86R8468 SMT-F
By: Israel H.B. No. 4281
A BILL TO BE ENTITLED
AN ACT
relating to a county motor fuels tax in certain counties for
mobility improvement projects; providing authority to impose the
tax, issue bonds, and impose penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 14, Local Government Code, is
amended by adding Chapter 616 to read as follows:
CHAPTER 616. COUNTY MOTOR FUELS TAX FOR MOBILITY IMPROVEMENT
PROJECTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 616.001. SHORT TITLE. This chapter may be cited as the
Texas Local Option Transportation Act.
Sec. 616.002. DEFINITIONS. In this chapter:
(1) "Advanced rapid transit" means high-capacity
transit provided wholly or partly in dedicated lanes with stations,
off-vehicle fare collection, and branded vehicles connected using
vehicle-to-vehicle or other technology controlled by an in-vehicle
or remote driver or autonomous technology.
(2) "Dealer," "diesel fuel," "gasoline," "motor
fuel," "motor vehicle," "public highway," and "sale" have the
meanings assigned by Section 162.001, Tax Code.
(3) "Department" means the Texas Department of
Transportation.
(4) "Intermodal hub" and "transit system" have the
meanings assigned by Section 370.003, Transportation Code.
(5) "Metropolitan planning organization" has the
meaning assigned by Section 472.031, Transportation Code.
(6) "Mobility improvement project" means a capital
improvement or set of related capital improvements in a geographic
area, including maintenance and operation of the improvements,
designed to relieve traffic congestion, increase mobility and the
movement of traffic or individuals, expand transportation
capacity, promote traffic or pedestrian safety, or improve air
quality. The term includes:
(A) passenger rail systems and related
infrastructure;
(B) advanced rapid transit systems and related
infrastructure;
(C) transit systems;
(D) intermodal hubs;
(E) pedestrian facilities;
(F) streets, roadways, highways, and additional
roadway or highway lanes, such as turning lanes and managed or high
occupancy vehicle lanes; and
(G) bridges, tunnels, interchanges, overpasses,
underpasses, service roads, ramps, entrance plazas, parking areas
or structures, and traffic signal systems.
(7) "Transit authority" or "transportation authority"
means an authority operating under Chapter 370, 451, 452, or 460,
Transportation Code.
Sec. 616.003. REDUCTION PROHIBITED. (a) A county,
municipality, regional mobility authority, or metropolitan
planning organization may not be penalized with a reduction in
state or federal transportation funding, including funding from the
state highway fund, the Texas mobility fund, general obligation
bonds, or any other method of state or federal transportation
financing, because of the imposition of a county motor fuels tax
under this chapter.
(b) The department may not reduce any allocation of state or
federal transportation funding to a department district because the
district contains a county that imposes a county motor fuels tax
under this chapter.
Sec. 616.004. RESTRICTIONS ON LOBBYING. A county that
imposes a county motor fuels tax under this chapter may not use
revenue from the tax to pay a person or entity that is required to
register with the Texas Ethics Commission under Chapter 305,
Government Code.
Sec. 616.005. LIBERAL CONSTRUCTION. This chapter shall be
liberally construed to effect its purposes.
Sec. 616.006. EXPIRATION OF CHAPTER. (a) This chapter
expires January 1, 2029. The expiration of this chapter precludes
the holding of an election or the imposition of a county motor fuels
tax not authorized under this chapter before its expiration.
(b) The expiration of this chapter does not affect:
(1) the enforcement of bonds, obligations, covenants,
or other legal instruments issued or executed under this chapter
before its expiration;
(2) the continued imposition and collection of a
county motor fuels tax authorized at an election held under this
chapter necessary to fulfill an obligation or other instrument
described by Subdivision (1) before its expiration;
(3) the performance of any mobility improvement
project, including maintenance and operation of a project; or
(4) the administration of a county mobility
improvement fund established under this chapter for county motor
fuels tax revenue.
Sec. 616.007. PROHIBITIONS ON USE OF REVENUE. A county may
not use revenue from a county motor fuels tax imposed under this
chapter for a purpose not authorized by the constitution of this
state or to directly or indirectly hold, promote, or oppose an
election under this chapter, including paying for promotional,
educational, or advocacy materials.
Sec. 616.008. INTERLOCAL CONTRACTING AUTHORITY. (a) A
political subdivision may contract or agree with another political
subdivision to perform governmental functions and services in
accordance with this chapter.
(b) A party to an interlocal contract may contract with an
agency, as that term is defined by Section 771.002, Government
Code.
(c) In this section, "interlocal contract" has the meaning
assigned by Section 791.003, Government Code.
Sec. 616.009. ANNUAL REPORT AND AUDIT. (a) On or before
the 90th day following the end of the fiscal year of a county that
imposes a motor fuels tax under this chapter, the commissioners
court must submit a report to the executive director of the
department and to the state auditor. The report must include:
(1) the amount of revenue collected in the county
under this chapter;
(2) the amount and purpose of expenditures related to
mobility improvement projects; and
(3) a description of the progress made toward
completion of mobility improvement projects.
(b) The county must publish the report required under
Subsection (a) on the county's Internet website at the time the
report is submitted to the department.
(c) Based on a risk assessment process in accordance with
Chapter 321, Government Code, the financial transactions of a
county regarding a motor fuels tax imposed under this chapter and
related mobility improvement projects are subject to audit by the
state auditor. A county audited under this subsection shall
reimburse the state auditor for the expense of the audit.
SUBCHAPTER B. ELECTIONS; PROJECT SELECTION; EQUITY
Sec. 616.051. CALLING OF ELECTION. (a) The commissioners
court of a county with a population of more than one million may
call an election on the issue of imposing a motor fuels tax under
this chapter if:
(1) at least 240 days before the uniform election date
in November, a resolution or resolutions requesting that an
election be called are adopted by the commissioners court of the
county; or
(2) at least 210 days before the uniform election date
in November, a petition is submitted to the commissioners court of
the county requesting that the election be called that is signed by
the number of registered voters of the county equal to at least 10
percent of the total number of votes cast in the county for all
candidates for governor in the most recent gubernatorial general
election.
(b) The commissioners court may adopt an order under this
section only after holding three public hearings on the issue.
(c) An election called under this section must be held on
the uniform election date in November.
(d) Section 334.025 applies to an election called under this
section.
Sec. 616.052. SUBSEQUENT ELECTIONS. (a) This section
applies only to a county in which the majority of voters did not
approve the imposition of a county motor fuels tax at an election
held under Section 616.051.
(b) The commissioners court by order may call a subsequent
election to impose the motor fuels tax authorized under this
chapter using the procedures described by this subchapter.
(c) The commissioners court of a county may not call a
subsequent election under this section before the second
anniversary of a previously held election.
Sec. 616.053. REQUIRED BALLOT LANGUAGE. (a) An order under
this subchapter calling an election must:
(1) list and generally describe the nature and scope
of the proposed mobility improvement projects to be constructed;
and
(2) list the estimated cost, or portion of the cost,
and the estimated completion date for the capital construction of
each proposed mobility improvement project.
(b) The ballot at an election held under this subchapter
must be printed as follows: "Authorizing ________ (insert name of
county) to construct the following mobility improvement
projects:_______ (insert, on four separate lines, a general and
brief description of each proposed mobility improvement project, an
estimated total cost of each project, the estimated date of
expiration of any necessary bonds, and the estimated date the
project will be operational to the public). The construction,
maintenance, and operation of the project or projects listed above
will be funded with a 10 cent tax imposed on the sale of a gallon of
gasoline and diesel fuel. By voting "yes," you authorize the county
to begin imposing a 10 cent motor fuels tax on the sale of a gallon
of gasoline and diesel fuel. Do you authorize the construction of
the mobility improvement projects listed above and the imposition
of a county motor fuels tax in ______ County?"
(c) The estimated cost of construction of a mobility
improvement project listed on a ballot is not a legally binding
restriction on the actual and ultimate cost of financing the
project.
(d) A ballot may not permit individual mobility improvement
projects to be voted on as separate options. All mobility
improvement projects included on a ballot must be approved or
rejected as a group.
Sec. 616.054. AUTHORIZED PROJECTS. (a) A county may
propose for funding by a motor fuels tax imposed under this chapter,
to the extent permitted by the constitution of this state:
(1) the construction of a new mobility improvement
project and related maintenance and operations;
(2) the expansion, reconstruction, or rehabilitation
of an existing mobility improvement project;
(3) improvements in the maintenance and operation of
an existing mobility improvement project; or
(4) the retirement of existing debt of a transit
agency related to a mobility improvement project.
(b) A county may only use funds collected from a motor fuels
tax imposed under this chapter to fund mobility improvement
projects consistent with the transportation plans and programs of
the metropolitan planning organization in which the county is
located.
(c) A county shall consider advanced rapid transit
corridors in selecting projects for funding under this chapter.
(d) On or before the 30th day before the date described in
Subsection (e), the metropolitan planning organization in which the
county is located shall submit to the county a list of eligible
mobility improvement projects with a primary emphasis on advanced
rapid transit and major roadway improvements.
(e) On or before the 180th day before an election is held
under this subchapter, the commissioners court shall, by order and
in consultation with municipalities and transit agencies located or
operating in the county, determine in a public hearing which
projects from the list submitted under Subsection (d) shall be
proposed for funding from a motor fuels tax imposed under this
chapter.
(f) At the discretion of the county, employees of the
department, the county, a municipality, a metropolitan planning
organization, an airport, or a transit authority may be asked to
provide staff support services to the county to determine the
projects to be proposed and constructed.
SUBCHAPTER C. COUNTY MOTOR FUELS TAX
Sec. 616.101. COUNTY MOTOR FUELS TAX AUTHORIZED;
EXPIRATION. (a) Notwithstanding Section 162.014, Tax Code, if
approved by a majority of the votes cast in a county at an election
held under Subchapter B, the county shall impose a tax at a rate of
10 cents per gallon on the sale of gasoline and diesel fuel that is
sold in the county by a person, including a dealer, distributor,
supplier, or permissive supplier, engaged in the sale of motor
fuels used to propel a motor vehicle on the public highways of the
state.
(b) The tax authorized by this section is in addition to the
tax imposed by Chapter 162, Tax Code, and shall be collected in
conjunction with that tax when gasoline or diesel fuel is removed
from a terminal using the terminal rack, other than by bulk
transfer, to be sold or delivered into a county that has imposed the
tax authorized by this section.
(c) A county shall discontinue the imposition of a motor
fuels tax under this chapter if:
(1) all of the mobility improvement projects approved
by the voters of a county are accepted by the governmental entity
that contracted for the projects;
(2) all of the bonds issued for mobility improvement
projects are paid in full; and
(3) additional revenue from the continued imposition
of the tax is not necessary for ongoing maintenance and operation of
mobility improvement projects, including the financial impact a new
mobility improvement project may have on an existing transit system
as specified by an interlocal agreement.
Sec. 616.102. DUTIES OF COMPTROLLER RELATING TO COUNTY
MOTOR FUELS TAX. (a) The comptroller shall administer, collect,
and enforce a tax imposed on the sale of gasoline or diesel fuel
approved in accordance with the provisions of this chapter. The tax
shall be exclusively administered, collected, and enforced in
conformance with Chapter 162, Tax Code, governing the tax assessed
on the sale of gasoline and diesel fuel, except that Subchapter F,
Chapter 162, Tax Code, does not apply. References in Chapter 162,
Tax Code, to taxes imposed under that chapter also include taxes
imposed under this section.
