Texas 2023 - 88th Regular

Texas House Bill HB2226 Compare Versions

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1	1	88R7837 CJC-F
2	2	By: Reynolds H.B. No. 2226
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 this
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 a 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 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 municipality
187	187	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
231	231	retain a copy of the shipping document at the delivery location or
232	232	another 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
275	275	gasoline tax or municipal diesel fuel tax and fails to produce proof
276	276	of delivery to a nontaxing municipality or an unincorporated area
277	277	of the state, the person is presumed to have delivered the motor
278	278	fuel to a taxing municipality that imposes the tax on motor vehicle
279	279	fuels authorized by Chapter 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 in the
486	486	preceding year are increased or decreased by a percentage that is
487	487	equal to the consumer price index percentage change for the
488	488	preceding state fiscal year.
489	489	(c) Not later than November 1 of each year, the comptroller
490	490	shall:
491	491	(1) compute the new tax rates as provided by this
492	492	section;
493	493	(2) give the new tax rates to the secretary of state
494	494	for publication in the Texas Register; and
495	495	(3) notify each license holder under this subchapter
496	496	of the new tax rates.
497	497	SECTION 16. The heading to Section 162.103, Tax Code, is
498	498	amended to read as follows:
499	499	Sec. 162.103. BACKUP STATE GASOLINE TAX; LIABILITY.
500	500	SECTION 17. Sections 162.103(a) and (c), Tax Code, are
501	501	amended to read as follows:
502	502	(a) A backup tax is imposed at the rate prescribed by
503	503	Sections 162.102(a) and 162.1026 [Section 162.102] on:
504	504	(1) a person who obtains a refund of tax on gasoline by
505	505	claiming the gasoline was used for an off-highway purpose, but
506	506	actually uses the gasoline to operate a motor vehicle on a public
507	507	highway;
508	508	(2) a person who operates a motor vehicle on a public
509	509	highway using gasoline on which tax has not been paid;
510	510	(3) a person who sells to the ultimate consumer
511	511	gasoline on which tax has not been paid and who knew or had reason to
512	512	know that the gasoline would be used for a taxable purpose; and
513	513	(4) a person, other than a person exempted under
514	514	Section 162.104, who acquires gasoline on which tax has not been
515	515	paid from any source in this state.
516	516	(c) The tax imposed by [under] Subsection (a)(3) is also
517	517	imposed on the ultimate consumer.
518	518	SECTION 18. Subchapter B, Chapter 162, Tax Code, is amended
519	519	by adding Section 162.1035 to read as follows:
520	520	Sec. 162.1035. BACKUP MUNICIPAL GASOLINE TAX; LIABILITY.
521	521	(a) A backup tax is imposed at the rate prescribed by Sections
522	522	162.102(b) and 162.1026 on:
523	523	(1) a person who, in a taxing municipality:
524	524	(A) delivers gasoline into the fuel supply tank
525	525	of a motor vehicle;
526	526	(B) purchases or receives gasoline from another
527	527	person; or
528	528	(C) sells or delivers gasoline to another person;
529	529	and
530	530	(2) a person who obtains a refund of the tax imposed by
531	531	Section 162.1011 for gasoline that the person delivered into the
532	532	fuel supply tank of a motor vehicle, purchased or acquired, or sold
533	533	or delivered in a taxing municipality.
534	534	(b) A person who sells gasoline subject to the tax imposed
535	535	by this section shall at the time of sale collect the tax from the
536	536	purchaser or recipient of the gasoline in addition to the selling
537	537	price and is liable to this state for the taxes collected at the
538	538	time and in the manner provided by this chapter.
539	539	(c) The following are exempt from the tax imposed by this
540	540	section:
541	541	(1) gasoline on which the tax imposed by Section
542	542	162.1011 has been paid; and
543	543	(2) gasoline exempt under Section 162.104.
544	544	(d) The tax imposed by this section is in addition to any
545	545	penalty imposed under this chapter.
