Texas 2019 - 86th Regular

Texas House Bill HB3954 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 3954
	1	+	By: Burrows (Senate Sponsor - Hinojosa) H.B. No. 3954
	2	+	(In the Senate - Received from the House April 23, 2019;
	3	+	April 24, 2019, read first time and referred to Committee on
	4	+	Finance; May 7, 2019, reported favorably by the following vote:
	5	+	Yeas 14, Nays 0; May 7, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to motor fuel taxes applicable to gasoline and diesel fuel
6	12		within the bulk transfer system.
7	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	14		SECTION 1. Section 162.001, Tax Code, is amended by
9	15		amending Subdivisions (11), (12), and (57) and adding Subdivisions
10	16		(40-b) and (42-a) to read as follows:
11	17		(11) "Bulk transfer" means a transfer of motor fuel
12	18		from one location to another within the United States by pipeline or
13	19		marine movement within a bulk transfer/terminal system, including:
14	20		(A) a marine vessel movement of motor fuel owned
15	21		by a licensed supplier or permissive supplier [from a refinery or
16	22		terminal to a terminal];
17	23		(B) a pipeline movement of motor fuel from a
18	24		refinery, motor fuel storage facility, or terminal to a terminal or
19	25		motor fuel storage facility;
20	26		(C) a book transfer or in-tank transfer of motor
21	27		fuel within a terminal or motor fuel storage facility between
22	28		licensed suppliers before completion of removal across the rack;
23	29		and
24	30		(D) a two-party exchange between licensed
25	31		suppliers or between licensed suppliers and permissive suppliers.
26	32		(12) "Bulk transfer/terminal system" means the motor
27	33		fuel distribution system consisting of refineries, pipelines,
28	34		marine vessels, motor fuel storage facilities, and IRS-approved
29	35		terminals. Motor fuel is in the bulk transfer/terminal system if
30	36		the motor fuel is in a refinery, a pipeline, a motor fuel storage
31	37		facility, a terminal, or a marine vessel transporting motor fuel
32	38		owned by a licensed supplier or permissive supplier [to a refinery
33	39		or terminal]. Motor fuel is not in the bulk transfer/terminal
34	40		system if the motor fuel is in [a motor fuel storage facility,
35	41		including]:
36	42		(A) a bulk plant that is not part of a refinery or
37	43		terminal;
38	44		(B) the motor fuel supply tank of an engine or a
39	45		motor vehicle; or
40	46		(C) [a marine vessel transporting motor fuel to a
41	47		motor fuel storage facility that is not in the bulk
42	48		transfer/terminal system; or
43	49		[(D)] a tank car, railcar, trailer, truck, or
44	50		other equipment suitable for ground transportation.
45	51		(40-b) "Marine vessel" includes a marine barge.
46	52		(42-a) "Motor fuel storage facility" means a storage
47	53		facility supplied by pipeline or marine vessel that does not have a
48	54		rack for removal of motor fuel by truck, railcar, or any other means
49	55		of conveyance that is outside the bulk transfer/terminal system.
50	56		(57) "Supplier" means a person that:
51	57		(A) is subject to the general taxing jurisdiction
52	58		of this state;
53	59		(B) is registered under Section 4101, Internal
54	60		Revenue Code, for transactions in motor fuel in the bulk
55	61		transfer/terminal distribution system, and is:
56	62		(i) a position holder in motor fuel in a
57	63		terminal or refinery in this state and may concurrently also be a
58	64		position holder in motor fuel in another state; [or]
59	65		(ii) a person who receives motor fuel in
60	66		this state under a two-party exchange; or
61	67		(iii) a person who owns motor fuel in a
62	68		marine vessel in this state; and
63	69		(C) may also be a terminal operator, provided
64	70		that a terminal operator is not considered to also be a "supplier"
65	71		based solely on the fact that the terminal operator handles motor
66	72		fuel consigned to it within a terminal.
67	73		SECTION 2. Section 162.101, Tax Code, is amended by
68	74		amending Subsection (e-1) and adding Subsection (e-3) to read as
69	75		follows:
70	76		(e-1) A tax is imposed on gasoline that is otherwise exempt
71	77		from taxation under Section 162.104(a)(4) or (7) if the gasoline is
72	78		sold into a truck or railcar in this state to a person who does not
73	79		hold a license under Section 162.105(1), (2), (3), (4), or (6). The
74	80		person who [that] sold the gasoline is liable for and shall collect
75	81		and remit the tax.
