Texas 2021 - 87th Regular

Texas House Bill HB4183 Compare Versions

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Old	New	Differences
1	1	87R8927 SMT-F
2	2	By: Reynolds H.B. No. 4183
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to state and municipal motor fuel taxes; providing civil
8	8	penalties; creating criminal offenses; requiring occupational
9	9	licenses; authorizing the imposition of taxes; providing for
10	10	increases and decreases in the rates of taxes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Title 3, Tax Code, is amended by adding Subtitle
13	13	E to read as follows:
14	14	SUBTITLE E. LOCAL MOTOR FUEL TAXES
15	15	CHAPTER 401. MUNICIPAL MOTOR FUEL TAXES
16	16	SUBCHAPTER A. GENERAL PROVISIONS
17	17	Sec. 401.001. MEANINGS OF WORDS AND PHRASES. A word or
18	18	phrase used in this chapter that is defined by Chapter 162 has the
19	19	meaning assigned by that chapter.
20	20	SUBCHAPTER B. TAX AUTHORIZED; USE OF REVENUE
21	21	Sec. 401.051. MUNICIPAL MOTOR FUEL TAXES AUTHORIZED. (a)
22	22	Notwithstanding Section 162.014, if approved by a majority of the
23	23	votes cast in a municipality at an election held for that purpose,
24	24	the municipality shall impose taxes at the rate of one cent per
25	25	gallon on the sale of gasoline and diesel fuel that is sold in the
26	26	municipality by a person, including a dealer, distributor,
27	27	supplier, or permissive supplier, engaged in the sale of motor
28	28	fuels used to propel a motor vehicle on the public highways of the
29	29	state. The rates of the taxes shall be adjusted as provided by
30	30	Sections 162.1026 and 162.2026 on January 1 of each year after the
31	31	year in which the taxes are first imposed.
32	32	(b) The tax authorized by this section is in addition to the
33	33	tax imposed by Chapter 162 and shall be collected in conjunction
34	34	with that tax when gasoline or diesel fuel is removed from a
35	35	terminal using the terminal rack, other than by bulk transfer, to be
36	36	sold or delivered into a municipality that has imposed the tax
37	37	authorized by this section.
38	38	Sec. 401.052. USE OF REVENUE. The revenue collected under
39	39	this chapter may be used as provided by Section 7-a, Article VIII,
40	40	Texas Constitution.
41	41	SUBCHAPTER C. ELECTION
42	42	Sec. 401.101. ELECTION. (a) The governing body of a
43	43	municipality may call an election on the issue of imposing motor
44	44	fuel taxes under this chapter by a vote of a majority of its
45	45	members.
46	46	(b) An election called under this section must be held on
47	47	the uniform election date in May or November.
48	48	Sec. 401.102. BALLOT WORDING. The ballot shall be printed
49	49	to provide for voting for or against the proposition: "A motor fuel
50	50	tax is adopted within the city at a rate of one cent per gallon of
51	51	gasoline or diesel fuel sold in the city. The rate may be increased
52	52	or decreased each year to account for inflation or deflation."
53	53	Sec. 401.103. OFFICIAL RESULTS OF ELECTION. (a) Not later
54	54	than 10 days after an election in which the voters approve the
55	55	adoption of a tax authorized by this chapter, the governing body of
56	56	the municipality shall by resolution or ordinance entered in its
57	57	minutes of proceedings declare the results of the election. A
58	58	resolution or ordinance under this section must include statements
59	59	showing:
60	60	(1) the date of the election;
61	61	(2) the proposition on which the vote was held;
62	62	(3) the total number of votes cast for and against the
63	63	proposition; and
64	64	(4) the number of votes by which the proposition was
65	65	approved.
66	66	(b) If the imposition of a tax under this chapter is
67	67	approved by the voters, the municipal secretary shall send to the
68	68	comptroller a certified copy of the resolution or the ordinance
69	69	along with a map of the municipality clearly showing its
70	70	boundaries.
71	71	(c) Not later than the 30th day after the date the
72	72	comptroller receives a certified copy of an ordinance or resolution
73	73	showing the adoption of the tax, the comptroller shall notify the
74	74	municipal secretary of the date provided by Section 401.151(d) or
75	75	(e) when the comptroller will begin collecting the tax.
76	76	SUBCHAPTER D. ADMINISTRATION
77	77	Sec. 401.151. DUTIES OF COMPTROLLER RELATING TO MUNICIPAL
78	78	MOTOR FUEL TAXES. (a) The comptroller shall administer, collect,
79	79	and enforce a tax imposed on the sale of gasoline or diesel fuel
80	80	approved in accordance with the provisions of this chapter. The tax
81	81	shall be exclusively administered, collected, and enforced in
82	82	conformance with Chapter 162 governing the taxes imposed on the
83	83	sale of gasoline and diesel fuel, except that Subchapter F, Chapter
84	84	162 does not apply. References in Chapter 162 to taxes imposed under
85	85	that chapter also include taxes imposed under this chapter.
86	86	(b) The exemptions provided by Sections 162.104 and 162.204
87	87	apply to taxes imposed under this chapter.
88	88	(c) The comptroller may adopt reasonable rules and
89	89	prescribe forms that are consistent with this chapter and Chapter
90	90	162 for the administration, collection, reporting, and enforcement
91	91	of the taxes imposed under this chapter.
92	92	(d) Except as provided by Subsection (e), a tax authorized
93	93	by this chapter takes effect on the first day of the first calendar
94	94	quarter following the expiration of the first complete quarter
95	95	occurring after the date of the election authorizing the tax under
96	96	Section 401.051.
97	97	(e) If the comptroller determines that an effective date
98	98	provided by Subsection (d) will occur before the comptroller can
99	99	reasonably take the action required to begin collecting the tax,
100	100	the comptroller may delay the effective date until the first day of
101	101	the first calendar quarter following the date the comptroller
102	102	declares that the comptroller is ready to begin collecting the tax.
103	103	(f) Before making a distribution to a municipality under
104	104	Section 401.154, the comptroller shall deduct any costs incurred by
105	105	the comptroller related to the comptroller's preparations to
106	106	administer, collect, and enforce a tax on the sale of gasoline or
107	107	diesel fuel approved in accordance with this chapter. Each
108	108	municipality that approves the imposition of taxes on the sale of
109	109	gasoline and diesel fuel shall pay a pro rata amount of the
110	110	comptroller's costs in preparing to administer, collect, and
111	111	enforce the taxes. If only one municipality elects to approve the
112	112	imposition of taxes on the sale of gasoline and diesel fuel in its
113	113	jurisdiction, that municipality bears all of the costs incurred by
114	114	the comptroller but may recover pro rata shares of this cost from
115	115	other municipalities that approve the imposition of the taxes.
116	116	Sec. 401.152. ADOPTION OF RULES RELATING TO MOTOR FUEL
117	117	TAXES. (a) Before the comptroller may adopt rules under Section
118	118	401.151, the comptroller must consult with representatives of:
119	119	(1) the entities that would be required to:
120	120	(A) collect and remit a motor fuel tax imposed
121	121	under this chapter; and
122	122	(B) file reports with the comptroller relating to
123	123	a motor fuel tax imposed under this chapter; and
124	124	(2) municipalities in which the voters have approved
125	125	the imposition of a motor fuel tax under this chapter.
126	126	(b) Rules adopted under Section 401.151 must provide for the
127	127	uniform administration and reporting of all motor fuel taxes
128	128	imposed by a municipality under this chapter. A municipality may
129	129	not impose requirements on an entity required to collect a motor
130	130	fuel tax under this chapter that are not specifically authorized by
131	131	the rules adopted under Section 401.151.
132	132	(c) Rules adopted under Section 401.151:
133	133	(1) may require the comptroller to report sufficient
134	134	information to each municipality imposing a motor fuel tax under
135	135	this chapter to ensure proper allocation of revenue by the
136	136	municipality under this chapter;
137	137	(2) may not require the comptroller to report
138	138	proprietary information collected from an individual taxpayer in a
139	139	way that would be subject to public disclosure; and
140	140	(3) may not authorize a municipality imposing a motor
141	141	fuel tax under this chapter to contract with a private entity to
142	142	perform any duty or responsibility associated with the collection,
143	143	enforcement, or administration of the tax.
144	144	Sec. 401.153. TRUST ACCOUNT. The comptroller shall deposit
145	145	the municipal taxes collected by the comptroller under this chapter
146	146	and Chapter 162 in trust in a separate suspense account of the
147	147	municipality for which the taxes were collected.
148	148	Sec. 401.154. DISTRIBUTION OF TRUST FUNDS. The comptroller
149	149	shall each month distribute to the municipality the municipality's
150	150	share of the taxes collected by the comptroller under this chapter
151	151	and Chapter 162.
152	152	Sec. 401.155. STATE'S SHARE. Before making a distribution
153	153	to a municipality under Section 401.154, the comptroller also shall
154	154	deduct an amount not to exceed two percent of the amount of the
155	155	taxes collected for the municipality during the period for which a
156	156	distribution is made as the state's charge for its services. The
157	157	comptroller shall credit the amount deducted to the general revenue
158	158	fund. The comptroller shall adjust the percentage of the amount
159	159	deducted each state fiscal year considering the projected
160	160	expenditures necessary for the collection, administrative, and
161	161	enforcement functions related to the municipal motor fuel taxes.
162	162	Sec. 401.156. AMOUNTS RETAINED IN TRUST ACCOUNT. (a) The
163	163	comptroller may retain in the suspense account of a municipality a
164	164	portion of the municipality's share of the tax collected for the
165	165	municipality under this chapter and Chapter 162 not to exceed five
166	166	percent of the amount distributed to the municipality.
167	167	(b) From the amounts retained in a municipality's suspense
168	168	account, the comptroller may correct erroneous deposits to the
169	169	account, make refunds for overpayments to the account, and redeem
170	170	dishonored checks and drafts deposited to the credit of the
171	171	account.
172	172	Sec. 401.157. INTEREST ON TRUST ACCOUNT. Interest earned
173	173	on all deposits made by the comptroller under this subchapter shall
174	174	be credited to the suspense account of the municipality.
175	175	SECTION 2. Section 162.001, Tax Code, is amended by adding
176	176	Subdivisions (44-a), (44-b), (56-a), (56-b), and (57-a) to read as
177	177	follows:
178	178	(44-a) "Municipal diesel fuel tax" means the tax
179	179	imposed by Section 162.2011 or 162.2035.
180	180	(44-b) "Municipal gasoline tax" means the tax imposed
181	181	by Section 162.1011 or 162.1035.
182	182	(56-a) "State diesel fuel tax" means the tax imposed
183	183	by Section 162.201 or 162.203.
184	184	(56-b) "State gasoline tax" means the tax imposed by
185	185	Section 162.101 or 162.103.
186	186	(57-a) "Taxing municipality" means a destination
187	187	municipality that has adopted the taxes authorized by Chapter 401.
188	188	SECTION 3. Sections 162.004(e) and (g), Tax Code, are
189	189	amended to read as follows:
190	190	(e) A person to whom a shipping document was issued shall:
191	191	(1) carry the shipping document in the barge, vessel,
192	192	railroad tank car, or other transport vehicle for which the
193	193	document was issued when transporting the motor fuel described in
194	194	the document;
195	195	(2) show the shipping document on request to any law
196	196	enforcement officer, representative of the comptroller, or other
197	197	authorized individual, when transporting the motor fuel described;
198	198	(3) deliver the motor fuel to the destination state
199	199	printed on the shipping document unless the person:
200	200	(A) notifies the comptroller and the destination
201	201	state, if a diversion program is in place, before transporting the
202	202	motor fuel into a state other than the printed destination state,
203	203	that the person has received instructions after the shipping
204	204	document was issued to deliver the motor fuel to a different
205	205	destination state;
206	206	(B) receives from the comptroller and
207	207	destination state, if a diversion program is in place, a diversion
208	208	number authorizing the diversion; and
209	209	(C) writes on the shipping document the change in
210	210	destination state and the diversion number; [and]
211	211	(4) if delivering the motor fuel into a municipality
212	212	in this state, denote on the shipping document the municipality to
213	213	which the motor fuel will be delivered or, in the case of a split
214	214	load, each municipality in which a portion of the motor fuel will be
215	215	delivered; and
216	216	(5) give a copy of the shipping document to the person
217	217	to whom the motor fuel is delivered.
218	218	(g) The person to whom motor fuel is delivered by barge,
219	219	vessel, railroad tank car, or transport vehicle may not accept
220	220	delivery of the motor fuel if the destination state shown on the
221	221	shipping document for the motor fuel is a state other than this
222	222	state, except that the person may accept the [that] delivery if the
223	223	document contains a diversion number authorized by the comptroller
224	224	and destination state, if applicable, and has received a properly
225	225	completed shipping document listing the municipality, if
226	226	applicable, in this state in which the person accepts delivery. The
227	227	person to whom the motor fuel is delivered shall examine the
228	228	shipping document to determine that the destination state is this
229	229	state and, if applicable, that the municipality in this state is the
230	230	municipality in which the person accepts delivery, and shall retain
231	231	a copy of the shipping document at the delivery location or another
232	232	place until the fourth anniversary of the date of delivery.