546	546	SECTION 19. Section 162.104(a), Tax Code, is amended to
547	547	read as follows:
548	548	(a) The taxes [tax] imposed by this subchapter do [does] not
549	549	apply to gasoline:
550	550	(1) sold to the United States for its exclusive use,
551	551	provided that the exemption does not apply with respect to fuel sold
552	552	or delivered to a person operating under a contract with the United
553	553	States;
554	554	(2) sold to a public school district in this state for
555	555	the district's exclusive use;
556	556	(3) sold to a commercial transportation company or a
557	557	metropolitan rapid transit authority operating under Chapter 451,
558	558	Transportation Code, that provides public school transportation
559	559	services to a school district under Section 34.008, Education Code,
560	560	and that uses the gasoline only to provide those services;
561	561	(4) exported by either a licensed supplier or a
562	562	licensed exporter from this state to any other state, provided that
563	563	the bill of lading indicates the destination state and the supplier
564	564	collects the destination state tax;
565	565	(5) moved by truck or railcar between licensed
566	566	suppliers or licensed permissive suppliers and in which the
567	567	gasoline removed from the first terminal comes to rest in the second
568	568	terminal, provided that the removal from the second terminal rack
569	569	is subject to the state gasoline tax imposed by this subchapter;
570	570	(6) delivered or sold into a storage facility of a
571	571	licensed aviation fuel dealer from which gasoline will be delivered
572	572	solely into the fuel supply tanks of aircraft or aircraft servicing
573	573	equipment, or sold from one licensed aviation fuel dealer to
574	574	another licensed aviation fuel dealer who will deliver the aviation
575	575	fuel exclusively into the fuel supply tanks of aircraft or aircraft
576	576	servicing equipment;
577	577	(7) exported to a foreign country if the bill of lading
578	578	or shipping documents indicate the foreign destination and the fuel
579	579	is actually exported to the foreign country;
580	580	(8) sold to a volunteer fire department in this state
581	581	for the department's exclusive use; or
582	582	(9) sold to a nonprofit entity that is organized for
583	583	the sole purpose of and engages exclusively in providing emergency
584	584	medical services and that uses the gasoline exclusively to provide
585	585	emergency medical services, including rescue and ambulance
586	586	services.
587	587	SECTION 20. Section 162.105, Tax Code, is amended to read as
588	588	follows:
589	589	Sec. 162.105. PERSONS REQUIRED TO BE LICENSED. A person
590	590	shall obtain the appropriate license or licenses issued by the
591	591	comptroller before conducting the activities of:
592	592	(1) a supplier, who may also act as a distributor,
593	593	importer, exporter, blender, motor fuel transporter, dealer, or
594	594	aviation fuel dealer without securing a separate license, but who
595	595	is subject to all other conditions, requirements, and liabilities
596	596	imposed on those license holders;
597	597	(2) a permissive supplier, who may also act as a
598	598	distributor, importer, exporter, blender, motor fuel transporter,
599	599	dealer, or aviation fuel dealer without securing a separate
600	600	license, but who is subject to all other conditions, requirements,
601	601	and liabilities imposed on those license holders;
602	602	(3) a distributor, who may also act as an importer,
603	603	exporter, blender, [or] motor fuel transporter, or dealer without
604	604	securing a separate license, but who is subject to all other
605	605	conditions, requirements, and liabilities imposed on those license
606	606	holders;
607	607	(4) an importer, who may also act as an exporter,
608	608	blender, [or] motor fuel transporter, or dealer without securing a
609	609	separate license, but who is subject to all other conditions,
610	610	requirements, and liabilities imposed on those license holders;
611	611	(5) a terminal operator;
612	612	(6) an exporter;
613	613	(7) a blender;
614	614	(8) a motor fuel transporter;
615	615	(9) an aviation fuel dealer; [or]
616	616	(10) an interstate trucker; or
617	617	(11) a dealer.
618	618	SECTION 21. Sections 162.107(a) and (b), Tax Code, are
619	619	amended to read as follows:
620	620	(a) A person may elect to obtain a permissive supplier
621	621	license to collect the state gasoline tax imposed by [under] this
622	622	subchapter for gasoline that is removed at a terminal in another
623	623	state and has this state as the destination state.
