Texas 2021 - 87th Regular

Texas House Bill HB1294 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		87R14697 SRA-D
2	2		By: Guillen, Morales of Maverick, et al. H.B. No. 1294
	3	+	Substitute the following for H.B. No. 1294:
	4	+	By: Guerra C.S.H.B. No. 1294
3	5
4	6
5	7		A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to an exemption from motor fuel taxes for certain fuel used
8	10		by a rural transit district to provide public transportation.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Effective January 1, 2024, Section 162.104(a),
11	13		Tax Code, is amended to read as follows:
12	14		(a) The tax imposed by this subchapter does not apply to
13	15		gasoline:
14	16		(1) sold to the United States for its exclusive use,
15	17		provided that the exemption does not apply with respect to fuel sold
16	18		or delivered to a person operating under a contract with the United
17	19		States;
18	20		(2) sold to a public school district in this state for
19	21		the district's exclusive use;
20	22		(3) sold to a commercial transportation company or a
21	23		metropolitan rapid transit authority operating under Chapter 451,
22	24		Transportation Code, that provides public school transportation
23	25		services to a school district under Section 34.008, Education Code,
24	26		and that uses the gasoline only to provide those services;
25	27		(4) exported by either a licensed supplier or a
26	28		licensed exporter from this state to any other state, provided that
27	29		the bill of lading indicates the destination state and the supplier
28	30		collects the destination state tax;
29	31		(5) moved by truck or railcar between licensed
30	32		suppliers or licensed permissive suppliers and in which the
31	33		gasoline removed from the first terminal comes to rest in the second
32	34		terminal, provided that the removal from the second terminal rack
33	35		is subject to the tax imposed by this subchapter;
34	36		(6) delivered or sold into a storage facility of a
35	37		licensed aviation fuel dealer from which gasoline will be delivered
36	38		solely into the fuel supply tanks of aircraft or aircraft servicing
37	39		equipment, or sold from one licensed aviation fuel dealer to
38	40		another licensed aviation fuel dealer who will deliver the aviation
39	41		fuel exclusively into the fuel supply tanks of aircraft or aircraft
40	42		servicing equipment;
41	43		(7) exported to a foreign country if the bill of lading
42	44		or shipping documents indicate the foreign destination and the fuel
43	45		is actually exported to the foreign country;
44	46		(8) sold to a volunteer fire department in this state
45	47		for the department's exclusive use; [or]
46	48		(9) sold to a nonprofit entity that is organized for
47	49		the sole purpose of and engages exclusively in providing emergency
48	50		medical services and that uses the gasoline exclusively to provide
49	51		emergency medical services, including rescue and ambulance
50	52		services; or
51	53		(10) sold to a rural transit district created under
52	54		Chapter 458, Transportation Code, that uses the gasoline
53	55		exclusively to provide public transportation.
54	56		SECTION 2. Effective January 1, 2024, Section 162.125(a),
55	57		Tax Code, is amended to read as follows:
56	58		(a) A license holder may take a credit on a return for the
57	59		period in which the sale occurred if the license holder paid tax on
58	60		the purchase of gasoline and subsequently resells the gasoline
59	61		without collecting the tax to:
60	62		(1) the United States government for its exclusive
61	63		use, provided that a credit is not allowed for gasoline used by a
62	64		person operating under contract with the United States;
63	65		(2) a public school district in this state for the
64	66		district's exclusive use;
65	67		(3) an exporter licensed under this subchapter if the
66	68		seller is a licensed supplier or distributor and the exporter
67	69		subsequently exports the gasoline to another state;
68	70		(4) a licensed aviation fuel dealer if the seller is a
69	71		licensed distributor; [or]
70	72		(5) a commercial transportation company or a
71	73		metropolitan rapid transit authority operating under Chapter 451,
72	74		Transportation Code, that provides public school transportation
73	75		services to a school district under Section 34.008, Education Code,
74	76		and that uses the gasoline exclusively to provide those services;
75	77		or
76	78		(6) a rural transit district created under Chapter
77	79		458, Transportation Code, that uses the gasoline exclusively to
78	80		provide public transportation.
