Texas House Bill HB4183 Introduced / Bill

                    87R8927 SMT-F
 By: Reynolds H.B. No. 4183


 A BILL TO BE ENTITLED
 AN ACT
 relating to state and municipal motor fuel taxes; providing civil
 penalties; creating criminal offenses; requiring occupational
 licenses; authorizing the imposition of taxes; providing for
 increases and decreases in the rates of taxes.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Title 3, Tax Code, is amended by adding Subtitle
 E to read as follows:
 SUBTITLE E. LOCAL MOTOR FUEL TAXES
 CHAPTER 401. MUNICIPAL MOTOR FUEL TAXES
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 401.001.  MEANINGS OF WORDS AND PHRASES. A word or
 phrase used in this chapter that is defined by Chapter 162 has the
 meaning assigned by that chapter.
 SUBCHAPTER B. TAX AUTHORIZED; USE OF REVENUE
 Sec. 401.051.  MUNICIPAL MOTOR FUEL TAXES AUTHORIZED. (a)
 Notwithstanding Section 162.014, if approved by a majority of the
 votes cast in a municipality at an election held for that purpose,
 the municipality shall impose taxes at the rate of one cent per
 gallon on the sale of gasoline and diesel fuel that is sold in the
 municipality by a person, including a dealer, distributor,
 supplier, or permissive supplier, engaged in the sale of motor
 fuels used to propel a motor vehicle on the public highways of the
 state.  The rates of the taxes shall be adjusted as provided by
 Sections 162.1026 and 162.2026 on January 1 of each year after the
 year in which the taxes are first imposed.
 (b)  The tax authorized by this section is in addition to the
 tax imposed by Chapter 162 and shall be collected in conjunction
 with that tax when gasoline or diesel fuel is removed from a
 terminal using the terminal rack, other than by bulk transfer, to be
 sold or delivered into a municipality that has imposed the tax
 authorized by this section.
 Sec. 401.052.  USE OF REVENUE. The revenue collected under
 this chapter may be used as provided by Section 7-a, Article VIII,
 Texas Constitution.
 SUBCHAPTER C. ELECTION
 Sec. 401.101.  ELECTION. (a)  The governing body of a
 municipality may call an election on the issue of imposing motor
 fuel taxes under this chapter by a vote of a majority of its
 members.
 (b)  An election called under this section must be held on
 the uniform election date in May or November.
 Sec. 401.102.  BALLOT WORDING. The ballot shall be printed
 to provide for voting for or against the proposition: "A motor fuel
 tax is adopted within the city at a rate of one cent per gallon of
 gasoline or diesel fuel sold in the city.  The rate may be increased
 or decreased each year to account for inflation or deflation."
 Sec. 401.103.  OFFICIAL RESULTS OF ELECTION. (a)  Not later
 than 10 days after an election in which the voters approve the
 adoption of a tax authorized by this chapter, the governing body of
 the municipality shall by resolution or ordinance entered in its
 minutes of proceedings declare the results of the election. A
 resolution or ordinance under this section must include statements
 showing:
 (1)  the date of the election;
 (2)  the proposition on which the vote was held;
 (3)  the total number of votes cast for and against the
 proposition; and
 (4)  the number of votes by which the proposition was
 approved.
 (b)  If the imposition of a tax under this chapter is
 approved by the voters, the municipal secretary shall send to the
 comptroller a certified copy of the resolution or the ordinance
 along with a map of the municipality clearly showing its
 boundaries.
 (c)  Not later than the 30th day after the date the
 comptroller receives a certified copy of an ordinance or resolution
 showing the adoption of the tax, the comptroller shall notify the
 municipal secretary of the date provided by Section 401.151(d) or
 (e) when the comptroller will begin collecting the tax.
 SUBCHAPTER D. ADMINISTRATION
 Sec. 401.151.  DUTIES OF COMPTROLLER RELATING TO MUNICIPAL
 MOTOR FUEL TAXES. (a)  The comptroller shall administer, collect,
 and enforce a tax imposed on the sale of gasoline or diesel fuel
 approved in accordance with the provisions of this chapter. The tax
 shall be exclusively administered, collected, and enforced in
 conformance with Chapter 162 governing the taxes imposed on the
 sale of gasoline and diesel fuel, except that Subchapter F, Chapter
 162 does not apply. References in Chapter 162 to taxes imposed under
 that chapter also include taxes imposed under this chapter.
 (b)  The exemptions provided by Sections 162.104 and 162.204
 apply to taxes imposed under this chapter.
 (c)  The comptroller may adopt reasonable rules and
 prescribe forms that are consistent with this chapter and Chapter
 162 for the administration, collection, reporting, and enforcement
 of the taxes imposed under this chapter.
 (d)  Except as provided by Subsection (e), a tax authorized
 by this chapter takes effect on the first day of the first calendar
 quarter following the expiration of the first complete quarter
 occurring after the date of the election authorizing the tax under
 Section 401.051.
 (e)  If the comptroller determines that an effective date
 provided by Subsection (d) will occur before the comptroller can
 reasonably take the action required to begin collecting the tax,
 the comptroller may delay the effective date until the first day of
 the first calendar quarter following the date the comptroller
 declares that the comptroller is ready to begin collecting the tax.
 (f)  Before making a distribution to a municipality under
 Section 401.154, the comptroller shall deduct any costs incurred by
 the comptroller related to the comptroller's preparations to
 administer, collect, and enforce a tax on the sale of gasoline or
 diesel fuel approved in accordance with this chapter. Each
 municipality that approves the imposition of taxes on the sale of
 gasoline and diesel fuel shall pay a pro rata amount of the
 comptroller's costs in preparing to administer, collect, and
 enforce the taxes. If only one municipality elects to approve the
 imposition of taxes on the sale of gasoline and diesel fuel in its
 jurisdiction, that municipality bears all of the costs incurred by
 the comptroller but may recover pro rata shares of this cost from
 other municipalities that approve the imposition of the taxes.
 Sec. 401.152.  ADOPTION OF RULES RELATING TO MOTOR FUEL
 TAXES. (a) Before the comptroller may adopt rules under Section
 401.151, the comptroller must consult with representatives of:
 (1)  the entities that would be required to:
 (A)  collect and remit a motor fuel tax imposed
 under this chapter; and
 (B)  file reports with the comptroller relating to
 a motor fuel tax imposed under this chapter; and
 (2)  municipalities in which the voters have approved
 the imposition of a motor fuel tax under this chapter.
 (b)  Rules adopted under Section 401.151 must provide for the
 uniform administration and reporting of all motor fuel taxes
 imposed by a municipality under this chapter. A municipality may
 not impose requirements on an entity required to collect a motor
 fuel tax under this chapter that are not specifically authorized by
 the rules adopted under Section 401.151.
 (c)  Rules adopted under Section 401.151:
 (1)  may require the comptroller to report sufficient
 information to each municipality imposing a motor fuel tax under
 this chapter to ensure proper allocation of revenue by the
 municipality under this chapter;
 (2)  may not require the comptroller to report
 proprietary information collected from an individual taxpayer in a
 way that would be subject to public disclosure; and
 (3)  may not authorize a municipality imposing a motor
 fuel tax under this chapter to contract with a private entity to
 perform any duty or responsibility associated with the collection,
 enforcement, or administration of the tax.
 Sec. 401.153.  TRUST ACCOUNT. The comptroller shall deposit
 the municipal taxes collected by the comptroller under this chapter
 and Chapter 162 in trust in a separate suspense account of the
 municipality for which the taxes were collected.
 Sec. 401.154.  DISTRIBUTION OF TRUST FUNDS. The comptroller
 shall each month distribute to the municipality the municipality's
 share of the taxes collected by the comptroller under this chapter
 and Chapter 162.
 Sec. 401.155.  STATE'S SHARE. Before making a distribution
 to a municipality under Section 401.154, the comptroller also shall
 deduct an amount not to exceed two percent of the amount of the
 taxes collected for the municipality during the period for which a
 distribution is made as the state's charge for its services. The
 comptroller shall credit the amount deducted to the general revenue
 fund. The comptroller shall adjust the percentage of the amount
 deducted each state fiscal year considering the projected
 expenditures necessary for the collection, administrative, and
 enforcement functions related to the municipal motor fuel taxes.
 Sec. 401.156.  AMOUNTS RETAINED IN TRUST ACCOUNT. (a)  The
 comptroller may retain in the suspense account of a municipality a
 portion of the municipality's share of the tax collected for the
 municipality under this chapter and Chapter 162 not to exceed five
 percent of the amount distributed to the municipality.
 (b)  From the amounts retained in a municipality's suspense
 account, the comptroller may correct erroneous deposits to the
 account, make refunds for overpayments to the account, and redeem
 dishonored checks and drafts deposited to the credit of the
 account.
 Sec. 401.157.  INTEREST ON TRUST ACCOUNT. Interest earned
 on all deposits made by the comptroller under this subchapter shall
 be credited to the suspense account of the municipality.
 SECTION 2.  Section 162.001, Tax Code, is amended by adding
 Subdivisions (44-a), (44-b), (56-a), (56-b), and (57-a) to read as
 follows:
 (44-a)  "Municipal diesel fuel tax" means the tax
 imposed by Section 162.2011 or 162.2035.
 (44-b)  "Municipal gasoline tax" means the tax imposed
 by Section 162.1011 or 162.1035.
 (56-a)  "State diesel fuel tax" means the tax imposed
 by Section 162.201 or 162.203.
 (56-b)  "State gasoline tax" means the tax imposed by
 Section 162.101 or 162.103.
 (57-a)  "Taxing municipality" means a destination
 municipality that has adopted the taxes authorized by Chapter 401.