624	624	(b) With respect to gasoline that is removed by the licensed
625	625	permissive supplier at a terminal located in another state and that
626	626	has this state as the destination state, a licensed permissive
627	627	supplier shall:
628	628	(1) collect the state gasoline tax due to this state on
629	629	the gasoline;
630	630	(2) waive any defense that this state lacks
631	631	jurisdiction to require the supplier to collect the state gasoline
632	632	tax due to this state on the gasoline under this subchapter;
633	633	(3) report and pay the state gasoline tax and the
634	634	municipal gasoline tax due on the gasoline in the same manner as if
635	635	the removal had occurred at a terminal located in this state;
636	636	(4) keep records of the removal of the gasoline and
637	637	submit to audits concerning the gasoline as if the removal had
638	638	occurred at a terminal located in this state; and
639	639	(5) report sales by the permissive supplier to a
640	640	person who is not licensed in this state.
641	641	SECTION 22. Section 162.108, Tax Code, is amended by adding
642	642	Subsection (a-1) to read as follows:
643	643	(a-1) In addition to the information required by Subsection
644	644	(a), an applicant for a license as a dealer must list on the
645	645	application:
646	646	(1) the street address, municipality, county, and zip
647	647	code of the location for which the applicant seeks a license to sell
648	648	or dispense motor fuel at retail;
649	649	(2) the applicant's social security number, driver's
650	650	license number, and federal employer identification number if the
651	651	applicant is a natural person who is not licensed as a supplier,
652	652	permissive supplier, or terminal operator; and
653	653	(3) if the applicant is a corporation, limited
654	654	liability company, professional association, partnership, or other
655	655	entity that is not licensed as a supplier, permissive supplier, or
656	656	terminal operator and is not wholly owned by an entity that is
657	657	licensed as a supplier, permissive supplier, or terminal operator,
658	658	the physical address, mailing address, social security number, and
659	659	driver's license number of:
660	660	(A) each natural person responsible for the
661	661	purchase of motor fuel for sale by the applicant; and
662	662	(B) each officer, director, manager, member,
663	663	shareholder, and partner of the applicant.
664	664	SECTION 23. Section 162.110(a), Tax Code, is amended to
665	665	read as follows:
666	666	(a) The license issued to a supplier, permissive supplier,
667	667	distributor, importer, exporter, terminal operator, blender, [or]
668	668	motor fuel transporter, or dealer is permanent and is valid during
669	669	the period the license holder has in force and effect the required
670	670	bond or security and furnishes timely reports and supplements as
671	671	required, or until the license is surrendered by the holder or
672	672	canceled by the comptroller. The comptroller shall cancel a
673	673	license under this subsection if a purchase, sale, or use of
674	674	gasoline has not been reported by the license holder during the
675	675	previous nine months.
676	676	SECTION 24. Section 162.111(a), Tax Code, is amended to
677	677	read as follows:
678	678	(a) The comptroller shall determine the amount of security
679	679	required of a supplier, permissive supplier, distributor,
680	680	exporter, importer, dealer, or blender, taking into consideration
681	681	the amount of tax that has or is expected to become due from the
682	682	person, any past history of the person as a license holder under
683	683	this chapter or its predecessor, and the necessity to protect this
684	684	state against the failure to pay the tax as the tax becomes due.
685	685	SECTION 25. Sections 162.112(a) and (b), Tax Code, are
686	686	amended to read as follows:
687	687	(a) The comptroller, on or before December 20 of each year,
688	688	shall make available to all license holders an alphabetical list of
689	689	licensed suppliers, permissive suppliers, distributors, aviation
690	690	fuel dealers, importers, exporters, blenders, dealers, and
691	691	terminal operators. A supplemental list of additions and deletions
692	692	shall be made available to the license holders each month. A
693	693	current and effective license or the list furnished by the
694	694	comptroller is evidence of the validity of the license until the
695	695	comptroller notifies license holders of a change in the status of a
696	696	license holder.
697	697	(b) A licensed supplier, permissive supplier, dealer, or
698	698	distributor who sells gasoline tax-free to a person whose
699	699	supplier's, permissive supplier's, dealer's, or aviation fuel
700	700	dealer's license has been canceled or revoked under this chapter is
701	701	liable for any tax due on gasoline sold after receiving notice of
702	702	the cancellation or revocation.
