Texas 2019 - 86th Regular

Texas House Bill HB916 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		86R5272 SRA-D
2		-	By: Guillen~~, Anderson~~ H.B. No. 916
	2	+	By: Guillen H.B. No. 916
3	3
4	4
5	5		A BILL TO BE ENTITLED
6	6		AN ACT
7	7		relating to the exemption of rural transit districts from motor
8	8		fuel taxes.
9	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10		SECTION 1. Section 162.104(a), Tax Code, is amended to read
11	11		as follows:
12	12		(a) The tax imposed by this subchapter does not apply to
13	13		gasoline:
14	14		(1) sold to the United States for its exclusive use,
15	15		provided that the exemption does not apply with respect to fuel sold
16	16		or delivered to a person operating under a contract with the United
17	17		States;
18	18		(2) sold to a public school district in this state for
19	19		the district's exclusive use;
20	20		(3) sold to a commercial transportation company or a
21	21		metropolitan rapid transit authority operating under Chapter 451,
22	22		Transportation Code, that provides public school transportation
23	23		services to a school district under Section 34.008, Education Code,
24	24		and that uses the gasoline only to provide those services;
25	25		(4) exported by either a licensed supplier or a
26	26		licensed exporter from this state to any other state, provided that
27	27		the bill of lading indicates the destination state and the supplier
28	28		collects the destination state tax;
29	29		(5) moved by truck or railcar between licensed
30	30		suppliers or licensed permissive suppliers and in which the
31	31		gasoline removed from the first terminal comes to rest in the second
32	32		terminal, provided that the removal from the second terminal rack
33	33		is subject to the tax imposed by this subchapter;
34	34		(6) delivered or sold into a storage facility of a
35	35		licensed aviation fuel dealer from which gasoline will be delivered
36	36		solely into the fuel supply tanks of aircraft or aircraft servicing
37	37		equipment, or sold from one licensed aviation fuel dealer to
38	38		another licensed aviation fuel dealer who will deliver the aviation
39	39		fuel exclusively into the fuel supply tanks of aircraft or aircraft
40	40		servicing equipment;
41	41		(7) exported to a foreign country if the bill of lading
42	42		indicates the foreign destination and the fuel is actually exported
43	43		to the foreign country;
44	44		(8) sold to a volunteer fire department in this state
45	45		for the department's exclusive use; [or]
46	46		(9) sold to a nonprofit entity that is organized for
47	47		the sole purpose of and engages exclusively in providing emergency
48	48		medical services and that uses the gasoline exclusively to provide
49	49		emergency medical services, including rescue and ambulance
50	50		services; or
51	51		(10) sold to a rural transit district created under
52	52		Chapter 458, Transportation Code, that uses the gasoline
53	53		exclusively to provide public transportation.
54	54		SECTION 2. Sections 162.125(a) and (g), Tax Code, are
55	55		amended to read as follows:
56	56		(a) A license holder may take a credit on a return for the
57	57		period in which the sale occurred if the license holder paid tax on
58	58		the purchase of gasoline and subsequently resells the gasoline
59	59		without collecting the tax to:
60	60		(1) the United States government for its exclusive
61	61		use, provided that a credit is not allowed for gasoline used by a
62	62		person operating under contract with the United States;
63	63		(2) a public school district in this state for the
64	64		district's exclusive use;
65	65		(3) an exporter licensed under this subchapter if the
66	66		seller is a licensed supplier or distributor and the exporter
67	67		subsequently exports the gasoline to another state;
68	68		(4) a licensed aviation fuel dealer if the seller is a
69	69		licensed distributor; [or]
70	70		(5) a commercial transportation company or a
71	71		metropolitan rapid transit authority operating under Chapter 451,
72	72		Transportation Code, that provides public school transportation
73	73		services to a school district under Section 34.008, Education Code,
74	74		and that uses the gasoline exclusively to provide those services;
75	75		or
76	76		(6) a rural transit district created under Chapter
77	77		458, Transportation Code, that uses the gasoline exclusively to
78	78		provide public transportation.