76	82		(e-3) A tax is imposed on gasoline that is otherwise exempt
77	83		from taxation under Section 162.104(a)(7) if the gasoline is sold
78	84		into a marine vessel in this state to a person who does not hold a
79	85		license under Section 162.105(1), (2), (3), (4), or (6) unless the
80	86		exporter of record is licensed under Section 162.105(1), (2), (3),
81	87		(4), or (6). The person who sold the gasoline is liable for and
82	88		shall collect and remit the tax.
83	89		SECTION 3. Section 162.104(a), Tax Code, is amended to read
84	90		as follows:
85	91		(a) The tax imposed by this subchapter does not apply to
86	92		gasoline:
87	93		(1) sold to the United States for its exclusive use,
88	94		provided that the exemption does not apply with respect to fuel sold
89	95		or delivered to a person operating under a contract with the United
90	96		States;
91	97		(2) sold to a public school district in this state for
92	98		the district's exclusive use;
93	99		(3) sold to a commercial transportation company or a
94	100		metropolitan rapid transit authority operating under Chapter 451,
95	101		Transportation Code, that provides public school transportation
96	102		services to a school district under Section 34.008, Education Code,
97	103		and that uses the gasoline only to provide those services;
98	104		(4) exported by either a licensed supplier or a
99	105		licensed exporter from this state to any other state, provided that
100	106		the bill of lading indicates the destination state and the supplier
101	107		collects the destination state tax;
102	108		(5) moved by truck or railcar between licensed
103	109		suppliers or licensed permissive suppliers and in which the
104	110		gasoline removed from the first terminal comes to rest in the second
105	111		terminal, provided that the removal from the second terminal rack
106	112		is subject to the tax imposed by this subchapter;
107	113		(6) delivered or sold into a storage facility of a
108	114		licensed aviation fuel dealer from which gasoline will be delivered
109	115		solely into the fuel supply tanks of aircraft or aircraft servicing
110	116		equipment, or sold from one licensed aviation fuel dealer to
111	117		another licensed aviation fuel dealer who will deliver the aviation
112	118		fuel exclusively into the fuel supply tanks of aircraft or aircraft
113	119		servicing equipment;
114	120		(7) exported to a foreign country if the bill of lading
115	121		or shipping documents indicate [indicates] the foreign destination
116	122		and the fuel is actually exported to the foreign country;
117	123		(8) sold to a volunteer fire department in this state
118	124		for the department's exclusive use; or
119	125		(9) sold to a nonprofit entity that is organized for
120	126		the sole purpose of and engages exclusively in providing emergency
121	127		medical services and that uses the gasoline exclusively to provide
122	128		emergency medical services, including rescue and ambulance
123	129		services.
124	130		SECTION 4. Section 162.201, Tax Code, is amended by
125	131		amending Subsection (e-1) and adding Subsection (e-3) to read as
126	132		follows:
127	133		(e-1) A tax is imposed on diesel fuel that is otherwise
128	134		exempt from taxation under Section 162.204(a)(4) or (7) if the
129	135		diesel fuel is sold into a truck or railcar in this state to a person
130	136		who does not hold a license under Section 162.205(a)(1), (2), (3),
131	137		(4), or (6). The person who [that] sold the diesel fuel is liable
132	138		for and shall collect and remit the tax.
133	139		(e-3) A tax is imposed on diesel fuel that is otherwise
134	140		exempt from taxation under Section 162.204(a)(7) if the diesel fuel
135	141		is sold into a marine vessel in this state to a person who does not
136	142		hold a license under Section 162.205(a)(1), (2), (3), (4), or (6),
137	143		unless the exporter of record is licensed under Section
138	144		162.205(a)(1), (2), (3), (4), or (6). The person who sold the diesel
139	145		fuel is liable for and shall collect and remit the tax.