703	703	SECTION 26. Sections 162.113(d), (d-1), and (e), Tax Code,
704	704	are amended to read as follows:
705	705	(d) The supplier or permissive supplier, after requesting a
706	706	credit under this section, shall terminate the ability of the
707	707	licensed distributor or licensed importer to defer the payment of
708	708	state gasoline tax. The supplier or permissive supplier may not
709	709	reinstate the right of the licensed distributor or licensed
710	710	importer to defer the payment of state gasoline tax until the first
711	711	anniversary of the date the supplier or permissive supplier
712	712	requested the credit, subject to Subsection (d-1).
713	713	(d-1) A supplier or permissive supplier may reinstate the
714	714	right of a licensed distributor or licensed importer to defer the
715	715	payment of state gasoline tax before the date prescribed by
716	716	Subsection (d) if the comptroller determines that:
717	717	(1) the supplier or permissive supplier erroneously
718	718	requested the credit that resulted in the termination of the
719	719	licensed distributor's or licensed importer's right to defer
720	720	payment; or
721	721	(2) the licensed distributor or licensed importer
722	722	failed to pay state gasoline taxes due because of circumstances
723	723	that may have been outside the distributor's or importer's control.
724	724	(e) A licensed distributor or licensed importer who makes
725	725	timely payments of the state gasoline tax imposed by [under] this
726	726	subchapter is entitled to retain an amount equal to 1.75 percent of
727	727	the total state gasoline tax [taxes] to be paid to the supplier or
728	728	permissive supplier to cover administrative expenses.
729	729	SECTION 27. Section 162.114(a), Tax Code, is amended to
730	730	read as follows:
731	731	(a) Except as provided by Subsection (b), each person who is
732	732	liable for the taxes [tax] imposed by this subchapter, a terminal
733	733	operator, a dealer, and a licensed distributor shall file a return
734	734	on or before the 25th day of the month following the end of each
735	735	calendar month.
736	736	SECTION 28. Sections 162.115(b), (c), (e), (g), and (h),
737	737	Tax Code, are amended to read as follows:
738	738	(b) A distributor shall keep:
739	739	(1) a record showing the number of gallons of:
740	740	(A) all gasoline inventories on hand at the first
741	741	of each month;
742	742	(B) all gasoline blended;
743	743	(C) all gasoline purchased or received, showing
744	744	the name of the seller and the date of each purchase or receipt;
745	745	(D) all gasoline sold, distributed, or used,
746	746	showing:
747	747	(i) the name of the purchaser;
748	748	(ii) if the gasoline was delivered to a
749	749	municipality in this state, the municipality to which the gasoline
750	750	was delivered;
751	751	(iii) the amount of municipal gasoline tax
752	752	collected from the purchaser, if any; and
753	753	(iv) the date of the sale, distribution, or
754	754	use; and
755	755	(E) all gasoline lost by fire, theft, or
756	756	accident;
757	757	(2) an itemized statement showing by load the number
758	758	of gallons of all gasoline:
759	759	(A) received during the preceding calendar month
760	760	for export and the location of the loading;
761	761	(B) sold, distributed, or used, showing:
762	762	(i) the name of the purchaser;
763	763	(ii) if the gasoline was delivered to a
764	764	municipality in this state, the municipality to which the gasoline
765	765	was delivered;
766	766	(iii) the amount of municipal gasoline tax
767	767	collected from the purchaser, if any; and
768	768	(iv) the date of the sale, distribution, or
769	769	use;
770	770	(C) exported from this state by destination state
771	771	or country; and
772	772	(D) [(C)] imported during the preceding calendar
773	773	month by state or country of origin; [and]
774	774	(3) for gasoline exported from this state, proof of
775	775	payment of tax to the destination state in a form acceptable to the
776	776	comptroller; and
777	777	(4) all shipping documents.