233	233	SECTION 4. Section 162.005(e), Tax Code, is amended to read
234	234	as follows:
235	235	(e) The comptroller may revoke a license if the license
236	236	holder:
237	237	(1) purchases for export motor fuel on which the tax
238	238	was not paid under this chapter and subsequently diverts or causes
239	239	the motor fuel to be diverted to a destination in this state or to
240	240	any destination other than the originally designated state or
241	241	country without first obtaining a diversion number; or
242	242	(2) delivers motor fuel on which the municipal
243	243	gasoline tax or municipal diesel fuel tax is due without issuing a
244	244	properly completed shipping document listing the taxing
245	245	municipality in which the delivery occurred.
246	246	SECTION 5. Section 162.006(a), Tax Code, is amended to read
247	247	as follows:
248	248	(a) The comptroller may suspend a person's license without
249	249	notice or a hearing for the person's failure to comply with this
250	250	chapter or a rule adopted under this chapter or Chapter 401 if the
251	251	person's continued operation constitutes an immediate and
252	252	substantial threat to the collection of taxes imposed by this
253	253	chapter and attributable to the person's operation.
254	254	SECTION 6. Section 162.012, Tax Code, is amended to read as
255	255	follows:
256	256	Sec. 162.012. PRESUMPTIONS. (a) A person licensed under
257	257	this chapter or required to be licensed under this chapter, or other
258	258	user, who fails to keep a record, issue an invoice, or file a return
259	259	or report required by this chapter is presumed to have sold or used
260	260	for taxable purposes all motor fuel shown by an audit by the
261	261	comptroller to have been sold to the license holder or other
262	262	user. Motor fuel unaccounted for is presumed to have been sold or
263	263	used for taxable purposes.
264	264	(b) If an exporter claims an exemption under Section
265	265	162.104(a)(4) or 162.204(a)(4) and fails to report subsequent
266	266	tax-free sales in this state of the motor fuel for which the
267	267	exemption was claimed as required by Section 162.1155 or 162.2165,
268	268	or to produce proof of payment of tax to the destination state or
269	269	proof that the transaction was exempt in the destination state, the
270	270	exporter is presumed to have not paid the destination state's tax or
271	271	this state's tax on the motor fuel and the comptroller shall assess
272	272	the tax imposed by this chapter on the motor fuel against the
273	273	exporter.
274	274	(c) If a person claims an exemption from the municipal motor
275	275	fuels tax and fails to produce proof of delivery to a nontaxing
276	276	municipality or an unincorporated area of the state, the person is
277	277	presumed to have delivered the motor fuel to a taxing municipality
278	278	that imposes the tax on motor vehicle fuels authorized by Chapter
279	279	401.
280	280	(d) The comptroller may fix or establish the amount of
281	281	taxes, penalties, and interest due this state from the records of
282	282	deliveries or from any records or information available. If a tax
283	283	claim, as developed from this procedure, is not paid, after the
284	284	opportunity to request a redetermination, the claim and any audit
285	285	made by the comptroller or any report filed by the license holder or
286	286	other user is evidence in any suit or judicial proceedings filed by
287	287	the attorney general and is prima facie evidence of the correctness
288	288	of the claim or audit. A prima facie presumption of the
289	289	correctness of the claim may be overcome at the trial by evidence
290	290	adduced by the license holder or other user.
291	291	(e) [(b)] In the absence of records showing the number of
292	292	miles actually operated per gallon of motor fuel consumed, it is
293	293	presumed that not less than one gallon of motor fuel was consumed
294	294	for every four miles traveled. An interstate trucker may produce
295	295	evidence of motor fuel consumption to establish another mileage
296	296	factor. If an examination or audit made by the comptroller from the
297	297	records of an interstate trucker shows that a greater amount of
298	298	motor fuel was consumed than was reported by the interstate trucker
299	299	for tax purposes, the interstate trucker is liable for the tax,
300	300	penalties, and interest on the additional amount shown or the
301	301	trucker is entitled to a credit or refund on overpayments of tax
302	302	established by the audit.
303	303	SECTION 7. Section 162.015, Tax Code, is amended to read as
304	304	follows:
305	305	Sec. 162.015. ADDITIONAL TAX APPLIES TO INVENTORIES. (a)
306	306	On the effective date of an increase in the rate [rates] of a tax
307	307	[the taxes] imposed by this chapter, a distributor or dealer that
308	308	possesses for the purpose of sale 2,000 or more gallons of gasoline
309	309	or diesel fuel at each business location on which a tax [the taxes]
310	310	imposed by this chapter at a previous rate has [have] been paid
311	311	shall report to the comptroller the volume of that gasoline and
312	312	diesel fuel, and at the time of the report shall pay a tax on that
313	313	gasoline and diesel fuel at a rate equal to the rate of the tax
314	314	increase.
315	315	(b) On the effective date of a reduction of the rate [rates]
316	316	of a tax [taxes] imposed by this chapter, a distributor or dealer
317	317	that possesses for the purpose of sale 2,000 or more gallons of
318	318	gasoline or diesel fuel at each business location on which a tax
319	319	[the taxes] imposed by this chapter at the previous rate has [have]
320	320	been paid becomes entitled to a refund in an amount equal to the
321	321	difference in the amount of the tax [taxes] paid on that gasoline or
322	322	diesel fuel at the previous rate and at the rate in effect on the
323	323	effective date of the reduction in the tax rate [rates]. The rules
324	324	of the comptroller shall provide for the method of claiming a refund
325	325	under this chapter and may require that the refund for the dealer be
326	326	paid through the distributor or supplier from whom the dealer
327	327	received the fuel.
328	328	SECTION 8. Section 162.016, Tax Code, is amended by
329	329	amending Subsection (a) and adding Subsection (g-1) to read as
330	330	follows:
331	331	(a) A person may not import motor fuel to a destination in
332	332	this state or export motor fuel to a destination outside this state
333	333	by any means unless the person possesses a shipping document for
334	334	that fuel. The shipping document must include:
335	335	(1) the name and physical address of the terminal or
336	336	bulk plant from which the motor fuel was received for import or
337	337	export;
338	338	(2) the name of the carrier transporting the motor
339	339	fuel;
340	340	(3) the date the motor fuel was loaded;
341	341	(4) the type of motor fuel;
342	342	(5) the number of gallons:
343	343	(A) in temperature-adjusted gallons if purchased
344	344	from a terminal for export or import; or
345	345	(B) in temperature-adjusted gallons or in gross
346	346	gallons if purchased from a bulk plant;
347	347	(6) the destination state and, if the destination
348	348	state is this state and the gasoline or diesel fuel will be
349	349	delivered to a municipality, the municipality in this state to
350	350	which the gasoline or diesel fuel will be delivered [of the motor
351	351	fuel] as represented by the purchaser of the motor fuel and the
352	352	number of gallons of the fuel to be delivered, if delivery is to
353	353	only one state;
354	354	(7) the name and physical address of the purchaser of
355	355	the motor fuel;
356	356	(8) the name of the person responsible for paying the
357	357	tax imposed by this chapter, as given to the terminal by the
358	358	purchaser if different from the licensed supplier or distributor;
359	359	(9) the destination state of each portion of a split
360	360	load of motor fuel if the motor fuel is to be delivered to more than
361	361	one state and, if a destination state is this state and the gasoline
362	362	or diesel fuel will be delivered to a municipality, the
363	363	municipality in this state to which the gasoline or diesel fuel will
364	364	be delivered; and
365	365	(10) any other information that, in the opinion of the
366	366	comptroller, is necessary for the proper administration of this
367	367	chapter.
368	368	(g-1) An importer or exporter who wants to deliver a single
369	369	cargo tank of motor fuel to a municipality in this state must issue
370	370	a properly completed shipping document denoting the municipality to
371	371	which the motor fuel will be delivered or, in the case of a split
372	372	load, each municipality to which a portion of the motor fuel will be
373	373	delivered.
374	374	SECTION 9. The heading to Section 162.101, Tax Code, is
375	375	amended to read as follows:
376	376	Sec. 162.101. POINT OF IMPOSITION OF STATE GASOLINE TAX.
377	377	SECTION 10. Sections 162.101(a), (b), (c), and (f), Tax
378	378	Code, are amended to read as follows:
379	379	(a) A tax is imposed on the removal of gasoline from the
380	380	terminal using the terminal rack, other than by bulk transfer. The
381	381	supplier or permissive supplier is liable for and shall collect the
382	382	tax imposed by this section [subchapter] from the person who orders
383	383	the withdrawal at the terminal rack.
384	384	(b) A tax is imposed at the time gasoline is imported into
385	385	this state, other than by a bulk transfer, for delivery to a
386	386	destination in this state. The supplier or permissive supplier is
387	387	liable for and shall collect the tax imposed by this section
388	388	[subchapter] from the person who imports the gasoline into this
389	389	state. If the seller is not a supplier or permissive supplier,
390	390	then the person who imports the gasoline into this state is liable
391	391	for and shall pay the tax.
392	392	(c) A tax is imposed on the removal of gasoline from the bulk
393	393	transfer/terminal system in this state. The supplier is liable for
394	394	and shall collect the tax imposed by this section [subchapter] from
395	395	the person who orders the removal from the bulk transfer terminal
396	396	system.
397	397	(f) A terminal operator in this state is considered a
398	398	supplier for the purpose of the tax imposed by [under] this section
399	399	[subchapter] unless at the time of removal:
400	400	(1) the terminal operator has a terminal operator's
401	401	license issued for the facility from which the gasoline is
402	402	withdrawn;
403	403	(2) the terminal operator verifies that the person who
404	404	removes the gasoline has a supplier's license; and
405	405	(3) the terminal operator does not have a reason to
406	406	believe that the supplier's license is not valid.
407	407	SECTION 11. Subchapter B, Chapter 162, Tax Code, is amended
408	408	by adding Section 162.1011 to read as follows:
409	409	Sec. 162.1011. IMPOSITION OF MUNICIPAL GASOLINE TAX; POINT
410	410	OF COLLECTION. (a) In a municipality that imposes taxes on motor
411	411	vehicle fuel authorized by Chapter 401, a tax is imposed on the
412	412	delivery of gasoline into the taxing municipality.
413	413	(b) A tax is imposed on gasoline that is otherwise exempt
414	414	from taxation under Section 162.104(a)(4) or (7) if the gasoline is
415	415	sold in this state to a person who does not hold a license under
416	416	Section 162.105(1), (2), (3), (4), or (6) and the gasoline is
417	417	subsequently delivered into a taxing municipality. The person who
418	418	delivered the gasoline into the taxing municipality is liable for
419	419	and shall collect the tax.
420	420	(c) A tax is imposed on gasoline that is otherwise exempt
421	421	from taxation under Section 162.104(a)(4) or (7) if before export
422	422	the gasoline is sold in this state to a person who holds a license
423	423	under Section 162.105(1), (2), (3), (4), or (6) and the gasoline is
424	424	delivered into a taxing municipality. The person who delivered the
425	425	gasoline into the taxing municipality is liable for and shall pay
426	426	the tax.
427	427	(d) The distributor shall collect the tax imposed by this
428	428	section from each person on delivery of gasoline into a taxing
429	429	municipality.
430	430	(e) In each subsequent sale of gasoline on which the tax has
431	431	been paid, the tax imposed by this section shall be collected from
432	432	the purchaser so that the tax is paid ultimately by the person who
433	433	uses the gasoline. Gasoline is considered to be used when it is
434	434	delivered into a fuel supply tank.
435	435	SECTION 12. Section 162.102, Tax Code, is amended to read as
436	436	follows:
437	437	Sec. 162.102. TAX RATES [RATE]. (a) Except as provided by
438	438	Section 162.1026, the state [The] gasoline tax rate is 20 cents for
439	439	each net gallon or fractional part of a net gallon on which the tax
440	440	is imposed under Section 162.101.
441	441	(b) In a taxing municipality, the municipal gasoline tax
442	442	rate for each net gallon or fractional part of a net gallon is the
443	443	rate established by Chapter 401, including the amount of
444	444	adjustments under Section 162.1026.
445	445	SECTION 13. The heading to Section 162.1025, Tax Code, is
446	446	amended to read as follows:
447	447	Sec. 162.1025. SEPARATE STATEMENT OF TAXES [TAX] COLLECTED
448	448	FROM PURCHASER.
449	449	SECTION 14. Sections 162.1025(a), (b), and (c), Tax Code,
450	450	are amended to read as follows:
451	451	(a) In each subsequent sale of gasoline on which the taxes
452	452	imposed by this subchapter have [tax has] been paid, the taxes [tax
453	453	imposed by this subchapter] shall be collected from the purchaser
454	454	so that the taxes are [tax is] paid ultimately by the person who
455	455	uses the gasoline. Gasoline is considered to be used when it is
456	456	delivered into a fuel supply tank.
457	457	(b) The taxes [tax] imposed by this subchapter must be
458	458	stated separately from the sales price of gasoline and identified
459	459	as gasoline taxes [tax] on the invoice or receipt issued to a
460	460	purchaser. Backup gasoline taxes [tax] may be identified as
461	461	gasoline taxes [tax]. The taxes [tax] must be separately stated and
462	462	identified in the same manner on a shipping document, if the
463	463	shipping document includes the sales price of the gasoline.