(b) The exemptions provided by Sections 162.104 and
162.204, Tax Code, apply to the tax authorized by this section.
(c) Subject to Section 616.103, the comptroller may adopt
reasonable rules and prescribe forms that are consistent with this
chapter and Chapter 162, Tax Code, for the administration,
collection, reporting, and enforcement of this section.
(d) Except as provided by Subsection (e), the tax authorized
by this section takes effect on the first day of the first calendar
quarter following the expiration of the first complete quarter
occurring after the date of the election authorizing the order
imposing the tax under Subchapter B.
(e) If the comptroller determines that an effective date
provided by Subsection (d) will occur before the comptroller can
reasonably take the action required to begin collecting the tax,
the comptroller may delay the effective date until the first day of
the first calendar quarter following the date the comptroller
declares that the comptroller is ready to begin collecting the tax.
(f) Before making a distribution to a county under Section
616.105, the comptroller shall deduct any costs incurred by the
comptroller related to the comptroller's preparations to
administer, collect, and enforce a tax on the sale of gasoline or
diesel fuel approved in accordance with this chapter. Each county
that approves the imposition of a tax on the sale of gasoline or
diesel fuel shall be charged a pro rata amount for the comptroller's
costs in preparing to administer, collect, and enforce the tax. If
only one county elects to approve the imposition of a tax on the
sale of gasoline or diesel fuel in its jurisdiction, that county
shall bear all of the costs incurred by the comptroller but may
recover pro rata shares of this cost from other counties that
approve the imposition of the tax.
Sec. 616.103. ADOPTION OF RULES RELATING TO MOTOR FUELS
TAX. (a) Before the comptroller may adopt rules under Section
616.102, the comptroller must consult with representatives of:
(1) the entities that would be required to:
(A) collect and remit a motor fuels tax imposed
under this chapter; and
(B) file reports with the comptroller relating to
a motor fuels tax imposed under this chapter; and
(2) counties in which the voters have approved the
imposition of a motor fuels tax under this chapter.
(b) Rules adopted under Section 616.102 must provide for the
uniform administration and reporting of all motor fuels taxes
imposed by a county under this chapter. A county may not impose
requirements on an entity required to collect a motor fuels tax
under this chapter that are not specifically authorized by the
rules adopted under Section 616.102.
(c) Rules adopted under Section 616.102:
(1) may require the comptroller to report sufficient
information to each county imposing a motor fuels tax under this
chapter to ensure proper allocation of revenue by the county under
this chapter;
(2) may not require the comptroller to report
proprietary information collected from an individual taxpayer in a
way that would be subject to public disclosure; and
(3) may not authorize a county imposing a motor fuels
tax under this chapter to contract with a private entity to perform
any duty or responsibility associated with the collection,
enforcement, or administration of the tax.
Sec. 616.104. TRUST ACCOUNT. The comptroller shall deposit
the county taxes collected by the comptroller under this chapter
and Chapter 162, Tax Code, in trust in the separate suspense account
of the county for which the taxes were collected.
Sec. 616.105. DISTRIBUTION OF TRUST FUNDS. The comptroller
shall each month distribute to the county treasurer, payable to the
county and for deposit in the county mobility improvement fund, the
county's share of the taxes collected by the comptroller under this
chapter and Chapter 162, Tax Code.
Sec. 616.106. STATE'S SHARE. Before making a distribution
to a county under Section 616.105, the comptroller also shall
deduct an amount not to exceed two percent of the amount of the
taxes collected for the county during the period for which a
distribution is made as the state's charge for its services. The
comptroller shall credit the amount deducted to the general revenue
fund. The comptroller shall adjust the percentage of the amount
deducted each state fiscal year considering the projected
expenditures necessary for the collection, administrative, and
enforcement functions related to the county motor fuels tax.
Sec. 616.107. AMOUNTS RETAINED IN TRUST ACCOUNT. (a) The
comptroller may retain in the suspense account of a county a portion
of the county's share of the tax collected for the county under this
chapter and Chapter 162, Tax Code, not to exceed five percent of the
amount distributed to the county. If the county has abolished the
tax, the amount that may be retained may not exceed five percent of
the final distribution to the county at the time of the termination
of the collection of the tax.
(b) From the amounts retained in a county's suspense
account, the comptroller may correct erroneous deposits to the
account, make refunds for overpayments to the account, and redeem
dishonored checks and drafts deposited to the credit of the
account.
(c) Before the fourth anniversary of the effective date of
the abolition of a county tax collected under this chapter and
Chapter 162, Tax Code, the comptroller shall send to the county the
remainder of the money in the county's account and shall close the
account.
Sec. 616.108. INTEREST ON TRUST ACCOUNT. Interest earned
on all deposits made by the comptroller under this subchapter shall
be credited to the suspense account of the county.
SUBCHAPTER D. FUND
Sec. 616.151. COUNTY MOBILITY IMPROVEMENT FUND. (a) The
commissioners court of each county that imposes a motor fuels tax
under this chapter shall, by order, establish a county mobility
improvement fund that is separate and apart from the county's
general fund account.
(b) The county shall deposit in the fund money distributed
to the county under Section 616.105.
(c) The county shall establish segregated accounts in the
fund for each approved mobility improvement project.
(d) Money in the fund, including any interest earned, is the
property of the county depositing the money and may be spent only as
provided by Section 616.152.
Sec. 616.152. USE OF MONEY IN FUND; ISSUANCE OF BONDS.
(a) A county may use money in its county mobility improvement
fund, to the extent permitted by the constitution of this state, to:
(1) reimburse or pay, without issuing bonds or other
obligations or otherwise creating debt, the costs of planning,
acquiring, establishing, developing, constructing, or renovating
mobility improvement projects in the county that were approved at
an election under this subchapter;
(2) pay the principal of, interest on, or other costs
relating to bonds or other obligations the county issues for the
purpose of financing mobility improvement projects in the county
that were approved at an election under this subchapter;
(3) pay amounts due and owing to a transit authority or
transportation authority under a contract or interlocal agreement
between the county and the authority under which the authority
agrees to provide, develop, construct, install, and operate
advanced rapid transit facilities and services inside and outside
the county and to issue bonds and other obligations that are secured
by and payable from the amounts due from the county under the
contract or interlocal agreement for the purpose of financing the
capital costs of the facilities, if a county motor fuels tax was
approved for that purpose at an election under this chapter;
(4) pay amounts due and owing to a municipality under a
contract or interlocal agreement between the county and the
municipality under which the municipality agrees to provide,
develop, or construct mobility improvement projects located inside
the municipality;
(5) pay amounts owed to a transit agency to accelerate
the retirement of outstanding debt; and
(6) reimburse or pay the actual and customary costs of
financial administration of the fund.
(b) A contract or interlocal agreement entered into between
a county and a transit authority or transportation authority for
the purposes described by Subsection (a)(3) may have those terms
and provisions, and may impose and contain requirements, grants,
and limitations, as the county and the transit authority or
transportation authority may mutually agree, including the power of
the transit authority or transportation authority to pledge as
security for its bonds all amounts, less agreed costs of
collection, deposited to the county's local option transportation
fund, if such a pledge was approved at an election under this
subchapter.
(c) Bonds or other obligations issued by a county under this
section may be made payable from money in the county's county
mobility improvement fund, subject to any limitations contained in
a contract or interlocal agreement between the county and a transit
authority or transportation authority, and from any other sources
of revenue of the county that are lawfully available. Bonds or
other obligations issued by a transit authority or transportation
authority under a contract or interlocal agreement shall be payable
from and secured by the money in the county's county mobility
improvement fund and the revenue received from the operation of the
advanced rapid transit services financed by the bonds or other
obligations and may not include any revenue the transit authority
or transportation authority receives from a dedicated sales tax or
the operation of any other advanced rapid transit or bus system or
related services.
(d) Bonds or other obligations issued by a county under this
section or by a transit authority or transportation authority under
a contract or interlocal agreement may mature serially or otherwise
not more than 30 years after the date of issuance.
(e) Any bonds or other obligations issued by a county or by a
transit authority or transportation authority under this section,
and the proceedings authorizing the bonds or other obligations,
must be submitted to the attorney general for review and approval
under Chapter 1202, Government Code.
(f) A county may not:
(1) use money in the fund to finance the construction
of a mobility improvement project not permitted by the constitution
of this state or not approved by the voters in an election under
this chapter; or
(2) use funds approved for a particular mobility
improvement project to fund a different project.
SUBCHAPTER E. TRANSIT AND TRANSPORTATION AUTHORITIES
Sec. 616.201. TRANSIT AUTHORITY OR TRANSPORTATION
AUTHORITY SERVICES NOT AUTHORIZED. (a) A county acting under this
chapter may not directly operate or provide advanced rapid transit
services or any service expressly reserved by a transit authority
or a transportation authority that serves the county.
(b) This chapter does not authorize the creation of a
transit authority or a transportation authority.
SECTION 2. Subchapter C, Chapter 791, Government Code, is
amended by adding Section 791.038 to read as follows:
Sec. 791.038. CONTRACTS RELATED TO COUNTY MOTOR FUELS
TAXES. (a) The comptroller may enter into an interlocal contract
with one or more local governments or political subdivisions to
collect, administer, and enforce a county motor fuels tax enacted
under Chapter 616, Local Government Code, and any other related
law.
(b) This section expires January 1, 2022.
SECTION 3. Section 162.001, Tax Code, is amended by adding
Subdivisions (16-a), (16-b), (56-a), (56-b), and (57-a) to read as
follows:
(16-a) "County diesel fuel tax" means the tax imposed
by Section 162.2011 or 162.2035.
(16-b) "County gasoline tax" means the tax imposed by
Section 162.1011 or 162.1035.
(56-a) "State diesel fuel tax" means the tax imposed
by Section 162.201 or 162.203.
(56-b) "State gasoline tax" means the tax imposed by
Section 162.101 or 162.103.
(57-a) "Taxing county" means a destination county that
has adopted the tax on motor vehicle fuel authorized by Chapter 616,
Local Government Code.
SECTION 4. Sections 162.004(e) and (g), Tax Code, are
amended to read as follows:
(e) A person to whom a shipping document was issued shall:
(1) carry the shipping document in the barge, vessel,
railroad tank car, or other transport vehicle for which the
document was issued when transporting the motor fuel described in
the document;
(2) show the shipping document on request to any law
enforcement officer, representative of the comptroller, or other
authorized individual, when transporting the motor fuel described;
(3) deliver the motor fuel to the destination state
printed on the shipping document unless the person:
(A) notifies the comptroller and the destination
state, if a diversion program is in place, before transporting the
motor fuel into a state other than the printed destination state,
that the person has received instructions after the shipping
document was issued to deliver the motor fuel to a different
destination state;
(B) receives from the comptroller and
destination state, if a diversion program is in place, a diversion
number authorizing the diversion; and
(C) writes on the shipping document the change in
destination state and the diversion number; [and]
(4) if delivering the motor fuel into a county in this
state, denote on the shipping document the county to which the motor
fuel will be delivered or, in the case of a split load, each county
in which a portion of the motor fuel will be delivered; and
(5) give a copy of the shipping document to the person
to whom the motor fuel is delivered.
