| 5 | 3 | | |
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| 6 | 4 | | |
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| 7 | 5 | | A BILL TO BE ENTITLED |
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| 8 | 6 | | AN ACT |
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| 9 | 7 | | relating to the administration of gasoline and diesel fuel motor |
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| 10 | 8 | | fuels taxes and the fee on the delivery of certain petroleum |
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| 11 | 9 | | products. |
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| 12 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 11 | | SECTION 1. Section 162.012(a), Tax Code, is amended to read |
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| 14 | 12 | | as follows: |
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| 15 | 13 | | (a) A person licensed under this chapter or required to be |
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| 16 | 14 | | licensed under this chapter, or other user, who fails to keep a |
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| 17 | 15 | | record, issue an invoice, or file a return or report required by |
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| 18 | 16 | | this chapter is presumed to have sold or used for taxable purposes |
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| 19 | 17 | | all motor fuel shown by an audit by the comptroller to have been |
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| 20 | 18 | | sold to the license holder or other user. Motor fuel unaccounted |
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| 21 | 19 | | for is presumed to have been sold or used for taxable purposes. If |
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| 22 | 20 | | an exporter claims an exemption under Section 162.104(a)(4) |
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| 23 | 21 | | [162.104(a)(4)(B)] or 162.204(a)(4) [162.204(a)(4)(B)] and fails |
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| 24 | 22 | | to report subsequent tax-free sales in this state of the motor fuel |
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| 25 | 23 | | for which the exemption was claimed as required by Section 162.1155 |
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| 26 | 24 | | or 162.2165, or to produce proof of payment of tax to the |
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| 27 | 25 | | destination state or proof that the transaction was exempt in the |
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| 28 | 26 | | destination state, the exporter is presumed to have not paid the |
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| 29 | 27 | | destination state's tax or this state's tax on the [exported] motor |
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| 30 | 28 | | fuel and the comptroller shall assess the tax imposed by this |
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| 31 | 29 | | chapter on the [exported] motor fuel against the exporter. The |
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| 32 | 30 | | comptroller may fix or establish the amount of taxes, penalties, |
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| 33 | 31 | | and interest due this state from the records of deliveries or from |
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| 34 | 32 | | any records or information available. If a tax claim, as developed |
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| 35 | 33 | | from this procedure, is not paid, after the opportunity to request a |
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| 36 | 34 | | redetermination, the claim and any audit made by the comptroller or |
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| 37 | 35 | | any report filed by the license holder or other user is evidence in |
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| 38 | 36 | | any suit or judicial proceedings filed by the attorney general and |
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| 39 | 37 | | is prima facie evidence of the correctness of the claim or audit. A |
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| 40 | 38 | | prima facie presumption of the correctness of the claim may be |
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| 41 | 39 | | overcome at the trial by evidence adduced by the license holder or |
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| 42 | 40 | | other user. |
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| 43 | 41 | | SECTION 2. Section 162.101, Tax Code, is amended by adding |
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| 44 | 42 | | Subsections (e-1) and (e-2) to read as follows: |
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| 45 | 43 | | (e-1) A tax is imposed on gasoline that is otherwise exempt |
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| 46 | 44 | | from taxation under Section 162.104(a)(4) or (7) if the gasoline is |
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| 47 | 45 | | sold in this state to a person who does not hold a license under |
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| 48 | 46 | | Section 162.105(1), (2), (3), (4), or (6). The person that sold the |
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| 49 | 47 | | gasoline is liable for and shall collect the tax. |
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| 50 | 48 | | (e-2) A tax is imposed on gasoline that is otherwise exempt |
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| 51 | 49 | | from taxation under Section 162.104(a)(4) or (7) if before export |
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| 52 | 50 | | the gasoline is sold in this state to a person who holds a license |
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| 53 | 51 | | under Section 162.105(1), (2), (3), (4), or (6) and the gasoline is |
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| 54 | 52 | | delivered to a destination in this state. The person that |
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| 55 | 53 | | redirected the delivery of the gasoline to a destination in this |
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| 56 | 54 | | state is liable for and shall pay the tax. |