464	464	(c) Except as provided by Subsection (d), the sales price of
465	465	gasoline stated on an invoice, receipt, or shipping document is
466	466	presumed to be exclusive of the taxes [tax] imposed by this
467	467	subchapter. The seller or purchaser may overcome the presumption
468	468	by using the seller's records to show that the taxes [tax] imposed
469	469	by this subchapter were [was] included in the sales price.
470	470	SECTION 15. Subchapter B, Chapter 162, Tax Code, is amended
471	471	by adding Section 162.1026 to read as follows:
472	472	Sec. 162.1026. ANNUAL RATE CHANGE ACCORDING TO CONSUMER
473	473	PRICE INDEX. (a) In this section:
474	474	(1) "Consumer price index" means the consumer price
475	475	index for all urban consumers for all items and for all regions of
476	476	the United States combined, as determined by the United States
477	477	Department of Labor, Bureau of Labor Statistics, or, if that index
478	478	is discontinued or superseded, a similar index selected or
479	479	calculated by the comptroller.
480	480	(2) "Consumer price index percentage change" means the
481	481	percentage increase or decrease in the consumer price index of a
482	482	given state fiscal year from the consumer price index of the
483	483	preceding state fiscal year.
484	484	(b) On January 1 of each year, the rates of state and
485	485	municipal gasoline taxes imposed under this subchapter are
486	486	increased or decreased by a percentage that is equal to the consumer
487	487	price index percentage change for the preceding fiscal year.
488	488	(c) Not later than November 1 of each year, the comptroller
489	489	shall:
490	490	(1) compute the new tax rates as provided by this
491	491	section;
492	492	(2) give the new tax rates to the secretary of state
493	493	for publication in the Texas Register; and
494	494	(3) notify each license holder under this subchapter
495	495	of the applicable new tax rates.
496	496	SECTION 16. The heading to Section 162.103, Tax Code, is
497	497	amended to read as follows:
498	498	Sec. 162.103. BACKUP STATE GASOLINE TAX; LIABILITY.
499	499	SECTION 17. Sections 162.103(a) and (c), Tax Code, are
500	500	amended to read as follows:
501	501	(a) A backup tax is imposed at the rate prescribed by
502	502	Sections 162.102(a) and 162.1026 [Section 162.102] on:
503	503	(1) a person who obtains a refund of tax on gasoline by
504	504	claiming the gasoline was used for an off-highway purpose, but
505	505	actually uses the gasoline to operate a motor vehicle on a public
506	506	highway;
507	507	(2) a person who operates a motor vehicle on a public
508	508	highway using gasoline on which tax has not been paid;
509	509	(3) a person who sells to the ultimate consumer
510	510	gasoline on which tax has not been paid and who knew or had reason to
511	511	know that the gasoline would be used for a taxable purpose; and
512	512	(4) a person, other than a person exempted under
513	513	Section 162.104, who acquires gasoline on which tax has not been
514	514	paid from any source in this state.
515	515	(c) The tax imposed by [under] Subsection (a)(3) is also
516	516	imposed on the ultimate consumer.
517	517	SECTION 18. Subchapter B, Chapter 162, Tax Code, is amended
518	518	by adding Section 162.1035 to read as follows:
519	519	Sec. 162.1035. BACKUP MUNICIPAL GASOLINE TAX; LIABILITY.
520	520	(a) A backup tax is imposed at the rate prescribed by Sections
521	521	162.102(b) and 162.1026 on:
522	522	(1) a person who, in a taxing municipality:
523	523	(A) delivers gasoline into the fuel supply tank
524	524	of a motor vehicle;
525	525	(B) purchases or receives gasoline from another
526	526	person; or
527	527	(C) sells or delivers gasoline to another person;
528	528	and
529	529	(2) a person who obtains a refund of the tax imposed by
530	530	Section 162.1011 for gasoline that the person delivered into the
531	531	fuel supply tank of a motor vehicle, purchased or acquired, or sold
532	532	or delivered in a taxing municipality.
533	533	(b) A person who sells gasoline subject to the tax imposed
534	534	by this section shall at the time of sale collect the tax from the
535	535	purchaser or recipient of the gasoline in addition to the selling
536	536	price and is liable to this state for the taxes collected at the
537	537	time and in the manner provided by this chapter.
538	538	(c) The following are exempt from the tax imposed by this
539	539	section:
540	540	(1) gasoline on which the tax imposed by Section
541	541	162.1011 has been paid; and
542	542	(2) gasoline exempt under Section 162.104.
543	543	(d) The tax imposed by this section is in addition to any
544	544	penalty imposed under this chapter.
545	545	SECTION 19. Section 162.104(a), Tax Code, is amended to
546	546	read as follows:
547	547	(a) The taxes [tax] imposed by this subchapter do [does] not
548	548	apply to gasoline:
549	549	(1) sold to the United States for its exclusive use,
550	550	provided that the exemption does not apply with respect to fuel sold
551	551	or delivered to a person operating under a contract with the United
552	552	States;
553	553	(2) sold to a public school district in this state for
554	554	the district's exclusive use;
555	555	(3) sold to a commercial transportation company or a
556	556	metropolitan rapid transit authority operating under Chapter 451,
557	557	Transportation Code, that provides public school transportation
558	558	services to a school district under Section 34.008, Education Code,
559	559	and that uses the gasoline only to provide those services;
560	560	(4) exported by either a licensed supplier or a
561	561	licensed exporter from this state to any other state, provided that
562	562	the bill of lading indicates the destination state and the supplier
563	563	collects the destination state tax;
564	564	(5) moved by truck or railcar between licensed
565	565	suppliers or licensed permissive suppliers and in which the
566	566	gasoline removed from the first terminal comes to rest in the second
567	567	terminal, provided that the removal from the second terminal rack
568	568	is subject to the state gasoline tax imposed by this subchapter;
569	569	(6) delivered or sold into a storage facility of a
570	570	licensed aviation fuel dealer from which gasoline will be delivered
571	571	solely into the fuel supply tanks of aircraft or aircraft servicing
572	572	equipment, or sold from one licensed aviation fuel dealer to
573	573	another licensed aviation fuel dealer who will deliver the aviation
574	574	fuel exclusively into the fuel supply tanks of aircraft or aircraft
575	575	servicing equipment;
576	576	(7) exported to a foreign country if the bill of lading
577	577	or shipping documents indicate the foreign destination and the fuel
578	578	is actually exported to the foreign country;
579	579	(8) sold to a volunteer fire department in this state
580	580	for the department's exclusive use; or
581	581	(9) sold to a nonprofit entity that is organized for
582	582	the sole purpose of and engages exclusively in providing emergency
583	583	medical services and that uses the gasoline exclusively to provide
584	584	emergency medical services, including rescue and ambulance
585	585	services.
586	586	SECTION 20. Section 162.105, Tax Code, is amended to read as
587	587	follows:
588	588	Sec. 162.105. PERSONS REQUIRED TO BE LICENSED. A person
589	589	shall obtain the appropriate license or licenses issued by the
590	590	comptroller before conducting the activities of:
591	591	(1) a supplier, who may also act as a distributor,
592	592	importer, exporter, blender, motor fuel transporter, dealer, or
593	593	aviation fuel dealer without securing a separate license, but who
594	594	is subject to all other conditions, requirements, and liabilities
595	595	imposed on those license holders;
596	596	(2) a permissive supplier, who may also act as a
597	597	distributor, importer, exporter, blender, motor fuel transporter,
598	598	dealer, or aviation fuel dealer without securing a separate
599	599	license, but who is subject to all other conditions, requirements,
600	600	and liabilities imposed on those license holders;
601	601	(3) a distributor, who may also act as an importer,
602	602	exporter, blender, [or] motor fuel transporter, or dealer without
603	603	securing a separate license, but who is subject to all other
604	604	conditions, requirements, and liabilities imposed on those license
605	605	holders;
606	606	(4) an importer, who may also act as an exporter,
607	607	blender, [or] motor fuel transporter, or dealer without securing a
608	608	separate license, but who is subject to all other conditions,
609	609	requirements, and liabilities imposed on those license holders;
610	610	(5) a terminal operator;
611	611	(6) an exporter;
612	612	(7) a blender;
613	613	(8) a motor fuel transporter;
614	614	(9) an aviation fuel dealer; [or]
615	615	(10) an interstate trucker; or
616	616	(11) a dealer.
617	617	SECTION 21. Sections 162.107(a) and (b), Tax Code, are
618	618	amended to read as follows:
619	619	(a) A person may elect to obtain a permissive supplier
620	620	license to collect the state gasoline tax imposed by [under] this
621	621	subchapter for gasoline that is removed at a terminal in another
622	622	state and has this state as the destination state.
623	623	(b) With respect to gasoline that is removed by the licensed
624	624	permissive supplier at a terminal located in another state and that
625	625	has this state as the destination state, a licensed permissive
626	626	supplier shall:
627	627	(1) collect the state gasoline tax due to this state on
628	628	the gasoline;
629	629	(2) waive any defense that this state lacks
630	630	jurisdiction to require the supplier to collect the state gasoline
631	631	tax due to this state on the gasoline under this subchapter;
632	632	(3) report and pay the state gasoline tax and the
633	633	municipal gasoline tax due on the gasoline in the same manner as if
634	634	the removal had occurred at a terminal located in this state;
635	635	(4) keep records of the removal of the gasoline and
636	636	submit to audits concerning the gasoline as if the removal had
637	637	occurred at a terminal located in this state; and
638	638	(5) report sales by the permissive supplier to a
639	639	person who is not licensed in this state.
640	640	SECTION 22. Section 162.108, Tax Code, is amended by adding
641	641	Subsection (a-1) to read as follows:
642	642	(a-1) In addition to the information required by Subsection
643	643	(a), an applicant for a license as a dealer must list on the
644	644	application:
645	645	(1) the street address, municipality, county, and zip
646	646	code of the location for which the applicant seeks a license to sell
647	647	or dispense motor fuel at retail;
648	648	(2) the applicant's social security number, driver's
649	649	license number, and federal employer identification number if the
650	650	applicant is a natural person who is not licensed as a supplier,
651	651	permissive supplier, or terminal operator; and
652	652	(3) if the applicant is a corporation, limited
653	653	liability company, professional association, partnership, or other
654	654	entity that is not licensed as a supplier, permissive supplier, or
655	655	terminal operator and is not wholly owned by an entity that is
656	656	licensed as a supplier, permissive supplier, or terminal operator,
657	657	the physical address, mailing address, social security number, and
658	658	driver's license number of:
659	659	(A) each natural person responsible for the
660	660	purchase of motor fuel for sale by the applicant; and
661	661	(B) each officer, director, manager, member,
662	662	shareholder, and partner of the applicant.
663	663	SECTION 23. Section 162.110(a), Tax Code, is amended to
664	664	read as follows:
665	665	(a) The license issued to a supplier, permissive supplier,
666	666	distributor, importer, exporter, terminal operator, blender, [or]
667	667	motor fuel transporter, or dealer is permanent and is valid during
668	668	the period the license holder has in force and effect the required
669	669	bond or security and furnishes timely reports and supplements as
670	670	required, or until the license is surrendered by the holder or
671	671	canceled by the comptroller. The comptroller shall cancel a
672	672	license under this subsection if a purchase, sale, or use of
673	673	gasoline has not been reported by the license holder during the
674	674	previous nine months.
675	675	SECTION 24. Section 162.111(a), Tax Code, is amended to
676	676	read as follows:
677	677	(a) The comptroller shall determine the amount of security
678	678	required of a supplier, permissive supplier, distributor,
679	679	exporter, importer, dealer, or blender, taking into consideration
680	680	the amount of tax that has or is expected to become due from the
681	681	person, any past history of the person as a license holder under
682	682	this chapter or its predecessor, and the necessity to protect this
683	683	state against the failure to pay the tax as the tax becomes due.
684	684	SECTION 25. Sections 162.112(a) and (b), Tax Code, are
685	685	amended to read as follows:
686	686	(a) The comptroller, on or before December 20 of each year,
687	687	shall make available to all license holders an alphabetical list of
688	688	licensed suppliers, permissive suppliers, distributors, aviation
689	689	fuel dealers, importers, exporters, blenders, dealers, and
690	690	terminal operators. A supplemental list of additions and deletions
691	691	shall be made available to the license holders each month. A
692	692	current and effective license or the list furnished by the
693	693	comptroller is evidence of the validity of the license until the
694	694	comptroller notifies license holders of a change in the status of a
695	695	license holder.
696	696	(b) A licensed supplier, permissive supplier, dealer, or
697	697	distributor who sells gasoline tax-free to a person whose
698	698	supplier's, permissive supplier's, dealer's, or aviation fuel
699	699	dealer's license has been canceled or revoked under this chapter is
700	700	liable for any tax due on gasoline sold after receiving notice of
701	701	the cancellation or revocation.
702	702	SECTION 26. Sections 162.113(d), (d-1), and (e), Tax Code,
703	703	are amended to read as follows:
704	704	(d) The supplier or permissive supplier, after requesting a
705	705	credit under this section, shall terminate the ability of the
706	706	licensed distributor or licensed importer to defer the payment of
707	707	state gasoline tax. The supplier or permissive supplier may not
708	708	reinstate the right of the licensed distributor or licensed
709	709	importer to defer the payment of state gasoline tax until the first
710	710	anniversary of the date the supplier or permissive supplier
711	711	requested the credit, subject to Subsection (d-1).