 SECTION 3.  Sections 162.004(e) and (g), Tax Code, are
 amended to read as follows:
 (e)  A person to whom a shipping document was issued shall:
 (1)  carry the shipping document in the barge, vessel,
 railroad tank car, or other transport vehicle for which the
 document was issued when transporting the motor fuel described in
 the document;
 (2)  show the shipping document on request to any law
 enforcement officer, representative of the comptroller, or other
 authorized individual, when transporting the motor fuel described;
 (3)  deliver the motor fuel to the destination state
 printed on the shipping document unless the person:
 (A)  notifies the comptroller and the destination
 state, if a diversion program is in place, before transporting the
 motor fuel into a state other than the printed destination state,
 that the person has received instructions after the shipping
 document was issued to deliver the motor fuel to a different
 destination state;
 (B)  receives from the comptroller and
 destination state, if a diversion program is in place, a diversion
 number authorizing the diversion; and
 (C)  writes on the shipping document the change in
 destination state and the diversion number; [and]
 (4)  if delivering the motor fuel into a municipality
 in this state, denote on the shipping document the municipality to
 which the motor fuel will be delivered or, in the case of a split
 load, each municipality in which a portion of the motor fuel will be
 delivered; and
 (5)  give a copy of the shipping document to the person
 to whom the motor fuel is delivered.
 (g)  The person to whom motor fuel is delivered by barge,
 vessel, railroad tank car, or transport vehicle may not accept
 delivery of the motor fuel if the destination state shown on the
 shipping document for the motor fuel is a state other than this
 state, except that the person may accept the [that] delivery if the
 document contains a diversion number authorized by the comptroller
 and destination state, if applicable, and has received a properly
 completed shipping document listing the municipality, if
 applicable, in this state in which the person accepts delivery. The
 person to whom the motor fuel is delivered shall examine the
 shipping document to determine that the destination state is this
 state and, if applicable, that the municipality in this state is the
 municipality in which the person accepts delivery, and shall retain
 a copy of the shipping document at the delivery location or another
 place until the fourth anniversary of the date of delivery.
 SECTION 4.  Section 162.005(e), Tax Code, is amended to read
 as follows:
 (e)  The comptroller may revoke a license if the license
 holder:
 (1)  purchases for export motor fuel on which the tax
 was not paid under this chapter and subsequently diverts or causes
 the motor fuel to be diverted to a destination in this state or to
 any destination other than the originally designated state or
 country without first obtaining a diversion number; or
 (2)  delivers motor fuel on which the municipal
 gasoline tax or municipal diesel fuel tax is due without issuing a
 properly completed shipping document listing the taxing
 municipality in which the delivery occurred.
 SECTION 5.  Section 162.006(a), Tax Code, is amended to read
 as follows:
 (a)  The comptroller may suspend a person's license without
 notice or a hearing for the person's failure to comply with this
 chapter or a rule adopted under this chapter or Chapter 401 if the
 person's continued operation constitutes an immediate and
 substantial threat to the collection of taxes imposed by this
 chapter and attributable to the person's operation.
 SECTION 6.  Section 162.012, Tax Code, is amended to read as
 follows:
 Sec. 162.012.  PRESUMPTIONS. (a) A person licensed under
 this chapter or required to be licensed under this chapter, or other
 user, who fails to keep a record, issue an invoice, or file a return
 or report required by this chapter is presumed to have sold or used
 for taxable purposes all motor fuel shown by an audit by the
 comptroller to have been sold to the license holder or other
 user.  Motor fuel unaccounted for is presumed to have been sold or
 used for taxable purposes.
 (b)  If an exporter claims an exemption under Section
 162.104(a)(4) or 162.204(a)(4) and fails to report subsequent
 tax-free sales in this state of the motor fuel for which the
 exemption was claimed as required by Section 162.1155 or 162.2165,
 or to produce proof of payment of tax to the destination state or
 proof that the transaction was exempt in the destination state, the
 exporter is presumed to have not paid the destination state's tax or
 this state's tax on the motor fuel and the comptroller shall assess
 the tax imposed by this chapter on the motor fuel against the
 exporter.
 (c)  If a person claims an exemption from the municipal motor
 fuels tax and fails to produce proof of delivery to a nontaxing
 municipality or an unincorporated area of the state, the person is
 presumed to have delivered the motor fuel to a taxing municipality
 that imposes the tax on motor vehicle fuels authorized by Chapter
 401.
 (d)  The comptroller may fix or establish the amount of
 taxes, penalties, and interest due this state from the records of
 deliveries or from any records or information available.  If a tax
 claim, as developed from this procedure, is not paid, after the
 opportunity to request a redetermination, the claim and any audit
 made by the comptroller or any report filed by the license holder or
 other user is evidence in any suit or judicial proceedings filed by
 the attorney general and is prima facie evidence of the correctness
 of the claim or audit.  A prima facie presumption of the
 correctness of the claim may be overcome at the trial by evidence
 adduced by the license holder or other user.
 (e) [(b)]  In the absence of records showing the number of
 miles actually operated per gallon of motor fuel consumed, it is
 presumed that not less than one gallon of motor fuel was consumed
 for every four miles traveled. An interstate trucker may produce
 evidence of motor fuel consumption to establish another mileage
 factor. If an examination or audit made by the comptroller from the
 records of an interstate trucker shows that a greater amount of
 motor fuel was consumed than was reported by the interstate trucker
 for tax purposes, the interstate trucker is liable for the tax,
 penalties, and interest on the additional amount shown or the
 trucker is entitled to a credit or refund on overpayments of tax
 established by the audit.
 SECTION 7.  Section 162.015, Tax Code, is amended to read as
 follows:
 Sec. 162.015.  ADDITIONAL TAX APPLIES TO INVENTORIES. (a)
 On the effective date of an increase in the rate [rates] of a tax
 [the taxes] imposed by this chapter, a distributor or dealer that
 possesses for the purpose of sale 2,000 or more gallons of gasoline
 or diesel fuel at each business location on which a tax [the taxes]
 imposed by this chapter at a previous rate has [have] been paid
 shall report to the comptroller the volume of that gasoline and
 diesel fuel, and at the time of the report shall pay a tax on that
 gasoline and diesel fuel at a rate equal to the rate of the tax
 increase.
 (b)  On the effective date of a reduction of the rate [rates]
 of a tax [taxes] imposed by this chapter, a distributor or dealer
 that possesses for the purpose of sale 2,000 or more gallons of
 gasoline or diesel fuel at each business location on which a tax
 [the taxes] imposed by this chapter at the previous rate has [have]
 been paid becomes entitled to a refund in an amount equal to the
 difference in the amount of the tax [taxes] paid on that gasoline or
 diesel fuel at the previous rate and at the rate in effect on the
 effective date of the reduction in the tax rate [rates]. The rules
 of the comptroller shall provide for the method of claiming a refund
 under this chapter and may require that the refund for the dealer be
 paid through the distributor or supplier from whom the dealer
 received the fuel.
 SECTION 8.  Section 162.016, Tax Code, is amended by
 amending Subsection (a) and adding Subsection (g-1) to read as
 follows:
 (a)  A person may not import motor fuel to a destination in
 this state or export motor fuel to a destination outside this state
 by any means unless the person possesses a shipping document for
 that fuel.  The shipping document must include:
 (1)  the name and physical address of the terminal or
 bulk plant from which the motor fuel was received for import or
 export;
 (2)  the name of the carrier transporting the motor
 fuel;
 (3)  the date the motor fuel was loaded;
 (4)  the type of motor fuel;
 (5)  the number of gallons:
 (A)  in temperature-adjusted gallons if purchased
 from a terminal for export or import; or
 (B)  in temperature-adjusted gallons or in gross
 gallons if purchased from a bulk plant;
 (6)  the destination state and, if the destination
 state is this state and the gasoline or diesel fuel will be
 delivered to a municipality, the municipality in this state to
 which the gasoline or diesel fuel will be delivered [of the motor
 fuel] as represented by the purchaser of the motor fuel and the
 number of gallons of the fuel to be delivered, if delivery is to
 only one state;
 (7)  the name and physical address of the purchaser of
 the motor fuel;
 (8)  the name of the person responsible for paying the
 tax imposed by this chapter, as given to the terminal by the
 purchaser if different from the licensed supplier or distributor;
 (9)  the destination state of each portion of a split
 load of motor fuel if the motor fuel is to be delivered to more than
 one state and, if a destination state is this state and the gasoline
 or diesel fuel will be delivered to a municipality, the
 municipality in this state to which the gasoline or diesel fuel will
 be delivered; and
 (10)  any other information that, in the opinion of the
 comptroller, is necessary for the proper administration of this
 chapter.
 (g-1)  An importer or exporter who wants to deliver a single
 cargo tank of motor fuel to a municipality in this state must issue
 a properly completed shipping document denoting the municipality to
 which the motor fuel will be delivered or, in the case of a split
 load, each municipality to which a portion of the motor fuel will be
 delivered.
 SECTION 9.  The heading to Section 162.101, Tax Code, is
 amended to read as follows:
 Sec. 162.101.  POINT OF IMPOSITION OF STATE GASOLINE TAX.
 SECTION 10.  Sections 162.101(a), (b), (c), and (f), Tax
 Code, are amended to read as follows:
 (a)  A tax is imposed on the removal of gasoline from the
 terminal using the terminal rack, other than by bulk transfer.  The
 supplier or permissive supplier is liable for and shall collect the
 tax imposed by this section [subchapter] from the person who orders
 the withdrawal at the terminal rack.
 (b)  A tax is imposed at the time gasoline is imported into
 this state, other than by a bulk transfer, for delivery to a
 destination in this state.  The supplier or permissive supplier is
 liable for and shall collect the tax imposed by this section
 [subchapter] from the person who imports the gasoline into this
 state.  If the seller is not a supplier or permissive supplier,
 then the person who imports the gasoline into this state is liable
 for and shall pay the tax.
 (c)  A tax is imposed on the removal of gasoline from the bulk
 transfer/terminal system in this state.  The supplier is liable for
 and shall collect the tax imposed by this section [subchapter] from
 the person who orders the removal from the bulk transfer terminal
 system.
 (f)  A terminal operator in this state is considered a
 supplier for the purpose of the tax imposed by [under] this section
 [subchapter] unless at the time of removal:
 (1)  the terminal operator has a terminal operator's
 license issued for the facility from which the gasoline is
 withdrawn;
 (2)  the terminal operator verifies that the person who
 removes the gasoline has a supplier's license; and
 (3)  the terminal operator does not have a reason to
 believe that the supplier's license is not valid.