(g) The person to whom motor fuel is delivered by barge,
vessel, railroad tank car, or transport vehicle may not accept
delivery of the motor fuel if the destination state shown on the
shipping document for the motor fuel is a state other than this
state, except that the person may accept the [that] delivery if the
document contains a diversion number authorized by the comptroller
and destination state, if applicable, and has received a properly
completed shipping document listing the county in this state in
which the person accepts delivery. The person to whom the motor
fuel is delivered shall examine the shipping document to determine
that the destination state is this state and the county in this
state is the county in which the person accepts delivery, and shall
retain a copy of the shipping document at the delivery location or
another place until the fourth anniversary of the date of delivery.
SECTION 5. Section 162.005(e), Tax Code, is amended to read
as follows:
(e) The comptroller may revoke a license if the license
holder:
(1) purchases for export motor fuel on which the tax
was not paid under this chapter and subsequently diverts or causes
the motor fuel to be diverted to a destination in this state or to
any destination other than the originally designated state or
country without first obtaining a diversion number; or
(2) delivers motor fuel on which the county gasoline
tax or county diesel fuel tax is due without issuing a properly
completed shipping document listing the taxing county in which the
delivery occurred.
SECTION 6. Section 162.006(a), Tax Code, is amended to read
as follows:
(a) The comptroller may suspend a person's license without
notice or a hearing for the person's failure to comply with this
chapter or a rule adopted under this chapter or Chapter 616, Local
Government Code, if the person's continued operation constitutes an
immediate and substantial threat to the collection of taxes imposed
by this chapter and attributable to the person's operation.
SECTION 7. Section 162.012, Tax Code, is amended to read as
follows:
Sec. 162.012. PRESUMPTIONS. (a) A person licensed under
this chapter or required to be licensed under this chapter, or other
user, who fails to keep a record, issue an invoice, or file a return
or report required by this chapter is presumed to have sold or used
for taxable purposes all motor fuel shown by an audit by the
comptroller to have been sold to the license holder or other
user. Motor fuel unaccounted for is presumed to have been sold or
used for taxable purposes.
(b) If an exporter claims an exemption under Section
162.104(a)(4) or 162.204(a)(4) and fails to report subsequent
tax-free sales in this state of the motor fuel for which the
exemption was claimed as required by Section 162.1155 or 162.2165,
or to produce proof of payment of tax to the destination state or
proof that the transaction was exempt in the destination state, the
exporter is presumed to have not paid the destination state's tax or
this state's tax on the motor fuel and the comptroller shall assess
the tax imposed by this chapter on the motor fuel against the
exporter.
(c) If a person claims an exemption from the county motor
fuels tax and fails to produce proof of delivery to a nontaxing
county, the person is presumed to have delivered the motor fuel to a
taxing county that imposes the tax on motor vehicle fuels
authorized by Chapter 616, Local Government Code.
(d) The comptroller may fix or establish the amount of
taxes, penalties, and interest due this state from the records of
deliveries or from any records or information available. If a tax
claim, as developed from this procedure, is not paid, after the
opportunity to request a redetermination, the claim and any audit
made by the comptroller or any report filed by the license holder or
other user is evidence in any suit or judicial proceedings filed by
the attorney general and is prima facie evidence of the correctness
of the claim or audit. A prima facie presumption of the
correctness of the claim may be overcome at the trial by evidence
adduced by the license holder or other user.
(e) [(b)] In the absence of records showing the number of
miles actually operated per gallon of motor fuel consumed, it is
presumed that not less than one gallon of motor fuel was consumed
for every four miles traveled. An interstate trucker may produce
evidence of motor fuel consumption to establish another mileage
factor. If an examination or audit made by the comptroller from the
records of an interstate trucker shows that a greater amount of
motor fuel was consumed than was reported by the interstate trucker
for tax purposes, the interstate trucker is liable for the tax,
penalties, and interest on the additional amount shown or the
trucker is entitled to a credit or refund on overpayments of tax
established by the audit.
SECTION 8. Section 162.015, Tax Code, is amended to read as
follows:
Sec. 162.015. ADDITIONAL TAX APPLIES TO INVENTORIES. (a)
On the effective date of an increase in the rate [rates] of a tax
[the taxes] imposed by this chapter, a distributor or dealer that
possesses for the purpose of sale 2,000 or more gallons of gasoline
or diesel fuel at each business location on which a tax [the taxes]
imposed by this chapter at a previous rate has [have] been paid
shall report to the comptroller the volume of that gasoline and
diesel fuel, and at the time of the report shall pay a tax on that
gasoline and diesel fuel at a rate equal to the rate of the tax
increase.
(b) On the effective date of a reduction of the rate [rates]
of a tax [taxes] imposed by this chapter, a distributor or dealer
that possesses for the purpose of sale 2,000 or more gallons of
gasoline or diesel fuel at each business location on which a tax
[the taxes] imposed by this chapter at the previous rate has [have]
been paid becomes entitled to a refund in an amount equal to the
difference in the amount of the tax [taxes] paid on that gasoline or
diesel fuel at the previous rate and at the rate in effect on the
effective date of the reduction in the tax rate [rates]. The rules
of the comptroller shall provide for the method of claiming a refund
under this chapter and may require that the refund for the dealer be
paid through the distributor or supplier from whom the dealer
received the fuel.
SECTION 9. Section 162.016, Tax Code, is amended by
amending Subsection (a) and adding Subsection (g-1) to read as
follows:
(a) A person may not import motor fuel to a destination in
this state or export motor fuel to a destination outside this state
by any means unless the person possesses a shipping document for
that fuel. The shipping document must include:
(1) the name and physical address of the terminal or
bulk plant from which the motor fuel was received for import or
export;
(2) the name of the carrier transporting the motor
fuel;
(3) the date the motor fuel was loaded;
(4) the type of motor fuel;
(5) the number of gallons:
(A) in temperature-adjusted gallons if purchased
from a terminal for export or import; or
(B) in temperature-adjusted gallons or in gross
gallons if purchased from a bulk plant;
(6) the destination state and, if the destination
state is this state, the county in this state to which the gasoline
or diesel fuel will be delivered [of the motor fuel] as represented
by the purchaser of the motor fuel and the number of gallons of the
fuel to be delivered, if delivery is to only one state;
(7) the name and physical address of the purchaser of
the motor fuel;
(8) the name of the person responsible for paying the
tax imposed by this chapter, as given to the terminal by the
purchaser if different from the licensed supplier or distributor;
(9) the destination state of each portion of a split
load of motor fuel if the motor fuel is to be delivered to more than
one state and, if a destination state is this state, the county in
this state to which the gasoline or diesel fuel will be delivered;
and
(10) any other information that, in the opinion of the
comptroller, is necessary for the proper administration of this
chapter.
(g-1) An importer or exporter who wants to deliver a single
cargo tank of motor fuel to a county in this state must issue a
properly completed shipping document denoting the county to which
the motor fuel will be delivered or, in the case of a split load,
each county to which a portion of the motor fuel will be delivered.
SECTION 10. The heading to Section 162.101, Tax Code, is
amended to read as follows:
Sec. 162.101. POINT OF IMPOSITION OF STATE GASOLINE TAX.
SECTION 11. Sections 162.101(a), (b), (c), and (f), Tax
Code, are amended to read as follows:
(a) A tax is imposed on the removal of gasoline from the
terminal using the terminal rack, other than by bulk transfer. The
supplier or permissive supplier is liable for and shall collect the
tax imposed by this section [subchapter] from the person who orders
the withdrawal at the terminal rack.
(b) A tax is imposed at the time gasoline is imported into
this state, other than by a bulk transfer, for delivery to a
destination in this state. The supplier or permissive supplier is
liable for and shall collect the tax imposed by this section
[subchapter] from the person who imports the gasoline into this
state. If the seller is not a supplier or permissive supplier,
then the person who imports the gasoline into this state is liable
for and shall pay the tax.
(c) A tax is imposed on the removal of gasoline from the bulk
transfer/terminal system in this state. The supplier is liable for
and shall collect the tax imposed by this section [subchapter] from
the person who orders the removal from the bulk transfer terminal
system.
(f) A terminal operator in this state is considered a
supplier for the purpose of the tax imposed by [under] this section
[subchapter] unless at the time of removal:
(1) the terminal operator has a terminal operator's
license issued for the facility from which the gasoline is
withdrawn;
(2) the terminal operator verifies that the person who
removes the gasoline has a supplier's license; and
(3) the terminal operator does not have a reason to
believe that the supplier's license is not valid.
SECTION 12. Subchapter B, Chapter 162, Tax Code, is amended
by adding Section 162.1011 to read as follows:
Sec. 162.1011. IMPOSITION OF COUNTY GASOLINE TAX; POINT OF
COLLECTION. (a) In a county that imposes the tax on motor vehicle
fuels authorized by Chapter 616, Local Government Code, a tax is
imposed on the delivery of gasoline into the taxing county.
(b) A tax is imposed on gasoline that is otherwise exempt
from taxation under Section 162.104(a)(4) or (7) if the gasoline is
sold in this state to a person who does not hold a license under
Section 162.105(1), (2), (3), (4), or (6) and the gasoline is
subsequently delivered into a taxing county. The person who
delivered the gasoline into the taxing county is liable for and
shall collect the tax.
(c) A tax is imposed on gasoline that is otherwise exempt
from taxation under Section 162.104(a)(4) or (7) if before export
the gasoline is sold in this state to a person who holds a license
under Section 162.105(1), (2), (3), (4), or (6) and the gasoline is
delivered into a taxing county. The person who delivered the
gasoline into the taxing county is liable for and shall pay the tax.
(d) The distributor shall collect the tax imposed by this
section from each person on delivery of gasoline into a taxing
county.
(e) In each subsequent sale of gasoline on which the tax has
been paid, the tax imposed by this section shall be collected from
the purchaser so that the tax is paid ultimately by the person who
uses the gasoline. Gasoline is considered to be used when it is
delivered into a fuel supply tank.
SECTION 13. Section 162.102, Tax Code, is amended to read as
follows:
Sec. 162.102. TAX RATES [RATE]. (a) The state gasoline tax
rate is 20 cents for each net gallon or fractional part of a net
gallon on which the tax is imposed under Section 162.101.
(b) In a taxing county, the county gasoline tax rate for
each net gallon or fractional part of a net gallon is the rate
established by Chapter 616, Local Government Code.
SECTION 14. The heading to Section 162.1025, Tax Code, is
amended to read as follows:
Sec. 162.1025. SEPARATE STATEMENT OF TAXES [TAX] COLLECTED
FROM PURCHASER.
SECTION 15. Sections 162.1025(a), (b), and (c), Tax Code,
are amended to read as follows:
(a) In each subsequent sale of gasoline on which the taxes
imposed by this subchapter have [tax has] been paid, the taxes [tax
imposed by this subchapter] shall be collected from the purchaser
so that the taxes are [tax is] paid ultimately by the person who
uses the gasoline. Gasoline is considered to be used when it is
delivered into a fuel supply tank.
(b) The taxes [tax] imposed by this subchapter must be
stated separately from the sales price of gasoline and identified
as gasoline taxes [tax] on the invoice or receipt issued to a
purchaser. Backup gasoline taxes [tax] may be identified as
gasoline taxes [tax]. The taxes [tax] must be separately stated and
identified in the same manner on a shipping document, if the
shipping document includes the sales price of the gasoline.
(c) Except as provided by Subsection (d), the sales price of
gasoline stated on an invoice, receipt, or shipping document is
presumed to be exclusive of the taxes [tax] imposed by this
subchapter. The seller or purchaser may overcome the presumption
by using the seller's records to show that the taxes [tax] imposed
by this subchapter were [was] included in the sales price.
