Texas 2019 - 86th Regular

Texas Senate Bill SB1933 Compare Versions

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1	1	By: Hinojosa S.B. No. 1933
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to movements of gasoline and diesel fuel within the bulk
7	7	transfer system.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 162.001 Tax Code, is amended by amending
10	10	subsections (11), (12), and (57) and by adding subsections (42-a)
11	11	and (63) to read as follows:
12	12	(11) "Bulk transfer" means a transfer of motor fuel
13	13	from one location to another within the United States by pipeline or
14	14	marine movement within a bulk transfer/terminal system, including:
15	15	(A) a marine vessel movement of motor fuel owned
16	16	by a licensed supplier or permissive supplier[ from a refinery or
17	17	terminal to a terminal];
18	18	(B) a pipeline movement of motor fuel from a
19	19	refinery, a motor fuel storage facility, or terminal to a terminal
20	20	or a motor fuel storage facility;
21	21	(C) a book transfer or in-tank transfer of motor
22	22	fuel within a terminal or motor fuel storage facility between
23	23	licensed suppliers before completion of removal across the rack;
24	24	and
25	25	(D) a two-party exchange between licensed
26	26	suppliers or between licensed suppliers and permissive suppliers.
27	27	(12) "Bulk transfer/terminal system" means the motor
28	28	fuel distribution system consisting of refineries, pipelines,
29	29	marine vessels, motor fuel storage facilities, and IRS-approved
30	30	terminals. Motor fuel is in the bulk transfer/terminal system if
31	31	the motor fuel is in a refinery, a pipeline, a motor fuel storage
32	32	facility, a terminal or a marine vessel transporting motor fuel
33	33	owned by a licensed supplier or a permissive supplier[, or a marine
34	34	vessel transporting motor fuel to a refinery or terminal]. Motor
35	35	fuel is not in the bulk transfer/terminal system if the motor fuel
36	36	is in[ a motor fuel storage facility, including]:
37	37	(A) a bulk plant that is not part of a refinery or
38	38	terminal;
39	39	(B) the motor fuel supply tank of an engine or a
40	40	motor vehicle; or
41	41	[(C) a marine vessel transporting motor fuel to a
42	42	motor fuel storage facility that is not in the bulk
43	43	transfer/terminal system; or]
44	44	(C)[(D)] a tank car, railcar, trailer, truck, or
45	45	other equipment suitable for ground transportation.
46	46	(42-a) “Motor fuel storage facility” means a storage
47	47	facility supplied by pipeline or marine vessel that does not have a
48	48	rack for removal of motor fuel by truck or railcar or by any other
49	49	means of conveyance that is outside the bulk transfer/terminal
50	50	system.
51	51	(57) "Supplier" means a person that:
52	52	(A) is subject to the general taxing jurisdiction
53	53	of this state;
54	54	(B) is registered under Section 4101, Internal
55	55	Revenue Code, for transactions in motor fuel in the bulk
56	56	transfer/terminal distribution system, and is:
57	57	(i) a position holder in motor fuel in a
58	58	terminal or refinery in this state and may concurrently also be a
59	59	position holder in motor fuel in another state; or
60	60	(ii) a person who receives motor fuel in this
61	61	state under a two-party exchange; [and] or
62	62	(iii) a person who owns motor fuel in a
63	63	marine vessel in this state; and
64	64	(C) may also be a terminal operator, provided that a terminal
65	65	operator is not considered to also be a "supplier" based solely on
66	66	the fact that the terminal operator handles motor fuel consigned to
67	67	it within a terminal.
68	68	(63) A marine vessel includes a marine barge.
69	69	SECTION 2. Section 162.101 Tax Code, is amended by amending
70	70	(e-1) to read as follows:
71	71	(e-1) A tax is imposed on gasoline if: [that is otherwise
72	72	exempt from taxation]
73	73	(1) the gasoline is otherwise exempt from taxation under
74	74	Section 162.104(a)(4) or (7) and [if] the gasoline is sold into a
75	75	truck or a railcar in this state to a person who does not hold a
76	76	license under Section 162.105(1), (2), (3), (4), or (6). The person
77	77	who[that] sold the gasoline is liable for and shall collect and
78	78	remit the tax[.]; or
79	79	(2) the gasoline is otherwise exempt from taxation under
80	80	162.104(a)(7) and the gasoline is sold into a marine vessel in this
81	81	state to a person who does not hold a license under Section
82	82	162.105(1), (2), (3), (4), or (6) unless the exporter of record is
83	83	licensed under 162.105(1), (2), (3), (4), or (6). The person who
84	84	sold the gasoline is liable for and shall collect and remit the tax.
85	85	SECTION 3. Section 162.104 Tax Code, is amended by amending
86	86	(a)(7) to read as follows:
87	87	(7) exported to a foreign country if the bill of lading or
88	88	shipping documents indicate[s] the foreign destination and the fuel
89	89	is actually exported to the foreign country;
90	90	SECTION 4. Section 162.201 Tax Code, is amended by amending
91	91	(e-1) to read as follows:
92	92	(e-1) A tax is imposed on diesel fuel [that is otherwise
93	93	exempt from taxation under Section 162.204(a)(4) or (7)] if:
94	94	(1) the diesel fuel is otherwise exempt from taxation under
95	95	Section 162.204(a)(4) or (7) and the diesel fuel is sold into a
96	96	truck or a railcar in this state to a person who does not hold a
97	97	license under Section 162.205(a)(1), (2), (3), (4), or (6). The
98	98	person who [that] sold the diesel fuel is liable for and shall
99	99	collect and remit the tax[.]; or
100	100	(2) the diesel fuel is otherwise exempt from taxation under
101	101	Section 162.204(a)(7) and the diesel fuel is sold into a marine
102	102	vessel in this state to a person who does not hold a license under
103	103	Section 162.105(1), (2), (3), (4), or (6), unless the exporter of
104	104	record is licensed under Section 162.105(1), (2), (3), (4), or (6).
105	105	The person who sold the diesel fuel is liable for and shall collect
106	106	and remit the tax.
107	107	SECTION 5. Section 162.204 Tax Code, is amended by amending
108	108	(a)(7) to read as follows:
109	109	(7) exported to a foreign country if the bill of lading or
110	110	shipping documents indicate[s] the foreign destination and the fuel
111	111	is actually exported to the foreign country;
112	112	SECTION 6. This Act takes effect September 1, 2019.