 SECTION 11.  Subchapter B, Chapter 162, Tax Code, is amended
 by adding Section 162.1011 to read as follows:
 Sec. 162.1011.  IMPOSITION OF MUNICIPAL GASOLINE TAX; POINT
 OF COLLECTION.  (a)  In a municipality that imposes taxes on motor
 vehicle fuel authorized by Chapter 401, a tax is imposed on the
 delivery of gasoline into the taxing municipality.
 (b)  A tax is imposed on gasoline that is otherwise exempt
 from taxation under Section 162.104(a)(4) or (7) if the gasoline is
 sold in this state to a person who does not hold a license under
 Section 162.105(1), (2), (3), (4), or (6) and the gasoline is
 subsequently delivered into a taxing municipality. The person who
 delivered the gasoline into the taxing municipality is liable for
 and shall collect the tax.
 (c)  A tax is imposed on gasoline that is otherwise exempt
 from taxation under Section 162.104(a)(4) or (7) if before export
 the gasoline is sold in this state to a person who holds a license
 under Section 162.105(1), (2), (3), (4), or (6) and the gasoline is
 delivered into a taxing municipality. The person who delivered the
 gasoline into the taxing municipality is liable for and shall pay
 the tax.
 (d)  The distributor shall collect the tax imposed by this
 section from each person on delivery of gasoline into a taxing
 municipality.
 (e)  In each subsequent sale of gasoline on which the tax has
 been paid, the tax imposed by this section shall be collected from
 the purchaser so that the tax is paid ultimately by the person who
 uses the gasoline. Gasoline is considered to be used when it is
 delivered into a fuel supply tank.
 SECTION 12.  Section 162.102, Tax Code, is amended to read as
 follows:
 Sec. 162.102.  TAX RATES [RATE]. (a)  Except as provided by
 Section 162.1026, the state [The] gasoline tax rate is 20 cents for
 each net gallon or fractional part of a net gallon on which the tax
 is imposed under Section 162.101.
 (b)  In a taxing municipality, the municipal gasoline tax
 rate for each net gallon or fractional part of a net gallon is the
 rate established by Chapter 401, including the amount of
 adjustments under Section 162.1026.
 SECTION 13.  The heading to Section 162.1025, Tax Code, is
 amended to read as follows:
 Sec. 162.1025.  SEPARATE STATEMENT OF TAXES [TAX] COLLECTED
 FROM PURCHASER.
 SECTION 14.  Sections 162.1025(a), (b), and (c), Tax Code,
 are amended to read as follows:
 (a)  In each subsequent sale of gasoline on which the taxes
 imposed by this subchapter have [tax has] been paid, the taxes [tax
 imposed by this subchapter] shall be collected from the purchaser
 so that the taxes are [tax is] paid ultimately by the person who
 uses the gasoline. Gasoline is considered to be used when it is
 delivered into a fuel supply tank.
 (b)  The taxes [tax] imposed by this subchapter must be
 stated separately from the sales price of gasoline and identified
 as gasoline taxes [tax] on the invoice or receipt issued to a
 purchaser. Backup gasoline taxes [tax] may be identified as
 gasoline taxes [tax]. The taxes [tax] must be separately stated and
 identified in the same manner on a shipping document, if the
 shipping document includes the sales price of the gasoline.
 (c)  Except as provided by Subsection (d), the sales price of
 gasoline stated on an invoice, receipt, or shipping document is
 presumed to be exclusive of the taxes [tax] imposed by this
 subchapter.  The seller or purchaser may overcome the presumption
 by using the seller's records to show that the taxes [tax] imposed
 by this subchapter were [was] included in the sales price.
 SECTION 15.  Subchapter B, Chapter 162, Tax Code, is amended
 by adding Section 162.1026 to read as follows:
 Sec. 162.1026.  ANNUAL RATE CHANGE ACCORDING TO CONSUMER
 PRICE INDEX. (a) In this section:
 (1)  "Consumer price index" means the consumer price
 index for all urban consumers for all items and for all regions of
 the United States combined, as determined by the United States
 Department of Labor, Bureau of Labor Statistics, or, if that index
 is discontinued or superseded, a similar index selected or
 calculated by the comptroller.
 (2)  "Consumer price index percentage change" means the
 percentage increase or decrease in the consumer price index of a
 given state fiscal year from the consumer price index of the
 preceding state fiscal year.
 (b)  On January 1 of each year, the rates of state and
 municipal gasoline taxes imposed under this subchapter are
 increased or decreased by a percentage that is equal to the consumer
 price index percentage change for the preceding fiscal year.
 (c)  Not later than November 1 of each year, the comptroller
 shall:
 (1)  compute the new tax rates as provided by this
 section;
 (2)  give the new tax rates to the secretary of state
 for publication in the Texas Register; and
 (3)  notify each license holder under this subchapter
 of the applicable new tax rates.
 SECTION 16.  The heading to Section 162.103, Tax Code, is
 amended to read as follows:
 Sec. 162.103.  BACKUP STATE GASOLINE TAX; LIABILITY.
 SECTION 17.  Sections 162.103(a) and (c), Tax Code, are
 amended to read as follows:
 (a)  A backup tax is imposed at the rate prescribed by
 Sections 162.102(a) and 162.1026 [Section 162.102] on:
 (1)  a person who obtains a refund of tax on gasoline by
 claiming the gasoline was used for an off-highway purpose, but
 actually uses the gasoline to operate a motor vehicle on a public
 highway;
 (2)  a person who operates a motor vehicle on a public
 highway using gasoline on which tax has not been paid;
 (3)  a person who sells to the ultimate consumer
 gasoline on which tax has not been paid and who knew or had reason to
 know that the gasoline would be used for a taxable purpose; and
 (4)  a person, other than a person exempted under
 Section 162.104, who acquires gasoline on which tax has not been
 paid from any source in this state.
 (c)  The tax imposed by [under] Subsection (a)(3) is also
 imposed on the ultimate consumer.
 SECTION 18.  Subchapter B, Chapter 162, Tax Code, is amended
 by adding Section 162.1035 to read as follows:
 Sec. 162.1035.  BACKUP MUNICIPAL GASOLINE TAX; LIABILITY.
 (a) A backup tax is imposed at the rate prescribed by Sections
 162.102(b) and 162.1026 on:
 (1)  a person who, in a taxing municipality:
 (A)  delivers gasoline into the fuel supply tank
 of a motor vehicle;
 (B)  purchases or receives gasoline from another
 person; or
 (C)  sells or delivers gasoline to another person;
 and
 (2)  a person who obtains a refund of the tax imposed by
 Section 162.1011 for gasoline that the person delivered into the
 fuel supply tank of a motor vehicle, purchased or acquired, or sold
 or delivered in a taxing municipality.
 (b)  A person who sells gasoline subject to the tax imposed
 by this section shall at the time of sale collect the tax from the
 purchaser or recipient of the gasoline in addition to the selling
 price and is liable to this state for the taxes collected at the
 time and in the manner provided by this chapter.
 (c)  The following are exempt from the tax imposed by this
 section:
 (1)  gasoline on which the tax imposed by Section
 162.1011 has been paid; and
 (2)  gasoline exempt under Section 162.104.
 (d)  The tax imposed by this section is in addition to any
 penalty imposed under this chapter.
 SECTION 19.  Section 162.104(a), Tax Code, is amended to
 read as follows:
 (a)  The taxes [tax] imposed by this subchapter do [does] not
 apply to gasoline:
 (1)  sold to the United States for its exclusive use,
 provided that the exemption does not apply with respect to fuel sold
 or delivered to a person operating under a contract with the United
 States;
 (2)  sold to a public school district in this state for
 the district's exclusive use;
 (3)  sold to a commercial transportation company or a
 metropolitan rapid transit authority operating under Chapter 451,
 Transportation Code, that provides public school transportation
 services to a school district under Section 34.008, Education Code,
 and that uses the gasoline only to provide those services;
 (4)  exported by either a licensed supplier or a
 licensed exporter from this state to any other state, provided that
 the bill of lading indicates the destination state and the supplier
 collects the destination state tax;
 (5)  moved by truck or railcar between licensed
 suppliers or licensed permissive suppliers and in which the
 gasoline removed from the first terminal comes to rest in the second
 terminal, provided that the removal from the second terminal rack
 is subject to the state gasoline tax imposed by this subchapter;
 (6)  delivered or sold into a storage facility of a
 licensed aviation fuel dealer from which gasoline will be delivered
 solely into the fuel supply tanks of aircraft or aircraft servicing
 equipment, or sold from one licensed aviation fuel dealer to
 another licensed aviation fuel dealer who will deliver the aviation
 fuel exclusively into the fuel supply tanks of aircraft or aircraft
 servicing equipment;
 (7)  exported to a foreign country if the bill of lading
 or shipping documents indicate the foreign destination and the fuel
 is actually exported to the foreign country;
 (8)  sold to a volunteer fire department in this state
 for the department's exclusive use; or
 (9)  sold to a nonprofit entity that is organized for
 the sole purpose of and engages exclusively in providing emergency
 medical services and that uses the gasoline exclusively to provide
 emergency medical services, including rescue and ambulance
 services.
 SECTION 20.  Section 162.105, Tax Code, is amended to read as
 follows:
 Sec. 162.105.  PERSONS REQUIRED TO BE LICENSED. A person
 shall obtain the appropriate license or licenses issued by the
 comptroller before conducting the activities of:
 (1)  a supplier, who may also act as a distributor,
 importer, exporter, blender, motor fuel transporter, dealer, or
 aviation fuel dealer without securing a separate license, but who
 is subject to all other conditions, requirements, and liabilities
 imposed on those license holders;
 (2)  a permissive supplier, who may also act as a
 distributor, importer, exporter, blender, motor fuel transporter,
 dealer, or aviation fuel dealer without securing a separate
 license, but who is subject to all other conditions, requirements,
 and liabilities imposed on those license holders;
 (3)  a distributor, who may also act as an importer,
 exporter, blender, [or] motor fuel transporter, or dealer without
 securing a separate license, but who is subject to all other
 conditions, requirements, and liabilities imposed on those license
 holders;
 (4)  an importer, who may also act as an exporter,
 blender, [or] motor fuel transporter, or dealer without securing a
 separate license, but who is subject to all other conditions,
 requirements, and liabilities imposed on those license holders;
 (5)  a terminal operator;
 (6)  an exporter;
 (7)  a blender;
 (8)  a motor fuel transporter;
 (9)  an aviation fuel dealer; [or]
 (10)  an interstate trucker; or
 (11)  a dealer.