79	81		SECTION 3. Section 162.125(g), Tax Code, is amended to read
80	82		as follows:
81	83		(g) A transit company that paid tax on the purchase of
82	84		gasoline, and is not otherwise entitled to a refund of that tax
83	85		under this subchapter, may seek a refund with the comptroller in an
84	86		amount equal to one cent per gallon for gasoline used in transit
85	87		vehicles.
86	88		SECTION 4. Subchapter B, Chapter 162, Tax Code, is amended
87	89		by adding Section 162.1276 to read as follows:
88	90		Sec. 162.1276. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS.
89	91		(a) A rural transit district created under Chapter 458,
90	92		Transportation Code, is entitled to a refund in the amount provided
91	93		by this section of taxes paid under this subchapter for gasoline
92	94		used to provide public transportation and may file a refund claim
93	95		with the comptroller for that amount.
94	96		(b) The refund claim under Subsection (a) must contain
95	97		information regarding:
96	98		(1) vehicle mileage;
97	99		(2) hours of service provided; and
98	100		(3) fuel consumed.
99	101		(c) A rural transit district that requests a refund under
100	102		this section shall maintain all supporting documentation relating
101	103		to the refund until the sixth anniversary of the date of the
102	104		request.
103	105		(d) The amount of the refund under Subsection (a) is equal
104	106		to the amount of tax paid under this subchapter for gasoline that
105	107		qualifies for the refund and is purchased by the rural transit
106	108		district.
107	109		(e) Notwithstanding Subsection (d), the amount of the
108	110		refund under Subsection (a) is equal to:
109	111		(1) 50 percent of the amount of tax paid under this
110	112		subchapter for gasoline that qualifies for the refund and is
111	113		purchased by the rural transit district on or after January 1, 2022,
112	114		and before January 1, 2023; and
113	115		(2) 75 percent of the amount of tax paid under this
114	116		subchapter for gasoline that qualifies for the refund and is
115	117		purchased by the rural transit district on or after January 1, 2023,
116	118		and before January 1, 2024.
117	119		(f) Subsection (e) and this subsection expire September 1,
118	120		2024.
119	121		SECTION 5. Effective January 1, 2024, Section 162.204(a),
120	122		Tax Code, is amended to read as follows:
121	123		(a) The tax imposed by this subchapter does not apply to:
122	124		(1) diesel fuel sold to the United States for its
123	125		exclusive use, provided that the exemption does not apply to diesel
124	126		fuel sold or delivered to a person operating under a contract with
125	127		the United States;
126	128		(2) diesel fuel sold to a public school district in
127	129		this state for the district's exclusive use;
128	130		(3) diesel fuel sold to a commercial transportation
129	131		company or a metropolitan rapid transit authority operating under
130	132		Chapter 451, Transportation Code, that provides public school
131	133		transportation services to a school district under Section 34.008,
132	134		Education Code, and that uses the diesel fuel only to provide those
133	135		services;
134	136		(4) diesel fuel exported by either a licensed supplier
135	137		or a licensed exporter from this state to any other state, provided
136	138		that the bill of lading indicates the destination state and the
137	139		supplier collects the destination state tax;
138	140		(5) diesel fuel moved by truck or railcar between
139	141		licensed suppliers or licensed permissive suppliers and in which
140	142		the diesel fuel removed from the first terminal comes to rest in the
141	143		second terminal, provided that the removal from the second terminal
142	144		rack is subject to the tax imposed by this subchapter;
143	145		(6) diesel fuel delivered or sold into a storage
144	146		facility of a licensed aviation fuel dealer from which the diesel
145	147		fuel will be delivered solely into the fuel supply tanks of aircraft
146	148		or aircraft servicing equipment, or sold from one licensed aviation
147	149		fuel dealer to another licensed aviation fuel dealer who will
148	150		deliver the diesel fuel exclusively into the fuel supply tanks of
149	151		aircraft or aircraft servicing equipment;