79	79		(g) A transit company that paid tax on the purchase of
80	80		gasoline, and is not otherwise entitled to a refund of that tax
81	81		under this subchapter, may seek a refund with the comptroller in an
82	82		amount equal to one cent per gallon for gasoline used in transit
83	83		vehicles.
84	84		SECTION 3. Subchapter B, Chapter 162, Tax Code, is amended
85	85		by adding Section 162.1276 to read as follows:
86	86		Sec. 162.1276. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS.
87	87		(a) A rural transit district created under Chapter 458,
88	88		Transportation Code, is entitled to a refund of taxes paid under
89	89		this subchapter for gasoline used to provide public transportation
90	90		and may file a refund claim with the comptroller for the amount of
91	91		those taxes.
92	92		(b) The refund claim under Subsection (a) must contain
93	93		information regarding:
94	94		(1) vehicle mileage;
95	95		(2) hours of service provided; and
96	96		(3) fuel consumed.
97	97		(c) A rural transit district that requests a refund under
98	98		this section shall maintain all supporting documentation relating
99	99		to the refund until the sixth anniversary of the date of the
100	100		request.
101	101		SECTION 4. Section 162.204(a), Tax Code, is amended to read
102	102		as follows:
103	103		(a) The tax imposed by this subchapter does not apply to:
104	104		(1) diesel fuel sold to the United States for its
105	105		exclusive use, provided that the exemption does not apply to diesel
106	106		fuel sold or delivered to a person operating under a contract with
107	107		the United States;
108	108		(2) diesel fuel sold to a public school district in
109	109		this state for the district's exclusive use;
110	110		(3) diesel fuel sold to a commercial transportation
111	111		company or a metropolitan rapid transit authority operating under
112	112		Chapter 451, Transportation Code, that provides public school
113	113		transportation services to a school district under Section 34.008,
114	114		Education Code, and that uses the diesel fuel only to provide those
115	115		services;
116	116		(4) diesel fuel exported by either a licensed supplier
117	117		or a licensed exporter from this state to any other state, provided
118	118		that the bill of lading indicates the destination state and the
119	119		supplier collects the destination state tax;
120	120		(5) diesel fuel moved by truck or railcar between
121	121		licensed suppliers or licensed permissive suppliers and in which
122	122		the diesel fuel removed from the first terminal comes to rest in the
123	123		second terminal, provided that the removal from the second terminal
124	124		rack is subject to the tax imposed by this subchapter;
125	125		(6) diesel fuel delivered or sold into a storage
126	126		facility of a licensed aviation fuel dealer from which the diesel
127	127		fuel will be delivered solely into the fuel supply tanks of aircraft
128	128		or aircraft servicing equipment, or sold from one licensed aviation
129	129		fuel dealer to another licensed aviation fuel dealer who will
130	130		deliver the diesel fuel exclusively into the fuel supply tanks of
131	131		aircraft or aircraft servicing equipment;
132	132		(7) diesel fuel exported to a foreign country if the
133	133		bill of lading indicates the foreign destination and the fuel is
134	134		actually exported to the foreign country;
135	135		(8) dyed diesel fuel sold or delivered by a supplier to
136	136		another supplier and dyed diesel fuel sold or delivered by a
137	137		supplier or distributor into the bulk storage facility of a dyed
138	138		diesel fuel bonded user or to a purchaser who provides a signed
139	139		statement as provided by Section 162.206;
140	140		(9) the volume of water, fuel ethanol, renewable
141	141		diesel, biodiesel, or mixtures thereof that are blended together
142	142		with taxable diesel fuel when the finished product sold or used is
143	143		clearly identified on the retail pump, storage tank, and sales
144	144		invoice as a combination of diesel fuel and water, fuel ethanol,
145	145		renewable diesel, biodiesel, or mixtures thereof;
146	146		(10) dyed diesel fuel sold by a supplier or permissive
147	147		supplier to a distributor, or by a distributor to another
148	148		distributor;
149	149		(11) dyed diesel fuel delivered by a license holder