140	146		SECTION 5. Section 162.204(a), Tax Code, is amended to read
141	147		as follows:
142	148		(a) The tax imposed by this subchapter does not apply to:
143	149		(1) diesel fuel sold to the United States for its
144	150		exclusive use, provided that the exemption does not apply to diesel
145	151		fuel sold or delivered to a person operating under a contract with
146	152		the United States;
147	153		(2) diesel fuel sold to a public school district in
148	154		this state for the district's exclusive use;
149	155		(3) diesel fuel sold to a commercial transportation
150	156		company or a metropolitan rapid transit authority operating under
151	157		Chapter 451, Transportation Code, that provides public school
152	158		transportation services to a school district under Section 34.008,
153	159		Education Code, and that uses the diesel fuel only to provide those
154	160		services;
155	161		(4) diesel fuel exported by either a licensed supplier
156	162		or a licensed exporter from this state to any other state, provided
157	163		that the bill of lading indicates the destination state and the
158	164		supplier collects the destination state tax;
159	165		(5) diesel fuel moved by truck or railcar between
160	166		licensed suppliers or licensed permissive suppliers and in which
161	167		the diesel fuel removed from the first terminal comes to rest in the
162	168		second terminal, provided that the removal from the second terminal
163	169		rack is subject to the tax imposed by this subchapter;
164	170		(6) diesel fuel delivered or sold into a storage
165	171		facility of a licensed aviation fuel dealer from which the diesel
166	172		fuel will be delivered solely into the fuel supply tanks of aircraft
167	173		or aircraft servicing equipment, or sold from one licensed aviation
168	174		fuel dealer to another licensed aviation fuel dealer who will
169	175		deliver the diesel fuel exclusively into the fuel supply tanks of
170	176		aircraft or aircraft servicing equipment;
171	177		(7) diesel fuel exported to a foreign country if the
172	178		bill of lading or shipping documents indicate [indicates] the
173	179		foreign destination and the fuel is actually exported to the
174	180		foreign country;
175	181		(8) dyed diesel fuel sold or delivered by a supplier to
176	182		another supplier and dyed diesel fuel sold or delivered by a
177	183		supplier or distributor into the bulk storage facility of a dyed
178	184		diesel fuel bonded user or to a purchaser who provides a signed
179	185		statement as provided by Section 162.206;
180	186		(9) the volume of water, fuel ethanol, renewable
181	187		diesel, biodiesel, or mixtures thereof that are blended together
182	188		with taxable diesel fuel when the finished product sold or used is
183	189		clearly identified on the retail pump, storage tank, and sales
184	190		invoice as a combination of diesel fuel and water, fuel ethanol,
185	191		renewable diesel, biodiesel, or mixtures thereof;
186	192		(10) dyed diesel fuel sold by a supplier or permissive
187	193		supplier to a distributor, or by a distributor to another
188	194		distributor;
189	195		(11) dyed diesel fuel delivered by a license holder
190	196		into the fuel supply tanks of railway engines, motorboats, or
191	197		refrigeration units or other stationary equipment powered by a
192	198		separate motor from a separate fuel supply tank;
193	199		(12) dyed kerosene when delivered by a supplier,
194	200		distributor, or importer into a storage facility at a retail
195	201		business from which all deliveries are exclusively for heating,
196	202		cooking, lighting, or similar nonhighway use;
197	203		(13) diesel fuel used by a person, other than a
198	204		political subdivision, who owns, controls, operates, or manages a
199	205		commercial motor vehicle as defined by Section 548.001,
200	206		Transportation Code, if the fuel:
201	207		(A) is delivered exclusively into the fuel supply
202	208		tank of the commercial motor vehicle; and
203	209		(B) is used exclusively to transport passengers
204	210		for compensation or hire between points in this state on a fixed
205	211		route or schedule;
206	212		(14) diesel fuel sold to a volunteer fire department
207	213		in this state for the department's exclusive use; or
208	214		(15) diesel fuel sold to a nonprofit entity that is
209	215		organized for the sole purpose of and engages exclusively in
210	216		providing emergency medical services and that uses the diesel fuel
211	217		exclusively to provide emergency medical services, including
212	218		rescue and ambulance services.
213	219		SECTION 6. The changes in law made by this Act do not affect
214	220		tax liability accruing before the effective date of this Act. That
215	221		liability continues in effect as if this Act had not been enacted,
216	222		and the former law is continued in effect for the collection of
217	223		taxes due and for civil and criminal enforcement of the liability
218	224		for those taxes.
219	225		SECTION 7. This Act takes effect September 1, 2019.
220		-	______________________________ ______________________________
221		-	President of the Senate Speaker of the House
222		-	I certify that H.B. No. 3954 was passed by the House on April
223		-	18, 2019, by the following vote: Yeas 133, Nays 2, 1 present, not
224		-	voting.
225		-	______________________________
226		-	Chief Clerk of the House
227		-	I certify that H.B. No. 3954 was passed by the Senate on May
228		-	15, 2019, by the following vote: Yeas 31, Nays 0.
229		-	______________________________
230		-	Secretary of the Senate
231		-	APPROVED: _____________________
232		-	Date
233		-	_____________________
234		-	Governor
	226	+	* * * * *