150	152		(7) diesel fuel exported to a foreign country if the
151	153		bill of lading or shipping documents indicate the foreign
152	154		destination and the fuel is actually exported to the foreign
153	155		country;
154	156		(8) dyed diesel fuel sold or delivered by a supplier to
155	157		another supplier and dyed diesel fuel sold or delivered by a
156	158		supplier or distributor into the bulk storage facility of a dyed
157	159		diesel fuel bonded user or to a purchaser who provides a signed
158	160		statement as provided by Section 162.206;
159	161		(9) the volume of water, fuel ethanol, renewable
160	162		diesel, biodiesel, or mixtures thereof that are blended together
161	163		with taxable diesel fuel when the finished product sold or used is
162	164		clearly identified on the retail pump, storage tank, and sales
163	165		invoice as a combination of diesel fuel and water, fuel ethanol,
164	166		renewable diesel, biodiesel, or mixtures thereof;
165	167		(10) dyed diesel fuel sold by a supplier or permissive
166	168		supplier to a distributor, or by a distributor to another
167	169		distributor;
168	170		(11) dyed diesel fuel delivered by a license holder
169	171		into the fuel supply tanks of railway engines, motorboats, or
170	172		refrigeration units or other stationary equipment powered by a
171	173		separate motor from a separate fuel supply tank;
172	174		(12) dyed kerosene when delivered by a supplier,
173	175		distributor, or importer into a storage facility at a retail
174	176		business from which all deliveries are exclusively for heating,
175	177		cooking, lighting, or similar nonhighway use;
176	178		(13) diesel fuel used by a person, other than a
177	179		political subdivision, who owns, controls, operates, or manages a
178	180		commercial motor vehicle as defined by Section 548.001,
179	181		Transportation Code, if the fuel:
180	182		(A) is delivered exclusively into the fuel supply
181	183		tank of the commercial motor vehicle; and
182	184		(B) is used exclusively to transport passengers
183	185		for compensation or hire between points in this state on a fixed
184	186		route or schedule;
185	187		(14) diesel fuel sold to a volunteer fire department
186	188		in this state for the department's exclusive use; [or]
187	189		(15) diesel fuel sold to a nonprofit entity that is
188	190		organized for the sole purpose of and engages exclusively in
189	191		providing emergency medical services and that uses the diesel fuel
190	192		exclusively to provide emergency medical services, including
191	193		rescue and ambulance services; or
192	194		(16) diesel fuel sold to a rural transit district
193	195		created under Chapter 458, Transportation Code, that uses the
194	196		diesel fuel exclusively to provide public transportation.
195	197		SECTION 6. Effective January 1, 2024, Section 162.227(a),
196	198		Tax Code, is amended to read as follows:
197	199		(a) A license holder may take a credit on a return for the
198	200		period in which the sale occurred if the license holder paid tax on
199	201		the purchase of diesel fuel and subsequently resells the diesel
200	202		fuel without collecting the tax to:
201	203		(1) the United States government for its exclusive
202	204		use, provided that a credit is not allowed for gasoline used by a
203	205		person operating under a contract with the United States;
204	206		(2) a public school district in this state for the
205	207		district's exclusive use;
206	208		(3) an exporter licensed under this subchapter if the
207	209		seller is a licensed supplier or distributor and the exporter
208	210		subsequently exports the diesel fuel to another state;
209	211		(4) a licensed aviation fuel dealer if the seller is a
210	212		licensed distributor; [or]
211	213		(5) a commercial transportation company or a
212	214		metropolitan rapid transit authority operating under Chapter 451,
213	215		Transportation Code, that provides public school transportation
214	216		services to a school district under Section 34.008, Education Code,
215	217		and that uses the diesel fuel exclusively to provide those
216	218		services; or
217	219		(6) a rural transit district created under Chapter
218	220		458, Transportation Code, that uses the diesel fuel exclusively to
219	221		provide public transportation.
