Texas Senate Bill SB1933

Texas 2019 - 86th Regular

Caption

Relating to movements of gasoline and diesel fuel within the bulk transfer system.

Impact

The impact of SB1933 on state law includes amending the Texas Tax Code to solidify the tax obligations for different parties involved in the transfer of motor fuels. By clarifying the definitions associated with bulk transfers and the tax responsibilities of suppliers, the bill seeks to eliminate loopholes that could allow for tax evasion in the sale of exempt fuels. The amendments assert that only licensed individuals may sell exempt fuels, thereby increasing accountability within the fuel distribution system and potentially augmenting state tax revenue from fuel sales.

Summary

SB1933 aims to revise tax regulations on gasoline and diesel fuel within the bulk transfer system in Texas. The bill updates definitions related to bulk transfers, marine vessels, and supplier responsibilities, making clear distinctions about what constitutes bulk transfer and the related tax liabilities. Importantly, it stipulates that taxes on gasoline and diesel will be imposed if sold into trucks, railcars, or marine vessels by unlicensed individuals. This aims to strengthen compliance with existing tax regulations and ensure that entities benefiting from fuel sales are contributing to state revenue.

Contention

The discussions surrounding SB1933 reveal notable points of contention, particularly regarding the enforcement of the new tax obligations and the burden it may place on small suppliers. Critics argue that the stricter regulations could disadvantage smaller operators who may struggle to navigate the new complexities of compliance. Furthermore, there are concerns about the potential for increased prices on fuel passed on to consumers as suppliers adjust to the tax structures enforced by this legislation. Proponents, however, maintain that the legislation is essential for ensuring fairness and compliance in fuel taxation across the board.