 SECTION 21.  Sections 162.107(a) and (b), Tax Code, are
 amended to read as follows:
 (a)  A person may elect to obtain a permissive supplier
 license to collect the state gasoline tax imposed by [under] this
 subchapter for gasoline that is removed at a terminal in another
 state and has this state as the destination state.
 (b)  With respect to gasoline that is removed by the licensed
 permissive supplier at a terminal located in another state and that
 has this state as the destination state, a licensed permissive
 supplier shall:
 (1)  collect the state gasoline tax due to this state on
 the gasoline;
 (2)  waive any defense that this state lacks
 jurisdiction to require the supplier to collect the state gasoline
 tax due to this state on the gasoline under this subchapter;
 (3)  report and pay the state gasoline tax and the
 municipal gasoline tax due on the gasoline in the same manner as if
 the removal had occurred at a terminal located in this state;
 (4)  keep records of the removal of the gasoline and
 submit to audits concerning the gasoline as if the removal had
 occurred at a terminal located in this state; and
 (5)  report sales by the permissive supplier to a
 person who is not licensed in this state.
 SECTION 22.  Section 162.108, Tax Code, is amended by adding
 Subsection (a-1) to read as follows:
 (a-1)  In addition to the information required by Subsection
 (a), an applicant for a license as a dealer must list on the
 application:
 (1)  the street address, municipality, county, and zip
 code of the location for which the applicant seeks a license to sell
 or dispense motor fuel at retail;
 (2)  the applicant's social security number, driver's
 license number, and federal employer identification number if the
 applicant is a natural person who is not licensed as a supplier,
 permissive supplier, or terminal operator; and
 (3)  if the applicant is a corporation, limited
 liability company, professional association, partnership, or other
 entity that is not licensed as a supplier, permissive supplier, or
 terminal operator and is not wholly owned by an entity that is
 licensed as a supplier, permissive supplier, or terminal operator,
 the physical address, mailing address, social security number, and
 driver's license number of:
 (A)  each natural person responsible for the
 purchase of motor fuel for sale by the applicant; and
 (B)  each officer, director, manager, member,
 shareholder, and partner of the applicant.
 SECTION 23.  Section 162.110(a), Tax Code, is amended to
 read as follows:
 (a)  The license issued to a supplier, permissive supplier,
 distributor, importer, exporter, terminal operator, blender, [or]
 motor fuel transporter, or dealer is permanent and is valid during
 the period the license holder has in force and effect the required
 bond or security and furnishes timely reports and supplements as
 required, or until the license is surrendered by the holder or
 canceled by the comptroller. The comptroller shall cancel a
 license under this subsection if a purchase, sale, or use of
 gasoline has not been reported by the license holder during the
 previous nine months.
 SECTION 24.  Section 162.111(a), Tax Code, is amended to
 read as follows:
 (a)  The comptroller shall determine the amount of security
 required of a supplier, permissive supplier, distributor,
 exporter, importer, dealer, or blender, taking into consideration
 the amount of tax that has or is expected to become due from the
 person, any past history of the person as a license holder under
 this chapter or its predecessor, and the necessity to protect this
 state against the failure to pay the tax as the tax becomes due.
 SECTION 25.  Sections 162.112(a) and (b), Tax Code, are
 amended to read as follows:
 (a)  The comptroller, on or before December 20 of each year,
 shall make available to all license holders an alphabetical list of
 licensed suppliers, permissive suppliers, distributors, aviation
 fuel dealers, importers, exporters, blenders, dealers, and
 terminal operators. A supplemental list of additions and deletions
 shall be made available to the license holders each month. A
 current and effective license or the list furnished by the
 comptroller is evidence of the validity of the license until the
 comptroller notifies license holders of a change in the status of a
 license holder.
 (b)  A licensed supplier, permissive supplier, dealer, or
 distributor who sells gasoline tax-free to a person whose
 supplier's, permissive supplier's, dealer's, or aviation fuel
 dealer's license has been canceled or revoked under this chapter is
 liable for any tax due on gasoline sold after receiving notice of
 the cancellation or revocation.
 SECTION 26.  Sections 162.113(d), (d-1), and (e), Tax Code,
 are amended to read as follows:
 (d)  The supplier or permissive supplier, after requesting a
 credit under this section, shall terminate the ability of the
 licensed distributor or licensed importer to defer the payment of
 state gasoline tax.  The supplier or permissive supplier may not
 reinstate the right of the licensed distributor or licensed
 importer to defer the payment of state gasoline tax until the first
 anniversary of the date the supplier or permissive supplier
 requested the credit, subject to Subsection (d-1).
 (d-1)  A supplier or permissive supplier may reinstate the
 right of a licensed distributor or licensed importer to defer the
 payment of state gasoline tax before the date prescribed by
 Subsection (d) if the comptroller determines that:
 (1)  the supplier or permissive supplier erroneously
 requested the credit that resulted in the termination of the
 licensed distributor's or licensed importer's right to defer
 payment; or
 (2)  the licensed distributor or licensed importer
 failed to pay state gasoline taxes due because of circumstances
 that may have been outside the distributor's or importer's control.
 (e)  A licensed distributor or licensed importer who makes
 timely payments of the state gasoline tax imposed by [under] this
 subchapter is entitled to retain an amount equal to 1.75 percent of
 the total state gasoline tax [taxes] to be paid to the supplier or
 permissive supplier to cover administrative expenses.
 SECTION 27.  Section 162.114(a), Tax Code, is amended to
 read as follows:
 (a)  Except as provided by Subsection (b), each person who is
 liable for the taxes [tax] imposed by this subchapter, a terminal
 operator, a dealer, and a licensed distributor shall file a return
 on or before the 25th day of the month following the end of each
 calendar month.
 SECTION 28.  Sections 162.115(b), (c), (e), (g), and (h),
 Tax Code, are amended to read as follows:
 (b)  A distributor shall keep:
 (1)  a record showing the number of gallons of:
 (A)  all gasoline inventories on hand at the first
 of each month;
 (B)  all gasoline blended;
 (C)  all gasoline purchased or received, showing
 the name of the seller and the date of each purchase or receipt;
 (D)  all gasoline sold, distributed, or used,
 showing:
 (i)  the name of the purchaser;
 (ii)  if the gasoline was delivered to a
 municipality in this state, the municipality to which the gasoline
 was delivered;
 (iii)  the amount of municipal gasoline tax
 collected from the purchaser, if any; and
 (iv)  the date of the sale, distribution, or
 use; and
 (E)  all gasoline lost by fire, theft, or
 accident;
 (2)  an itemized statement showing by load the number
 of gallons of all gasoline:
 (A)  received during the preceding calendar month
 for export and the location of the loading;
 (B)  sold, distributed, or used, showing:
 (i)  the name of the purchaser;
 (ii)  the municipality or municipalities in
 this state, if applicable;
 (iii)  the amount of municipal gasoline tax
 collected from the purchaser, if any; and
 (iv)  the date of the sale, distribution, or
 use;
 (C)  exported from this state by destination state
 or country; and
 (D) [(C)]  imported during the preceding calendar
 month by state or country of origin; [and]
 (3)  for gasoline exported from this state, proof of
 payment of tax to the destination state in a form acceptable to the
 comptroller; and
 (4)  all shipping documents.
 (c)  An importer shall keep:
 (1)  a record showing the number of gallons of:
 (A)  all gasoline inventories on hand at the first
 of each month;
 (B)  all gasoline compounded or blended;
 (C)  all gasoline purchased or received, showing
 the name of the seller and the date of each purchase or receipt;
 (D)  all gasoline sold, distributed, or used,
 showing the name of the purchaser, the municipality in this state,
 if applicable, and the date of the sale, distribution, or use; and
 (E)  all gasoline lost by fire, theft, or
 accident; and
 (2)  an itemized statement showing by load the number
 of gallons of all gasoline:
 (A)  received during the preceding calendar month
 for export and the location of the loading;
 (B)  sold, distributed, or used, showing the name
 of the purchaser, the municipality or municipalities in this state,
 if applicable, and the date of the sale, distribution, or use;
 (C)  exported from this state by destination state
 or country; and
 (D) [(C)]  imported during the preceding calendar
 month by state or country of origin.
 (e)  A blender shall keep a record showing the number of
 gallons of:
 (1)  all gasoline inventories on hand at the first of
 each month;
 (2)  all gasoline compounded or blended;
 (3)  all gasoline purchased or received, showing the
 name of the seller and the date of each purchase or receipt;
 (4)  all gasoline sold, distributed, or used, showing
 the name of the purchaser, the municipality in this state, if
 applicable, and the date of the sale or use; and
 (5)  all gasoline lost by fire, theft, or accident.
 (g)  A motor fuel transporter shall keep a complete and
 separate record of each intrastate and interstate transportation of
 gasoline, showing:
 (1)  the date of transportation;
 (2)  the name of the consignor and consignee;
 (3)  the means of transportation;
 (4)  the quantity and kind of gasoline transported;
 (5)  full data concerning the diversion of shipments,
 including the municipality in this state, if applicable, and the
 number of gallons diverted from interstate to intrastate and
 intrastate to interstate commerce; and
 (6)  the points of origin and destination, the
 municipality in this state, if applicable, the number of gallons
 shipped or transported, the date, the consignee and the consignor,
 and the kind of gasoline that has been diverted.
 (h)  A dealer shall keep all shipping documents and a record
 showing the number of gallons of:
 (1)  gasoline inventories on hand at the first of each
 month;
 (2)  all gasoline purchased or received, showing the
 name of the seller and the date of each purchase or receipt;
 (3)  all gasoline sold or used, showing the date of the
 sale or use; and
 (4)  all gasoline lost by fire, theft, or accident.
