85R2223 ADM-F
By: Ashby H.B. No. 778
A BILL TO BE ENTITLED
AN ACT
relating to a credit or refund for diesel fuel taxes paid on diesel
fuel used in this state by auxiliary power units or power take-off
equipment.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 162.227, Tax Code, is amended by adding
Subsection (d-1) to read as follows:
(d-1) 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 may file a refund claim with the comptroller, if the
license holder or person paid tax on diesel fuel and the diesel fuel
is used in this state by auxiliary power units or power take-off
equipment on any motor vehicle. If the quantity of that diesel fuel
can be accurately measured while the motor vehicle is stationary by
any metering or other measuring device or method designed to
measure the fuel separately from fuel used to propel the motor
vehicle, the comptroller may approve and adopt the use of the device
as a basis for determining the quantity of diesel fuel consumed in
those operations for a tax credit or tax refund. If there is no
separate metering device or other approved measuring method, the
license holder may take the credit and the person who does not hold
a license may claim the refund on a percentage of the diesel fuel
consumed by each motor vehicle equipped with an auxiliary power
unit or power take-off equipment. The comptroller shall determine
the percentage of the credit or refund. The climate-control air
conditioning or heating system of a motor vehicle that has a primary
purpose of providing for the convenience or comfort of the operator
or passengers is not a power take-off system, and a credit or refund
may not be allowed for the tax paid on any portion of the diesel fuel
that is used for that purpose. A credit or refund may not be allowed
for the diesel fuel tax paid on that portion of the diesel fuel that
is used for idling.
SECTION 2. This Act takes effect September 1, 2017.