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| 57 | 55 | | SECTION 3. Sections 162.104(a), (d), and (f), Tax Code, are |
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| 58 | 56 | | amended to read as follows: |
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| 59 | 57 | | (a) The tax imposed by this subchapter does not apply to |
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| 60 | 58 | | gasoline: |
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| 61 | 59 | | (1) sold to the United States for its exclusive use, |
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| 62 | 60 | | provided that the exemption does not apply with respect to fuel sold |
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| 63 | 61 | | or delivered to a person operating under a contract with the United |
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| 64 | 62 | | States; |
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| 65 | 63 | | (2) sold to a public school district in this state for |
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| 66 | 64 | | the district's exclusive use; |
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| 67 | 65 | | (3) sold to a commercial transportation company or a |
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| 68 | 66 | | metropolitan rapid transit authority operating under Chapter 451, |
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| 69 | 67 | | Transportation Code, that provides public school transportation |
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| 70 | 68 | | services to a school district under Section 34.008, Education Code, |
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| 71 | 69 | | and that uses the gasoline only to provide those services; |
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| 72 | 70 | | (4) exported by either a licensed supplier or a |
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| 73 | 71 | | licensed exporter from this state to any other state, provided |
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| 74 | 72 | | that[: |
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| 75 | 73 | | [(A) for gasoline in a situation described by |
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| 76 | 74 | | Subsection (d),] the bill of lading indicates the destination state |
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| 77 | 75 | | and the supplier collects the destination state tax[; or |
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| 78 | 76 | | [(B) for gasoline in a situation described by |
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| 79 | 77 | | Subsection (e), the bill of lading indicates the destination state, |
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| 80 | 78 | | the gasoline is subsequently exported, and the exporter is licensed |
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| 81 | 79 | | in the destination state to pay that state's tax and has an |
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| 82 | 80 | | exporter's license issued under this subchapter]; |
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| 83 | 81 | | (5) moved by truck or railcar between licensed |
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| 84 | 82 | | suppliers or licensed permissive suppliers and in which the |
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| 85 | 83 | | gasoline removed from the first terminal comes to rest in the second |
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| 86 | 84 | | terminal, provided that the removal from the second terminal rack |
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| 87 | 85 | | is subject to the tax imposed by this subchapter; |
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| 88 | 86 | | (6) delivered or sold into a storage facility of a |
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| 89 | 87 | | licensed aviation fuel dealer from which gasoline will be delivered |
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| 90 | 88 | | solely into the fuel supply tanks of aircraft or aircraft servicing |
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| 91 | 89 | | equipment, or sold from one licensed aviation fuel dealer to |
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| 92 | 90 | | another licensed aviation fuel dealer who will deliver the aviation |
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| 93 | 91 | | fuel exclusively into the fuel supply tanks of aircraft or aircraft |
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| 94 | 92 | | servicing equipment; |
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| 95 | 93 | | (7) exported to a foreign country if the bill of lading |
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| 96 | 94 | | indicates the foreign destination and the fuel is actually exported |
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| 97 | 95 | | to the foreign country; |
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| 98 | 96 | | (8) sold to a volunteer fire department in this state |
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| 99 | 97 | | for the department's exclusive use; or |
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| 100 | 98 | | (9) sold to a nonprofit entity that is organized for |
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| 101 | 99 | | the sole purpose of and engages exclusively in providing emergency |
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| 102 | 100 | | medical services and that uses the gasoline exclusively to provide |
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| 103 | 101 | | emergency medical services, including rescue and ambulance |
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| 104 | 102 | | services. |
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| 105 | 103 | | (d) Subsection (a)(4) [(a)(4)(A)] applies only if the |
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| 106 | 104 | | destination state recognizes, by agreement with this state or by |
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| 107 | 105 | | statute or rule, a supplier in this state as a valid taxpayer for |
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| 108 | 106 | | the motor fuel being exported to that state from this state. The |
