clearly identified on the retail pump, storage tank, and sales
153	153	invoice as a combination of diesel fuel and water, fuel ethanol,
154	154	renewable diesel, biodiesel, or mixtures thereof;
155	155	(10) dyed diesel fuel sold by a supplier or permissive
156	156	supplier to a distributor, or by a distributor to another
157	157	distributor;
158	158	(11) dyed diesel fuel delivered by a license holder
159	159	into the fuel supply tanks of railway engines, motorboats, or
160	160	refrigeration units or other stationary equipment powered by a
161	161	separate motor from a separate fuel supply tank;
162	162	(12) dyed kerosene when delivered by a supplier,
163	163	distributor, or importer into a storage facility at a retail
164	164	business from which all deliveries are exclusively for heating,
165	165	cooking, lighting, or similar nonhighway use;
166	166	(13) diesel fuel used by a person, other than a
167	167	political subdivision, who owns, controls, operates, or manages a
168	168	commercial motor vehicle as defined by Section 548.001,
169	169	Transportation Code, if the fuel:
170	170	(A) is delivered exclusively into the fuel supply
171	171	tank of the commercial motor vehicle; and
172	172	(B) is used exclusively to transport passengers
173	173	for compensation or hire between points in this state on a fixed
174	174	route or schedule; [or]
175	175	(14) diesel fuel sold to a volunteer fire department
176	176	in this state for the department's exclusive use; or
177	177	(15) diesel fuel sold to a rural transit district
178	178	created under Chapter 458, Transportation Code, that uses the
179	179	diesel fuel exclusively to provide public transportation.
180	180	SECTION 5. Sections 162.227(a) and (f), Tax Code, are
181	181	amended to read as follows:
182	182	(a) A license holder may take a credit on a return for the
183	183	period in which the sale occurred if the license holder paid tax on
184	184	the purchase of diesel fuel and subsequently resells the diesel
185	185	fuel without collecting the tax to:
186	186	(1) the United States government for its exclusive
187	187	use, provided that a credit is not allowed for gasoline used by a
188	188	person operating under a contract with the United States;
189	189	(2) a public school district in this state for the
190	190	district's exclusive use;
191	191	(3) an exporter licensed under this subchapter if the
192	192	seller is a licensed supplier or distributor and the exporter
193	193	subsequently exports the diesel fuel to another state;
194	194	(4) a licensed aviation fuel dealer if the seller is a
195	195	licensed distributor; [or]
196	196	(5) a commercial transportation company or a
197	197	metropolitan rapid transit authority operating under Chapter 451,
198	198	Transportation Code, that provides public school transportation
199	199	services to a school district under Section 34.008, Education Code,
200	200	and that uses the diesel fuel exclusively to provide those
201	201	services; or
202	202	(6) a rural transit district created under Chapter
203	203	458, Transportation Code, that uses the diesel fuel exclusively to
204	204	provide public transportation.
205	205	(f) A transit company who paid tax on the purchase of diesel
206	206	fuel, and is not otherwise entitled to a refund of that tax under
207	207	this subchapter, may seek a refund with the comptroller of one-half
208	208	of one cent per gallon for diesel fuel used in transit vehicles.
209	209	SECTION 6. Subchapter C, Chapter 162, Tax Code, is amended
210	210	by adding Section 162.2276 to read as follows:
211	211	Sec. 162.2276. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS.
212	212	(a) A rural transit district created under Chapter 458,
213	213	Transportation Code, is entitled to a refund of taxes paid under
214	214	this subchapter for diesel fuel used to provide public
215	215	transportation and may file a refund claim with the comptroller for
216	216	the amount of those taxes.
217	217	(b) The refund claim under Subsection (a) must contain
218	218	information regarding:
219	219	(1) vehicle mileage;
220	220	(2) hours of service provided; and
221	221	(3) fuel consumed.
222	222	(c) A rural transit district that requests a refund under
223	223	this section shall maintain all supporting documentation relating
224	224	to the refund until the sixth anniversary of the date of the
225	225	request.
226	226	SECTION 7. Subchapter D, Chapter 162, Tax Code, is amended
227	227	by adding Sections 162.3023 and 162.3024 to read as follows:
228	228	Sec. 162.3023. RURAL TRANSIT DISTRICT EXEMPTION. (a)
229	229	Subject to Section 162.3024, the tax imposed by this subchapter
230	230	does not apply to the sale of liquefied petroleum gas to a rural
231	231	transit district created under Chapter 458, Transportation Code,
232	232	that uses the gas exclusively to provide public transportation, or
233	233	to the use of liquefied petroleum gas by that district for that
234	234	purpose.