150	150		into the fuel supply tanks of railway engines, motorboats, or
151	151		refrigeration units or other stationary equipment powered by a
152	152		separate motor from a separate fuel supply tank;
153	153		(12) dyed kerosene when delivered by a supplier,
154	154		distributor, or importer into a storage facility at a retail
155	155		business from which all deliveries are exclusively for heating,
156	156		cooking, lighting, or similar nonhighway use;
157	157		(13) diesel fuel used by a person, other than a
158	158		political subdivision, who owns, controls, operates, or manages a
159	159		commercial motor vehicle as defined by Section 548.001,
160	160		Transportation Code, if the fuel:
161	161		(A) is delivered exclusively into the fuel supply
162	162		tank of the commercial motor vehicle; and
163	163		(B) is used exclusively to transport passengers
164	164		for compensation or hire between points in this state on a fixed
165	165		route or schedule;
166	166		(14) diesel fuel sold to a volunteer fire department
167	167		in this state for the department's exclusive use; [or]
168	168		(15) diesel fuel sold to a nonprofit entity that is
169	169		organized for the sole purpose of and engages exclusively in
170	170		providing emergency medical services and that uses the diesel fuel
171	171		exclusively to provide emergency medical services, including
172	172		rescue and ambulance services; or
173	173		(16) diesel fuel sold to a rural transit district
174	174		created under Chapter 458, Transportation Code, that uses the
175	175		diesel fuel exclusively to provide public transportation.
176	176		SECTION 5. Sections 162.227(a) and (f), Tax Code, are
177	177		amended to read as follows:
178	178		(a) A license holder may take a credit on a return for the
179	179		period in which the sale occurred if the license holder paid tax on
180	180		the purchase of diesel fuel and subsequently resells the diesel
181	181		fuel without collecting the tax to:
182	182		(1) the United States government for its exclusive
183	183		use, provided that a credit is not allowed for gasoline used by a
184	184		person operating under a contract with the United States;
185	185		(2) a public school district in this state for the
186	186		district's exclusive use;
187	187		(3) an exporter licensed under this subchapter if the
188	188		seller is a licensed supplier or distributor and the exporter
189	189		subsequently exports the diesel fuel to another state;
190	190		(4) a licensed aviation fuel dealer if the seller is a
191	191		licensed distributor; [or]
192	192		(5) a commercial transportation company or a
193	193		metropolitan rapid transit authority operating under Chapter 451,
194	194		Transportation Code, that provides public school transportation
195	195		services to a school district under Section 34.008, Education Code,
196	196		and that uses the diesel fuel exclusively to provide those
197	197		services; or
198	198		(6) a rural transit district created under Chapter
199	199		458, Transportation Code, that uses the diesel fuel exclusively to
200	200		provide public transportation.
201	201		(f) A transit company who paid tax on the purchase of diesel
202	202		fuel, and is not otherwise entitled to a refund of that tax under
203	203		this subchapter, may seek a refund with the comptroller of one-half
204	204		of one cent per gallon for diesel fuel used in transit vehicles.
205	205		SECTION 6. Subchapter C, Chapter 162, Tax Code, is amended
206	206		by adding Section 162.2276 to read as follows:
207	207		Sec. 162.2276. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS.
208	208		(a) A rural transit district created under Chapter 458,
209	209		Transportation Code, is entitled to a refund of taxes paid under
210	210		this subchapter for diesel fuel used to provide public
211	211		transportation and may file a refund claim with the comptroller for
212	212		the amount of those taxes.
213	213		(b) The refund claim under Subsection (a) must contain
214	214		information regarding:
215	215		(1) vehicle mileage;
216	216		(2) hours of service provided; and
217	217		(3) fuel consumed.
218	218		(c) A rural transit district that requests a refund under
219	219		this section shall maintain all supporting documentation relating
220	220		to the refund until the sixth anniversary of the date of the
221	221		request.