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| 109 | 107 | | comptroller shall publish a list that specifies for each state, |
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| 110 | 108 | | other than this state, whether that state does or does not qualify |
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| 111 | 109 | | under this subsection. |
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| 112 | 110 | | (f) The exemption provided by Subsection (a)(4) [(a)(4)(A)] |
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| 113 | 111 | | does not apply to a sale by a distributor. |
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| 114 | 112 | | SECTION 4. Section 162.115(d), Tax Code, is amended to read |
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| 115 | 113 | | as follows: |
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| 116 | 114 | | (d) An exporter shall keep: |
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| 117 | 115 | | (1) a record showing the number of gallons of: |
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| 118 | 116 | | (A) all gasoline inventories on hand at the first |
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| 119 | 117 | | of each month; |
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| 120 | 118 | | (B) all gasoline compounded or blended; |
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| 121 | 119 | | (C) all gasoline purchased or received, showing |
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| 122 | 120 | | the name of the seller and the date of each purchase or receipt; |
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| 123 | 121 | | (D) all gasoline sold, distributed, or used, |
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| 124 | 122 | | showing the name of the purchaser and the date of the sale or use; |
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| 125 | 123 | | and |
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| 126 | 124 | | (E) all gasoline lost by fire, theft, or |
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| 127 | 125 | | accident; |
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| 128 | 126 | | (2) an itemized statement showing by load the number |
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| 129 | 127 | | of gallons of all gasoline: |
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| 130 | 128 | | (A) received during the preceding calendar month |
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| 131 | 129 | | for export and the location of the loading; and |
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| 132 | 130 | | (B) exported from this state by destination state |
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| 133 | 131 | | or country; |
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| 134 | 132 | | (3) proof of payment of tax to the destination state in |
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| 135 | 133 | | a form acceptable to the comptroller; and |
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| 136 | 134 | | (4) if an exemption under Section 162.104(a)(4) |
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| 137 | 135 | | [162.104(a)(4)(B)] is claimed, proof of payment of tax to the |
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| 138 | 136 | | destination state or proof that the transaction was exempt in the |
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| 139 | 137 | | destination state, in a form acceptable to the comptroller. |
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| 140 | 138 | | SECTION 5. Subchapter B, Chapter 162, Tax Code, is amended |
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| 141 | 139 | | by adding Section 162.1155 to read as follows: |
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| 142 | 140 | | Sec. 162.1155. DUTY TO REPORT SUBSEQUENT SALES OF TAX-FREE |
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| 143 | 141 | | GASOLINE PURCHASED FOR EXPORT. (a) A person who purchases or |
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| 144 | 142 | | removes gasoline tax-free under Section 162.104(a)(4) or (7) and |
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| 145 | 143 | | before export sells the gasoline in this state tax-free to a person |
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| 146 | 144 | | who holds a license under Section 162.105(1), (2), (3), (4), or (6), |
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| 147 | 145 | | shall report that transaction to the comptroller as required by |
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| 148 | 146 | | this section. If the gasoline is subsequently sold one or more |
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| 149 | 147 | | times in this state before export and tax-free to a person who holds |
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| 150 | 148 | | a license under Section 162.105(1), (2), (3), (4), or (6), each |
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| 151 | 149 | | seller shall report the transaction to the comptroller as required |
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| 152 | 150 | | by this section. |
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| 153 | 151 | | (b) Each person who sells tax-free gasoline in this state in |
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| 154 | 152 | | a transaction described by Subsection (a) must provide to the |
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| 155 | 153 | | comptroller: |
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| 156 | 154 | | (1) the bill of lading number issued at the terminal; |
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| 157 | 155 | | (2) the terminal control number; |
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| 158 | 156 | | (3) the date the gasoline was removed from the |
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| 159 | 157 | | terminal; |
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| 160 | 158 | | (4) the number of gallons invoiced; and |
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| 161 | 159 | | (5) any other information required by the comptroller. |