SECTION 16. The heading to Section 162.103, Tax Code, is
amended to read as follows:
Sec. 162.103. BACKUP STATE GASOLINE TAX; LIABILITY.
SECTION 17. Sections 162.103(a) and (c), Tax Code, are
amended to read as follows:
(a) A backup tax is imposed at the rate prescribed by
Section 162.102(a) [162.102] on:
(1) a person who obtains a refund of tax on gasoline by
claiming the gasoline was used for an off-highway purpose, but
actually uses the gasoline to operate a motor vehicle on a public
highway;
(2) a person who operates a motor vehicle on a public
highway using gasoline on which tax has not been paid;
(3) a person who sells to the ultimate consumer
gasoline on which tax has not been paid and who knew or had reason to
know that the gasoline would be used for a taxable purpose; and
(4) a person, other than a person exempted under
Section 162.104, who acquires gasoline on which tax has not been
paid from any source in this state.
(c) The tax imposed by [under] Subsection (a)(3) is also
imposed on the ultimate consumer.
SECTION 18. Subchapter B, Chapter 162, Tax Code, is amended
by adding Section 162.1035 to read as follows:
Sec. 162.1035. BACKUP COUNTY GASOLINE TAX; LIABILITY. (a)
A backup tax is imposed at the rate prescribed by Section 162.102(b)
on:
(1) a person who, in a taxing county:
(A) delivers gasoline into the fuel supply tank
of a motor vehicle;
(B) purchases or receives gasoline from another
person; or
(C) sells or delivers gasoline to another person;
and
(2) a person who obtains a refund of the tax imposed by
Section 162.1011 for gasoline that the person delivered into the
fuel supply tank of a motor vehicle, purchased or acquired, or sold
or delivered in a taxing county.
(b) A person who sells gasoline subject to the tax imposed
by this section shall at the time of sale collect the tax from the
purchaser or recipient of the gasoline in addition to the selling
price and is liable to this state for the taxes collected at the
time and in the manner provided by this chapter.
(c) The following are exempt from the tax imposed by this
section:
(1) gasoline on which the tax imposed by Section
162.1011 has been paid; and
(2) gasoline exempt under Section 162.104.
(d) The tax imposed by this section is in addition to any
penalty imposed under this chapter.
SECTION 19. Section 162.104(a), Tax Code, is amended to
read as follows:
(a) The taxes [tax] imposed by this subchapter do [does] not
apply to gasoline:
(1) sold to the United States for its exclusive use,
provided that the exemption does not apply with respect to fuel sold
or delivered to a person operating under a contract with the United
States;
(2) sold to a public school district in this state for
the district's exclusive use;
(3) sold to a commercial transportation company or a
metropolitan rapid transit authority operating under Chapter 451,
Transportation Code, that provides public school transportation
services to a school district under Section 34.008, Education Code,
and that uses the gasoline only to provide those services;
(4) exported by either a licensed supplier or a
licensed exporter from this state to any other state, provided that
the bill of lading indicates the destination state and the supplier
collects the destination state tax;
(5) moved by truck or railcar between licensed
suppliers or licensed permissive suppliers and in which the
gasoline removed from the first terminal comes to rest in the second
terminal, provided that the removal from the second terminal rack
is subject to the state gasoline tax imposed by this subchapter;
(6) delivered or sold into a storage facility of a
licensed aviation fuel dealer from which gasoline will be delivered
solely into the fuel supply tanks of aircraft or aircraft servicing
equipment, or sold from one licensed aviation fuel dealer to
another licensed aviation fuel dealer who will deliver the aviation
fuel exclusively into the fuel supply tanks of aircraft or aircraft
servicing equipment;
(7) exported to a foreign country if the bill of lading
indicates the foreign destination and the fuel is actually exported
to the foreign country;
(8) sold to a volunteer fire department in this state
for the department's exclusive use; or
(9) sold to a nonprofit entity that is organized for
the sole purpose of and engages exclusively in providing emergency
medical services and that uses the gasoline exclusively to provide
emergency medical services, including rescue and ambulance
services.
SECTION 20. Section 162.105, Tax Code, is amended to read as
follows:
Sec. 162.105. PERSONS REQUIRED TO BE LICENSED. A person
shall obtain the appropriate license or licenses issued by the
comptroller before conducting the activities of:
(1) a supplier, who may also act as a distributor,
importer, exporter, blender, motor fuel transporter, dealer, or
aviation fuel dealer without securing a separate license, but who
is subject to all other conditions, requirements, and liabilities
imposed on those license holders;
(2) a permissive supplier, who may also act as a
distributor, importer, exporter, blender, motor fuel transporter,
dealer, or aviation fuel dealer without securing a separate
license, but who is subject to all other conditions, requirements,
and liabilities imposed on those license holders;
(3) a distributor, who may also act as an importer,
exporter, blender, [or] motor fuel transporter, or dealer without
securing a separate license, but who is subject to all other
conditions, requirements, and liabilities imposed on those license
holders;
(4) an importer, who may also act as an exporter,
blender, [or] motor fuel transporter, or dealer without securing a
separate license, but who is subject to all other conditions,
requirements, and liabilities imposed on those license holders;
(5) a terminal operator;
(6) an exporter;
(7) a blender;
(8) a motor fuel transporter;
(9) an aviation fuel dealer; [or]
(10) an interstate trucker; or
(11) a dealer.
SECTION 21. Sections 162.107(a) and (b), Tax Code, are
amended to read as follows:
(a) A person may elect to obtain a permissive supplier
license to collect the state gasoline tax imposed by [under] this
subchapter for gasoline that is removed at a terminal in another
state and has this state as the destination state.
(b) With respect to gasoline that is removed by the licensed
permissive supplier at a terminal located in another state and that
has this state as the destination state, a licensed permissive
supplier shall:
(1) collect the state gasoline tax due to this state on
the gasoline;
(2) waive any defense that this state lacks
jurisdiction to require the supplier to collect the state gasoline
tax due to this state on the gasoline under this subchapter;
(3) report and pay the state gasoline tax and the
county gasoline tax due on the gasoline in the same manner as if the
removal had occurred at a terminal located in this state;
(4) keep records of the removal of the gasoline and
submit to audits concerning the gasoline as if the removal had
occurred at a terminal located in this state; and
(5) report sales by the permissive supplier to a
person who is not licensed in this state.
SECTION 22. Section 162.108, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) In addition to the information required by Subsection
(a), an applicant for a license as a dealer must list on the
application:
(1) the street address, city, county, and zip code of
the location for which the applicant seeks a license to sell or
dispense motor fuel at retail;
(2) the applicant's social security number, driver's
license number, and federal employer identification number if the
applicant is a natural person who is not licensed as a supplier,
permissive supplier, or terminal operator; and
(3) if the applicant is a corporation, limited
liability company, professional association, partnership, or other
entity that is not licensed as a supplier, permissive supplier, or
terminal operator and is not wholly owned by an entity that is
licensed as a supplier, permissive supplier, or terminal operator,
the physical address, mailing address, social security number, and
driver's license number of:
(A) each natural person responsible for the
purchase of motor fuel for sale by the applicant; and
(B) each officer, director, manager, member,
shareholder, and partner of the applicant.
SECTION 23. Section 162.110(a), Tax Code, is amended to
read as follows:
(a) The license issued to a supplier, permissive supplier,
distributor, importer, exporter, terminal operator, blender, [or]
motor fuel transporter, or dealer is permanent and is valid during
the period the license holder has in force and effect the required
bond or security and furnishes timely reports and supplements as
required, or until the license is surrendered by the holder or
canceled by the comptroller. The comptroller shall cancel a
license under this subsection if a purchase, sale, or use of
gasoline has not been reported by the license holder during the
previous nine months.
SECTION 24. Section 162.111(a), Tax Code, is amended to
read as follows:
(a) The comptroller shall determine the amount of security
required of a supplier, permissive supplier, distributor,
exporter, importer, dealer, or blender, taking into consideration
the amount of tax that has or is expected to become due from the
person, any past history of the person as a license holder under
this chapter or its predecessor, and the necessity to protect this
state against the failure to pay the tax as the tax becomes due.
SECTION 25. Sections 162.112(a) and (b), Tax Code, are
amended to read as follows:
(a) The comptroller, on or before December 20 of each year,
shall make available to all license holders an alphabetical list of
licensed suppliers, permissive suppliers, distributors, aviation
fuel dealers, importers, exporters, blenders, dealers, and
terminal operators. A supplemental list of additions and deletions
shall be made available to the license holders each month. A
current and effective license or the list furnished by the
comptroller is evidence of the validity of the license until the
comptroller notifies license holders of a change in the status of a
license holder.
(b) A licensed supplier, permissive supplier, dealer, or
distributor who sells gasoline tax-free to a person whose
supplier's, permissive supplier's, dealer's, or aviation fuel
dealer's license has been canceled or revoked under this chapter is
liable for any tax due on gasoline sold after receiving notice of
the cancellation or revocation.
SECTION 26. Sections 162.113(d), (d-1), and (e), Tax Code,
are amended to read as follows:
(d) The supplier or permissive supplier, after requesting a
credit under this section, shall terminate the ability of the
licensed distributor or licensed importer to defer the payment of
state gasoline tax. The supplier or permissive supplier may not
reinstate the right of the licensed distributor or licensed
importer to defer the payment of state gasoline tax until the first
anniversary of the date the supplier or permissive supplier
requested the credit, subject to Subsection (d-1).
(d-1) A supplier or permissive supplier may reinstate the
right of a licensed distributor or licensed importer to defer the
payment of state gasoline tax before the date prescribed by
Subsection (d) if the comptroller determines that:
(1) the supplier or permissive supplier erroneously
requested the credit that resulted in the termination of the
licensed distributor's or licensed importer's right to defer
payment; or
(2) the licensed distributor or licensed importer
failed to pay state gasoline taxes due because of circumstances
that may have been outside the distributor's or importer's control.
(e) A licensed distributor or licensed importer who makes
timely payments of the state gasoline tax imposed by [under] this
subchapter is entitled to retain an amount equal to 1.75 percent of
the total state gasoline tax [taxes] to be paid to the supplier or
permissive supplier to cover administrative expenses.
SECTION 27. Section 162.114(a), Tax Code, is amended to
read as follows:
(a) Except as provided by Subsection (b), each person who is
liable for the taxes [tax] imposed by this subchapter, a terminal
operator, a dealer, and a licensed distributor shall file a return
on or before the 25th day of the month following the end of each
calendar month.
SECTION 28. Sections 162.115(b), (c), (e), (g), and (h),
Tax Code, are amended to read as follows:
(b) A distributor shall keep:
(1) a record showing the number of gallons of:
(A) all gasoline inventories on hand at the first
of each month;
(B) all gasoline blended;
(C) all gasoline purchased or received, showing
the name of the seller and the date of each purchase or receipt;
(D) all gasoline sold, distributed, or used,
showing:
(i) the name of the purchaser;
(ii) the county in this state to which the
gasoline was delivered;
(iii) the amount of county gasoline tax
collected from the purchaser; and
(iv) the date of the sale, distribution, or
use; and
(E) all gasoline lost by fire, theft, or
accident;
(2) an itemized statement showing by load the number
of gallons of all gasoline:
(A) received during the preceding calendar month
for export and the location of the loading;
(B) sold, distributed, or used, showing:
(i) the name of the purchaser;
(ii) the county or counties in this state;
(iii) the amount of county gasoline tax
collected from the purchaser; and
(iv) the date of the sale, distribution, or
use;
(C) exported from this state by destination state
or country; and
(D) [(C)] imported during the preceding calendar
month by state or country of origin; [and]
(3) for gasoline exported from this state, proof of
payment of tax to the destination state in a form acceptable to the
comptroller; and
(4) all shipping documents.