778	778	(c) An importer shall keep:
779	779	(1) a record showing the number of gallons of:
780	780	(A) all gasoline inventories on hand at the first
781	781	of each month;
782	782	(B) all gasoline compounded or blended;
783	783	(C) all gasoline purchased or received, showing
784	784	the name of the seller and the date of each purchase or receipt;
785	785	(D) all gasoline sold, distributed, or used,
786	786	showing the name of the purchaser, the municipality in this state,
787	787	if applicable, and the date of the sale, distribution, or use; and
788	788	(E) all gasoline lost by fire, theft, or
789	789	accident; and
790	790	(2) an itemized statement showing by load the number
791	791	of gallons of all gasoline:
792	792	(A) received during the preceding calendar month
793	793	for export and the location of the loading;
794	794	(B) sold, distributed, or used, showing the name
795	795	of the purchaser, the municipality or municipalities in this state,
796	796	if applicable, and the date of the sale, distribution, or use;
797	797	(C) exported from this state by destination state
798	798	or country; and
799	799	(D) [(C)] imported during the preceding calendar
800	800	month by state or country of origin.
801	801	(e) A blender shall keep a record showing the number of
802	802	gallons of:
803	803	(1) all gasoline inventories on hand at the first of
804	804	each month;
805	805	(2) all gasoline compounded or blended;
806	806	(3) all gasoline purchased or received, showing the
807	807	name of the seller and the date of each purchase or receipt;
808	808	(4) all gasoline sold, distributed, or used, showing
809	809	the name of the purchaser, the municipality in this state, if
810	810	applicable, and the date of the sale or use; and
811	811	(5) all gasoline lost by fire, theft, or accident.
812	812	(g) A motor fuel transporter shall keep a complete and
813	813	separate record of each intrastate and interstate transportation of
814	814	gasoline, showing:
815	815	(1) the date of transportation;
816	816	(2) the name of the consignor and consignee;
817	817	(3) the means of transportation;
818	818	(4) the quantity and kind of gasoline transported;
819	819	(5) full data concerning the diversion of shipments,
820	820	including the municipality in this state, if applicable, and the
821	821	number of gallons diverted from interstate to intrastate and
822	822	intrastate to interstate commerce; and
823	823	(6) the points of origin and destination, the
824	824	municipality in this state, if applicable, the number of gallons
825	825	shipped or transported, the date, the consignee and the consignor,
826	826	and the kind of gasoline that has been diverted.
827	827	(h) A dealer shall keep all shipping documents and a record
828	828	showing the number of gallons of:
829	829	(1) gasoline inventories on hand at the first of each
830	830	month;
831	831	(2) all gasoline purchased or received, showing the
832	832	name of the seller and the date of each purchase or receipt;
833	833	(3) all gasoline sold or used, showing the date of the
834	834	sale or use; and
835	835	(4) all gasoline lost by fire, theft, or accident.
836	836	SECTION 29. Section 162.116(c), Tax Code, is amended to
837	837	read as follows:
838	838	(c) A supplier or permissive supplier may take a credit for
839	839	any state gasoline tax [taxes] that was [were] not remitted in a
840	840	previous period to the supplier or permissive supplier by a
841	841	licensed distributor or licensed importer as required by Section
842	842	162.113. The supplier or permissive supplier is eligible to take
843	843	the credit if the comptroller is notified of the default within 15
844	844	days after the default occurs. If a license holder pays to a
845	845	supplier or permissive supplier the tax owed, but the payment
846	846	occurs after the supplier or permissive supplier has taken a credit
847	847	on its return, the supplier or permissive supplier shall remit the
848	848	payment to the comptroller with the next monthly return after
849	849	receipt of the tax, plus a penalty of 10 percent of the amount of
850	850	unpaid taxes and interest at the rate provided by Section 111.060
851	851	beginning on the date the credit was taken.