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| 162 | 160 | | (c) The sales invoice for each transaction described by |
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| 163 | 161 | | Subsection (a) must include: |
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| 164 | 162 | | (1) the name of the seller and purchaser; and |
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| 165 | 163 | | (2) the original bill of lading number. |
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| 166 | 164 | | (d) A person required to report a transaction under |
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| 167 | 165 | | Subsection (a) shall report the transaction on a form prescribed by |
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| 168 | 166 | | the comptroller and with the return required by Section 162.114. |
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| 169 | 167 | | SECTION 6. Section 162.201, Tax Code, is amended by adding |
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| 170 | 168 | | Subsections (e-1) and (e-2) to read as follows: |
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| 171 | 169 | | (e-1) A tax is imposed on diesel fuel that is otherwise |
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| 172 | 170 | | exempt from taxation under Section 162.204(a)(4) or (7) if the |
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| 173 | 171 | | diesel fuel is sold in this state to a person who does not hold a |
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| 174 | 172 | | license under Section 162.205(a)(1), (2), (3), (4), or (6). The |
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| 175 | 173 | | person that sold the diesel fuel is liable for and shall collect the |
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| 176 | 174 | | tax. |
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| 177 | 175 | | (e-2) A tax is imposed on diesel fuel that is otherwise |
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| 178 | 176 | | exempt from taxation under Section 162.204(a)(4) or (7) if before |
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| 179 | 177 | | export the diesel fuel is sold in this state to a person who holds a |
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| 180 | 178 | | license under Section 162.205(a)(1), (2), (3), (4), or (6) and the |
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| 181 | 179 | | diesel fuel is delivered to a destination in this state. The person |
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| 182 | 180 | | that redirected the delivery of the diesel fuel to a destination in |
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| 183 | 181 | | this state is liable for and shall pay the tax. |
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| 184 | 182 | | SECTION 7. Sections 162.204(a), (d), and (f), Tax Code, are |
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| 185 | 183 | | amended to read as follows: |
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| 186 | 184 | | (a) The tax imposed by this subchapter does not apply to: |
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| 187 | 185 | | (1) diesel fuel sold to the United States for its |
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| 188 | 186 | | exclusive use, provided that the exemption does not apply to diesel |
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| 189 | 187 | | fuel sold or delivered to a person operating under a contract with |
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| 190 | 188 | | the United States; |
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| 191 | 189 | | (2) diesel fuel sold to a public school district in |
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| 192 | 190 | | this state for the district's exclusive use; |
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| 193 | 191 | | (3) diesel fuel sold to a commercial transportation |
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| 194 | 192 | | company or a metropolitan rapid transit authority operating under |
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| 195 | 193 | | Chapter 451, Transportation Code, that provides public school |
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| 196 | 194 | | transportation services to a school district under Section 34.008, |
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| 197 | 195 | | Education Code, and that uses the diesel fuel only to provide those |
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| 198 | 196 | | services; |
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| 199 | 197 | | (4) diesel fuel exported by either a licensed supplier |
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| 200 | 198 | | or a licensed exporter from this state to any other state, provided |
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| 201 | 199 | | that[: |
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| 202 | 200 | | [(A) for diesel fuel in a situation described by |
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| 203 | 201 | | Subsection (d),] the bill of lading indicates the destination state |
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| 204 | 202 | | and the supplier collects the destination state tax [; or |
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| 205 | 203 | | [(B) for diesel fuel in a situation described by |
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| 206 | 204 | | Subsection (e), the bill of lading indicates the destination state, |
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| 207 | 205 | | the diesel fuel is subsequently exported, and the exporter is |
|---|
| 208 | 206 | | licensed in the destination state to pay that state's tax and has an |
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| 209 | 207 | | exporter's license issued under this subchapter]; |
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| 210 | 208 | | (5) diesel fuel moved by truck or railcar between |
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| 211 | 209 | | licensed suppliers or licensed permissive suppliers and in which |
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| 212 | 210 | | the diesel fuel removed from the first terminal comes to rest in the |