712	712	(d-1) A supplier or permissive supplier may reinstate the
713	713	right of a licensed distributor or licensed importer to defer the
714	714	payment of state gasoline tax before the date prescribed by
715	715	Subsection (d) if the comptroller determines that:
716	716	(1) the supplier or permissive supplier erroneously
717	717	requested the credit that resulted in the termination of the
718	718	licensed distributor's or licensed importer's right to defer
719	719	payment; or
720	720	(2) the licensed distributor or licensed importer
721	721	failed to pay state gasoline taxes due because of circumstances
722	722	that may have been outside the distributor's or importer's control.
723	723	(e) A licensed distributor or licensed importer who makes
724	724	timely payments of the state gasoline tax imposed by [under] this
725	725	subchapter is entitled to retain an amount equal to 1.75 percent of
726	726	the total state gasoline tax [taxes] to be paid to the supplier or
727	727	permissive supplier to cover administrative expenses.
728	728	SECTION 27. Section 162.114(a), Tax Code, is amended to
729	729	read as follows:
730	730	(a) Except as provided by Subsection (b), each person who is
731	731	liable for the taxes [tax] imposed by this subchapter, a terminal
732	732	operator, a dealer, and a licensed distributor shall file a return
733	733	on or before the 25th day of the month following the end of each
734	734	calendar month.
735	735	SECTION 28. Sections 162.115(b), (c), (e), (g), and (h),
736	736	Tax Code, are amended to read as follows:
737	737	(b) A distributor shall keep:
738	738	(1) a record showing the number of gallons of:
739	739	(A) all gasoline inventories on hand at the first
740	740	of each month;
741	741	(B) all gasoline blended;
742	742	(C) all gasoline purchased or received, showing
743	743	the name of the seller and the date of each purchase or receipt;
744	744	(D) all gasoline sold, distributed, or used,
745	745	showing:
746	746	(i) the name of the purchaser;
747	747	(ii) if the gasoline was delivered to a
748	748	municipality in this state, the municipality to which the gasoline
749	749	was delivered;
750	750	(iii) the amount of municipal gasoline tax
751	751	collected from the purchaser, if any; and
752	752	(iv) the date of the sale, distribution, or
753	753	use; and
754	754	(E) all gasoline lost by fire, theft, or
755	755	accident;
756	756	(2) an itemized statement showing by load the number
757	757	of gallons of all gasoline:
758	758	(A) received during the preceding calendar month
759	759	for export and the location of the loading;
760	760	(B) sold, distributed, or used, showing:
761	761	(i) the name of the purchaser;
762	762	(ii) the municipality or municipalities in
763	763	this state, if applicable;
764	764	(iii) the amount of municipal gasoline tax
765	765	collected from the purchaser, if any; and
766	766	(iv) the date of the sale, distribution, or
767	767	use;
768	768	(C) exported from this state by destination state
769	769	or country; and
770	770	(D) [(C)] imported during the preceding calendar
771	771	month by state or country of origin; [and]
772	772	(3) for gasoline exported from this state, proof of
773	773	payment of tax to the destination state in a form acceptable to the
774	774	comptroller; and
775	775	(4) all shipping documents.
776	776	(c) An importer shall keep:
777	777	(1) a record showing the number of gallons of:
778	778	(A) all gasoline inventories on hand at the first
779	779	of each month;
780	780	(B) all gasoline compounded or blended;
781	781	(C) all gasoline purchased or received, showing
782	782	the name of the seller and the date of each purchase or receipt;
783	783	(D) all gasoline sold, distributed, or used,
784	784	showing the name of the purchaser, the municipality in this state,
785	785	if applicable, and the date of the sale, distribution, or use; and
786	786	(E) all gasoline lost by fire, theft, or
787	787	accident; and
788	788	(2) an itemized statement showing by load the number
789	789	of gallons of all gasoline:
790	790	(A) received during the preceding calendar month
791	791	for export and the location of the loading;
792	792	(B) sold, distributed, or used, showing the name
793	793	of the purchaser, the municipality or municipalities in this state,
794	794	if applicable, and the date of the sale, distribution, or use;
795	795	(C) exported from this state by destination state
796	796	or country; and
797	797	(D) [(C)] imported during the preceding calendar
798	798	month by state or country of origin.
799	799	(e) A blender shall keep a record showing the number of
800	800	gallons of:
801	801	(1) all gasoline inventories on hand at the first of
802	802	each month;
803	803	(2) all gasoline compounded or blended;
804	804	(3) all gasoline purchased or received, showing the
805	805	name of the seller and the date of each purchase or receipt;
806	806	(4) all gasoline sold, distributed, or used, showing
807	807	the name of the purchaser, the municipality in this state, if
808	808	applicable, and the date of the sale or use; and
809	809	(5) all gasoline lost by fire, theft, or accident.
810	810	(g) A motor fuel transporter shall keep a complete and
811	811	separate record of each intrastate and interstate transportation of
812	812	gasoline, showing:
813	813	(1) the date of transportation;
814	814	(2) the name of the consignor and consignee;
815	815	(3) the means of transportation;
816	816	(4) the quantity and kind of gasoline transported;
817	817	(5) full data concerning the diversion of shipments,
818	818	including the municipality in this state, if applicable, and the
819	819	number of gallons diverted from interstate to intrastate and
820	820	intrastate to interstate commerce; and
821	821	(6) the points of origin and destination, the
822	822	municipality in this state, if applicable, the number of gallons
823	823	shipped or transported, the date, the consignee and the consignor,
824	824	and the kind of gasoline that has been diverted.
825	825	(h) A dealer shall keep all shipping documents and a record
826	826	showing the number of gallons of:
827	827	(1) gasoline inventories on hand at the first of each
828	828	month;
829	829	(2) all gasoline purchased or received, showing the
830	830	name of the seller and the date of each purchase or receipt;
831	831	(3) all gasoline sold or used, showing the date of the
832	832	sale or use; and
833	833	(4) all gasoline lost by fire, theft, or accident.
834	834	SECTION 29. Section 162.116(c), Tax Code, is amended to
835	835	read as follows:
836	836	(c) A supplier or permissive supplier may take a credit for
837	837	any state gasoline tax [taxes] that was [were] not remitted in a
838	838	previous period to the supplier or permissive supplier by a
839	839	licensed distributor or licensed importer as required by Section
840	840	162.113. The supplier or permissive supplier is eligible to take
841	841	the credit if the comptroller is notified of the default within 15
842	842	days after the default occurs. If a license holder pays to a
843	843	supplier or permissive supplier the tax owed, but the payment
844	844	occurs after the supplier or permissive supplier has taken a credit
845	845	on its return, the supplier or permissive supplier shall remit the
846	846	payment to the comptroller with the next monthly return after
847	847	receipt of the tax, plus a penalty of 10 percent of the amount of
848	848	unpaid taxes and interest at the rate provided by Section 111.060
849	849	beginning on the date the credit was taken.
850	850	SECTION 30. Section 162.118, Tax Code, is amended to read as
851	851	follows:
852	852	Sec. 162.118. INFORMATION REQUIRED ON DISTRIBUTOR'S
853	853	RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return
854	854	and supplements of each distributor shall contain for the period
855	855	covered by the return:
856	856	(1) the number of net gallons of gasoline received by
857	857	the distributor during the month, sorted by product code, seller,
858	858	point of origin, destination state, carrier, and receipt date;
859	859	(2) the number of net gallons of gasoline removed at a
860	860	terminal rack by the distributor during the month, sorted by
861	861	product code, seller, terminal code, and carrier;
862	862	(3) the number of net gallons of gasoline removed by
863	863	the distributor during the month for export, sorted by product
864	864	code, terminal code, bulk plant address, destination state, and
865	865	carrier;
866	866	(4) the number of net gallons of gasoline removed by
867	867	the distributor during the month from a terminal located in another
868	868	state for conveyance to this state, as indicated on the shipping
869	869	document for the gasoline, sorted by product code, seller, terminal
870	870	code, bulk plant address, and carrier;
871	871	(5) the number of net gallons of gasoline the
872	872	distributor sold during the month in transactions exempt under
873	873	Section 162.104, sorted by product code and purchaser; [and]
874	874	(6) the number of net gallons delivered into a taxing
875	875	municipality sorted by taxing municipality and purchaser; and
876	876	(7) any other information required by the comptroller.
877	877	(b) A distributor or importer who makes timely payments of
878	878	the municipal tax imposed by this subchapter is entitled to retain
879	879	an amount equal to two percent of the total municipal gasoline taxes
880	880	remitted to the comptroller to cover administrative expenses.
881	881	SECTION 31. Section 162.123, Tax Code, is amended to read as
882	882	follows:
883	883	Sec. 162.123. INFORMATION REQUIRED ON BLENDER'S RETURN.
884	884	The monthly return and supplements of each blender shall contain
885	885	for the period covered by the return:
886	886	(1) the number of net gallons of gasoline received by
887	887	the blender during the month, sorted by product code, seller, point
888	888	of origin, carrier, and receipt date;
889	889	(2) the number of net gallons of product blended with
890	890	gasoline during the month, sorted by product code, type of blending
891	891	agent if no product code exists, seller, and carrier;
892	892	(3) the number of net gallons of blended gasoline sold
893	893	during the month and the license number or name, [and] address, and,
894	894	if applicable, municipality of the entity receiving the blended
895	895	gasoline; and
896	896	(4) any other information required by the comptroller.
897	897	SECTION 32. Subchapter B, Chapter 162, Tax Code, is amended
898	898	by adding Section 162.1235 to read as follows:
899	899	Sec. 162.1235. INFORMATION REQUIRED ON DEALER'S RETURN.
900	900	The monthly return and supplements of each dealer shall contain for
901	901	the period covered by the return:
902	902	(1) the number of gallons of gasoline inventories on
903	903	hand at the first of each month, sorted by product code;
904	904	(2) the number of gallons of gasoline received by the
905	905	dealer during the month, sorted by seller;
906	906	(3) the number of gallons of gasoline inventories on
907	907	hand at the end of each month; and
908	908	(4) any other information required by the comptroller.
909	909	SECTION 33. Sections 162.125(g-1) and (g-2), Tax Code, are
910	910	amended to read as follows:
911	911	(g-1) A volunteer fire department exempt from the taxes
912	912	[tax] imposed under this subchapter that paid a tax on the purchase
913	913	of gasoline is entitled to a refund of the tax paid, and the
914	914	volunteer fire department may file a refund claim with the
915	915	comptroller for that amount.
916	916	(g-2) A nonprofit entity exempted under Section
917	917	162.104(a)(9) from the taxes [tax] imposed under this subchapter
918	918	that paid a tax on the purchase of gasoline is entitled to a refund
919	919	of the tax paid, and the entity may file a refund claim with the
920	920	comptroller for that amount.
921	921	SECTION 34. Sections 162.127(a) and (d), Tax Code, are
922	922	amended to read as follows:
923	923	(a) A refund claim must be filed on a form provided by the
924	924	comptroller, be supported by the original invoice issued by the
925	925	seller, and contain:
926	926	(1) the stamped or preprinted name and address,
927	927	including, if applicable, municipality of the seller;
928	928	(2) the name and address of the purchaser;
929	929	(3) the date of delivery of the gasoline;
930	930	(4) the date of the issuance of the invoice, if
931	931	different from the date of fuel delivery;
932	932	(5) the number of gallons of gasoline delivered;
933	933	(6) the amount of state or municipal gasoline taxes
934	934	paid [tax], either separately stated from the selling price or
935	935	stated with a notation that both state and municipal taxes are
936	936	included if both apply [the selling price includes the tax]; and
937	937	(7) the type of vehicle or equipment, such as a
938	938	motorboat, railway engine, motor vehicle, off-highway vehicle, or
939	939	refrigeration unit or stationary engine, into which the fuel is
940	940	delivered.
941	941	(d) A distributor or person who does not hold a license who
942	942	files a valid refund claim with the comptroller shall be paid by a
943	943	warrant issued by the comptroller. For purposes of this section, a
944	944	distributor meets the requirement of filing a valid refund claim
945	945	for state and municipal gasoline taxes if the distributor
946	946	designates the gallons of gasoline sold or used that are the subject
947	947	of the refund claim on the monthly report submitted by the
948	948	distributor to the comptroller.
949	949	SECTION 35. The heading to Section 162.201, Tax Code, is
950	950	amended to read as follows:
951	951	Sec. 162.201. POINT OF IMPOSITION OF STATE DIESEL FUEL TAX.
952	952	SECTION 36. Sections 162.201(a), (b), (c), and (f), Tax
953	953	Code, are amended to read as follows:
954	954	(a) A tax is imposed on the removal of diesel fuel from the
955	955	terminal using the terminal rack other than by bulk transfer. The
956	956	supplier or permissive supplier is liable for and shall collect the
957	957	tax imposed by this section [subchapter] from the person who orders
958	958	the withdrawal at the terminal rack.