220	222		SECTION 7. Section 162.227(f), Tax Code, is amended to read
221	223		as follows:
222	224		(f) A transit company who paid tax on the purchase of diesel
223	225		fuel, and is not otherwise entitled to a refund of that tax under
224	226		this subchapter, may seek a refund with the comptroller of one-half
225	227		of one cent per gallon for diesel fuel used in transit vehicles.
226	228		SECTION 8. Subchapter C, Chapter 162, Tax Code, is amended
227	229		by adding Section 162.2276 to read as follows:
228	230		Sec. 162.2276. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS.
229	231		(a) A rural transit district created under Chapter 458,
230	232		Transportation Code, is entitled to a refund in the amount provided
231	233		by this section of taxes paid under this subchapter for diesel fuel
232	234		used to provide public transportation and may file a refund claim
233	235		with the comptroller for that amount.
234	236		(b) The refund claim under Subsection (a) must contain
235	237		information regarding:
236	238		(1) vehicle mileage;
237	239		(2) hours of service provided; and
238	240		(3) fuel consumed.
239	241		(c) A rural transit district that requests a refund under
240	242		this section shall maintain all supporting documentation relating
241	243		to the refund until the sixth anniversary of the date of the
242	244		request.
243	245		(d) The amount of the refund under Subsection (a) is equal
244	246		to the amount of tax paid under this subchapter for diesel fuel that
245	247		qualifies for the refund and is purchased by the rural transit
246	248		district.
247	249		(e) Notwithstanding Subsection (d), the amount of the
248	250		refund under Subsection (a) is equal to:
249	251		(1) 50 percent of the amount of tax paid under this
250	252		subchapter for diesel fuel that qualifies for the refund and is
251	253		purchased by the rural transit district on or after January 1, 2022,
252	254		and before January 1, 2023; and
253	255		(2) 75 percent of the amount of tax paid under this
254	256		subchapter for diesel fuel that qualifies for the refund and is
255	257		purchased by the rural transit district on or after January 1, 2023,
256	258		and before January 1, 2024.
257	259		(f) Subsection (e) and this subsection expire September 1,
258	260		2024.
259	261		SECTION 9. Effective January 1, 2024, Section 162.356(a),
260	262		Tax Code, is amended to read as follows:
261	263		(a) The tax imposed by this subchapter does not apply to
262	264		compressed natural gas or liquefied natural gas delivered into the
263	265		fuel supply tank of:
264	266		(1) a motor vehicle operated exclusively by the United
265	267		States, provided that the exemption does not apply with respect to
266	268		fuel delivered into the fuel supply tank of a motor vehicle of a
267	269		person operating under a contract with the United States;
268	270		(2) a motor vehicle operated exclusively by a public
269	271		school district in this state;
270	272		(3) a motor vehicle operated exclusively by a
271	273		commercial transportation company or a metropolitan rapid transit
272	274		authority operating under Chapter 451, Transportation Code, that
273	275		provides public school transportation services to a school district
274	276		under Section 34.008, Education Code, and that uses the fuel only to
275	277		provide those services;
276	278		(4) a motor vehicle operated exclusively by a
277	279		volunteer fire department in this state;
278	280		(5) a motor vehicle operated exclusively by a
279	281		municipality or county in this state;
280	282		(6) a motor vehicle operated exclusively by a
281	283		nonprofit electric cooperative corporation organized under Chapter
282	284		161, Utilities Code;
283	285		(7) a motor vehicle operated exclusively by a
284	286		nonprofit telephone cooperative corporation organized under
285	287		Chapter 162, Utilities Code;
286	288		(8) a motor vehicle that is not registered for use on
287	289		the public highways of this state and that is used exclusively
288	290		off-highway;
289	291		(9) a motor vehicle operated exclusively by a
290	292		nonprofit entity that is organized for the sole purpose of and
291	293		engages exclusively in providing emergency medical services and
292	294		that uses the fuel exclusively to provide emergency medical
293	295		services, including rescue and ambulance services;
294	296		(9-a) a motor vehicle operated exclusively by a rural
295	297		transit district created under Chapter 458, Transportation Code,
296	298		that uses the fuel exclusively to provide public transportation;
297	299		(10) off-highway equipment, a stationary engine, a
298	300		motorboat, an aircraft, equipment used solely for servicing
299	301		aircraft and used exclusively off-highway, a locomotive, or any
300	302		device other than a motor vehicle operated or intended to be
301	303		operated on the public highways; or
302	304		(11) except as provided by Subsection (b), a motor
303	305		vehicle:
304	306		(A) used to provide the services of a transit
305	307		company, including a metropolitan rapid transit authority under
306	308		Chapter 451, Transportation Code, or a regional transportation
307	309		authority under Chapter 452, Transportation Code; and
308	310		(B) operated by a person who on January 1, 2015,
309	311		paid tax on compressed natural gas or liquefied natural gas as
310	312		provided by Section 162.312, as that section existed on that date.