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| 213 | 211 | | second terminal, provided that the removal from the second terminal |
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| 214 | 212 | | rack is subject to the tax imposed by this subchapter; |
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| 215 | 213 | | (6) diesel fuel delivered or sold into a storage |
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| 216 | 214 | | facility of a licensed aviation fuel dealer from which the diesel |
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| 217 | 215 | | fuel will be delivered solely into the fuel supply tanks of aircraft |
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| 218 | 216 | | or aircraft servicing equipment, or sold from one licensed aviation |
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| 219 | 217 | | fuel dealer to another licensed aviation fuel dealer who will |
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| 220 | 218 | | deliver the diesel fuel exclusively into the fuel supply tanks of |
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| 221 | 219 | | aircraft or aircraft servicing equipment; |
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| 222 | 220 | | (7) diesel fuel exported to a foreign country if the |
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| 223 | 221 | | bill of lading indicates the foreign destination and the fuel is |
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| 224 | 222 | | actually exported to the foreign country; |
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| 225 | 223 | | (8) dyed diesel fuel sold or delivered by a supplier to |
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| 226 | 224 | | another supplier and dyed diesel fuel sold or delivered by a |
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| 227 | 225 | | supplier or distributor into the bulk storage facility of a dyed |
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| 228 | 226 | | diesel fuel bonded user or to a purchaser who provides a signed |
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| 229 | 227 | | statement as provided by Section 162.206; |
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| 230 | 228 | | (9) the volume of water, fuel ethanol, renewable |
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| 231 | 229 | | diesel, biodiesel, or mixtures thereof that are blended together |
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| 232 | 230 | | with taxable diesel fuel when the finished product sold or used is |
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| 233 | 231 | | clearly identified on the retail pump, storage tank, and sales |
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| 234 | 232 | | invoice as a combination of diesel fuel and water, fuel ethanol, |
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| 235 | 233 | | renewable diesel, biodiesel, or mixtures thereof; |
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| 236 | 234 | | (10) dyed diesel fuel sold by a supplier or permissive |
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| 237 | 235 | | supplier to a distributor, or by a distributor to another |
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| 238 | 236 | | distributor; |
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| 239 | 237 | | (11) dyed diesel fuel delivered by a license holder |
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| 240 | 238 | | into the fuel supply tanks of railway engines, motorboats, or |
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| 241 | 239 | | refrigeration units or other stationary equipment powered by a |
|---|
| 242 | 240 | | separate motor from a separate fuel supply tank; |
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| 243 | 241 | | (12) dyed kerosene when delivered by a supplier, |
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| 244 | 242 | | distributor, or importer into a storage facility at a retail |
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| 245 | 243 | | business from which all deliveries are exclusively for heating, |
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| 246 | 244 | | cooking, lighting, or similar nonhighway use; |
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| 247 | 245 | | (13) diesel fuel used by a person, other than a |
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| 248 | 246 | | political subdivision, who owns, controls, operates, or manages a |
|---|
| 249 | 247 | | commercial motor vehicle as defined by Section 548.001, |
|---|
| 250 | 248 | | Transportation Code, if the fuel: |
|---|
| 251 | 249 | | (A) is delivered exclusively into the fuel supply |
|---|
| 252 | 250 | | tank of the commercial motor vehicle; and |
|---|
| 253 | 251 | | (B) is used exclusively to transport passengers |
|---|
| 254 | 252 | | for compensation or hire between points in this state on a fixed |
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| 255 | 253 | | route or schedule; |
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| 256 | 254 | | (14) diesel fuel sold to a volunteer fire department |
|---|
| 257 | 255 | | in this state for the department's exclusive use; or |
|---|
| 258 | 256 | | (15) diesel fuel sold to a nonprofit entity that is |
|---|
| 259 | 257 | | organized for the sole purpose of and engages exclusively in |
|---|
| 260 | 258 | | providing emergency medical services and that uses the diesel fuel |
|---|
| 261 | 259 | | exclusively to provide emergency medical services, including |
|---|
| 262 | 260 | | rescue and ambulance services. |
|---|
| 263 | 261 | | (d) Subsection (a)(4) [(a)(4)(A)] applies only if the |
|---|
| 264 | 262 | | destination state recognizes, by agreement with this state or by |
|---|
| 265 | 263 | | statute or rule, a supplier in this state as a valid taxpayer for |
|---|
| 266 | 264 | | the motor fuel being exported to that state from this state. The |
|---|
| 267 | 265 | | comptroller shall publish a list that specifies for each state, |
|---|
| 268 | 266 | | other than this state, whether that state does or does not qualify |
|---|
| 269 | 267 | | under this subsection. |
|---|
| 270 | 268 | | (f) The exemption provided by Subsection (a)(4) [(a)(4)(A)] |
|---|