959	959	(b) A tax is imposed at the time diesel fuel is imported into
960	960	this state, other than by a bulk transfer, for delivery to a
961	961	destination in this state. The supplier or permissive supplier is
962	962	liable for and shall collect the tax imposed by this section
963	963	[subchapter] from the person who imports the diesel fuel into this
964	964	state. If the seller is not a supplier or permissive supplier, the
965	965	person who imports the diesel fuel into this state is liable for and
966	966	shall pay the tax.
967	967	(c) A tax is imposed on the removal of diesel fuel from the
968	968	bulk transfer/terminal system in this state. The supplier is
969	969	liable for and shall collect the tax imposed by this section
970	970	[subchapter] from the person who orders the removal from the bulk
971	971	transfer/terminal system.
972	972	(f) The terminal operator in this state is considered a
973	973	supplier for the purpose of the tax imposed under this section
974	974	[subchapter] unless at the time of removal:
975	975	(1) the terminal operator has a terminal operator's
976	976	license issued for the facility from which the diesel fuel is
977	977	withdrawn;
978	978	(2) the terminal operator verifies that the person who
979	979	removes the diesel fuel has a supplier's license; and
980	980	(3) the terminal operator does not have a reason to
981	981	believe that the supplier's license is not valid.
982	982	SECTION 37. Subchapter C, Chapter 162, Tax Code, is amended
983	983	by adding Section 162.2011 to read as follows:
984	984	Sec. 162.2011. IMPOSITION OF MUNICIPAL DIESEL FUEL TAX;
985	985	POINT OF COLLECTION. (a) In a municipality that imposes taxes on
986	986	motor vehicle fuel authorized by Chapter 401, a tax is imposed on
987	987	the delivery of diesel fuel into the taxing municipality.
988	988	(b) The distributor shall collect the tax imposed by this
989	989	section from each person on delivery of diesel fuel into a taxing
990	990	municipality.
991	991	(c) A tax is imposed on diesel fuel that is otherwise exempt
992	992	from taxation under Section 162.204(a)(4) or (7) if the diesel fuel
993	993	is sold in this state to a person who does not hold a license under
994	994	Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel fuel is
995	995	subsequently delivered into a taxing municipality. The person who
996	996	delivered the diesel fuel into the taxing municipality is liable
997	997	for and shall collect the tax.
998	998	(d) A tax is imposed on diesel fuel that is otherwise exempt
999	999	from taxation under Section 162.204(a)(4) or (7) if before export
1000	1000	the diesel fuel is sold in this state to a person who holds a license
1001	1001	under Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel
1002	1002	fuel is subsequently delivered to a taxing municipality. The
1003	1003	person who delivered the diesel fuel into the taxing municipality
1004	1004	is liable for and shall pay the tax.
1005	1005	(e) In each subsequent sale of diesel fuel on which the tax
1006	1006	has been paid, the tax imposed by this section shall be collected
1007	1007	from the purchaser so that the tax is paid ultimately by the person
1008	1008	who uses the diesel fuel. Diesel fuel is considered to be used when
1009	1009	it is delivered into a fuel supply tank.
1010	1010	SECTION 38. Section 162.202, Tax Code, is amended to read as
1011	1011	follows:
1012	1012	Sec. 162.202. TAX RATES [RATE]. (a) Except as provided by
1013	1013	Section 162.2026, the state [The] diesel fuel tax rate is 20 cents
1014	1014	for each net gallon or fractional part of a net gallon on which the
1015	1015	tax is imposed under Section 162.201.
1016	1016	(b) In a taxing municipality, the municipal diesel fuel tax
1017	1017	rate for each net gallon or fractional part of a net gallon is the
1018	1018	rate established by Chapter 401, including the amount of
1019	1019	adjustments under Section 162.2026.
1020	1020	SECTION 39. The heading to Section 162.2025, Tax Code, is
1021	1021	amended to read as follows:
1022	1022	Sec. 162.2025. SEPARATE STATEMENT OF TAXES [TAX] COLLECTED
1023	1023	FROM PURCHASER.
1024	1024	SECTION 40. Sections 162.2025(a), (b), and (c), Tax Code,
1025	1025	are amended to read as follows:
1026	1026	(a) In each subsequent sale of diesel fuel on which the
1027	1027	taxes imposed by this subchapter have [tax has] been paid, the taxes
1028	1028	[tax imposed by this subchapter] shall be collected from the
1029	1029	purchaser so that the taxes are [tax is] paid ultimately by the
1030	1030	person who uses the diesel fuel. Diesel fuel is considered to be
1031	1031	used when it is delivered into a fuel supply tank.
1032	1032	(b) The taxes [tax] imposed by this subchapter must be
1033	1033	stated separately from the sales price of diesel fuel and
1034	1034	identified as diesel fuel taxes [tax] on the invoice or receipt
1035	1035	issued to a purchaser. Backup diesel fuel taxes [tax] may be
1036	1036	identified as diesel fuel taxes [tax]. The taxes [tax] must be
1037	1037	separately stated and identified in the same manner on a shipping
1038	1038	document, if the shipping document includes the sales price of the
1039	1039	diesel fuel.
1040	1040	(c) Except as provided by Subsection (d), the sales price of
1041	1041	diesel fuel stated on an invoice, receipt, or shipping document is
1042	1042	presumed to be exclusive of the taxes [tax] imposed by this
1043	1043	subchapter. The seller or purchaser may overcome the presumption
1044	1044	by using the seller's records to show that the taxes [tax] imposed
1045	1045	by this subchapter were [was] included in the sales price.
1046	1046	SECTION 41. Subchapter C, Chapter 162, Tax Code, is amended
1047	1047	by adding Section 162.2026 to read as follows:
1048	1048	Sec. 162.2026. ANNUAL RATE CHANGE ACCORDING TO CONSUMER
1049	1049	PRICE INDEX. (a) In this section:
1050	1050	(1) "Consumer price index" means the consumer price
1051	1051	index for all urban consumers for all items and for all regions of
1052	1052	the United States combined, as determined by the United States
1053	1053	Department of Labor, Bureau of Labor Statistics, or, if that index
1054	1054	is discontinued or superseded, a similar index selected or
1055	1055	calculated by the comptroller.
1056	1056	(2) "Consumer price index percentage change" means the
1057	1057	percentage increase or decrease in the consumer price index of a
1058	1058	given state fiscal year from the consumer price index of the
1059	1059	preceding state fiscal year.
1060	1060	(b) On January 1 of each year, the rates of state and
1061	1061	municipal diesel fuel taxes imposed under this subchapter are
1062	1062	increased or decreased by a percentage that is equal to the consumer
1063	1063	price index percentage change for the preceding fiscal year.
1064	1064	(c) Not later than November 1 of each year, the comptroller
1065	1065	shall:
1066	1066	(1) compute the new tax rates as provided by this
1067	1067	section;
1068	1068	(2) give the new tax rates to the secretary of state
1069	1069	for publication in the Texas Register; and
1070	1070	(3) notify each license holder under this subchapter
1071	1071	of the applicable new tax rates.
1072	1072	SECTION 42. The heading to Section 162.203, Tax Code, is
1073	1073	amended to read as follows:
1074	1074	Sec. 162.203. BACKUP STATE DIESEL FUEL TAX; LIABILITY.
1075	1075	SECTION 43. Sections 162.203(a) and (c), Tax Code, are
1076	1076	amended to read as follows:
1077	1077	(a) A backup tax is imposed at the rate prescribed by
1078	1078	Sections 162.202(a) and 162.2026 [Section 162.202] on:
1079	1079	(1) a person who obtains a refund of tax on diesel fuel
1080	1080	by claiming the diesel fuel was used for an off-highway purpose, but
1081	1081	actually uses the diesel fuel to operate a motor vehicle on a public
1082	1082	highway;
1083	1083	(2) a person who operates a motor vehicle on a public
1084	1084	highway using diesel fuel on which tax has not been paid;
1085	1085	(3) a person who sells to the ultimate consumer diesel
1086	1086	fuel on which a tax has not been paid and who knew or had reason to
1087	1087	know that the diesel fuel would be used for a taxable purpose; and
1088	1088	(4) a person, other than a person exempted under
1089	1089	Section 162.204, who acquires diesel fuel on which tax has not been
1090	1090	paid from any source in this state.
1091	1091	(c) The tax imposed by [under] Subsection (a)(3) is also
1092	1092	imposed on the ultimate consumer.
1093	1093	SECTION 44. Subchapter C, Chapter 162, Tax Code, is amended
1094	1094	by adding Section 162.2035 to read as follows:
1095	1095	Sec. 162.2035. BACKUP MUNICIPAL DIESEL FUEL TAX; LIABILITY.
1096	1096	(a) A backup tax is imposed at the rate prescribed by Sections
1097	1097	162.202(b) and 162.2026 on:
1098	1098	(1) a person who, in a taxing municipality:
1099	1099	(A) delivers diesel fuel into the fuel supply
1100	1100	tank of a motor vehicle;
1101	1101	(B) purchases or receives diesel fuel from
1102	1102	another person; or
1103	1103	(C) sells or delivers diesel fuel to another
1104	1104	person; and
1105	1105	(2) a person who obtains a refund of the tax imposed by
1106	1106	Section 162.2011 for diesel fuel that the person delivered into the
1107	1107	fuel supply tank of a motor vehicle, purchased or acquired, or sold
1108	1108	or delivered in a taxing municipality.
1109	1109	(b) A person who sells diesel fuel subject to the tax
1110	1110	imposed by this section shall at the time of sale collect the tax
1111	1111	from the purchaser or recipient of the diesel fuel in addition to
1112	1112	the selling price and is liable to this state for the taxes
1113	1113	collected at the time and in the manner provided by this chapter.
1114	1114	(c) The following are exempt from the tax imposed by this
1115	1115	section:
1116	1116	(1) diesel fuel on which the tax imposed by Section
1117	1117	162.2011 had been paid; and
1118	1118	(2) diesel fuel exempt under Section 162.204.
1119	1119	(d) The tax imposed by this section is in addition to any
1120	1120	penalty imposed under this chapter.
1121	1121	SECTION 45. Sections 162.204(a) and (g), Tax Code, are
1122	1122	amended to read as follows:
1123	1123	(a) The taxes [tax] imposed by this subchapter do [does] not
1124	1124	apply to:
1125	1125	(1) diesel fuel sold to the United States for its
1126	1126	exclusive use, provided that the exemption does not apply to diesel
1127	1127	fuel sold or delivered to a person operating under a contract with
1128	1128	the United States;
1129	1129	(2) diesel fuel sold to a public school district in
1130	1130	this state for the district's exclusive use;
1131	1131	(3) diesel fuel sold to a commercial transportation
1132	1132	company or a metropolitan rapid transit authority operating under
1133	1133	Chapter 451, Transportation Code, that provides public school
1134	1134	transportation services to a school district under Section 34.008,
1135	1135	Education Code, and that uses the diesel fuel only to provide those
1136	1136	services;
1137	1137	(4) diesel fuel exported by either a licensed supplier
1138	1138	or a licensed exporter from this state to any other state, provided
1139	1139	that the bill of lading indicates the destination state and the
1140	1140	supplier collects the destination state tax;
1141	1141	(5) diesel fuel moved by truck or railcar between
1142	1142	licensed suppliers or licensed permissive suppliers and in which
1143	1143	the diesel fuel removed from the first terminal comes to rest in the
1144	1144	second terminal, provided that the removal from the second terminal
1145	1145	rack is subject to the state diesel fuel tax imposed by this
1146	1146	subchapter;
1147	1147	(6) diesel fuel delivered or sold into a storage
1148	1148	facility of a licensed aviation fuel dealer from which the diesel
1149	1149	fuel will be delivered solely into the fuel supply tanks of aircraft
1150	1150	or aircraft servicing equipment, or sold from one licensed aviation
1151	1151	fuel dealer to another licensed aviation fuel dealer who will
1152	1152	deliver the diesel fuel exclusively into the fuel supply tanks of
1153	1153	aircraft or aircraft servicing equipment;
1154	1154	(7) diesel fuel exported to a foreign country if the
1155	1155	bill of lading or shipping documents indicate the foreign
1156	1156	destination and the fuel is actually exported to the foreign
1157	1157	country;
1158	1158	(8) dyed diesel fuel sold or delivered by a supplier to
1159	1159	another supplier and dyed diesel fuel sold or delivered by a
1160	1160	supplier or distributor into the bulk storage facility of a dyed
1161	1161	diesel fuel bonded user or to a purchaser who provides a signed
1162	1162	statement as provided by Section 162.206;
1163	1163	(9) the volume of water, fuel ethanol, renewable
1164	1164	diesel, biodiesel, or mixtures thereof that are blended together
1165	1165	with taxable diesel fuel when the finished product sold or used is
1166	1166	clearly identified on the retail pump, storage tank, and sales
1167	1167	invoice as a combination of diesel fuel and water, fuel ethanol,
1168	1168	renewable diesel, biodiesel, or mixtures thereof;
1169	1169	(10) dyed diesel fuel sold by a supplier or permissive
1170	1170	supplier to a distributor, or by a distributor to another
1171	1171	distributor;
1172	1172	(11) dyed diesel fuel delivered by a license holder
1173	1173	into the fuel supply tanks of railway engines, motorboats, or
1174	1174	refrigeration units or other stationary equipment powered by a
1175	1175	separate motor from a separate fuel supply tank;
1176	1176	(12) dyed kerosene when delivered by a supplier,
1177	1177	distributor, or importer into a storage facility at a retail
1178	1178	business from which all deliveries are exclusively for heating,
1179	1179	cooking, lighting, or similar nonhighway use;
1180	1180	(13) diesel fuel used by a person, other than a
1181	1181	political subdivision, who owns, controls, operates, or manages a
1182	1182	commercial motor vehicle as defined by Section 548.001,
1183	1183	Transportation Code, if the fuel:
1184	1184	(A) is delivered exclusively into the fuel supply
1185	1185	tank of the commercial motor vehicle; and
1186	1186	(B) is used exclusively to transport passengers
1187	1187	for compensation or hire between points in this state on a fixed
1188	1188	route or schedule;
1189	1189	(14) diesel fuel sold to a volunteer fire department
1190	1190	in this state for the department's exclusive use; or
1191	1191	(15) diesel fuel sold to a nonprofit entity that is
1192	1192	organized for the sole purpose of and engages exclusively in
1193	1193	providing emergency medical services and that uses the diesel fuel
1194	1194	exclusively to provide emergency medical services, including
1195	1195	rescue and ambulance services.