(c) An importer shall keep:
(1) a record showing the number of gallons of:
(A) all gasoline inventories on hand at the first
of each month;
(B) all gasoline compounded or blended;
(C) all gasoline purchased or received, showing
the name of the seller and the date of each purchase or receipt;
(D) all gasoline sold, distributed, or used,
showing the name of the purchaser, the county in this state, and the
date of the sale, distribution, or use; and
(E) all gasoline lost by fire, theft, or
accident; and
(2) an itemized statement showing by load the number
of gallons of all gasoline:
(A) received during the preceding calendar month
for export and the location of the loading;
(B) sold, distributed, or used, showing the name
of the purchaser, the county or counties in this state, and the date
of the sale, distribution, or use;
(C) exported from this state by destination state
or country; and
(D) [(C)] imported during the preceding calendar
month by state or country of origin.
(e) A blender shall keep a record showing the number of
gallons of:
(1) all gasoline inventories on hand at the first of
each month;
(2) all gasoline compounded or blended;
(3) all gasoline purchased or received, showing the
name of the seller and the date of each purchase or receipt;
(4) all gasoline sold, distributed, or used, showing
the name of the purchaser, the county in this state, and the date of
the sale or use; and
(5) all gasoline lost by fire, theft, or accident.
(g) A motor fuel transporter shall keep a complete and
separate record of each intrastate and interstate transportation of
gasoline, showing:
(1) the date of transportation;
(2) the name of the consignor and consignee;
(3) the means of transportation;
(4) the quantity and kind of gasoline transported;
(5) full data concerning the diversion of shipments,
including the county in this state and the number of gallons
diverted from interstate to intrastate and intrastate to interstate
commerce; and
(6) the points of origin and destination, the county
in this state, the number of gallons shipped or transported, the
date, the consignee and the consignor, and the kind of gasoline that
has been diverted.
(h) A dealer shall keep a record showing the number of
gallons of:
(1) gasoline inventories on hand at the first of each
month;
(2) all gasoline purchased or received, showing the
name of the seller and the date of each purchase or receipt;
(3) all gasoline sold or used, showing the date of the
sale or use; [and]
(4) all gasoline lost by fire, theft, or accident; and
(5) the shipping documents.
SECTION 29. Section 162.116(c), Tax Code, is amended to
read as follows:
(c) A supplier or permissive supplier may take a credit for
any state gasoline tax [taxes] that was [were] not remitted in a
previous period to the supplier or permissive supplier by a
licensed distributor or licensed importer as required by Section
162.113. The supplier or permissive supplier is eligible to take
the credit if the comptroller is notified of the default within 15
days after the default occurs. If a license holder pays to a
supplier or permissive supplier the tax owed, but the payment
occurs after the supplier or permissive supplier has taken a credit
on its return, the supplier or permissive supplier shall remit the
payment to the comptroller with the next monthly return after
receipt of the tax, plus a penalty of 10 percent of the amount of
unpaid taxes and interest at the rate provided by Section 111.060
beginning on the date the credit was taken.
SECTION 30. Section 162.118, Tax Code, is amended to read as
follows:
Sec. 162.118. INFORMATION REQUIRED ON DISTRIBUTOR'S
RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return
and supplements of each distributor shall contain for the period
covered by the return:
(1) the number of net gallons of gasoline received by
the distributor during the month, sorted by product code, seller,
point of origin, destination state, carrier, and receipt date;
(2) the number of net gallons of gasoline removed at a
terminal rack by the distributor during the month, sorted by
product code, seller, terminal code, and carrier;
(3) the number of net gallons of gasoline removed by
the distributor during the month for export, sorted by product
code, terminal code, bulk plant address, destination state, and
carrier;
(4) the number of net gallons of gasoline removed by
the distributor during the month from a terminal located in another
state for conveyance to this state, as indicated on the shipping
document for the gasoline, sorted by product code, seller, terminal
code, bulk plant address, and carrier;
(5) the number of net gallons of gasoline the
distributor sold during the month in transactions exempt under
Section 162.104, sorted by product code and purchaser; [and]
(6) the number of net gallons delivered into a taxing
county sorted by taxing county and purchaser; and
(7) any other information required by the comptroller.
(b) A distributor or importer who makes timely payments of
the county tax imposed by this subchapter is entitled to retain an
amount equal to two percent of the total county gasoline taxes
remitted to the comptroller to cover administrative expenses.
SECTION 31. Section 162.123, Tax Code, is amended to read as
follows:
Sec. 162.123. INFORMATION REQUIRED ON BLENDER'S RETURN.
The monthly return and supplements of each blender shall contain
for the period covered by the return:
(1) the number of net gallons of gasoline received by
the blender during the month, sorted by product code, seller, point
of origin, carrier, and receipt date;
(2) the number of net gallons of product blended with
gasoline during the month, sorted by product code, type of blending
agent if no product code exists, seller, and carrier;
(3) the number of net gallons of blended gasoline sold
during the month and the license number or name, [and] address, and
county in this state of the entity receiving the blended gasoline;
and
(4) any other information required by the comptroller.
SECTION 32. Subchapter B, Chapter 162, Tax Code, is amended
by adding Section 162.1235 to read as follows:
Sec. 162.1235. INFORMATION REQUIRED ON DEALER'S RETURN.
The monthly return and supplements of each dealer shall contain for
the period covered by the return:
(1) the number of gallons of gasoline inventories on
hand at the first of each month, sorted by product code;
(2) the number of gallons of gasoline received by the
dealer during the month, sorted by seller;
(3) the number of gallons of gasoline inventories on
hand at the end of each month; and
(4) any other information required by the comptroller.
SECTION 33. Sections 162.125(g-1) and (g-2), Tax Code, are
amended to read as follows:
(g-1) A volunteer fire department exempt from the taxes
[tax] imposed under this subchapter that paid a tax on the purchase
of gasoline is entitled to a refund of the tax paid, and the
volunteer fire department may file a refund claim with the
comptroller for that amount.
(g-2) A nonprofit entity exempted under Section
162.104(a)(9) from the taxes [tax] imposed under this subchapter
that paid a tax on the purchase of gasoline is entitled to a refund
of the tax paid, and the entity may file a refund claim with the
comptroller for that amount.
SECTION 34. Sections 162.127(a) and (d), Tax Code, are
amended to read as follows:
(a) A refund claim must be filed on a form provided by the
comptroller, be supported by the original invoice issued by the
seller, and contain:
(1) the stamped or preprinted name and address,
including county in this state, of the seller;
(2) the name and address of the purchaser;
(3) the date of delivery of the gasoline;
(4) the date of the issuance of the invoice, if
different from the date of fuel delivery;
(5) the number of gallons of gasoline delivered;
(6) the amount of state or county gasoline taxes paid
[tax], either separately stated from the selling price or stated
with a notation that both state and county taxes are included if
both apply [the selling price includes the tax]; and
(7) the type of vehicle or equipment, such as a
motorboat, railway engine, motor vehicle, off-highway vehicle, or
refrigeration unit or stationary engine, into which the fuel is
delivered.
(d) A distributor or person who does not hold a license who
files a valid refund claim with the comptroller shall be paid by a
warrant issued by the comptroller. For purposes of this section, a
distributor meets the requirement of filing a valid refund claim
for state and county gasoline taxes if the distributor designates
the gallons of gasoline sold or used that are the subject of the
refund claim on the monthly report submitted by the distributor to
the comptroller.
SECTION 35. The heading to Section 162.201, Tax Code, is
amended to read as follows:
Sec. 162.201. POINT OF IMPOSITION OF STATE DIESEL FUEL TAX.
SECTION 36. Sections 162.201(a), (b), (c), and (f), Tax
Code, are amended to read as follows:
(a) A tax is imposed on the removal of diesel fuel from the
terminal using the terminal rack other than by bulk transfer. The
supplier or permissive supplier is liable for and shall collect the
tax imposed by this section [subchapter] from the person who orders
the withdrawal at the terminal rack.
(b) A tax is imposed at the time diesel fuel is imported into
this state, other than by a bulk transfer, for delivery to a
destination in this state. The supplier or permissive supplier is
liable for and shall collect the tax imposed by this section
[subchapter] from the person who imports the diesel fuel into this
state. If the seller is not a supplier or permissive supplier, the
person who imports the diesel fuel into this state is liable for and
shall pay the tax.
(c) A tax is imposed on the removal of diesel fuel from the
bulk transfer/terminal system in this state. The supplier is
liable for and shall collect the tax imposed by this section
[subchapter] from the person who orders the removal from the bulk
transfer/terminal system.
(f) The terminal operator in this state is considered a
supplier for the purpose of the tax imposed under this section
[subchapter] unless at the time of removal:
(1) the terminal operator has a terminal operator's
license issued for the facility from which the diesel fuel is
withdrawn;
(2) the terminal operator verifies that the person who
removes the diesel fuel has a supplier's license; and
(3) the terminal operator does not have a reason to
believe that the supplier's license is not valid.
SECTION 37. Subchapter C, Chapter 162, Tax Code, is amended
by adding Section 162.2011 to read as follows:
Sec. 162.2011. COUNTY DIESEL FUEL TAX IMPOSED; POINT OF
COLLECTION. (a) In a county that imposes the tax on motor vehicle
fuels authorized by Chapter 616, Local Government Code, a tax is
imposed on the delivery of diesel fuel into the taxing county.
(b) The distributor shall collect the tax imposed by this
section from each person on delivery of diesel fuel into a taxing
county.
(c) A tax is imposed on diesel fuel that is otherwise exempt
from taxation under Section 162.204(a)(4) or (7) if the diesel fuel
is sold in this state to a person who does not hold a license under
Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel fuel is
subsequently delivered into a taxing county. The person who
delivered the diesel fuel into the taxing county is liable for and
shall collect the tax.
(d) A tax is imposed on diesel fuel that is otherwise exempt
from taxation under Section 162.204(a)(4) or (7) if before export
the diesel fuel is sold in this state to a person who holds a license
under Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel
fuel is subsequently delivered to a taxing county. The person who
delivered the diesel fuel into the taxing county is liable for and
shall pay the tax.
(e) In each subsequent sale of diesel fuel on which the tax
has been paid, the tax imposed by this section shall be collected
from the purchaser so that the tax is paid ultimately by the person
who uses the diesel fuel. Diesel fuel is considered to be used when
it is delivered into a fuel supply tank.
SECTION 38. Section 162.202, Tax Code, is amended to read as
follows:
Sec. 162.202. TAX RATES [RATE]. (a) The state diesel fuel
tax rate is 20 cents for each net gallon or fractional part of a net
gallon on which the tax is imposed under Section 162.201.
(b) In a taxing county, the county diesel fuel tax rate for
each net gallon or fractional part of a net gallon is the rate
established by Chapter 616, Local Government Code.
SECTION 39. The heading to Section 162.2025, Tax Code, is
amended to read as follows:
Sec. 162.2025. SEPARATE STATEMENT OF TAXES [TAX] COLLECTED
FROM PURCHASER.
SECTION 40. Sections 162.2025(a), (b), and (c), Tax Code,
are amended to read as follows:
(a) In each subsequent sale of diesel fuel on which the
taxes imposed by this subchapter have [tax has] been paid, the taxes
[tax imposed by this subchapter] shall be collected from the
purchaser so that the taxes are [tax is] paid ultimately by the
person who uses the diesel fuel. Diesel fuel is considered to be
used when it is delivered into a fuel supply tank.