| 271 | 269 | | does not apply to a sale by a distributor. |
|---|
| 272 | 270 | | SECTION 8. Section 162.216(d), Tax Code, is amended to read |
|---|
| 273 | 271 | | as follows: |
|---|
| 274 | 272 | | (d) An exporter shall keep: |
|---|
| 275 | 273 | | (1) a record showing the number of gallons of: |
|---|
| 276 | 274 | | (A) all diesel fuel inventories on hand at the |
|---|
| 277 | 275 | | first of each month; |
|---|
| 278 | 276 | | (B) all diesel fuel compounded or blended; |
|---|
| 279 | 277 | | (C) all diesel fuel purchased or received, |
|---|
| 280 | 278 | | showing the name of the seller and the date of each purchase or |
|---|
| 281 | 279 | | receipt; |
|---|
| 282 | 280 | | (D) all diesel fuel sold, distributed, or used, |
|---|
| 283 | 281 | | showing the name of the purchaser and the date of the sale or use; |
|---|
| 284 | 282 | | and |
|---|
| 285 | 283 | | (E) all diesel fuel lost by fire, theft, or |
|---|
| 286 | 284 | | accident; |
|---|
| 287 | 285 | | (2) an itemized statement showing by load the number |
|---|
| 288 | 286 | | of gallons of all diesel fuel: |
|---|
| 289 | 287 | | (A) received during the preceding calendar month |
|---|
| 290 | 288 | | for export and the location of the loading; and |
|---|
| 291 | 289 | | (B) exported from this state, by destination |
|---|
| 292 | 290 | | state or country; |
|---|
| 293 | 291 | | (3) proof of payment of tax to the destination state in |
|---|
| 294 | 292 | | a form acceptable to the comptroller; and |
|---|
| 295 | 293 | | (4) if an exemption under Section 162.204(a)(4) |
|---|
| 296 | 294 | | [162.204(a)(4)(B)] is claimed, proof of payment of tax to the |
|---|
| 297 | 295 | | destination state or proof that the transaction was exempt in the |
|---|
| 298 | 296 | | destination state, in a form acceptable to the comptroller. |
|---|
| 299 | 297 | | SECTION 9. Subchapter C, Chapter 162, Tax Code, is amended |
|---|
| 300 | 298 | | by adding Section 162.2165 to read as follows: |
|---|
| 301 | 299 | | Sec. 162.2165. DUTY TO REPORT SUBSEQUENT SALES OF TAX-FREE |
|---|
| 302 | 300 | | DIESEL FUEL PURCHASED FOR EXPORT. (a) A person who purchases or |
|---|
| 303 | 301 | | removes diesel fuel tax-free under Section 162.204(a)(4) or (7) and |
|---|
| 304 | 302 | | before export sells the diesel fuel in this state tax-free to a |
|---|
| 305 | 303 | | person who holds a license under Section 162.205(a)(1), (2), (3), |
|---|
| 306 | 304 | | (4), or (6), shall report that transaction to the comptroller as |
|---|
| 307 | 305 | | required by this section. If the diesel fuel is subsequently sold |
|---|
| 308 | 306 | | one or more times in this state before export and tax-free to a |
|---|
| 309 | 307 | | person who holds a license under Section 162.205(a)(1), (2), (3), |
|---|
| 310 | 308 | | (4), or (6), each seller shall report the transaction to the |
|---|
| 311 | 309 | | comptroller as required by this section. |
|---|
| 312 | 310 | | (b) Each person who sells tax-free diesel fuel in this state |
|---|
| 313 | 311 | | in a transaction described by Subsection (a) must provide to the |
|---|
| 314 | 312 | | comptroller: |
|---|
| 315 | 313 | | (1) the bill of lading number issued at the terminal; |
|---|
| 316 | 314 | | (2) the terminal control number; |
|---|
| 317 | 315 | | (3) the date the diesel fuel was removed from the |
|---|
| 318 | 316 | | terminal; |
|---|
| 319 | 317 | | (4) the number of gallons invoiced; and |
|---|
| 320 | 318 | | (5) any other information required by the comptroller. |
|---|
| 321 | 319 | | (c) The sales invoice for each transaction described by |
|---|
| 322 | 320 | | Subsection (a) must include: |
|---|
| 323 | 321 | | (1) the name of the seller and purchaser; and |
|---|
| 324 | 322 | | (2) the original bill of lading number. |
|---|
| 325 | 323 | | (d) A person required to report a transaction under |
|---|
| 326 | 324 | | Subsection (a) shall report the transaction on a form prescribed by |
|---|
| 327 | 325 | | the comptroller and with the return required by Section 162.215. |
|---|
| 328 | 326 | | SECTION 10. Section 162.401, Tax Code, is amended by adding |
|---|
| 329 | 327 | | Subsections (e) and (f) to read as follows: |
|---|
| 330 | 328 | | (e) In addition to any other penalty authorized by this |
|---|
| 331 | 329 | | section, a person who fails to report a subsequent sale in this |
|---|
| 332 | 330 | | state of tax-free motor fuel purchased for export as required by |
|---|
| 333 | 331 | | Section 162.1155 or 162.2165 shall pay for each sale that is not |
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| 334 | 332 | | reported a penalty of $200. The penalty provided by this subsection |
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| 335 | 333 | | is not assessed if the taxpayer files an amended report that |
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| 336 | 334 | | includes the sale not later than the 180th day after the due date of |
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| 337 | 335 | | the original report of the sale. |
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| 338 | 336 | | (f) In addition to any other penalty authorized by this |
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| 339 | 337 | | section, a person who fails to pay the tax imposed by Section |
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| 340 | 338 | | 162.101(e-2) or 162.201(e-2) when due shall pay a penalty equal to |
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| 341 | 339 | | the greater of $2,000 or five times the amount of the tax due on the |
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| 342 | 340 | | motor fuel. |
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| 343 | 341 | | SECTION 11. Section 26.3574(a), Water Code, is amended by |
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| 344 | 342 | | amending Subdivision (1) and adding Subdivision (2-a) to read as |
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| 345 | 343 | | follows: |
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| 346 | 344 | | (1) "Bulk facility" means a facility in this state, |
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| 347 | 345 | | including pipeline terminals, refinery terminals, rail and barge |