 SECTION 29.  Section 162.116(c), Tax Code, is amended to
 read as follows:
 (c)  A supplier or permissive supplier may take a credit for
 any state gasoline tax [taxes] that was [were] not remitted in a
 previous period to the supplier or permissive supplier by a
 licensed distributor or licensed importer as required by Section
 162.113. The supplier or permissive supplier is eligible to take
 the credit if the comptroller is notified of the default within 15
 days after the default occurs. If a license holder pays to a
 supplier or permissive supplier the tax owed, but the payment
 occurs after the supplier or permissive supplier has taken a credit
 on its return, the supplier or permissive supplier shall remit the
 payment to the comptroller with the next monthly return after
 receipt of the tax, plus a penalty of 10 percent of the amount of
 unpaid taxes and interest at the rate provided by Section 111.060
 beginning on the date the credit was taken.
 SECTION 30.  Section 162.118, Tax Code, is amended to read as
 follows:
 Sec. 162.118.  INFORMATION REQUIRED ON DISTRIBUTOR'S
 RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return
 and supplements of each distributor shall contain for the period
 covered by the return:
 (1)  the number of net gallons of gasoline received by
 the distributor during the month, sorted by product code, seller,
 point of origin, destination state, carrier, and receipt date;
 (2)  the number of net gallons of gasoline removed at a
 terminal rack by the distributor during the month, sorted by
 product code, seller, terminal code, and carrier;
 (3)  the number of net gallons of gasoline removed by
 the distributor during the month for export, sorted by product
 code, terminal code, bulk plant address, destination state, and
 carrier;
 (4)  the number of net gallons of gasoline removed by
 the distributor during the month from a terminal located in another
 state for conveyance to this state, as indicated on the shipping
 document for the gasoline, sorted by product code, seller, terminal
 code, bulk plant address, and carrier;
 (5)  the number of net gallons of gasoline the
 distributor sold during the month in transactions exempt under
 Section 162.104, sorted by product code and purchaser; [and]
 (6)  the number of net gallons delivered into a taxing
 municipality sorted by taxing municipality and purchaser; and
 (7)  any other information required by the comptroller.
 (b)  A distributor or importer who makes timely payments of
 the municipal tax imposed by this subchapter is entitled to retain
 an amount equal to two percent of the total municipal gasoline taxes
 remitted to the comptroller to cover administrative expenses.
 SECTION 31.  Section 162.123, Tax Code, is amended to read as
 follows:
 Sec. 162.123.  INFORMATION REQUIRED ON BLENDER'S RETURN.
 The monthly return and supplements of each blender shall contain
 for the period covered by the return:
 (1)  the number of net gallons of gasoline received by
 the blender during the month, sorted by product code, seller, point
 of origin, carrier, and receipt date;
 (2)  the number of net gallons of product blended with
 gasoline during the month, sorted by product code, type of blending
 agent if no product code exists, seller, and carrier;
 (3)  the number of net gallons of blended gasoline sold
 during the month and the license number or name, [and] address, and,
 if applicable, municipality of the entity receiving the blended
 gasoline; and
 (4)  any other information required by the comptroller.
 SECTION 32.  Subchapter B, Chapter 162, Tax Code, is amended
 by adding Section 162.1235 to read as follows:
 Sec. 162.1235.  INFORMATION REQUIRED ON DEALER'S RETURN.
 The monthly return and supplements of each dealer shall contain for
 the period covered by the return:
 (1)  the number of gallons of gasoline inventories on
 hand at the first of each month, sorted by product code;
 (2)  the number of gallons of gasoline received by the
 dealer during the month, sorted by seller;
 (3)  the number of gallons of gasoline inventories on
 hand at the end of each month; and
 (4)  any other information required by the comptroller.
 SECTION 33.  Sections 162.125(g-1) and (g-2), Tax Code, are
 amended to read as follows:
 (g-1)  A volunteer fire department exempt from the taxes
 [tax] imposed under this subchapter that paid a tax on the purchase
 of gasoline is entitled to a refund of the tax paid, and the
 volunteer fire department may file a refund claim with the
 comptroller for that amount.
 (g-2)  A nonprofit entity exempted under Section
 162.104(a)(9) from the taxes [tax] imposed under this subchapter
 that paid a tax on the purchase of gasoline is entitled to a refund
 of the tax paid, and the entity may file a refund claim with the
 comptroller for that amount.
 SECTION 34.  Sections 162.127(a) and (d), Tax Code, are
 amended to read as follows:
 (a)  A refund claim must be filed on a form provided by the
 comptroller, be supported by the original invoice issued by the
 seller, and contain:
 (1)  the stamped or preprinted name and address,
 including, if applicable, municipality of the seller;
 (2)  the name and address of the purchaser;
 (3)  the date of delivery of the gasoline;
 (4)  the date of the issuance of the invoice, if
 different from the date of fuel delivery;
 (5)  the number of gallons of gasoline delivered;
 (6)  the amount of state or municipal gasoline taxes
 paid [tax], either separately stated from the selling price or
 stated with a notation that both state and municipal taxes are
 included if both apply [the selling price includes the tax]; and
 (7)  the type of vehicle or equipment, such as a
 motorboat, railway engine, motor vehicle, off-highway vehicle, or
 refrigeration unit or stationary engine, into which the fuel is
 delivered.
 (d)  A distributor or person who does not hold a license who
 files a valid refund claim with the comptroller shall be paid by a
 warrant issued by the comptroller. For purposes of this section, a
 distributor meets the requirement of filing a valid refund claim
 for state and municipal gasoline taxes if the distributor
 designates the gallons of gasoline sold or used that are the subject
 of the refund claim on the monthly report submitted by the
 distributor to the comptroller.
 SECTION 35.  The heading to Section 162.201, Tax Code, is
 amended to read as follows:
 Sec. 162.201.  POINT OF IMPOSITION OF STATE DIESEL FUEL TAX.
 SECTION 36.  Sections 162.201(a), (b), (c), and (f), Tax
 Code, are amended to read as follows:
 (a)  A tax is imposed on the removal of diesel fuel from the
 terminal using the terminal rack other than by bulk transfer.  The
 supplier or permissive supplier is liable for and shall collect the
 tax imposed by this section [subchapter] from the person who orders
 the withdrawal at the terminal rack.
 (b)  A tax is imposed at the time diesel fuel is imported into
 this state, other than by a bulk transfer, for delivery to a
 destination in this state.  The supplier or permissive supplier is
 liable for and shall collect the tax imposed by this section
 [subchapter] from the person who imports the diesel fuel into this
 state.  If the seller is not a supplier or permissive supplier, the
 person who imports the diesel fuel into this state is liable for and
 shall pay the tax.
 (c)  A tax is imposed on the removal of diesel fuel from the
 bulk transfer/terminal system in this state.  The supplier is
 liable for and shall collect the tax imposed by this section
 [subchapter] from the person who orders the removal from the bulk
 transfer/terminal system.
 (f)  The terminal operator in this state is considered a
 supplier for the purpose of the tax imposed under this section
 [subchapter] unless at the time of removal:
 (1)  the terminal operator has a terminal operator's
 license issued for the facility from which the diesel fuel is
 withdrawn;
 (2)  the terminal operator verifies that the person who
 removes the diesel fuel has a supplier's license; and
 (3)  the terminal operator does not have a reason to
 believe that the supplier's license is not valid.
 SECTION 37.  Subchapter C, Chapter 162, Tax Code, is amended
 by adding Section 162.2011 to read as follows:
 Sec. 162.2011.  IMPOSITION OF MUNICIPAL DIESEL FUEL TAX;
 POINT OF COLLECTION. (a) In a municipality that imposes taxes on
 motor vehicle fuel authorized by Chapter 401, a tax is imposed on
 the delivery of diesel fuel into the taxing municipality.
 (b)  The distributor shall collect the tax imposed by this
 section from each person on delivery of diesel fuel into a taxing
 municipality.
 (c)  A tax is imposed on diesel fuel that is otherwise exempt
 from taxation under Section 162.204(a)(4) or (7) if the diesel fuel
 is sold in this state to a person who does not hold a license under
 Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel fuel is
 subsequently delivered into a taxing municipality. The person who
 delivered the diesel fuel into the taxing municipality is liable
 for and shall collect the tax.
 (d)  A tax is imposed on diesel fuel that is otherwise exempt
 from taxation under Section 162.204(a)(4) or (7) if before export
 the diesel fuel is sold in this state to a person who holds a license
 under Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel
 fuel is subsequently delivered to a taxing municipality.  The
 person who delivered the diesel fuel into the taxing municipality
 is liable for and shall pay the tax.
 (e)  In each subsequent sale of diesel fuel on which the tax
 has been paid, the tax imposed by this section shall be collected
 from the purchaser so that the tax is paid ultimately by the person
 who uses the diesel fuel. Diesel fuel is considered to be used when
 it is delivered into a fuel supply tank.
 SECTION 38.  Section 162.202, Tax Code, is amended to read as
 follows:
 Sec. 162.202.  TAX RATES [RATE]. (a) Except as provided by
 Section 162.2026, the state [The] diesel fuel tax rate is 20 cents
 for each net gallon or fractional part of a net gallon on which the
 tax is imposed under Section 162.201.
 (b)  In a taxing municipality, the municipal diesel fuel tax
 rate for each net gallon or fractional part of a net gallon is the
 rate established by Chapter 401, including the amount of
 adjustments under Section 162.2026.
 SECTION 39.  The heading to Section 162.2025, Tax Code, is
 amended to read as follows:
 Sec. 162.2025.  SEPARATE STATEMENT OF TAXES [TAX] COLLECTED
 FROM PURCHASER.
 SECTION 40.  Sections 162.2025(a), (b), and (c), Tax Code,
 are amended to read as follows:
 (a)  In each subsequent sale of diesel fuel on which the
 taxes imposed by this subchapter have [tax has] been paid, the taxes
 [tax imposed by this subchapter] shall be collected from the
 purchaser so that the taxes are [tax is] paid ultimately by the
 person who uses the diesel fuel.  Diesel fuel is considered to be
 used when it is delivered into a fuel supply tank.
 (b)  The taxes [tax] imposed by this subchapter must be
 stated separately from the sales price of diesel fuel and
 identified as diesel fuel taxes [tax] on the invoice or receipt
 issued to a purchaser.  Backup diesel fuel taxes [tax] may be
 identified as diesel fuel taxes [tax].  The taxes [tax] must be
 separately stated and identified in the same manner on a shipping
 document, if the shipping document includes the sales price of the
 diesel fuel.