1196	1196	(g) In lieu of claiming the exemption and complying with the
1197	1197	labeling requirements provided by Subsection (a)(9), a person to
1198	1198	whom Section 162.201 applies may elect to collect and remit the
1199	1199	taxes [tax] otherwise imposed by [under] this subchapter on the
1200	1200	materials described by Subsection (a)(9) as if the materials were
1201	1201	taxable diesel fuel. The labeling requirements provided by
1202	1202	Subsection (a)(9) do not apply to a dealer who sells taxable diesel
1203	1203	fuel blended with materials described by Subsection (a)(9) on which
1204	1204	a tax has been paid as provided by this subsection. Materials
1205	1205	described by Subsection (a)(9) on which a tax has been paid as
1206	1206	provided by this subsection are not exempt from taxation [tax]
1207	1207	under Subsection (a)(9) on a subsequent sale, and a license holder
1208	1208	or other purchaser is not entitled to a refund or credit under
1209	1209	Subsection (a)(9) for a purchase of taxable diesel fuel blended
1210	1210	with those materials.
1211	1211	SECTION 46. Section 162.205(a), Tax Code, is amended to
1212	1212	read as follows:
1213	1213	(a) A person shall obtain the appropriate license or
1214	1214	licenses issued by the comptroller before conducting the activities
1215	1215	of:
1216	1216	(1) a supplier, who may also act as a distributor,
1217	1217	importer, exporter, blender, motor fuel transporter, dealer, or
1218	1218	aviation fuel dealer without securing a separate license, but who
1219	1219	is subject to all other conditions, requirements, and liabilities
1220	1220	imposed on those license holders;
1221	1221	(2) a permissive supplier, who may also act as a
1222	1222	distributor, importer, exporter, blender, motor fuel transporter,
1223	1223	dealer, or aviation fuel dealer without securing a separate license
1224	1224	but who is subject to all other conditions, requirements, and
1225	1225	liabilities imposed on those license holders;
1226	1226	(3) a distributor, who may also act as an importer,
1227	1227	exporter, blender, [or] motor fuel transporter, or dealer without
1228	1228	securing a separate license, but who is subject to all other
1229	1229	conditions, requirements, and liabilities imposed on those license
1230	1230	holders;
1231	1231	(4) an importer, who may also act as an exporter,
1232	1232	blender, [or] motor fuel transporter, or dealer without securing a
1233	1233	separate license, but who is subject to all other conditions,
1234	1234	requirements, and liabilities imposed on those license holders;
1235	1235	(5) a terminal operator;
1236	1236	(6) an exporter;
1237	1237	(7) a blender;
1238	1238	(8) a motor fuel transporter;
1239	1239	(9) an aviation fuel dealer;
1240	1240	(10) an interstate trucker; [or]
1241	1241	(11) a dyed diesel fuel bonded user; or
1242	1242	(12) a dealer.
1243	1243	SECTION 47. Section 162.206(d), Tax Code, is amended to
1244	1244	read as follows:
1245	1245	(d) Any gallons purchased or sold in excess of the
1246	1246	limitations prescribed by Subsection (c) constitute a [taxable
1247	1247	purchase or] sale subject to the taxes imposed by this chapter. A
1248	1248	purchaser that exceeds the limitations prescribed by Subsection (c)
1249	1249	shall be required to obtain a dyed diesel fuel bonded user license.
1250	1250	SECTION 48. Sections 162.208(a) and (b), Tax Code, are
1251	1251	amended to read as follows:
1252	1252	(a) A person may elect to obtain a permissive supplier
1253	1253	license to collect the state diesel fuel tax imposed by [under] this
1254	1254	subchapter for diesel fuel that is removed at a terminal in another
1255	1255	state and has this state as the destination state.
1256	1256	(b) With respect to diesel fuel that is removed by the
1257	1257	licensed permissive supplier at a terminal located in another state
1258	1258	and that has this state as the destination state, a licensed
1259	1259	permissive supplier shall:
1260	1260	(1) collect the state diesel fuel tax due to this state
1261	1261	on the diesel fuel;
1262	1262	(2) waive any defense that this state lacks
1263	1263	jurisdiction to require the supplier to collect the state diesel
1264	1264	fuel tax due to this state on the diesel fuel under this subchapter;
1265	1265	(3) report and pay the state diesel fuel tax due on the
1266	1266	diesel fuel in the same manner as if the removal had occurred at a
1267	1267	terminal located in this state;
1268	1268	(4) keep records of the removal of the diesel fuel and
1269	1269	submit to audits concerning the diesel fuel as if the removal had
1270	1270	occurred at a terminal located in this state; and
1271	1271	(5) report sales by the permissive supplier to a
1272	1272	person who is not licensed in this state.
1273	1273	SECTION 49. Section 162.209, Tax Code, is amended by adding
1274	1274	Subsection (a-1) to read as follows:
1275	1275	(a-1) In addition to the information required by Subsection
1276	1276	(a), an applicant for a license as a dealer must list on the
1277	1277	application:
1278	1278	(1) the street address, municipality, county, and zip
1279	1279	code of the location for which the applicant seeks a license to sell
1280	1280	or dispense motor fuel at retail;
1281	1281	(2) the applicant's social security number, driver's
1282	1282	license number, and federal employer identification number if the
1283	1283	applicant is a natural person who is not licensed as a supplier,
1284	1284	permissive supplier, or terminal operator; and
1285	1285	(3) if the applicant is a corporation, limited
1286	1286	liability company, professional association, partnership or other
1287	1287	entity that is not licensed as a supplier, permissive supplier, or
1288	1288	terminal operator and is not wholly owned by an entity that is
1289	1289	licensed as a supplier, permissive supplier, or terminal operator,
1290	1290	the physical address, mailing address, social security number, and
1291	1291	driver's license number of:
1292	1292	(A) each natural person responsible for the
1293	1293	purchase of motor fuel for sale by the applicant; and
1294	1294	(B) each officer, director, manager, member,
1295	1295	shareholder, and partner of the applicant.
1296	1296	SECTION 50. Section 162.211(a), Tax Code, is amended to
1297	1297	read as follows:
1298	1298	(a) The license issued to a supplier, permissive supplier,
1299	1299	distributor, importer, terminal supplier, exporter, blender,
1300	1300	dealer, motor fuel transporter, or dyed diesel fuel bonded user is
1301	1301	permanent and is valid during the period the license holder has in
1302	1302	force and effect the required bond or security and furnishes timely
1303	1303	reports and supplements as required, or until the license is
1304	1304	surrendered by the holder or canceled by the comptroller. The
1305	1305	comptroller shall cancel a license under this subsection if a
1306	1306	purchase, sale, or use of diesel fuel has not been reported by the
1307	1307	license holder during the previous nine months.
1308	1308	SECTION 51. Section 162.212(a), Tax Code, is amended to
1309	1309	read as follows:
1310	1310	(a) The comptroller shall determine the amount of security
1311	1311	required of a supplier, permissive supplier, distributor,
1312	1312	exporter, importer, dealer, blender, or dyed diesel fuel bonded
1313	1313	user, taking into consideration the amount of tax that has or is
1314	1314	expected to become due from the person, any past history of the
1315	1315	person as a license holder under this chapter and its predecessor,
1316	1316	and the necessity to protect this state against the failure to pay
1317	1317	the tax as the tax becomes due.
1318	1318	SECTION 52. Section 162.213(a), Tax Code, is amended to
1319	1319	read as follows:
1320	1320	(a) The comptroller, on or before December 20 of each year,
1321	1321	shall make available to all license holders an alphabetical list of
1322	1322	licensed suppliers, permissive suppliers, distributors, aviation
1323	1323	fuel dealers, importers, exporters, blenders, dealers, terminal
1324	1324	operators, and dyed diesel fuel bonded users. A supplemental list
1325	1325	of additions and deletions shall be made available to the license
1326	1326	holders each month. A current and effective license or the list
1327	1327	furnished by the comptroller is evidence of the validity of the
1328	1328	license until the comptroller notifies license holders of a change
1329	1329	in the status of a license holder.
1330	1330	SECTION 53. Sections 162.214(c), (d), (d-1), and (e), Tax
1331	1331	Code, are amended to read as follows:
1332	1332	(c) If the supplier or permissive supplier cannot secure
1333	1333	from the licensed distributor or licensed importer payment of taxes
1334	1334	due for state diesel fuel removed from the terminal during the
1335	1335	previous reporting period and the supplier elects to take a credit
1336	1336	against a subsequent payment of diesel fuel tax to this state for
1337	1337	the taxes not remitted to the supplier or permissive supplier by the
1338	1338	licensed distributor or licensed importer, the supplier or
1339	1339	permissive supplier shall notify the comptroller of the licensed
1340	1340	distributor's or licensed importer's failure to remit tax in
1341	1341	conjunction with the report requesting a credit.
1342	1342	(d) The supplier or permissive supplier, after requesting a
1343	1343	credit under this section, shall terminate the ability of the
1344	1344	licensed distributor or licensed importer to defer the payment of
1345	1345	state diesel fuel tax. The supplier or permissive supplier may not
1346	1346	reinstate the right of the licensed distributor or licensed
1347	1347	importer to defer the payment of state diesel fuel tax until the
1348	1348	first anniversary of the date the supplier or permissive supplier
1349	1349	requested the credit, subject to Subsection (d-1).
1350	1350	(d-1) A supplier or permissive supplier may reinstate the
1351	1351	right of a licensed distributor or licensed importer to defer the
1352	1352	payment of state diesel fuel tax before the date prescribed by
1353	1353	Subsection (d) if the comptroller determines that:
1354	1354	(1) the supplier or permissive supplier erroneously
1355	1355	requested the credit that resulted in the termination of the
1356	1356	licensed distributor's or licensed importer's right to defer
1357	1357	payment; or
1358	1358	(2) the licensed distributor or licensed importer
1359	1359	failed to pay state diesel fuel taxes due because of circumstances
1360	1360	that may have been outside the distributor's or importer's control.
1361	1361	(e) A licensed distributor or licensed importer who makes
1362	1362	timely payments of the state diesel fuel tax imposed by [under] this
1363	1363	subchapter is entitled to retain an amount equal to 1.75 percent of
1364	1364	the total state diesel fuel tax [taxes] to be paid to the supplier
1365	1365	or permissive supplier to cover administrative expenses.
1366	1366	SECTION 54. Section 162.215(a), Tax Code, is amended to
1367	1367	read as follows:
1368	1368	(a) Except as provided by Subsection (b), each person who is
1369	1369	liable for the taxes [tax] imposed by this subchapter, a terminal
1370	1370	operator, a dealer, and a licensed distributor shall file a return
1371	1371	on or before the 25th day of the month following the end of each
1372	1372	calendar month.
1373	1373	SECTION 55. Sections 162.216(b), (c), (e), (g), and (h),
1374	1374	Tax Code, are amended to read as follows:
1375	1375	(b) A distributor shall keep:
1376	1376	(1) a record showing the number of gallons of:
1377	1377	(A) all diesel fuel inventories on hand at the
1378	1378	first of each month;
1379	1379	(B) all diesel fuel blended;
1380	1380	(C) all diesel fuel purchased or received,
1381	1381	showing the name of the seller and the date of each purchase or
1382	1382	receipt;
1383	1383	(D) all diesel fuel sold, distributed, or used,
1384	1384	showing:
1385	1385	(i) the name of the purchaser;
1386	1386	(ii) if the diesel fuel is delivered to a
1387	1387	municipality in this state, the municipality to which the diesel
1388	1388	fuel was delivered;
1389	1389	(iii) the amount of municipal diesel fuel
1390	1390	tax collected from the purchaser, if any; and
1391	1391	(iv) the date of the sale, distribution, or
1392	1392	use; and
1393	1393	(E) all diesel fuel lost by fire, theft, or
1394	1394	accident;
1395	1395	(2) an itemized statement showing by load the number
1396	1396	of gallons of all diesel fuel:
1397	1397	(A) received during the preceding calendar month
1398	1398	for export and the location of the loading;
1399	1399	(B) sold, distributed, or used, showing:
1400	1400	(i) the name of the purchaser;
1401	1401	(ii) the municipality or municipalities in
1402	1402	this state, if applicable;
1403	1403	(iii) the amount of municipal diesel fuel
1404	1404	tax collected from the purchaser, if any; and
1405	1405	(iv) the date of the sale, distribution, or
1406	1406	use;
1407	1407	(C) exported from this state by destination state
1408	1408	or country; and
1409	1409	(D) [(C)] imported during the preceding calendar
1410	1410	month, by state or country of origin; [and]
1411	1411	(3) for diesel fuel exported outside this state, proof
1412	1412	of payment of tax to the destination state, in a form acceptable to
1413	1413	the comptroller; and
1414	1414	(4) all shipping documents.