(b) The taxes [tax] imposed by this subchapter must be
stated separately from the sales price of diesel fuel and
identified as diesel fuel taxes [tax] on the invoice or receipt
issued to a purchaser. Backup diesel fuel taxes [tax] may be
identified as diesel fuel taxes [tax]. The taxes [tax] must be
separately stated and identified in the same manner on a shipping
document, if the shipping document includes the sales price of the
diesel fuel.
(c) Except as provided by Subsection (d), the sales price of
diesel fuel stated on an invoice, receipt, or shipping document is
presumed to be exclusive of the taxes [tax] imposed by this
subchapter. The seller or purchaser may overcome the presumption
by using the seller's records to show that the taxes [tax] imposed
by this subchapter were [was] included in the sales price.
SECTION 41. The heading to Section 162.203, Tax Code, is
amended to read as follows:
Sec. 162.203. BACKUP STATE DIESEL FUEL TAX; LIABILITY.
SECTION 42. Sections 162.203(a) and (c), Tax Code, are
amended to read as follows:
(a) A backup tax is imposed at the rate prescribed by
Section 162.202(a) [162.202] on:
(1) a person who obtains a refund of tax on diesel fuel
by claiming the diesel fuel was used for an off-highway purpose, but
actually uses the diesel fuel to operate a motor vehicle on a public
highway;
(2) a person who operates a motor vehicle on a public
highway using diesel fuel on which tax has not been paid;
(3) a person who sells to the ultimate consumer diesel
fuel on which a tax has not been paid and who knew or had reason to
know that the diesel fuel would be used for a taxable purpose; and
(4) a person, other than a person exempted under
Section 162.204, who acquires diesel fuel on which tax has not been
paid from any source in this state.
(c) The tax imposed by [under] Subsection (a)(3) is also
imposed on the ultimate consumer.
SECTION 43. Subchapter C, Chapter 162, Tax Code, is amended
by adding Section 162.2035 to read as follows:
Sec. 162.2035. BACKUP COUNTY DIESEL FUEL TAX; LIABILITY.
(a) A backup tax is imposed at the rate prescribed by Section
162.202(b) on:
(1) a person who, in a taxing county:
(A) delivers diesel fuel into the fuel supply
tank of a motor vehicle;
(B) purchases or receives diesel fuel from
another person; or
(C) sells or delivers diesel fuel to another
person; and
(2) a person who obtains a refund of the tax imposed by
Section 162.2011 for diesel fuel that the person delivered into the
fuel supply tank of a motor vehicle, purchased or acquired, or sold
or delivered in a taxing county.
(b) A person who sells diesel fuel subject to the tax
imposed by this section shall at the time of sale collect the tax
from the purchaser or recipient of the diesel fuel in addition to
the selling price and is liable to this state for the taxes
collected at the time and in the manner provided by this chapter.
(c) The following are exempt from the tax imposed by this
section:
(1) diesel fuel on which the tax imposed by Section
162.2011 had been paid; and
(2) diesel fuel exempt under Section 162.204.
(d) The tax imposed by this section is in addition to any
penalty imposed under this chapter.
SECTION 44. Sections 162.204(a) and (g), Tax Code, are
amended to read as follows:
(a) The taxes [tax] imposed by this subchapter do [does] not
apply to:
(1) diesel fuel sold to the United States for its
exclusive use, provided that the exemption does not apply to diesel
fuel sold or delivered to a person operating under a contract with
the United States;
(2) diesel fuel sold to a public school district in
this state for the district's exclusive use;
(3) diesel fuel sold to a commercial transportation
company or a metropolitan rapid transit authority operating under
Chapter 451, Transportation Code, that provides public school
transportation services to a school district under Section 34.008,
Education Code, and that uses the diesel fuel only to provide those
services;
(4) diesel fuel exported by either a licensed supplier
or a licensed exporter from this state to any other state, provided
that the bill of lading indicates the destination state and the
supplier collects the destination state tax;
(5) diesel fuel moved by truck or railcar between
licensed suppliers or licensed permissive suppliers and in which
the diesel fuel removed from the first terminal comes to rest in the
second terminal, provided that the removal from the second terminal
rack is subject to the state diesel fuel tax imposed by this
subchapter;
(6) diesel fuel delivered or sold into a storage
facility of a licensed aviation fuel dealer from which the diesel
fuel will be delivered solely into the fuel supply tanks of aircraft
or aircraft servicing equipment, or sold from one licensed aviation
fuel dealer to another licensed aviation fuel dealer who will
deliver the diesel fuel exclusively into the fuel supply tanks of
aircraft or aircraft servicing equipment;
(7) diesel fuel exported to a foreign country if the
bill of lading indicates the foreign destination and the fuel is
actually exported to the foreign country;
(8) dyed diesel fuel sold or delivered by a supplier to
another supplier and dyed diesel fuel sold or delivered by a
supplier or distributor into the bulk storage facility of a dyed
diesel fuel bonded user or to a purchaser who provides a signed
statement as provided by Section 162.206;
(9) the volume of water, fuel ethanol, renewable
diesel, biodiesel, or mixtures thereof that are blended together
with taxable diesel fuel when the finished product sold or used is
clearly identified on the retail pump, storage tank, and sales
invoice as a combination of diesel fuel and water, fuel ethanol,
renewable diesel, biodiesel, or mixtures thereof;
(10) dyed diesel fuel sold by a supplier or permissive
supplier to a distributor, or by a distributor to another
distributor;
(11) dyed diesel fuel delivered by a license holder
into the fuel supply tanks of railway engines, motorboats, or
refrigeration units or other stationary equipment powered by a
separate motor from a separate fuel supply tank;
(12) dyed kerosene when delivered by a supplier,
distributor, or importer into a storage facility at a retail
business from which all deliveries are exclusively for heating,
cooking, lighting, or similar nonhighway use;
(13) diesel fuel used by a person, other than a
political subdivision, who owns, controls, operates, or manages a
commercial motor vehicle as defined by Section 548.001,
Transportation Code, if the fuel:
(A) is delivered exclusively into the fuel supply
tank of the commercial motor vehicle; and
(B) is used exclusively to transport passengers
for compensation or hire between points in this state on a fixed
route or schedule;
(14) diesel fuel sold to a volunteer fire department
in this state for the department's exclusive use; or
(15) diesel fuel sold to a nonprofit entity that is
organized for the sole purpose of and engages exclusively in
providing emergency medical services and that uses the diesel fuel
exclusively to provide emergency medical services, including
rescue and ambulance services.
(g) In lieu of claiming the exemption and complying with the
labeling requirements provided by Subsection (a)(9), a person to
whom Section 162.201 applies may elect to collect and remit the
taxes [tax] otherwise imposed by [under] this subchapter on the
materials described by Subsection (a)(9) as if the materials were
taxable diesel fuel. The labeling requirements provided by
Subsection (a)(9) do not apply to a dealer who sells taxable diesel
fuel blended with materials described by Subsection (a)(9) on which
a tax has been paid as provided by this subsection. Materials
described by Subsection (a)(9) on which a tax has been paid as
provided by this subsection are not exempt from taxation [tax]
under Subsection (a)(9) on a subsequent sale, and a license holder
or other purchaser is not entitled to a refund or credit under
Subsection (a)(9) for a purchase of taxable diesel fuel blended
with those materials.
SECTION 45. Section 162.205(a), Tax Code, is amended to
read as follows:
(a) A person shall obtain the appropriate license or
licenses issued by the comptroller before conducting the activities
of:
(1) a supplier, who may also act as a distributor,
importer, exporter, blender, motor fuel transporter, dealer, or
aviation fuel dealer without securing a separate license, but who
is subject to all other conditions, requirements, and liabilities
imposed on those license holders;
(2) a permissive supplier, who may also act as a
distributor, importer, exporter, blender, motor fuel transporter,
dealer, or aviation fuel dealer without securing a separate license
but who is subject to all other conditions, requirements, and
liabilities imposed on those license holders;
(3) a distributor, who may also act as an importer,
exporter, blender, [or] motor fuel transporter, or dealer without
securing a separate license, but who is subject to all other
conditions, requirements, and liabilities imposed on those license
holders;
(4) an importer, who may also act as an exporter,
blender, [or] motor fuel transporter, or dealer without securing a
separate license, but who is subject to all other conditions,
requirements, and liabilities imposed on those license holders;
(5) a terminal operator;
(6) an exporter;
(7) a blender;
(8) a motor fuel transporter;
(9) an aviation fuel dealer;
(10) an interstate trucker; [or]
(11) a dyed diesel fuel bonded user; or
(12) a dealer.
SECTION 46. Section 162.206(d), Tax Code, is amended to
read as follows:
(d) Any gallons purchased or sold in excess of the
limitations prescribed by Subsection (c) constitute a [taxable
purchase or] sale subject to the taxes imposed by this chapter. A
purchaser that exceeds the limitations prescribed by Subsection (c)
shall be required to obtain a dyed diesel fuel bonded user license.
SECTION 47. Sections 162.208(a) and (b), Tax Code, are
amended to read as follows:
(a) A person may elect to obtain a permissive supplier
license to collect the state diesel fuel tax imposed by [under] this
subchapter for diesel fuel that is removed at a terminal in another
state and has this state as the destination state.
(b) With respect to diesel fuel that is removed by the
licensed permissive supplier at a terminal located in another state
and that has this state as the destination state, a licensed
permissive supplier shall:
(1) collect the state diesel fuel tax due to this state
on the diesel fuel;
(2) waive any defense that this state lacks
jurisdiction to require the supplier to collect the state diesel
fuel tax due to this state on the diesel fuel under this subchapter;
(3) report and pay the state diesel fuel tax due on the
diesel fuel in the same manner as if the removal had occurred at a
terminal located in this state;
(4) keep records of the removal of the diesel fuel and
submit to audits concerning the diesel fuel as if the removal had
occurred at a terminal located in this state; and
(5) report sales by the permissive supplier to a
person who is not licensed in this state.
SECTION 48. Section 162.209, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) In addition to the information required by Subsection
(a), an applicant for a license as a dealer must list on the
application:
(1) the street address, city, county, and zip code of
the location for which the applicant seeks a license to sell or
dispense motor fuel at retail;
(2) the applicant's social security number, driver's
license number, and federal employer identification number if the
applicant is a natural person who is not licensed as a supplier,
permissive supplier, or terminal operator; and
(3) if the applicant is a corporation, limited
liability company, professional association, partnership or other
entity that is not licensed as a supplier, permissive supplier, or
terminal operator and is not wholly owned by an entity that is
licensed as a supplier, permissive supplier, or terminal operator,
the physical address, mailing address, social security number, and
driver's license number of:
(A) each natural person responsible for the
purchase of motor fuel for sale by the applicant; and
(B) each officer, director, manager, member,
shareholder, and partner of the applicant.
SECTION 49. Section 162.211(a), Tax Code, is amended to
read as follows:
(a) The license issued to a supplier, permissive supplier,
distributor, importer, terminal supplier, exporter, blender,
dealer, motor fuel transporter, or dyed diesel fuel bonded user is
permanent and is valid during the period the license holder has in
force and effect the required bond or security and furnishes timely
reports and supplements as required, or until the license is
surrendered by the holder or canceled by the comptroller. The
comptroller shall cancel a license under this subsection if a
purchase, sale, or use of diesel fuel has not been reported by the
license holder during the previous nine months.