 (c)  Except as provided by Subsection (d), the sales price of
 diesel fuel stated on an invoice, receipt, or shipping document is
 presumed to be exclusive of the taxes [tax] imposed by this
 subchapter.  The seller or purchaser may overcome the presumption
 by using the seller's records to show that the taxes [tax] imposed
 by this subchapter were [was] included in the sales price.
 SECTION 41.  Subchapter C, Chapter 162, Tax Code, is amended
 by adding Section 162.2026 to read as follows:
 Sec. 162.2026.  ANNUAL RATE CHANGE ACCORDING TO CONSUMER
 PRICE INDEX. (a) In this section:
 (1)  "Consumer price index" means the consumer price
 index for all urban consumers for all items and for all regions of
 the United States combined, as determined by the United States
 Department of Labor, Bureau of Labor Statistics, or, if that index
 is discontinued or superseded, a similar index selected or
 calculated by the comptroller.
 (2)  "Consumer price index percentage change" means the
 percentage increase or decrease in the consumer price index of a
 given state fiscal year from the consumer price index of the
 preceding state fiscal year.
 (b)  On January 1 of each year, the rates of state and
 municipal diesel fuel taxes imposed under this subchapter are
 increased or decreased by a percentage that is equal to the consumer
 price index percentage change for the preceding fiscal year.
 (c)  Not later than November 1 of each year, the comptroller
 shall:
 (1)  compute the new tax rates as provided by this
 section;
 (2)  give the new tax rates to the secretary of state
 for publication in the Texas Register; and
 (3)  notify each license holder under this subchapter
 of the applicable new tax rates.
 SECTION 42.  The heading to Section 162.203, Tax Code, is
 amended to read as follows:
 Sec. 162.203.  BACKUP STATE DIESEL FUEL TAX; LIABILITY.
 SECTION 43.  Sections 162.203(a) and (c), Tax Code, are
 amended to read as follows:
 (a)  A backup tax is imposed at the rate prescribed by
 Sections 162.202(a) and 162.2026 [Section 162.202] on:
 (1)  a person who obtains a refund of tax on diesel fuel
 by claiming the diesel fuel was used for an off-highway purpose, but
 actually uses the diesel fuel to operate a motor vehicle on a public
 highway;
 (2)  a person who operates a motor vehicle on a public
 highway using diesel fuel on which tax has not been paid;
 (3)  a person who sells to the ultimate consumer diesel
 fuel on which a tax has not been paid and who knew or had reason to
 know that the diesel fuel would be used for a taxable purpose; and
 (4)  a person, other than a person exempted under
 Section 162.204, who acquires diesel fuel on which tax has not been
 paid from any source in this state.
 (c)  The tax imposed by [under] Subsection (a)(3) is also
 imposed on the ultimate consumer.
 SECTION 44.  Subchapter C, Chapter 162, Tax Code, is amended
 by adding Section 162.2035 to read as follows:
 Sec. 162.2035.  BACKUP MUNICIPAL DIESEL FUEL TAX; LIABILITY.
 (a) A backup tax is imposed at the rate prescribed by Sections
 162.202(b) and 162.2026 on:
 (1)  a person who, in a taxing municipality:
 (A)  delivers diesel fuel into the fuel supply
 tank of a motor vehicle;
 (B)  purchases or receives diesel fuel from
 another person; or
 (C)  sells or delivers diesel fuel to another
 person; and
 (2)  a person who obtains a refund of the tax imposed by
 Section 162.2011 for diesel fuel that the person delivered into the
 fuel supply tank of a motor vehicle, purchased or acquired, or sold
 or delivered in a taxing municipality.
 (b)  A person who sells diesel fuel subject to the tax
 imposed by this section shall at the time of sale collect the tax
 from the purchaser or recipient of the diesel fuel in addition to
 the selling price and is liable to this state for the taxes
 collected at the time and in the manner provided by this chapter.
 (c)  The following are exempt from the tax imposed by this
 section:
 (1)  diesel fuel on which the tax imposed by Section
 162.2011 had been paid; and
 (2)  diesel fuel exempt under Section 162.204.
 (d)  The tax imposed by this section is in addition to any
 penalty imposed under this chapter.
 SECTION 45.  Sections 162.204(a) and (g), Tax Code, are
 amended to read as follows:
 (a)  The taxes [tax] imposed by this subchapter do [does] not
 apply to:
 (1)  diesel fuel sold to the United States for its
 exclusive use, provided that the exemption does not apply to diesel
 fuel sold or delivered to a person operating under a contract with
 the United States;
 (2)  diesel fuel sold to a public school district in
 this state for the district's exclusive use;
 (3)  diesel fuel sold to a commercial transportation
 company or a metropolitan rapid transit authority operating under
 Chapter 451, Transportation Code, that provides public school
 transportation services to a school district under Section 34.008,
 Education Code, and that uses the diesel fuel only to provide those
 services;
 (4)  diesel fuel exported by either a licensed supplier
 or a licensed exporter from this state to any other state, provided
 that the bill of lading indicates the destination state and the
 supplier collects the destination state tax;
 (5)  diesel fuel moved by truck or railcar between
 licensed suppliers or licensed permissive suppliers and in which
 the diesel fuel removed from the first terminal comes to rest in the
 second terminal, provided that the removal from the second terminal
 rack is subject to the state diesel fuel tax imposed by this
 subchapter;
 (6)  diesel fuel delivered or sold into a storage
 facility of a licensed aviation fuel dealer from which the diesel
 fuel will be delivered solely into the fuel supply tanks of aircraft
 or aircraft servicing equipment, or sold from one licensed aviation
 fuel dealer to another licensed aviation fuel dealer who will
 deliver the diesel fuel exclusively into the fuel supply tanks of
 aircraft or aircraft servicing equipment;
 (7)  diesel fuel exported to a foreign country if the
 bill of lading or shipping documents indicate the foreign
 destination and the fuel is actually exported to the foreign
 country;
 (8)  dyed diesel fuel sold or delivered by a supplier to
 another supplier and dyed diesel fuel sold or delivered by a
 supplier or distributor into the bulk storage facility of a dyed
 diesel fuel bonded user or to a purchaser who provides a signed
 statement as provided by Section 162.206;
 (9)  the volume of water, fuel ethanol, renewable
 diesel, biodiesel, or mixtures thereof that are blended together
 with taxable diesel fuel when the finished product sold or used is
 clearly identified on the retail pump, storage tank, and sales
 invoice as a combination of diesel fuel and water, fuel ethanol,
 renewable diesel, biodiesel, or mixtures thereof;
 (10)  dyed diesel fuel sold by a supplier or permissive
 supplier to a distributor, or by a distributor to another
 distributor;
 (11)  dyed diesel fuel delivered by a license holder
 into the fuel supply tanks of railway engines, motorboats, or
 refrigeration units or other stationary equipment powered by a
 separate motor from a separate fuel supply tank;
 (12)  dyed kerosene when delivered by a supplier,
 distributor, or importer into a storage facility at a retail
 business from which all deliveries are exclusively for heating,
 cooking, lighting, or similar nonhighway use;
 (13)  diesel fuel used by a person, other than a
 political subdivision, who owns, controls, operates, or manages a
 commercial motor vehicle as defined by Section 548.001,
 Transportation Code, if the fuel:
 (A)  is delivered exclusively into the fuel supply
 tank of the commercial motor vehicle; and
 (B)  is used exclusively to transport passengers
 for compensation or hire between points in this state on a fixed
 route or schedule;
 (14)  diesel fuel sold to a volunteer fire department
 in this state for the department's exclusive use; or
 (15)  diesel fuel sold to a nonprofit entity that is
 organized for the sole purpose of and engages exclusively in
 providing emergency medical services and that uses the diesel fuel
 exclusively to provide emergency medical services, including
 rescue and ambulance services.
 (g)  In lieu of claiming the exemption and complying with the
 labeling requirements provided by Subsection (a)(9), a person to
 whom Section 162.201 applies may elect to collect and remit the
 taxes [tax] otherwise imposed by [under] this subchapter on the
 materials described by Subsection (a)(9) as if the materials were
 taxable diesel fuel.  The labeling requirements provided by
 Subsection (a)(9) do not apply to a dealer who sells taxable diesel
 fuel blended with materials described by Subsection (a)(9) on which
 a tax has been paid as provided by this subsection.  Materials
 described by Subsection (a)(9) on which a tax has been paid as
 provided by this subsection are not exempt from taxation [tax]
 under Subsection (a)(9) on a subsequent sale, and a license holder
 or other purchaser is not entitled to a refund or credit under
 Subsection (a)(9) for a purchase of taxable diesel fuel blended
 with those materials.
 SECTION 46.  Section 162.205(a), Tax Code, is amended to
 read as follows:
 (a)  A person shall obtain the appropriate license or
 licenses issued by the comptroller before conducting the activities
 of:
 (1)  a supplier, who may also act as a distributor,
 importer, exporter, blender, motor fuel transporter, dealer, or
 aviation fuel dealer without securing a separate license, but who
 is subject to all other conditions, requirements, and liabilities
 imposed on those license holders;
 (2)  a permissive supplier, who may also act as a
 distributor, importer, exporter, blender, motor fuel transporter,
 dealer, or aviation fuel dealer without securing a separate license
 but who is subject to all other conditions, requirements, and
 liabilities imposed on those license holders;
 (3)  a distributor, who may also act as an importer,
 exporter, blender, [or] motor fuel transporter, or dealer without
 securing a separate license, but who is subject to all other
 conditions, requirements, and liabilities imposed on those license
 holders;
 (4)  an importer, who may also act as an exporter,
 blender, [or] motor fuel transporter, or dealer without securing a
 separate license, but who is subject to all other conditions,
 requirements, and liabilities imposed on those license holders;
 (5)  a terminal operator;
 (6)  an exporter;
 (7)  a blender;
 (8)  a motor fuel transporter;
 (9)  an aviation fuel dealer;
 (10)  an interstate trucker; [or]
 (11)  a dyed diesel fuel bonded user; or
 (12)  a dealer.