1415	1415	(c) An importer shall keep:
1416	1416	(1) a record showing the number of gallons of:
1417	1417	(A) all diesel fuel inventories on hand at the
1418	1418	first of each month;
1419	1419	(B) all diesel fuel compounded or blended;
1420	1420	(C) all diesel fuel purchased or received,
1421	1421	showing the name of the seller and the date of each purchase or
1422	1422	receipt;
1423	1423	(D) all diesel fuel sold, distributed, or used,
1424	1424	showing the name of the purchaser, the municipality in this state,
1425	1425	if applicable, and the date of the sale, distribution, or use; and
1426	1426	(E) all diesel fuel lost by fire, theft, or
1427	1427	accident; and
1428	1428	(2) an itemized statement showing by load the number
1429	1429	of gallons of all diesel fuel:
1430	1430	(A) received during the preceding calendar month
1431	1431	for export and the location of the loading;
1432	1432	(B) sold, distributed, or used, showing the name
1433	1433	of the purchaser, the municipality or municipalities in this state,
1434	1434	if applicable, and the date of sale, distribution, or use;
1435	1435	(C) exported from this state, by destination
1436	1436	state or country; and
1437	1437	(D) [(C)] imported during the preceding calendar
1438	1438	month, by state or country of origin.
1439	1439	(e) A blender shall keep a record showing the number of
1440	1440	gallons of:
1441	1441	(1) all diesel fuel inventories on hand at the first of
1442	1442	each month;
1443	1443	(2) all diesel fuel compounded or blended;
1444	1444	(3) all diesel fuel purchased or received, showing the
1445	1445	name of the seller and the date of each purchase or receipt;
1446	1446	(4) all diesel fuel sold, distributed, or used,
1447	1447	showing the name of the purchaser, the municipality in this state,
1448	1448	if applicable, and the date of the sale, distribution, or use; and
1449	1449	(5) all diesel fuel lost by fire, theft, or accident.
1450	1450	(g) A motor fuel transporter shall keep a complete and
1451	1451	separate record of each intrastate and interstate transportation of
1452	1452	diesel fuel, showing:
1453	1453	(1) the date of transportation;
1454	1454	(2) the name of the consignor and consignee;
1455	1455	(3) the method of transportation;
1456	1456	(4) the quantity and kind of diesel fuel transported;
1457	1457	(5) full data concerning the diversion of shipments,
1458	1458	including the municipality in this state, if applicable, and the
1459	1459	number of gallons diverted from interstate to intrastate and
1460	1460	intrastate to interstate commerce; and
1461	1461	(6) the points of origin and destination, the
1462	1462	municipality in this state, if applicable, the number of gallons
1463	1463	shipped or transported, the date, the consignee and the consignor,
1464	1464	and the kind of diesel fuel that has been diverted.
1465	1465	(h) A dealer shall keep all shipping documents and a record
1466	1466	showing the number of gallons of:
1467	1467	(1) diesel fuel inventories on hand at the first of
1468	1468	each month;
1469	1469	(2) all diesel fuel purchased or received, showing the
1470	1470	name of the seller and the date of each purchase or receipt;
1471	1471	(3) all diesel fuel sold or used, showing the date of
1472	1472	the sale or use; and
1473	1473	(4) all diesel fuel lost by fire, theft, or accident.
1474	1474	SECTION 56. Section 162.217(c), Tax Code, is amended to
1475	1475	read as follows:
1476	1476	(c) A supplier or permissive supplier may take a credit for
1477	1477	any state diesel fuel tax [taxes] that was [were] not remitted in a
1478	1478	previous period to the supplier or permissive supplier by a
1479	1479	licensed distributor or licensed importer as required by Section
1480	1480	162.214. The supplier or permissive supplier is eligible to take
1481	1481	this credit if the comptroller is notified of the default within 15
1482	1482	days after the default occurs. If a license holder pays to a
1483	1483	supplier or permissive supplier the tax owed, but the payment
1484	1484	occurs after the supplier or permissive supplier has taken a credit
1485	1485	on its return, the supplier or permissive supplier shall remit the
1486	1486	payment to the comptroller with the next monthly return after
1487	1487	receipt of the tax, plus a penalty of 10 percent of the amount of
1488	1488	unpaid taxes and interest at the rate provided by Section 111.060
1489	1489	beginning on the date the credit is taken.
1490	1490	SECTION 57. Section 162.219, Tax Code, is amended to read as
1491	1491	follows:
1492	1492	Sec. 162.219. INFORMATION REQUIRED ON DISTRIBUTOR'S
1493	1493	RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return and
1494	1494	supplements of each distributor shall contain for the period
1495	1495	covered by the return:
1496	1496	(1) the number of net gallons of diesel fuel received
1497	1497	by the distributor during the month, sorted by product code,
1498	1498	seller, point of origin, destination state, carrier, and receipt
1499	1499	date;
1500	1500	(2) the number of net gallons of diesel fuel removed at
1501	1501	a terminal rack by the distributor during the month, sorted by
1502	1502	product code, seller, terminal code, and carrier;
1503	1503	(3) the number of net gallons of diesel fuel removed by
1504	1504	the distributor during the month for export, sorted by product
1505	1505	code, terminal code, bulk plant address, destination state, and
1506	1506	carrier;
1507	1507	(4) the number of net gallons of diesel fuel removed by
1508	1508	the distributor during the month from a terminal located in another
1509	1509	state for conveyance to this state, as indicated on the shipping
1510	1510	document for the diesel fuel, sorted by product code, seller,
1511	1511	terminal code, bulk plant address, and carrier;
1512	1512	(5) the number of net gallons of diesel fuel the
1513	1513	distributor sold during the month in transactions exempt under
1514	1514	Section 162.204, dyed diesel fuel sold to a purchaser under a signed
1515	1515	statement, or dyed diesel fuel sold to a dyed diesel fuel bonded
1516	1516	user, sorted by product code and by the entity receiving the diesel
1517	1517	fuel; [and]
1518	1518	(6) the number of net gallons delivered into a taxing
1519	1519	municipality sorted by taxing municipality and purchaser; and
1520	1520	(7) any other information required by the comptroller.
1521	1521	(b) A distributor or importer who makes timely payments of
1522	1522	the municipal tax imposed by this subchapter is entitled to retain
1523	1523	an amount equal to two percent of the total municipal diesel fuel
1524	1524	taxes remitted to the comptroller to cover administrative expenses.
1525	1525	SECTION 58. Section 162.224, Tax Code, is amended to read as
1526	1526	follows:
1527	1527	Sec. 162.224. INFORMATION REQUIRED ON BLENDER'S RETURN.
1528	1528	The monthly return and supplements of each blender shall contain
1529	1529	for the period covered by the return:
1530	1530	(1) the number of net gallons of diesel fuel received
1531	1531	by the blender during the month, sorted by product code, seller,
1532	1532	point of origin, carrier, and receipt date;
1533	1533	(2) the number of net gallons of product blended with
1534	1534	diesel fuel during the month, sorted by product code, type of
1535	1535	blending agent if no product code exists, seller, and carrier;
1536	1536	(3) the number of net gallons of blended diesel fuel
1537	1537	sold during the month and the license number or name, [and] address,
1538	1538	and, if applicable, municipality of the entity receiving the
1539	1539	blended diesel fuel; and
1540	1540	(4) any other information required by the comptroller.
1541	1541	SECTION 59. Subchapter C, Chapter 162, Tax Code, is amended
1542	1542	by adding Section 162.2245 to read as follows:
1543	1543	Sec. 162.2245. INFORMATION REQUIRED ON DEALER'S RETURN. The
1544	1544	monthly return and supplements of each dealer shall contain for the
1545	1545	period covered by the return:
1546	1546	(1) the number of gallons of diesel fuel inventories
1547	1547	on hand at the first of each month, sorted by product code;
1548	1548	(2) the number of gallons of diesel fuel received by
1549	1549	the dealer during the month, sorted by seller;
1550	1550	(3) the number of gallons of diesel fuel inventories
1551	1551	on hand at the end of each month; and
1552	1552	(4) any other information required by the comptroller.
1553	1553	SECTION 60. Sections 162.227(f-1) and (f-2), Tax Code, are
1554	1554	amended to read as follows:
1555	1555	(f-1) A volunteer fire department exempt from the taxes
1556	1556	[tax] imposed under this subchapter that paid a tax on the purchase
1557	1557	of diesel fuel is entitled to a refund of the tax paid, and the
1558	1558	volunteer fire department may file a refund claim with the
1559	1559	comptroller for that amount.
1560	1560	(f-2) A nonprofit entity exempted under Section
1561	1561	162.204(a)(15) from the taxes [tax] imposed under this subchapter
1562	1562	that paid a tax on the purchase of diesel fuel is entitled to a
1563	1563	refund of the tax paid, and the entity may file a refund claim with
1564	1564	the comptroller for that amount.
1565	1565	SECTION 61. Sections 162.229(a) and (d), Tax Code, are
1566	1566	amended to read as follows:
1567	1567	(a) A refund claim must be filed on a form provided by the
1568	1568	comptroller, be supported by the original invoice issued by the
1569	1569	seller, and contain:
1570	1570	(1) the stamped or preprinted name and address,
1571	1571	including, if applicable, municipality of the seller;
1572	1572	(2) the name and address of the purchaser;
1573	1573	(3) the date of delivery of the diesel fuel;
1574	1574	(4) the date of the issuance of the invoice, if
1575	1575	different from the date of fuel delivery;
1576	1576	(5) the number of gallons of diesel fuel delivered;
1577	1577	(6) the amount of state or municipal diesel fuel taxes
1578	1578	paid [tax], either separately stated from the selling price or
1579	1579	stated with a notation that both state and municipal taxes are
1580	1580	included if both apply [the selling price includes the tax]; and
1581	1581	(7) the type of vehicle or equipment into which the
1582	1582	fuel is delivered.
1583	1583	(d) A distributor or person who does not hold a license who
1584	1584	files a valid refund claim with the comptroller shall be paid by a
1585	1585	warrant issued by the comptroller. For purposes of this section, a
1586	1586	distributor meets the requirement of filing a valid refund claim
1587	1587	for state and municipal diesel fuel taxes if the distributor
1588	1588	designates the gallons of diesel fuel sold or used that are the
1589	1589	subject of the refund claim on the monthly report submitted by the
1590	1590	distributor to the comptroller.
1591	1591	SECTION 62. Sections 162.401(b), (c), and (f), Tax Code,
1592	1592	are amended to read as follows:
1593	1593	(b) The comptroller may add a penalty of 75 percent of the
1594	1594	amount of taxes, penalties, and interest due if failure to file the
1595	1595	report or pay the tax when it becomes due is attributable to fraud
1596	1596	or an intent to evade the application of this chapter or a rule
1597	1597	adopted under this chapter or Chapter 111 or 401.
1598	1598	(c) The penalties provided by Subsection (b) are intended to
1599	1599	be remedial in nature and are provided for the protection of state
1600	1600	and taxing municipality revenue and to reimburse the state and
1601	1601	taxing municipalities for expenses incurred as a result of fraud,
1602	1602	including expenses incurred in conducting an investigation.
1603	1603	(f) In addition to any other penalty authorized by this
1604	1604	section, a person who fails to pay the tax imposed by Section
1605	1605	162.101(e-2), 162.1011(c), [or] 162.201(e-2), or 162.2011(d) when
1606	1606	due shall pay a penalty equal to the greater of $2,000 or five times
1607	1607	the amount of the taxes [tax] due on the motor fuel.