SECTION 50. Section 162.212(a), Tax Code, is amended to
read as follows:
(a) The comptroller shall determine the amount of security
required of a supplier, permissive supplier, distributor,
exporter, importer, dealer, blender, or dyed diesel fuel bonded
user, taking into consideration the amount of tax that has or is
expected to become due from the person, any past history of the
person as a license holder under this chapter and its predecessor,
and the necessity to protect this state against the failure to pay
the tax as the tax becomes due.
SECTION 51. Section 162.213(a), Tax Code, is amended to
read as follows:
(a) The comptroller, on or before December 20 of each year,
shall make available to all license holders an alphabetical list of
licensed suppliers, permissive suppliers, distributors, aviation
fuel dealers, importers, exporters, blenders, dealers, terminal
operators, and dyed diesel fuel bonded users. A supplemental list
of additions and deletions shall be made available to the license
holders each month. A current and effective license or the list
furnished by the comptroller is evidence of the validity of the
license until the comptroller notifies license holders of a change
in the status of a license holder.
SECTION 52. Sections 162.214(c), (d), (d-1), and (e), Tax
Code, are amended to read as follows:
(c) If the supplier or permissive supplier cannot secure
from the licensed distributor or licensed importer payment of taxes
due for state diesel fuel removed from the terminal during the
previous reporting period and the supplier elects to take a credit
against a subsequent payment of diesel fuel tax to this state for
the taxes not remitted to the supplier or permissive supplier by the
licensed distributor or licensed importer, the supplier or
permissive supplier shall notify the comptroller of the licensed
distributor's or licensed importer's failure to remit tax in
conjunction with the report requesting a credit.
(d) The supplier or permissive supplier, after requesting a
credit under this section, shall terminate the ability of the
licensed distributor or licensed importer to defer the payment of
state diesel fuel tax. The supplier or permissive supplier may not
reinstate the right of the licensed distributor or licensed
importer to defer the payment of state diesel fuel tax until the
first anniversary of the date the supplier or permissive supplier
requested the credit, subject to Subsection (d-1).
(d-1) A supplier or permissive supplier may reinstate the
right of a licensed distributor or licensed importer to defer the
payment of state diesel fuel tax before the date prescribed by
Subsection (d) if the comptroller determines that:
(1) the supplier or permissive supplier erroneously
requested the credit that resulted in the termination of the
licensed distributor's or licensed importer's right to defer
payment; or
(2) the licensed distributor or licensed importer
failed to pay state diesel fuel taxes due because of circumstances
that may have been outside the distributor's or importer's control.
(e) A licensed distributor or licensed importer who makes
timely payments of the state diesel fuel tax imposed by [under] this
subchapter is entitled to retain an amount equal to 1.75 percent of
the total state diesel fuel tax [taxes] to be paid to the supplier
or permissive supplier to cover administrative expenses.
SECTION 53. Section 162.215(a), Tax Code, is amended to
read as follows:
(a) Except as provided by Subsection (b), each person who is
liable for the taxes [tax] imposed by this subchapter, a terminal
operator, a dealer, and a licensed distributor shall file a return
on or before the 25th day of the month following the end of each
calendar month.
SECTION 54. Sections 162.216(b), (c), (e), (g), and (h),
Tax Code, are amended to read as follows:
(b) A distributor shall keep:
(1) a record showing the number of gallons of:
(A) all diesel fuel inventories on hand at the
first of each month;
(B) all diesel fuel blended;
(C) all diesel fuel purchased or received,
showing the name of the seller and the date of each purchase or
receipt;
(D) all diesel fuel sold, distributed, or used,
showing:
(i) the name of the purchaser;
(ii) the county or counties in this state;
(iii) the amount of county diesel fuel
collected from the purchaser; and
(iv) the date of the sale, distribution, or
use; and
(E) all diesel fuel lost by fire, theft, or
accident;
(2) an itemized statement showing by load the number
of gallons of all diesel fuel:
(A) received during the preceding calendar month
for export and the location of the loading;
(B) sold, distributed, or used, showing:
(i) the name of the purchaser;
(ii) the destination county or counties in
this state;
(iii) the amount of county diesel fuel tax
collected from the purchaser; and
(iv) the date of the sale, distribution, or
use;
(C) exported from this state by destination state
or country; and
(D) [(C)] imported during the preceding calendar
month, by state or country of origin; [and]
(3) for diesel fuel exported outside this state, proof
of payment of tax to the destination state, in a form acceptable to
the comptroller; and
(4) all shipping documents.
(c) An importer shall keep:
(1) a record showing the number of gallons of:
(A) all diesel fuel inventories on hand at the
first of each month;
(B) all diesel fuel compounded or blended;
(C) all diesel fuel purchased or received,
showing the name of the seller and the date of each purchase or
receipt;
(D) all diesel fuel sold, distributed, or used,
showing the name of the purchaser, the county in this state, and the
date of the sale, distribution, or use; and
(E) all diesel fuel lost by fire, theft, or
accident; and
(2) an itemized statement showing by load the number
of gallons of all diesel fuel:
(A) received during the preceding calendar month
for export and the location of the loading;
(B) sold, distributed, or used, showing the name
of the purchaser, the county or counties in this state, and the date
of sale, distribution, or use;
(C) exported from this state, by destination
state or country; and
(D) [(C)] imported during the preceding calendar
month, by state or country of origin.
(e) A blender shall keep a record showing the number of
gallons of:
(1) all diesel fuel inventories on hand at the first of
each month;
(2) all diesel fuel compounded or blended;
(3) all diesel fuel purchased or received, showing the
name of the seller and the date of each purchase or receipt;
(4) all diesel fuel sold, distributed, or used,
showing the name of the purchaser, the county in this state, and the
date of the sale, distribution, or use; and
(5) all diesel fuel lost by fire, theft, or accident.
(g) A motor fuel transporter shall keep a complete and
separate record of each intrastate and interstate transportation of
diesel fuel, showing:
(1) the date of transportation;
(2) the name of the consignor and consignee;
(3) the method of transportation;
(4) the quantity and kind of diesel fuel transported;
(5) full data concerning the diversion of shipments,
including the county in this state and the number of gallons
diverted from interstate to intrastate and intrastate to interstate
commerce; and
(6) the points of origin and destination, the county
in this state, the number of gallons shipped or transported, the
date, the consignee and the consignor, and the kind of diesel fuel
that has been diverted.
(h) A dealer shall keep a record showing the number of
gallons of:
(1) diesel fuel inventories on hand at the first of
each month;
(2) all diesel fuel purchased or received, showing the
name of the seller and the date of each purchase or receipt;
(3) all diesel fuel sold or used, showing the date of
the sale or use; [and]
(4) all diesel fuel lost by fire, theft, or accident;
and
(5) all shipping documents.
SECTION 55. Section 162.217(c), Tax Code, is amended to
read as follows:
(c) A supplier or permissive supplier may take a credit for
any state gasoline tax [taxes] that was [were] not remitted in a
previous period to the supplier or permissive supplier by a
licensed distributor or licensed importer as required by Section
162.214. The supplier or permissive supplier is eligible to take
this credit if the comptroller is notified of the default within 15
days after the default occurs. If a license holder pays to a
supplier or permissive supplier the tax owed, but the payment
occurs after the supplier or permissive supplier has taken a credit
on its return, the supplier or permissive supplier shall remit the
payment to the comptroller with the next monthly return after
receipt of the tax, plus a penalty of 10 percent of the amount of
unpaid taxes and interest at the rate provided by Section 111.060
beginning on the date the credit is taken.
SECTION 56. Section 162.219, Tax Code, is amended to read as
follows:
Sec. 162.219. INFORMATION REQUIRED ON DISTRIBUTOR'S
RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return and
supplements of each distributor shall contain for the period
covered by the return:
(1) the number of net gallons of diesel fuel received
by the distributor during the month, sorted by product code,
seller, point of origin, destination state, carrier, and receipt
date;
(2) the number of net gallons of diesel fuel removed at
a terminal rack by the distributor during the month, sorted by
product code, seller, terminal code, and carrier;
(3) the number of net gallons of diesel fuel removed by
the distributor during the month for export, sorted by product
code, terminal code, bulk plant address, destination state, and
carrier;
(4) the number of net gallons of diesel fuel removed by
the distributor during the month from a terminal located in another
state for conveyance to this state, as indicated on the shipping
document for the diesel fuel, sorted by product code, seller,
terminal code, bulk plant address, and carrier;
(5) the number of net gallons of diesel fuel the
distributor sold during the month in transactions exempt under
Section 162.204, dyed diesel fuel sold to a purchaser under a signed
statement, or dyed diesel fuel sold to a dyed diesel fuel bonded
user, sorted by product code and by the entity receiving the diesel
fuel; [and]
(6) the number of net gallons delivered into a taxing
county sorted by taxing county and purchaser; and
(7) any other information required by the comptroller.
(b) A distributor or importer who makes timely payments of
the county tax imposed by this subchapter is entitled to retain an
amount equal to two percent of the total county diesel fuel taxes
remitted to the comptroller to cover administrative expenses.
SECTION 57. Section 162.224, Tax Code, is amended to read as
follows:
Sec. 162.224. INFORMATION REQUIRED ON BLENDER'S RETURN.
The monthly return and supplements of each blender shall contain
for the period covered by the return:
(1) the number of net gallons of diesel fuel received
by the blender during the month, sorted by product code, seller,
point of origin, carrier, and receipt date;
(2) the number of net gallons of product blended with
diesel fuel during the month, sorted by product code, type of
blending agent if no product code exists, seller, and carrier;
(3) the number of net gallons of blended diesel fuel
sold during the month and the license number or name, [and] address,
and county in this state of the entity receiving the blended diesel
fuel; and
(4) any other information required by the comptroller.
SECTION 58. Subchapter C, Chapter 162, Tax Code, is amended
by adding Section 162.2245 to read as follows:
Sec. 162.2245. INFORMATION REQUIRED ON DEALER'S RETURN. The
monthly return and supplements of each dealer shall contain for the
period covered by the return:
(1) the number of gallons of diesel fuel inventories
on hand at the first of each month, sorted by product code;
(2) the number of gallons of diesel fuel received by
the dealer during the month, sorted by seller;
(3) the number of gallons of diesel fuel inventories
on hand at the end of each month; and
(4) any other information required by the comptroller.
SECTION 59. Sections 162.227(f-1) and (f-2), Tax Code, are
amended to read as follows:
(f-1) A volunteer fire department exempt from the taxes
[tax] imposed under this subchapter that paid a tax on the purchase
of diesel fuel is entitled to a refund of the tax paid, and the
volunteer fire department may file a refund claim with the
comptroller for that amount.
(f-2) A nonprofit entity exempted under Section
162.204(a)(15) from the taxes [tax] imposed under this subchapter
that paid a tax on the purchase of diesel fuel is entitled to a
refund of the tax paid, and the entity may file a refund claim with
the comptroller for that amount.
SECTION 60. Sections 162.229(a) and (d), Tax Code, are
amended to read as follows:
(a) A refund claim must be filed on a form provided by the
comptroller, be supported by the original invoice issued by the
seller, and contain:
(1) the stamped or preprinted name and address,
including county, of the seller;
(2) the name and address of the purchaser;
(3) the date of delivery of the diesel fuel;
(4) the date of the issuance of the invoice, if
different from the date of fuel delivery;
(5) the number of gallons of diesel fuel delivered;
(6) the amount of state or county diesel fuel taxes
paid [tax], either separately stated from the selling price or
stated with a notation that both state and county taxes are included
if both apply [the selling price includes the tax]; and
(7) the type of vehicle or equipment into which the
fuel is delivered.