 SECTION 47.  Section 162.206(d), Tax Code, is amended to
 read as follows:
 (d)  Any gallons purchased or sold in excess of the
 limitations prescribed by Subsection (c) constitute a [taxable
 purchase or] sale subject to the taxes imposed by this chapter. A
 purchaser that exceeds the limitations prescribed by Subsection (c)
 shall be required to obtain a dyed diesel fuel bonded user license.
 SECTION 48.  Sections 162.208(a) and (b), Tax Code, are
 amended to read as follows:
 (a)  A person may elect to obtain a permissive supplier
 license to collect the state diesel fuel tax imposed by [under] this
 subchapter for diesel fuel that is removed at a terminal in another
 state and has this state as the destination state.
 (b)  With respect to diesel fuel that is removed by the
 licensed permissive supplier at a terminal located in another state
 and that has this state as the destination state, a licensed
 permissive supplier shall:
 (1)  collect the state diesel fuel tax due to this state
 on the diesel fuel;
 (2)  waive any defense that this state lacks
 jurisdiction to require the supplier to collect the state diesel
 fuel tax due to this state on the diesel fuel under this subchapter;
 (3)  report and pay the state diesel fuel tax due on the
 diesel fuel in the same manner as if the removal had occurred at a
 terminal located in this state;
 (4)  keep records of the removal of the diesel fuel and
 submit to audits concerning the diesel fuel as if the removal had
 occurred at a terminal located in this state; and
 (5)  report sales by the permissive supplier to a
 person who is not licensed in this state.
 SECTION 49.  Section 162.209, Tax Code, is amended by adding
 Subsection (a-1) to read as follows:
 (a-1)  In addition to the information required by Subsection
 (a), an applicant for a license as a dealer must list on the
 application:
 (1)  the street address, municipality, county, and zip
 code of the location for which the applicant seeks a license to sell
 or dispense motor fuel at retail;
 (2)  the applicant's social security number, driver's
 license number, and federal employer identification number if the
 applicant is a natural person who is not licensed as a supplier,
 permissive supplier, or terminal operator; and
 (3)  if the applicant is a corporation, limited
 liability company, professional association, partnership or other
 entity that is not licensed as a supplier, permissive supplier, or
 terminal operator and is not wholly owned by an entity that is
 licensed as a supplier, permissive supplier, or terminal operator,
 the physical address, mailing address, social security number, and
 driver's license number of:
 (A)  each natural person responsible for the
 purchase of motor fuel for sale by the applicant; and
 (B)  each officer, director, manager, member,
 shareholder, and partner of the applicant.
 SECTION 50.  Section 162.211(a), Tax Code, is amended to
 read as follows:
 (a)  The license issued to a supplier, permissive supplier,
 distributor, importer, terminal supplier, exporter, blender,
 dealer, motor fuel transporter, or dyed diesel fuel bonded user is
 permanent and is valid during the period the license holder has in
 force and effect the required bond or security and furnishes timely
 reports and supplements as required, or until the license is
 surrendered by the holder or canceled by the comptroller. The
 comptroller shall cancel a license under this subsection if a
 purchase, sale, or use of diesel fuel has not been reported by the
 license holder during the previous nine months.
 SECTION 51.  Section 162.212(a), Tax Code, is amended to
 read as follows:
 (a)  The comptroller shall determine the amount of security
 required of a supplier, permissive supplier, distributor,
 exporter, importer, dealer, blender, or dyed diesel fuel bonded
 user, taking into consideration the amount of tax that has or is
 expected to become due from the person, any past history of the
 person as a license holder under this chapter and its predecessor,
 and the necessity to protect this state against the failure to pay
 the tax as the tax becomes due.
 SECTION 52.  Section 162.213(a), Tax Code, is amended to
 read as follows:
 (a)  The comptroller, on or before December 20 of each year,
 shall make available to all license holders an alphabetical list of
 licensed suppliers, permissive suppliers, distributors, aviation
 fuel dealers, importers, exporters, blenders, dealers, terminal
 operators, and dyed diesel fuel bonded users. A supplemental list
 of additions and deletions shall be made available to the license
 holders each month. A current and effective license or the list
 furnished by the comptroller is evidence of the validity of the
 license until the comptroller notifies license holders of a change
 in the status of a license holder.
 SECTION 53.  Sections 162.214(c), (d), (d-1), and (e), Tax
 Code, are amended to read as follows:
 (c)  If the supplier or permissive supplier cannot secure
 from the licensed distributor or licensed importer payment of taxes
 due for state diesel fuel removed from the terminal during the
 previous reporting period and the supplier elects to take a credit
 against a subsequent payment of diesel fuel tax to this state for
 the taxes not remitted to the supplier or permissive supplier by the
 licensed distributor or licensed importer, the supplier or
 permissive supplier shall notify the comptroller of the licensed
 distributor's or licensed importer's failure to remit tax in
 conjunction with the report requesting a credit.
 (d)  The supplier or permissive supplier, after requesting a
 credit under this section, shall terminate the ability of the
 licensed distributor or licensed importer to defer the payment of
 state diesel fuel tax.  The supplier or permissive supplier may not
 reinstate the right of the licensed distributor or licensed
 importer to defer the payment of state diesel fuel tax until the
 first anniversary of the date the supplier or permissive supplier
 requested the credit, subject to Subsection (d-1).
 (d-1)  A supplier or permissive supplier may reinstate the
 right of a licensed distributor or licensed importer to defer the
 payment of state diesel fuel tax before the date prescribed by
 Subsection (d) if the comptroller determines that:
 (1)  the supplier or permissive supplier erroneously
 requested the credit that resulted in the termination of the
 licensed distributor's or licensed importer's right to defer
 payment; or
 (2)  the licensed distributor or licensed importer
 failed to pay state diesel fuel taxes due because of circumstances
 that may have been outside the distributor's or importer's control.
 (e)  A licensed distributor or licensed importer who makes
 timely payments of the state diesel fuel tax imposed by [under] this
 subchapter is entitled to retain an amount equal to 1.75 percent of
 the total state diesel fuel tax [taxes] to be paid to the supplier
 or permissive supplier to cover administrative expenses.
 SECTION 54.  Section 162.215(a), Tax Code, is amended to
 read as follows:
 (a)  Except as provided by Subsection (b), each person who is
 liable for the taxes [tax] imposed by this subchapter, a terminal
 operator, a dealer, and a licensed distributor shall file a return
 on or before the 25th day of the month following the end of each
 calendar month.
 SECTION 55.  Sections 162.216(b), (c), (e), (g), and (h),
 Tax Code, are amended to read as follows:
 (b)  A distributor shall keep:
 (1)  a record showing the number of gallons of:
 (A)  all diesel fuel inventories on hand at the
 first of each month;
 (B)  all diesel fuel blended;
 (C)  all diesel fuel purchased or received,
 showing the name of the seller and the date of each purchase or
 receipt;
 (D)  all diesel fuel sold, distributed, or used,
 showing:
 (i)  the name of the purchaser;
 (ii)  if the diesel fuel is delivered to a
 municipality in this state, the municipality to which the diesel
 fuel was delivered;
 (iii)  the amount of municipal diesel fuel
 tax collected from the purchaser, if any; and
 (iv)  the date of the sale, distribution, or
 use; and
 (E)  all diesel fuel lost by fire, theft, or
 accident;
 (2)  an itemized statement showing by load the number
 of gallons of all diesel fuel:
 (A)  received during the preceding calendar month
 for export and the location of the loading;
 (B)  sold, distributed, or used, showing:
 (i)  the name of the purchaser;
 (ii)  the municipality or municipalities in
 this state, if applicable;
 (iii)  the amount of municipal diesel fuel
 tax collected from the purchaser, if any; and
 (iv)  the date of the sale, distribution, or
 use;
 (C)  exported from this state by destination state
 or country; and
 (D) [(C)]  imported during the preceding calendar
 month, by state or country of origin; [and]
 (3)  for diesel fuel exported outside this state, proof
 of payment of tax to the destination state, in a form acceptable to
 the comptroller; and
 (4)  all shipping documents.
 (c)  An importer shall keep:
 (1)  a record showing the number of gallons of:
 (A)  all diesel fuel inventories on hand at the
 first of each month;
 (B)  all diesel fuel compounded or blended;
 (C)  all diesel fuel purchased or received,
 showing the name of the seller and the date of each purchase or
 receipt;
 (D)  all diesel fuel sold, distributed, or used,
 showing the name of the purchaser, the municipality in this state,
 if applicable, and the date of the sale, distribution, or use; and
 (E)  all diesel fuel lost by fire, theft, or
 accident; and
 (2)  an itemized statement showing by load the number
 of gallons of all diesel fuel:
 (A)  received during the preceding calendar month
 for export and the location of the loading;
 (B)  sold, distributed, or used, showing the name
 of the purchaser, the municipality or municipalities in this state,
 if applicable, and the date of sale, distribution, or use;
 (C)  exported from this state, by destination
 state or country; and
 (D) [(C)]  imported during the preceding calendar
 month, by state or country of origin.
 (e)  A blender shall keep a record showing the number of
 gallons of:
 (1)  all diesel fuel inventories on hand at the first of
 each month;
 (2)  all diesel fuel compounded or blended;
 (3)  all diesel fuel purchased or received, showing the
 name of the seller and the date of each purchase or receipt;
 (4)  all diesel fuel sold, distributed, or used,
 showing the name of the purchaser, the municipality in this state,
 if applicable, and the date of the sale, distribution, or use; and
 (5)  all diesel fuel lost by fire, theft, or accident.
 (g)  A motor fuel transporter shall keep a complete and
 separate record of each intrastate and interstate transportation of
 diesel fuel, showing:
 (1)  the date of transportation;
 (2)  the name of the consignor and consignee;
 (3)  the method of transportation;
 (4)  the quantity and kind of diesel fuel transported;
 (5)  full data concerning the diversion of shipments,
 including the municipality in this state, if applicable, and the
 number of gallons diverted from interstate to intrastate and
 intrastate to interstate commerce; and
 (6)  the points of origin and destination, the
 municipality in this state, if applicable, the number of gallons
 shipped or transported, the date, the consignee and the consignor,
 and the kind of diesel fuel that has been diverted.