311	313		SECTION 10. Subchapter D-1, Chapter 162, Tax Code, is
312	314		amended by adding Section 162.3685 to read as follows:
313	315		Sec. 162.3685. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS.
314	316		(a) A rural transit district created under Chapter 458,
315	317		Transportation Code, is entitled to a refund in the amount provided
316	318		by this section of taxes paid under this subchapter for compressed
317	319		natural gas or liquefied natural gas delivered into the fuel supply
318	320		tank of a motor vehicle used to provide public transportation and
319	321		may file a refund claim with the comptroller for that amount.
320	322		(b) The refund claim under Subsection (a) must contain
321	323		information regarding:
322	324		(1) vehicle mileage;
323	325		(2) hours of service provided; and
324	326		(3) fuel consumed.
325	327		(c) A rural transit district that requests a refund under
326	328		this section shall maintain all supporting documentation relating
327	329		to the refund until the sixth anniversary of the date of the
328	330		request.
329	331		(d) The amount of the refund under Subsection (a) is equal
330	332		to the amount of tax paid under this subchapter for compressed
331	333		natural gas or liquefied natural gas that qualifies for the refund
332	334		and is delivered into the fuel supply tank of a motor vehicle.
333	335		(e) Notwithstanding Subsection (d), the amount of the
334	336		refund under Subsection (a) is equal to:
335	337		(1) 50 percent of the amount of tax paid under this
336	338		subchapter for compressed natural gas or liquefied natural gas that
337	339		qualifies for the refund and is delivered into the fuel supply tank
338	340		of a motor vehicle on or after January 1, 2022, and before January
339	341		1, 2023; and
340	342		(2) 75 percent of the amount of tax paid under this
341	343		subchapter for compressed natural gas or liquefied natural gas that
342	344		qualifies for the refund and is delivered into the fuel supply tank
343	345		of a motor vehicle on or after January 1, 2023, and before January
344	346		1, 2024.
345	347		(f) Subsection (e) and this subsection expire September 1,
346	348		2024.
347	349		SECTION 11. A tax imposed by Chapter 162, Tax Code, does not
348	350		apply to gasoline, diesel fuel, compressed natural gas, or
349	351		liquefied natural gas to the extent a rural transit district is
350	352		entitled to a refund of the tax under Section 162.1276(e)(1) or (2),
351	353		Section 162.2276(e)(1) or (2), or Section 162.3685(e)(1) or (2),
352	354		Tax Code, as added by this Act. However, the tax must be paid as
353	355		otherwise required by law and a rural transit district may apply to
354	356		the comptroller for the refund provided by that added law.
355	357		SECTION 12. A change in law made by this Act does not affect
356	358		tax liability accruing before the effective date of the change in
357	359		law. That liability continues in effect as if this Act had not been
358	360		enacted, and the former law is continued in effect for the
359	361		collection of taxes due and for civil and criminal enforcement of
360	362		the liability for those taxes.
361	363		SECTION 13. Except as otherwise provided by this Act, this
362	364		Act takes effect January 1, 2022.