86R7666 BEF-D
By: Zaffirini S.B. No. 1781
A BILL TO BE ENTITLED
AN ACT
relating to the repeal of the motor fuel taxes on compressed natural
gas and liquefied natural gas and the exemption from sales and use
taxes of natural gas used as a motor fuel.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.317, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) Natural gas delivered into the fuel supply tank of a
motor vehicle is exempted from the taxes imposed by this chapter.
SECTION 2. Sections 162.001(4), (19), (29), (38), (39),
(42), and (43), Tax Code, are amended to read as follows:
(4) "Aviation fuel dealer" means a person who:
(A) is the operator of an aircraft servicing
facility;
(B) delivers gasoline or[,] diesel fuel[,
compressed natural gas, or liquefied natural gas] exclusively into
the fuel supply tanks of aircraft or into equipment used solely for
servicing aircraft and used exclusively off-highway; and
(C) does not use, sell, or distribute gasoline
or[,] diesel fuel[, compressed natural gas, or liquefied natural
gas] on which a fuel tax is required to be collected or paid to this
state.
(19) "Diesel fuel" means kerosene or another liquid,
or a combination of liquids blended together, offered for sale,
sold, used, or capable of use as fuel for the propulsion of a
diesel-powered engine. The term includes products commonly
referred to as kerosene, light cycle oil, #1 diesel fuel, #2 diesel
fuel, dyed or undyed diesel fuel, aviation jet fuel, renewable
diesel, biodiesel, distillate fuel, cutter stock, or heating oil,
but does not include [compressed natural gas, liquefied natural
gas,] gasoline or[,] aviation gasoline[, or liquefied gas].
(29) "Gasoline" means any liquid or combination of
liquids blended together, offered for sale, sold, used, or capable
of use as fuel for a gasoline-powered engine. The term includes
gasohol, aviation gasoline, and blending agents, but does not
include [compressed natural gas, liquefied natural gas,] racing
gasoline, diesel fuel, or aviation jet fuel[, or liquefied gas].
(38) "License holder" means a person licensed by the
comptroller under Section 162.105 or[,] 162.205[, 162.357, or
162.358].
(39) "Liquefied gas" means all combustible gases that
exist in the gaseous state at 60 degrees Fahrenheit and at a
pressure of 14.7 pounds per square inch absolute, but does not
include [compressed natural gas, liquefied] natural gas, gasoline,
or diesel fuel. Liquefied gas is considered a special fuel for
purposes of Section 151.308.
(42) "Motor fuel" means gasoline, diesel fuel,
gasoline blended fuel, [compressed natural gas, liquefied natural
gas,] and other products that are offered for sale, sold, used, or
capable of use as fuel for a gasoline-powered engine or a
diesel-powered engine.
(43) "Motor fuel transporter" means a person who
transports gasoline, diesel fuel, gasoline blended fuel, aviation
fuel, or any other motor fuel[, except liquefied gas, compressed
natural gas, or liquefied natural gas,] outside the bulk
transfer/terminal system by means of a transport vehicle, a
railroad tank car, or a marine vessel. The term does not include a
person who:
(A) is licensed under this chapter as a supplier,
permissive supplier, or distributor; and
(B) exclusively transports gasoline, diesel
fuel, gasoline blended fuel, aviation fuel, or any other motor fuel
to which the person retains ownership while the fuel is being
transported by the person.
SECTION 3. Section 162.014, Tax Code, is amended to read as
follows:
Sec. 162.014. OTHER MOTOR FUEL TAXES PROHIBITED. The taxes
imposed by this chapter are in lieu of any other excise or
occupation tax imposed by a political subdivision of this state on
the sale, use, or distribution of gasoline or[,] diesel fuel[,
compressed natural gas, liquefied natural gas, or liquefied gas].
SECTION 4. Section 162.402(a), Tax Code, is 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; or
(10) purchases motor fuel for export, on which the tax
imposed by this chapter 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].
SECTION 5. 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 tax
imposed by this chapter 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;
(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 the taxes imposed by
this chapter are owed but 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; or
(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 6. Section 162.405(b), Tax Code, is amended to read
as follows:
(b) An offense under Section 162.403(8), (9), (10), (11),
(12), or (13)[, (35), or (36)] is a Class B misdemeanor.
SECTION 7. The following provisions of the Tax Code are
repealed:
(1) Section 151.308(b);
(2) Sections 162.001(16), (19-a), (24-a), (29-a), and
(40-a);
(3) Subchapter D-1, Chapter 162; and
(4) Section 162.506.
SECTION 8. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 9. The change in law made by this Act applies only
to an offense committed on or after the effective date of this Act.
An offense committed before the effective date of this Act is
governed by the law in effect on the date the offense was committed,
and the former law is continued in effect for that purpose. For
purposes of this section, an offense was committed before the
effective date of this Act if any element of the offense occurred
before that date.
SECTION 10. This Act takes effect September 1, 2019.