222	222		SECTION 7. Section 162.356(a), Tax Code, is amended to read
223	223		as follows:
224	224		(a) The tax imposed by this subchapter does not apply to
225	225		compressed natural gas or liquefied natural gas delivered into the
226	226		fuel supply tank of:
227	227		(1) a motor vehicle operated exclusively by the United
228	228		States, provided that the exemption does not apply with respect to
229	229		fuel delivered into the fuel supply tank of a motor vehicle of a
230	230		person operating under a contract with the United States;
231	231		(2) a motor vehicle operated exclusively by a public
232	232		school district in this state;
233	233		(3) a motor vehicle operated exclusively by a
234	234		commercial transportation company or a metropolitan rapid transit
235	235		authority operating under Chapter 451, Transportation Code, that
236	236		provides public school transportation services to a school district
237	237		under Section 34.008, Education Code, and that uses the fuel only to
238	238		provide those services;
239	239		(4) a motor vehicle operated exclusively by a
240	240		volunteer fire department in this state;
241	241		(5) a motor vehicle operated exclusively by a
242	242		municipality or county in this state;
243	243		(6) a motor vehicle operated exclusively by a
244	244		nonprofit electric cooperative corporation organized under Chapter
245	245		161, Utilities Code;
246	246		(7) a motor vehicle operated exclusively by a
247	247		nonprofit telephone cooperative corporation organized under
248	248		Chapter 162, Utilities Code;
249	249		(8) a motor vehicle that is not registered for use on
250	250		the public highways of this state and that is used exclusively
251	251		off-highway;
252	252		(9) a motor vehicle operated exclusively by a
253	253		nonprofit entity that is organized for the sole purpose of and
254	254		engages exclusively in providing emergency medical services and
255	255		that uses the fuel exclusively to provide emergency medical
256	256		services, including rescue and ambulance services;
257	257		(9-a) a motor vehicle operated exclusively by a rural
258	258		transit district created under Chapter 458, Transportation Code,
259	259		that uses the fuel exclusively to provide public transportation;
260	260		(10) off-highway equipment, a stationary engine, a
261	261		motorboat, an aircraft, equipment used solely for servicing
262	262		aircraft and used exclusively off-highway, a locomotive, or any
263	263		device other than a motor vehicle operated or intended to be
264	264		operated on the public highways; or
265	265		(11) except as provided by Subsection (b), a motor
266	266		vehicle:
267	267		(A) used to provide the services of a transit
268	268		company, including a metropolitan rapid transit authority under
269	269		Chapter 451, Transportation Code, or a regional transportation
270	270		authority under Chapter 452, Transportation Code; and
271	271		(B) operated by a person who on January 1, 2015,
272	272		paid tax on compressed natural gas or liquefied natural gas as
273	273		provided by Section 162.312, as that section existed on that date.
274	274		SECTION 8. Subchapter D-1, Chapter 162, Tax Code, is
275	275		amended by adding Section 162.3685 to read as follows:
276	276		Sec. 162.3685. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS.
277	277		(a) A rural transit district created under Chapter 458,
278	278		Transportation Code, is entitled to a refund of taxes paid under
279	279		this subchapter for compressed natural gas or liquefied natural gas
280	280		delivered into the fuel supply tank of a motor vehicle used to
281	281		provide public transportation and may file a refund claim with the
282	282		comptroller for the amount of those taxes.
283	283		(b) The refund claim under Subsection (a) must contain
284	284		information regarding:
285	285		(1) vehicle mileage;
286	286		(2) hours of service provided; and
287	287		(3) fuel consumed.
288	288		(c) A rural transit district that requests a refund under
289	289		this section shall maintain all supporting documentation relating
290	290		to the refund until the sixth anniversary of the date of the
291	291		request.
292	292		SECTION 9. The changes in law made by this Act do not affect
293	293		tax liability accruing before the effective date of this Act. That
294	294		liability continues in effect as if this Act had not been enacted,
295	295		and the former law is continued in effect for the collection of
296	296		taxes due and for civil and criminal enforcement of the liability
297	297		for those taxes.
298	298		SECTION 10. This Act takes effect immediately if it
299	299		receives a vote of two-thirds of all the members elected to each
300	300		house, as provided by Section 39, Article III, Texas Constitution.
301	301		If this Act does not receive the vote necessary for immediate
302	302		effect, this Act takes effect September 1, 2019.