(d) A distributor or person who does not hold a license who
files a valid refund claim with the comptroller shall be paid by a
warrant issued by the comptroller. For purposes of this section, a
distributor meets the requirement of filing a valid refund claim
for state and county diesel fuel taxes if the distributor
designates the gallons of diesel fuel sold or used that are the
subject of the refund claim on the monthly report submitted by the
distributor to the comptroller.
SECTION 61. Sections 162.401(b), (c), and (f), Tax Code,
are amended to read as follows:
(b) The comptroller may add a penalty of 75 percent of the
amount of taxes, penalties, and interest due if failure to file the
report or pay the tax when it becomes due is attributable to fraud
or an intent to evade the application of this chapter or a rule
adopted under this chapter, [or] Chapter 111 of this code, or
Chapter 616, Local Government Code.
(c) The penalties provided by Subsection (b) are intended to
be remedial in nature and are provided for the protection of state
and taxing county revenue and to reimburse the state and taxing
counties for expenses incurred as a result of fraud, including
expenses incurred in conducting an investigation.
(f) In addition to any other penalty authorized by this
section, a person who fails to pay the tax imposed by Section
162.101(e-2), 162.1011(c), [or] 162.201(e-2), or 162.2011(d) when
due shall pay a penalty equal to the greater of $2,000 or five times
the amount of the taxes [tax] due on the motor fuel.
SECTION 62. Sections 162.402(a), (c), and (d), Tax Code,
are amended to read as follows:
(a) A person forfeits to the state a civil penalty of not
less than $25 and not more than $200 if the person:
(1) refuses to stop and permit the inspection and
examination of a motor vehicle transporting or using motor fuel on
demand of a peace officer or the comptroller;
(2) operates a motor vehicle in this state without a
valid interstate trucker's license or a trip permit when the person
is required to hold one of those licenses or permits;
(3) transports gasoline or diesel fuel in any cargo
tank that has a connection by pipe, tube, valve, or otherwise with
the fuel injector or carburetor of, or with the fuel supply tank
feeding the fuel injector or carburetor of, the motor vehicle
transporting the product;
(4) sells or delivers gasoline or diesel fuel from any
fuel supply tank connected with the fuel injector or carburetor of a
motor vehicle;
(5) owns or operates a motor vehicle for which reports
or mileage records are required by this chapter without an
operating odometer or other device in good working condition to
record accurately the miles traveled;
(6) furnishes to a licensed supplier or distributor a
signed statement for purchasing diesel fuel tax-free and then uses
the tax-free diesel fuel to operate a diesel-powered motor vehicle
on a public highway;
(7) fails or refuses to comply with or violates a
provision of this chapter;
(8) fails or refuses to comply with or violates a
comptroller's rule for administering or enforcing this chapter;
(9) is an importer who does not obtain an import
verification number when required by this chapter;
(10) purchases motor fuel for export, on which the
taxes [tax] imposed by this chapter have [has] not been paid, and
subsequently diverts or causes the motor fuel to be diverted to a
destination in this state or any other state or country other than
the originally designated state or country without first obtaining
a diversion number;
(11) delivers compressed natural gas or liquefied
natural gas into the fuel supply tank of a motor vehicle and the
person does not hold a valid compressed natural gas and liquefied
natural gas dealer's license; [or]
(12) makes a tax-free delivery of compressed natural
gas or liquefied natural gas into the fuel supply tank of a motor
vehicle, unless the delivery is exempt from tax under Section
162.356; or
(13) transports motor fuel to a county in this state
other than the county stated on the shipping document.
(c) A person receiving motor fuel who accepts a shipping
document that does not conform with the requirements of Section
162.004 or 162.016(a) is liable to this state for a civil penalty of
$2,000 or five times the amount of the unpaid tax, whichever is
greater, for each occurrence.
(d) A person who issues a shipping document that does not
conform with the requirements of Section 162.004 or 162.016(a) is
liable to this state for a civil penalty of $2,000 or five times the
amount of the unpaid tax, whichever is greater, for each
occurrence.
SECTION 63. Section 162.403, Tax Code, is amended to read as
follows:
Sec. 162.403. CRIMINAL OFFENSES. Except as provided by
Section 162.404, a person commits an offense if the person:
(1) refuses to stop and permit the inspection and
examination of a motor vehicle transporting or using motor fuel on
the demand of a peace officer or the comptroller;
(2) is required to hold a valid trip permit or
interstate trucker's license, but operates a motor vehicle in this
state without a valid trip permit or interstate trucker's license;
(3) transports gasoline or diesel fuel in any cargo
tank that has a connection by pipe, tube, valve, or otherwise with
the fuel injector or carburetor or with the fuel supply tank feeding
the fuel injector or carburetor of the motor vehicle transporting
the product;
(4) sells or delivers gasoline or diesel fuel from a
fuel supply tank that is connected with the fuel injector or
carburetor of a motor vehicle;
(5) owns or operates a motor vehicle for which reports
or mileage records are required by this chapter without an
operating odometer or other device in good working condition to
record accurately the miles traveled;
(6) sells or delivers dyed diesel fuel for the
operation of a motor vehicle on a public highway;
(7) uses dyed diesel fuel for the operation of a motor
vehicle on a public highway except as allowed under Section
162.235;
(8) refuses to permit the comptroller or the attorney
general to inspect, examine, or audit a book or record required to
be kept by a license holder, other user, or any person required to
hold a license under this chapter;
(9) refuses to permit the comptroller or the attorney
general to inspect or examine any plant, equipment, materials, or
premises where motor fuel is produced, processed, blended, stored,
sold, delivered, or used;
(10) refuses to permit the comptroller, the attorney
general, an employee of either of those officials, a peace officer,
an employee of the Texas Commission on Environmental Quality, or an
employee of the Department of Agriculture to measure or gauge the
contents of or take samples from a storage tank or container on
premises where motor fuel is produced, processed, blended, stored,
sold, delivered, or used;
(11) is a license holder, a person required to be
licensed, or another user and fails or refuses to make or deliver to
the comptroller a report required by this chapter to be made and
delivered to the comptroller;
(12) is an importer who does not obtain an import
verification number when required by this chapter;
(13) purchases motor fuel for export, on which the
taxes [tax] imposed by this chapter have [has] not been paid, and
subsequently diverts or causes the motor fuel to be diverted to a
destination in this state or any other state or country other than
the originally designated state or country without first obtaining
a diversion number;
(13-a) transports motor fuel to a county in this state
other than the county stated on the shipping document;
(14) conceals motor fuel with the intent of engaging
in any conduct proscribed by this chapter or refuses to make sales
of motor fuel on the volume-corrected basis prescribed by this
chapter;
(15) refuses, while transporting motor fuel, to stop
the motor vehicle the person is operating when called on to do so by
a person authorized to stop the motor vehicle;
(16) refuses to surrender a motor vehicle and cargo
for impoundment after being ordered to do so by a person authorized
to impound the motor vehicle and cargo;
(17) mutilates, destroys, or secretes a book or record
required by this chapter to be kept by a license holder, other user,
or person required to hold a license under this chapter;
(18) is a license holder, other user, or other person
required to hold a license under this chapter, or the agent or
employee of one of those persons, and makes a false entry or fails
to make an entry in the books and records required under this
chapter to be made by the person or fails to retain a document as
required by this chapter;
(19) transports in any manner motor fuel under a false
cargo manifest or shipping document, or transports in any manner
motor fuel to a location without delivering at the same time a
shipping document relating to that shipment;
(20) engages in a motor fuel transaction that requires
that the person have a license under this chapter without then and
there holding the required license;
(21) makes and delivers to the comptroller a report
required under this chapter to be made and delivered to the
comptroller, if the report contains false information;
(22) forges, falsifies, or alters an invoice or
shipping document prescribed by law;
(23) makes any statement, knowing said statement to be
false, in a claim for a tax refund filed with the comptroller;
(24) furnishes to a licensed supplier or distributor a
signed statement for purchasing diesel fuel tax-free and then uses
the tax-free diesel fuel to operate a diesel-powered motor vehicle
on a public highway;
(25) holds an aviation fuel dealer's license and makes
a taxable sale or use of any gasoline or diesel fuel;
(26) fails to remit any tax funds collected or
required to be collected by a license holder, another user, or any
other person required to hold a license under this chapter;
(27) makes a sale of dyed diesel fuel tax-free into a
storage facility of a person who:
(A) is not licensed as a distributor, as an
aviation fuel dealer, or as a dyed diesel fuel bonded user; or
(B) does not furnish to the licensed supplier or
distributor a signed statement prescribed in Section 162.206;
(28) makes a sale of gasoline tax-free to any person
who is not licensed as an aviation fuel dealer;
(29) purchases any motor fuel tax-free when not
authorized to make a tax-free purchase under this chapter;
(30) purchases motor fuel with the intent to evade any
tax imposed by this chapter or accepts a delivery of motor fuel by
any means and does not at the same time accept or receive a shipping
document relating to the delivery;
(31) transports motor fuel for which a cargo manifest
or shipping document is required to be carried without possessing
or exhibiting on demand by an officer authorized to make the demand
a cargo manifest or shipping document containing the information
required to be shown on the manifest or shipping document;
(32) imports, sells, uses, blends, distributes, or
stores motor fuel within this state on which a tax [the taxes]
imposed by this chapter is [are] owed but has [have] not been first
paid to or reported by a license holder, another user, or any other
person required to hold a license under this chapter;
(33) blends products together to produce a blended
fuel that is offered for sale, sold, or used and that expands the
volume of the original product to evade paying applicable motor
fuel taxes;
(34) evades or attempts to evade in any manner a tax
imposed on motor fuel by this chapter;
(35) delivers compressed natural gas or liquefied
natural gas into the fuel supply tank of a motor vehicle and the
person does not hold a valid compressed natural gas and liquefied
natural gas dealer's license; or
(36) makes a tax-free delivery of compressed natural
gas or liquefied natural gas into the fuel supply tank of a motor
vehicle, unless the delivery is exempt from tax under Section
162.356.
SECTION 64. Section 162.405(d), Tax Code, is amended to
read as follows:
(d) An offense under Section 162.403(6), (13-a), (17),
(18), (19), (20), (21), (22), (23), or (24) is a felony of the third
degree.
SECTION 65. Section 20.002(d), Transportation Code, is
amended to read as follows:
(d) The fee imposed by this section is equal to 25 percent of
the diesel fuel tax rate imposed under Section 162.202(a)
[162.202], Tax Code.
SECTION 66. (a) A county may not impose a motor fuels tax
under Chapter 616, Local Government Code, as added by this Act,
before the effective date of rules adopted by the comptroller of
public accounts under Section 616.102, Local Government Code, as
added by this Act.
(b) The comptroller of public accounts shall adopt the rules
required by Section 616.102, Local Government Code, as added by
this Act, not later than December 1, 2019.
SECTION 67. If the constitution of this state requires that
one-fourth of the county motor fuels tax authorized by this Act be
allocated to the available school fund, the county shall deposit
that money into an account separate from the money collected under
other provisions of this Act and shall allocate the money to the
comptroller of public accounts for deposit in the state treasury
for the purpose required by the constitution.
SECTION 68. This Act takes effect September 1, 2019.