235	235	(b) A motor vehicle that uses liquefied petroleum gas, that
236	236	is owned by a rural transit district created under Chapter 458,
237	237	Transportation Code, and that is used exclusively to provide public
238	238	transportation is not required to have a liquefied gas tax decal or
239	239	a special use liquefied gas tax decal.
240	240	Sec. 162.3024. EXCLUSIVE USE FOR RURAL TRANSIT DISTRICTS.
241	241	(a) This section applies to a rural transit district created under
242	242	Chapter 458, Transportation Code, that is not required under
243	243	Section 162.3023 to have a liquefied gas tax decal or a special use
244	244	liquefied gas tax decal for liquefied gas used to provide public
245	245	transportation.
246	246	(b) The rural transit district shall maintain the following
247	247	supporting documentation relating to the services provided under
248	248	the contract until the sixth anniversary of the date of the services
249	249	provided:
250	250	(1) vehicle mileage;
251	251	(2) hours of service provided; and
252	252	(3) fuel consumed.
253	253	(c) The comptroller may adopt rules to implement this
254	254	section.
255	255	SECTION 8. Section 162.356, Tax Code, is amended to read as
256	256	follows:
257	257	Sec. 162.356. EXEMPTIONS. The tax imposed by this
258	258	subchapter does not apply to compressed natural gas or liquefied
259	259	natural gas delivered into the fuel supply tank of:
260	260	(1) a motor vehicle operated exclusively by the United
261	261	States, provided that the exemption does not apply with respect to
262	262	fuel delivered into the fuel supply tank of a motor vehicle of a
263	263	person operating under a contract with the United States;
264	264	(2) a motor vehicle operated exclusively by a public
265	265	school district in this state;
266	266	(3) a motor vehicle operated exclusively by a
267	267	commercial transportation company or a metropolitan rapid transit
268	268	authority operating under Chapter 451, Transportation Code, that
269	269	provides public school transportation services to a school district
270	270	under Section 34.008, Education Code, and that uses the fuel only to
271	271	provide those services;
272	272	(4) a motor vehicle operated exclusively by a
273	273	volunteer fire department in this state;
274	274	(5) a motor vehicle operated exclusively by a county
275	275	in this state;
276	276	(6) a motor vehicle operated exclusively by a
277	277	nonprofit electric cooperative corporation organized under Chapter
278	278	161, Utilities Code;
279	279	(7) a motor vehicle operated exclusively by a
280	280	nonprofit telephone cooperative corporation organized under
281	281	Chapter 162, Utilities Code;
282	282	(8) a motor vehicle that is not registered for use on
283	283	the public highways of this state and that is used exclusively
284	284	off-highway; [or]
285	285	(9) a motor vehicle operated exclusively by a rural
286	286	transit district created under Chapter 458, Transportation Code,
287	287	that uses the fuel exclusively to provide public transportation; or
288	288	(10) off-highway equipment, a stationary engine, a
289	289	motorboat, an aircraft, equipment used solely for servicing
290	290	aircraft and used exclusively off-highway, a locomotive, or any
291	291	device other than a motor vehicle operated or intended to be
292	292	operated on the public highways.
293	293	SECTION 9. Subchapter D-1, Chapter 162, Tax Code, is
294	294	amended by adding Section 162.3685 to read as follows:
295	295	Sec. 162.3685. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS.
296	296	(a) A rural transit district created under Chapter 458,
297	297	Transportation Code, is entitled to a refund of taxes paid under
298	298	this subchapter for compressed natural gas or liquefied natural gas
299	299	delivered into the fuel supply tank of a motor vehicle used to
300	300	provide public transportation and may file a refund claim with the
301	301	comptroller for the amount of those taxes.
302	302	(b) The refund claim under Subsection (a) must contain
303	303	information regarding:
304	304	(1) vehicle mileage;
305	305	(2) hours of service provided; and
306	306	(3) fuel consumed.
307	307	(c) A rural transit district that requests a refund under
308	308	this section shall maintain all supporting documentation relating
309	309	to the refund until the sixth anniversary of the date of the
310	310	request.
311	311	SECTION 10. The change in law made by this Act does not
312	312	affect tax liability accruing before the effective date of this
313	313	Act. That liability continues in effect as if this Act had not been
314	314	enacted, and the former law is continued in effect for the
315	315	collection of taxes due and for civil and criminal enforcement of
316	316	the liability for those taxes.
317	317	SECTION 11. This Act takes effect immediately if it
318	318	receives a vote of two-thirds of all the members elected to each
319	319	house, as provided by Section 39, Article III, Texas Constitution.
320	320	If this Act does not receive the vote necessary for immediate
321	321	effect, this Act takes effect September 1, 2015.