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| 348 | 346 | | terminals, and associated underground and aboveground tanks, |
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| 349 | 347 | | connected or separate, from which petroleum products are withdrawn |
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| 350 | 348 | | from bulk and delivered into a cargo tank or a barge used to |
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| 351 | 349 | | transport those products. This term does not include petroleum |
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| 352 | 350 | | products consumed at an electric generating facility. |
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| 353 | 351 | | (2-a) "Supplier" has the meaning assigned by Section |
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| 354 | 352 | | 162.001, Tax Code. |
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| 355 | 353 | | SECTION 12. Sections 26.3574(b), (d), (e), (f), (g), (i), |
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| 356 | 354 | | and (j), Water Code, are amended to read as follows: |
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| 357 | 355 | | (b) A fee is imposed on the delivery of a petroleum product |
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| 358 | 356 | | on withdrawal from bulk of that product as provided by this |
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| 359 | 357 | | subsection. Each supplier [operator of a bulk facility] on |
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| 360 | 358 | | withdrawal from bulk of a petroleum product shall collect from the |
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| 361 | 359 | | person who orders the withdrawal a fee in an amount determined as |
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| 362 | 360 | | follows: |
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| 363 | 361 | | (1) not more than $3.75 for each delivery into a cargo |
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| 364 | 362 | | tank having a capacity of less than 2,500 gallons; |
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| 365 | 363 | | (2) not more than $7.50 for each delivery into a cargo |
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| 366 | 364 | | tank having a capacity of 2,500 gallons or more but less than 5,000 |
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| 367 | 365 | | gallons; |
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| 368 | 366 | | (3) not more than $11.75 for each delivery into a cargo |
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| 369 | 367 | | tank having a capacity of 5,000 gallons or more but less than 8,000 |
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| 370 | 368 | | gallons; |
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| 371 | 369 | | (4) not more than $15.00 for each delivery into a cargo |
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| 372 | 370 | | tank having a capacity of 8,000 gallons or more but less than 10,000 |
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| 373 | 371 | | gallons; and |
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| 374 | 372 | | (5) not more than $7.50 for each increment of 5,000 |
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| 375 | 373 | | gallons or any part thereof delivered into a cargo tank having a |
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| 376 | 374 | | capacity of 10,000 gallons or more. |
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| 377 | 375 | | (d) A person who imports a petroleum product in a cargo tank |
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| 378 | 376 | | or a barge destined for delivery into an underground or aboveground |
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| 379 | 377 | | storage tank, regardless of whether or not the tank is exempt from |
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| 380 | 378 | | regulation under Section 26.344 [of this code], other than a |
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| 381 | 379 | | storage tank connected to or part of a bulk facility in this state, |
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| 382 | 380 | | shall pay to the comptroller a fee on the number of gallons |
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| 383 | 381 | | imported, computed as provided by Subsections (b) and (c) [of this |
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| 384 | 382 | | section]. If a supplier [bulk facility operator] imports a |
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| 385 | 383 | | petroleum product in a cargo tank or a barge, the supplier [bulk |
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| 386 | 384 | | facility operator] is not required to pay the fee on that imported |
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| 387 | 385 | | petroleum product if the petroleum product is delivered to a bulk |
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| 388 | 386 | | facility from which the petroleum product will be withdrawn from |
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| 389 | 387 | | bulk. |
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| 390 | 388 | | (e) A supplier [bulk facility operator] who receives |
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| 391 | 389 | | petroleum products on which the fee has been paid may take credit |
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| 392 | 390 | | for the fee paid on monthly reports. |
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| 393 | 391 | | (f) Subsection (b) [of this section] does not apply to a |
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| 394 | 392 | | delivery of a petroleum product destined for export from this state |
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| 395 | 393 | | if the petroleum product is in continuous movement to a destination |
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| 396 | 394 | | outside this state. For purposes of this subsection, a petroleum |
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| 397 | 395 | | product ceases to be in continuous movement to a destination |
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| 398 | 396 | | outside this state if the product is delivered to a destination in |