 (h)  A dealer shall keep all shipping documents and a record
 showing the number of gallons of:
 (1)  diesel fuel inventories on hand at the first of
 each month;
 (2)  all diesel fuel purchased or received, showing the
 name of the seller and the date of each purchase or receipt;
 (3)  all diesel fuel sold or used, showing the date of
 the sale or use; and
 (4)  all diesel fuel lost by fire, theft, or accident.
 SECTION 56.  Section 162.217(c), Tax Code, is amended to
 read as follows:
 (c)  A supplier or permissive supplier may take a credit for
 any state diesel fuel tax [taxes] that was [were] not remitted in a
 previous period to the supplier or permissive supplier by a
 licensed distributor or licensed importer as required by Section
 162.214. The supplier or permissive supplier is eligible to take
 this credit if the comptroller is notified of the default within 15
 days after the default occurs. If a license holder pays to a
 supplier or permissive supplier the tax owed, but the payment
 occurs after the supplier or permissive supplier has taken a credit
 on its return, the supplier or permissive supplier shall remit the
 payment to the comptroller with the next monthly return after
 receipt of the tax, plus a penalty of 10 percent of the amount of
 unpaid taxes and interest at the rate provided by Section 111.060
 beginning on the date the credit is taken.
 SECTION 57.  Section 162.219, Tax Code, is amended to read as
 follows:
 Sec. 162.219.  INFORMATION REQUIRED ON DISTRIBUTOR'S
 RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return and
 supplements of each distributor shall contain for the period
 covered by the return:
 (1)  the number of net gallons of diesel fuel received
 by the distributor during the month, sorted by product code,
 seller, point of origin, destination state, carrier, and receipt
 date;
 (2)  the number of net gallons of diesel fuel removed at
 a terminal rack by the distributor during the month, sorted by
 product code, seller, terminal code, and carrier;
 (3)  the number of net gallons of diesel fuel removed by
 the distributor during the month for export, sorted by product
 code, terminal code, bulk plant address, destination state, and
 carrier;
 (4)  the number of net gallons of diesel fuel removed by
 the distributor during the month from a terminal located in another
 state for conveyance to this state, as indicated on the shipping
 document for the diesel fuel, sorted by product code, seller,
 terminal code, bulk plant address, and carrier;
 (5)  the number of net gallons of diesel fuel the
 distributor sold during the month in transactions exempt under
 Section 162.204, dyed diesel fuel sold to a purchaser under a signed
 statement, or dyed diesel fuel sold to a dyed diesel fuel bonded
 user, sorted by product code and by the entity receiving the diesel
 fuel; [and]
 (6)  the number of net gallons delivered into a taxing
 municipality sorted by taxing municipality and purchaser; and
 (7)  any other information required by the comptroller.
 (b)  A distributor or importer who makes timely payments of
 the municipal tax imposed by this subchapter is entitled to retain
 an amount equal to two percent of the total municipal diesel fuel
 taxes remitted to the comptroller to cover administrative expenses.
 SECTION 58.  Section 162.224, Tax Code, is amended to read as
 follows:
 Sec. 162.224.  INFORMATION REQUIRED ON BLENDER'S RETURN.
 The monthly return and supplements of each blender shall contain
 for the period covered by the return:
 (1)  the number of net gallons of diesel fuel received
 by the blender during the month, sorted by product code, seller,
 point of origin, carrier, and receipt date;
 (2)  the number of net gallons of product blended with
 diesel fuel during the month, sorted by product code, type of
 blending agent if no product code exists, seller, and carrier;
 (3)  the number of net gallons of blended diesel fuel
 sold during the month and the license number or name, [and] address,
 and, if applicable, municipality of the entity receiving the
 blended diesel fuel; and
 (4)  any other information required by the comptroller.
 SECTION 59.  Subchapter C, Chapter 162, Tax Code, is amended
 by adding Section 162.2245 to read as follows:
 Sec. 162.2245.  INFORMATION REQUIRED ON DEALER'S RETURN. The
 monthly return and supplements of each dealer shall contain for the
 period covered by the return:
 (1)  the number of gallons of diesel fuel inventories
 on hand at the first of each month, sorted by product code;
 (2)  the number of gallons of diesel fuel received by
 the dealer during the month, sorted by seller;
 (3)  the number of gallons of diesel fuel inventories
 on hand at the end of each month; and
 (4)  any other information required by the comptroller.
 SECTION 60.  Sections 162.227(f-1) and (f-2), Tax Code, are
 amended to read as follows:
 (f-1)  A volunteer fire department exempt from the taxes
 [tax] imposed under this subchapter that paid a tax on the purchase
 of diesel fuel is entitled to a refund of the tax paid, and the
 volunteer fire department may file a refund claim with the
 comptroller for that amount.
 (f-2)  A nonprofit entity exempted under Section
 162.204(a)(15) from the taxes [tax] imposed under this subchapter
 that paid a tax on the purchase of diesel fuel is entitled to a
 refund of the tax paid, and the entity may file a refund claim with
 the comptroller for that amount.
 SECTION 61.  Sections 162.229(a) and (d), Tax Code, are
 amended to read as follows:
 (a)  A refund claim must be filed on a form provided by the
 comptroller, be supported by the original invoice issued by the
 seller, and contain:
 (1)  the stamped or preprinted name and address,
 including, if applicable, municipality of the seller;
 (2)  the name and address of the purchaser;
 (3)  the date of delivery of the diesel fuel;
 (4)  the date of the issuance of the invoice, if
 different from the date of fuel delivery;
 (5)  the number of gallons of diesel fuel delivered;
 (6)  the amount of state or municipal diesel fuel taxes
 paid [tax], either separately stated from the selling price or
 stated with a notation that both state and municipal taxes are
 included if both apply [the selling price includes the tax]; and
 (7)  the type of vehicle or equipment into which the
 fuel is delivered.
 (d)  A distributor or person who does not hold a license who
 files a valid refund claim with the comptroller shall be paid by a
 warrant issued by the comptroller. For purposes of this section, a
 distributor meets the requirement of filing a valid refund claim
 for state and municipal diesel fuel taxes if the distributor
 designates the gallons of diesel fuel sold or used that are the
 subject of the refund claim on the monthly report submitted by the
 distributor to the comptroller.
 SECTION 62.  Sections 162.401(b), (c), and (f), Tax Code,
 are amended to read as follows:
 (b)  The comptroller may add a penalty of 75 percent of the
 amount of taxes, penalties, and interest due if failure to file the
 report or pay the tax when it becomes due is attributable to fraud
 or an intent to evade the application of this chapter or a rule
 adopted under this chapter or Chapter 111 or 401.
 (c)  The penalties provided by Subsection (b) are intended to
 be remedial in nature and are provided for the protection of state
 and taxing municipality revenue and to reimburse the state and
 taxing municipalities for expenses incurred as a result of fraud,
 including expenses incurred in conducting an investigation.
 (f)  In addition to any other penalty authorized by this
 section, a person who fails to pay the tax imposed by Section
 162.101(e-2), 162.1011(c), [or] 162.201(e-2), or 162.2011(d) when
 due shall pay a penalty equal to the greater of $2,000 or five times
 the amount of the taxes [tax] due on the motor fuel.
 SECTION 63.  Sections 162.402(a), (c), and (d), Tax Code,
 are 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;
 (10)  purchases motor fuel for export, on which the
 taxes [tax] imposed by this chapter have [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;
 (13)  transports motor fuel to a municipality in this
 state other than the municipality stated on the shipping document;
 or
 (14)  transports motor fuel to a municipality in this
 state if the shipping document does not state a municipality.
 (c)  A person receiving motor fuel who accepts a shipping
 document that does not conform with the requirements of Section
 162.004 or 162.016(a) is liable to this state for a civil penalty of
 $2,000 or five times the amount of the unpaid tax, whichever is
 greater, for each occurrence.
 (d)  A person who issues a shipping document that does not
 conform with the requirements of Section 162.004 or 162.016(a) is
 liable to this state for a civil penalty of $2,000 or five times the
 amount of the unpaid tax, whichever is greater, for each
 occurrence.
 SECTION 64.  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 Texas Department of Licensing and Regulation 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
 taxes [tax] imposed by this chapter have [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;
 (13-a)  transports motor fuel to a municipality in this
 state other than the municipality stated on the shipping document;
 (13-b)  transports motor fuel to a municipality in this
 state if the shipping document does not state a municipality;
 (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 a tax [the taxes]
 imposed by this chapter is [are] owed but has [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;
 (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 65.  Section 162.405(d), Tax Code, is amended to
 read as follows:
 (d)  An offense under Section 162.403(6), (13-a), (13-b),
 (17), (18), (19), (20), (21), (22), (23), or (24) is a felony of the
 third degree.
 SECTION 66.  Section 20.002(d), Transportation Code, is
 amended to read as follows:
 (d)  The fee imposed by this section is equal to 25 percent of
 the diesel fuel tax rate imposed under Section 162.202(a)
 [162.202], Tax Code.
 SECTION 67.  (a)  A municipality may not impose a motor fuel
 tax under Chapter 401, Tax Code, as added by this Act, before the
 effective date of rules adopted by the comptroller of public
 accounts under Section 401.151, Tax Code, as added by this Act.
 (b)  The comptroller of public accounts shall adopt the rules
 required by Section 401.151, Tax Code, as added by this Act, not
 later than December 1, 2021.
 SECTION 68.  The comptroller shall compute the initial
 adjusted tax rates as required by Sections 162.1026(c) and
 162.2026(c), Tax Code, as added by this Act, not later than November
 1, 2022. The initial adjusted rates take effect January 1, 2023.
 SECTION 69.  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 70.  If the constitution of this state requires that
 one-fourth of the municipal motor fuels tax authorized by this Act
 be allocated to the available school fund, the municipality shall
 deposit that money into an account separate from the money
 collected under other provisions of this Act and shall allocate the
 money to the comptroller of public accounts for deposit in the state
 treasury for the purpose required by the constitution.
 SECTION 71.  This Act takes effect September 1, 2021.