1608	1608	SECTION 63. Sections 162.402(a), (c), and (d), Tax Code,
1609	1609	are amended to read as follows:
1610	1610	(a) A person forfeits to the state a civil penalty of not
1611	1611	less than $25 and not more than $200 if the person:
1612	1612	(1) refuses to stop and permit the inspection and
1613	1613	examination of a motor vehicle transporting or using motor fuel on
1614	1614	demand of a peace officer or the comptroller;
1615	1615	(2) operates a motor vehicle in this state without a
1616	1616	valid interstate trucker's license or a trip permit when the person
1617	1617	is required to hold one of those licenses or permits;
1618	1618	(3) transports gasoline or diesel fuel in any cargo
1619	1619	tank that has a connection by pipe, tube, valve, or otherwise with
1620	1620	the fuel injector or carburetor of, or with the fuel supply tank
1621	1621	feeding the fuel injector or carburetor of, the motor vehicle
1622	1622	transporting the product;
1623	1623	(4) sells or delivers gasoline or diesel fuel from any
1624	1624	fuel supply tank connected with the fuel injector or carburetor of a
1625	1625	motor vehicle;
1626	1626	(5) owns or operates a motor vehicle for which reports
1627	1627	or mileage records are required by this chapter without an
1628	1628	operating odometer or other device in good working condition to
1629	1629	record accurately the miles traveled;
1630	1630	(6) furnishes to a licensed supplier or distributor a
1631	1631	signed statement for purchasing diesel fuel tax-free and then uses
1632	1632	the tax-free diesel fuel to operate a diesel-powered motor vehicle
1633	1633	on a public highway;
1634	1634	(7) fails or refuses to comply with or violates a
1635	1635	provision of this chapter;
1636	1636	(8) fails or refuses to comply with or violates a
1637	1637	comptroller's rule for administering or enforcing this chapter;
1638	1638	(9) is an importer who does not obtain an import
1639	1639	verification number when required by this chapter;
1640	1640	(10) purchases motor fuel for export, on which the
1641	1641	taxes [tax] imposed by this chapter have [has] not been paid, and
1642	1642	subsequently diverts or causes the motor fuel to be diverted to a
1643	1643	destination in this state or any other state or country other than
1644	1644	the originally designated state or country without first obtaining
1645	1645	a diversion number;
1646	1646	(11) delivers compressed natural gas or liquefied
1647	1647	natural gas into the fuel supply tank of a motor vehicle and the
1648	1648	person does not hold a valid compressed natural gas and liquefied
1649	1649	natural gas dealer's license; [or]
1650	1650	(12) makes a tax-free delivery of compressed natural
1651	1651	gas or liquefied natural gas into the fuel supply tank of a motor
1652	1652	vehicle, unless the delivery is exempt from tax under Section
1653	1653	162.356;
1654	1654	(13) transports motor fuel to a municipality in this
1655	1655	state other than the municipality stated on the shipping document;
1656	1656	or
1657	1657	(14) transports motor fuel to a municipality in this
1658	1658	state if the shipping document does not state a municipality.
1659	1659	(c) A person receiving motor fuel who accepts a shipping
1660	1660	document that does not conform with the requirements of Section
1661	1661	162.004 or 162.016(a) is liable to this state for a civil penalty of
1662	1662	$2,000 or five times the amount of the unpaid tax, whichever is
1663	1663	greater, for each occurrence.
1664	1664	(d) A person who issues a shipping document that does not
1665	1665	conform with the requirements of Section 162.004 or 162.016(a) is
1666	1666	liable to this state for a civil penalty of $2,000 or five times the
1667	1667	amount of the unpaid tax, whichever is greater, for each
1668	1668	occurrence.
1669	1669	SECTION 64. Section 162.403, Tax Code, is amended to read as
1670	1670	follows:
1671	1671	Sec. 162.403. CRIMINAL OFFENSES. Except as provided by
1672	1672	Section 162.404, a person commits an offense if the person:
1673	1673	(1) refuses to stop and permit the inspection and
1674	1674	examination of a motor vehicle transporting or using motor fuel on
1675	1675	the demand of a peace officer or the comptroller;
1676	1676	(2) is required to hold a valid trip permit or
1677	1677	interstate trucker's license, but operates a motor vehicle in this
1678	1678	state without a valid trip permit or interstate trucker's license;
1679	1679	(3) transports gasoline or diesel fuel in any cargo
1680	1680	tank that has a connection by pipe, tube, valve, or otherwise with
1681	1681	the fuel injector or carburetor or with the fuel supply tank feeding
1682	1682	the fuel injector or carburetor of the motor vehicle transporting
1683	1683	the product;
1684	1684	(4) sells or delivers gasoline or diesel fuel from a
1685	1685	fuel supply tank that is connected with the fuel injector or
1686	1686	carburetor of a motor vehicle;
1687	1687	(5) owns or operates a motor vehicle for which reports
1688	1688	or mileage records are required by this chapter without an
1689	1689	operating odometer or other device in good working condition to
1690	1690	record accurately the miles traveled;
1691	1691	(6) sells or delivers dyed diesel fuel for the
1692	1692	operation of a motor vehicle on a public highway;
1693	1693	(7) uses dyed diesel fuel for the operation of a motor
1694	1694	vehicle on a public highway except as allowed under Section
1695	1695	162.235;
1696	1696	(8) refuses to permit the comptroller or the attorney
1697	1697	general to inspect, examine, or audit a book or record required to
1698	1698	be kept by a license holder, other user, or any person required to
1699	1699	hold a license under this chapter;
1700	1700	(9) refuses to permit the comptroller or the attorney
1701	1701	general to inspect or examine any plant, equipment, materials, or
1702	1702	premises where motor fuel is produced, processed, blended, stored,
1703	1703	sold, delivered, or used;
1704	1704	(10) refuses to permit the comptroller, the attorney
1705	1705	general, an employee of either of those officials, a peace officer,
1706	1706	an employee of the Texas Commission on Environmental Quality, or an
1707	1707	employee of the Texas Department of Licensing and Regulation to
1708	1708	measure or gauge the contents of or take samples from a storage tank
1709	1709	or container on premises where motor fuel is produced, processed,
1710	1710	blended, stored, sold, delivered, or used;
1711	1711	(11) is a license holder, a person required to be
1712	1712	licensed, or another user and fails or refuses to make or deliver to
1713	1713	the comptroller a report required by this chapter to be made and
1714	1714	delivered to the comptroller;
1715	1715	(12) is an importer who does not obtain an import
1716	1716	verification number when required by this chapter;
1717	1717	(13) purchases motor fuel for export, on which the
1718	1718	taxes [tax] imposed by this chapter have [has] not been paid, and
1719	1719	subsequently diverts or causes the motor fuel to be diverted to a
1720	1720	destination in this state or any other state or country other than
1721	1721	the originally designated state or country without first obtaining
1722	1722	a diversion number;
1723	1723	(13-a) transports motor fuel to a municipality in this
1724	1724	state other than the municipality stated on the shipping document;
1725	1725	(13-b) transports motor fuel to a municipality in this
1726	1726	state if the shipping document does not state a municipality;
1727	1727	(14) conceals motor fuel with the intent of engaging
1728	1728	in any conduct proscribed by this chapter or refuses to make sales
1729	1729	of motor fuel on the volume-corrected basis prescribed by this
1730	1730	chapter;
1731	1731	(15) refuses, while transporting motor fuel, to stop
1732	1732	the motor vehicle the person is operating when called on to do so by
1733	1733	a person authorized to stop the motor vehicle;
1734	1734	(16) refuses to surrender a motor vehicle and cargo
1735	1735	for impoundment after being ordered to do so by a person authorized
1736	1736	to impound the motor vehicle and cargo;
1737	1737	(17) mutilates, destroys, or secretes a book or record
1738	1738	required by this chapter to be kept by a license holder, other user,
1739	1739	or person required to hold a license under this chapter;
1740	1740	(18) is a license holder, other user, or other person
1741	1741	required to hold a license under this chapter, or the agent or
1742	1742	employee of one of those persons, and makes a false entry or fails
1743	1743	to make an entry in the books and records required under this
1744	1744	chapter to be made by the person or fails to retain a document as
1745	1745	required by this chapter;
1746	1746	(19) transports in any manner motor fuel under a false
1747	1747	cargo manifest or shipping document, or transports in any manner
1748	1748	motor fuel to a location without delivering at the same time a
1749	1749	shipping document relating to that shipment;
1750	1750	(20) engages in a motor fuel transaction that requires
1751	1751	that the person have a license under this chapter without then and
1752	1752	there holding the required license;
1753	1753	(21) makes and delivers to the comptroller a report
1754	1754	required under this chapter to be made and delivered to the
1755	1755	comptroller, if the report contains false information;
1756	1756	(22) forges, falsifies, or alters an invoice or
1757	1757	shipping document prescribed by law;
1758	1758	(23) makes any statement, knowing said statement to be
1759	1759	false, in a claim for a tax refund filed with the comptroller;
1760	1760	(24) furnishes to a licensed supplier or distributor a
1761	1761	signed statement for purchasing diesel fuel tax-free and then uses
1762	1762	the tax-free diesel fuel to operate a diesel-powered motor vehicle
1763	1763	on a public highway;
1764	1764	(25) holds an aviation fuel dealer's license and makes
1765	1765	a taxable sale or use of any gasoline or diesel fuel;
1766	1766	(26) fails to remit any tax funds collected or
1767	1767	required to be collected by a license holder, another user, or any
1768	1768	other person required to hold a license under this chapter;
1769	1769	(27) makes a sale of dyed diesel fuel tax-free into a
1770	1770	storage facility of a person who:
1771	1771	(A) is not licensed as a distributor, as an
1772	1772	aviation fuel dealer, or as a dyed diesel fuel bonded user; or
1773	1773	(B) does not furnish to the licensed supplier or
1774	1774	distributor a signed statement prescribed in Section 162.206;
1775	1775	(28) makes a sale of gasoline tax-free to any person
1776	1776	who is not licensed as an aviation fuel dealer;
1777	1777	(29) purchases any motor fuel tax-free when not
1778	1778	authorized to make a tax-free purchase under this chapter;
1779	1779	(30) purchases motor fuel with the intent to evade any
1780	1780	tax imposed by this chapter or accepts a delivery of motor fuel by
1781	1781	any means and does not at the same time accept or receive a shipping
1782	1782	document relating to the delivery;
1783	1783	(31) transports motor fuel for which a cargo manifest
1784	1784	or shipping document is required to be carried without possessing
1785	1785	or exhibiting on demand by an officer authorized to make the demand
1786	1786	a cargo manifest or shipping document containing the information
1787	1787	required to be shown on the manifest or shipping document;
1788	1788	(32) imports, sells, uses, blends, distributes, or
1789	1789	stores motor fuel within this state on which a tax [the taxes]
1790	1790	imposed by this chapter is [are] owed but has [have] not been first
1791	1791	paid to or reported by a license holder, another user, or any other
1792	1792	person required to hold a license under this chapter;
1793	1793	(33) blends products together to produce a blended
1794	1794	fuel that is offered for sale, sold, or used and that expands the
1795	1795	volume of the original product to evade paying applicable motor
1796	1796	fuel taxes;
1797	1797	(34) evades or attempts to evade in any manner a tax
1798	1798	imposed on motor fuel by this chapter;
1799	1799	(35) delivers compressed natural gas or liquefied
1800	1800	natural gas into the fuel supply tank of a motor vehicle and the
1801	1801	person does not hold a valid compressed natural gas and liquefied
1802	1802	natural gas dealer's license; or
1803	1803	(36) makes a tax-free delivery of compressed natural
1804	1804	gas or liquefied natural gas into the fuel supply tank of a motor
1805	1805	vehicle, unless the delivery is exempt from tax under Section
1806	1806	162.356.
1807	1807	SECTION 65. Section 162.405(d), Tax Code, is amended to
1808	1808	read as follows:
1809	1809	(d) An offense under Section 162.403(6), (13-a), (13-b),
1810	1810	(17), (18), (19), (20), (21), (22), (23), or (24) is a felony of the
1811	1811	third degree.
1812	1812	SECTION 66. Section 20.002(d), Transportation Code, is
1813	1813	amended to read as follows:
1814	1814	(d) The fee imposed by this section is equal to 25 percent of
1815	1815	the diesel fuel tax rate imposed under Section 162.202(a)
1816	1816	[162.202], Tax Code.
1817	1817	SECTION 67. (a) A municipality may not impose a motor fuel
1818	1818	tax under Chapter 401, Tax Code, as added by this Act, before the
1819	1819	effective date of rules adopted by the comptroller of public
1820	1820	accounts under Section 401.151, Tax Code, as added by this Act.
1821	1821	(b) The comptroller of public accounts shall adopt the rules
1822	1822	required by Section 401.151, Tax Code, as added by this Act, not
1823	1823	later than December 1, 2021.
1824	1824	SECTION 68. The comptroller shall compute the initial
1825	1825	adjusted tax rates as required by Sections 162.1026(c) and
1826	1826	162.2026(c), Tax Code, as added by this Act, not later than November
1827	1827	1, 2022. The initial adjusted rates take effect January 1, 2023.
1828	1828	SECTION 69. The change in law made by this Act does not
1829	1829	affect tax liability accruing before the effective date of this
1830	1830	Act. That liability continues in effect as if this Act had not been
1831	1831	enacted, and the former law is continued in effect for the
1832	1832	collection of taxes due and for civil and criminal enforcement of
1833	1833	the liability for those taxes.
1834	1834	SECTION 70. If the constitution of this state requires that
1835	1835	one-fourth of the municipal motor fuels tax authorized by this Act
1836	1836	be allocated to the available school fund, the municipality shall
1837	1837	deposit that money into an account separate from the money
1838	1838	collected under other provisions of this Act and shall allocate the
1839	1839	money to the comptroller of public accounts for deposit in the state
1840	1840	treasury for the purpose required by the constitution.
1841	1841	SECTION 71. This Act takes effect September 1, 2021.