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| 399 | 397 | | this state. The person that directs the delivery of the product to |
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| 400 | 398 | | a destination in this state shall pay the fee imposed by this |
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| 401 | 399 | | section on that product. |
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| 402 | 400 | | (g) Each supplier [operator of a bulk facility] and each |
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| 403 | 401 | | person covered by Subsection (d) [of this section] shall file an |
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| 404 | 402 | | application with the comptroller for a permit to deliver a |
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| 405 | 403 | | petroleum product into a cargo tank destined for delivery to an |
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| 406 | 404 | | underground or aboveground storage tank, regardless of whether or |
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| 407 | 405 | | not the tank is exempt from regulation under Section 26.344 [of this |
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| 408 | 406 | | code]. A permit issued by the comptroller under this subsection is |
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| 409 | 407 | | valid on and after the date of its issuance and until the permit is |
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| 410 | 408 | | surrendered by the holder or canceled by the comptroller. An |
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| 411 | 409 | | applicant for a permit issued under this subsection must use a form |
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| 412 | 410 | | adopted or approved by the comptroller that contains: |
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| 413 | 411 | | (1) the name under which the applicant transacts or |
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| 414 | 412 | | intends to transact business; |
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| 415 | 413 | | (2) the principal office, residence, or place of |
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| 416 | 414 | | business in this state of the applicant; |
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| 417 | 415 | | (3) if the applicant is not an individual, the names of |
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| 418 | 416 | | the principal officers of an applicant corporation, or the name of |
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| 419 | 417 | | the member of an applicant partnership, and the office, street, or |
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| 420 | 418 | | post office address of each; and |
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| 421 | 419 | | (4) any other information required by the comptroller. |
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| 422 | 420 | | (i) Each supplier [operator of a bulk facility] and each |
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| 423 | 421 | | person covered by Subsection (d) [of this section] shall: |
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| 424 | 422 | | (1) list, as a separate line item on an invoice or |
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| 425 | 423 | | cargo manifest required under this section, the amount of the |
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| 426 | 424 | | delivery fee due under this section; and |
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| 427 | 425 | | (2) on or before the 25th day of the month following |
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| 428 | 426 | | the end of each calendar month, file a report with the comptroller |
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| 429 | 427 | | and remit the amount of fees required to be collected or paid during |
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| 430 | 428 | | the preceding month. |
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| 431 | 429 | | (j) Each supplier [operator of a bulk facility] or the |
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| 432 | 430 | | supplier's [his] representative and each person covered by |
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| 433 | 431 | | Subsection (d) [of this section] shall prepare the report required |
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| 434 | 432 | | under Subsection (i) [of this section] on a form provided or |
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| 435 | 433 | | approved by the comptroller. |
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| 436 | 434 | | SECTION 13. The following provisions of the Tax Code are |
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| 437 | 435 | | repealed: |
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| 438 | 436 | | (1) Sections 162.104(c) and (e); and |
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| 439 | 437 | | (2) Sections 162.204(c) and (e). |
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| 440 | 438 | | SECTION 14. The amendments made by this Act to Sections |
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| 441 | 439 | | 162.101 and 162.201, Tax Code, are a clarification of existing law |
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| 442 | 440 | | and do not imply that existing law may be construed as inconsistent |
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| 443 | 441 | | with the law as amended by this Act. |
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| 444 | 442 | | SECTION 15. The changes in law made by this Act do not |
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| 445 | 443 | | affect tax liability accruing before the effective date of this |
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| 446 | 444 | | Act. That liability continues in effect as if this Act had not been |
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| 447 | 445 | | enacted, and the former law is continued in effect for that purpose. |
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| 448 | 446 | | SECTION 16. This Act takes effect January 1, 2018. |
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