852	852	SECTION 30. Section 162.118, Tax Code, is amended to read as
853	853	follows:
854	854	Sec. 162.118. INFORMATION REQUIRED ON DISTRIBUTOR'S
855	855	RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return
856	856	and supplements of each distributor shall contain for the period
857	857	covered by the return:
858	858	(1) the number of net gallons of gasoline received by
859	859	the distributor during the month, sorted by product code, seller,
860	860	point of origin, destination state, carrier, and receipt date;
861	861	(2) the number of net gallons of gasoline removed at a
862	862	terminal rack by the distributor during the month, sorted by
863	863	product code, seller, terminal code, and carrier;
864	864	(3) the number of net gallons of gasoline removed by
865	865	the distributor during the month for export, sorted by product
866	866	code, terminal code, bulk plant address, destination state, and
867	867	carrier;
868	868	(4) the number of net gallons of gasoline removed by
869	869	the distributor during the month from a terminal located in another
870	870	state for conveyance to this state, as indicated on the shipping
871	871	document for the gasoline, sorted by product code, seller, terminal
872	872	code, bulk plant address, and carrier;
873	873	(5) the number of net gallons of gasoline the
874	874	distributor sold during the month in transactions exempt under
875	875	Section 162.104, sorted by product code and purchaser; [and]
876	876	(6) the number of net gallons delivered into a taxing
877	877	municipality sorted by taxing municipality and purchaser; and
878	878	(7) any other information required by the comptroller.
879	879	(b) A distributor or importer who makes timely payments of
880	880	the municipal gasoline tax imposed by this subchapter is entitled
881	881	to retain an amount equal to two percent of the total municipal
882	882	gasoline taxes remitted to the comptroller to cover administrative
883	883	expenses.
884	884	SECTION 31. Section 162.123, Tax Code, is amended to read as
885	885	follows:
886	886	Sec. 162.123. INFORMATION REQUIRED ON BLENDER'S RETURN.
887	887	The monthly return and supplements of each blender shall contain
888	888	for the period covered by the return:
889	889	(1) the number of net gallons of gasoline received by
890	890	the blender during the month, sorted by product code, seller, point
891	891	of origin, carrier, and receipt date;
892	892	(2) the number of net gallons of product blended with
893	893	gasoline during the month, sorted by product code, type of blending
894	894	agent if no product code exists, seller, and carrier;
895	895	(3) the number of net gallons of blended gasoline sold
896	896	during the month and the license number or name, [and] address, and,
897	897	if applicable, municipality of the entity receiving the blended
898	898	gasoline; and
899	899	(4) any other information required by the comptroller.
900	900	SECTION 32. Subchapter B, Chapter 162, Tax Code, is amended
901	901	by adding Section 162.1235 to read as follows:
902	902	Sec. 162.1235. INFORMATION REQUIRED ON DEALER'S RETURN.
903	903	The monthly return and supplements of each dealer shall contain for
904	904	the period covered by the return:
905	905	(1) the number of gallons of gasoline inventories on
906	906	hand at the first of each month, sorted by product code;
907	907	(2) the number of gallons of gasoline received by the
908	908	dealer during the month, sorted by seller;
909	909	(3) the number of gallons of gasoline inventories on
910	910	hand at the end of each month; and
911	911	(4) any other information required by the comptroller.
912	912	SECTION 33. Sections 162.125(g-1) and (g-2), Tax Code, are
913	913	amended to read as follows:
914	914	(g-1) A volunteer fire department exempt from the taxes
915	915	[tax] imposed under this subchapter that paid a tax on the purchase
916	916	of gasoline is entitled to a refund of the tax paid, and the
917	917	volunteer fire department may file a refund claim with the
918	918	comptroller for that amount.
919	919	(g-2) A nonprofit entity exempted under Section
920	920	162.104(a)(9) from the taxes [tax] imposed under this subchapter
921	921	that paid a tax on the purchase of gasoline is entitled to a refund
922	922	of the tax paid, and the entity may file a refund claim with the
923	923	comptroller for that amount.
924	924	SECTION 34. Sections 162.127(a) and (d), Tax Code, are
925	925	amended to read as follows:
926	926	(a) A refund claim must be filed on a form provided by the
927	927	comptroller, be supported by the original invoice issued by the
928	928	seller, and contain:
929	929	(1) the stamped or preprinted name and address of the
930	930	seller, including, if applicable, the municipality to which the
931	931	gasoline was delivered;
932	932	(2) the name and address of the purchaser;
933	933	(3) the date of delivery of the gasoline;
934	934	(4) the date of the issuance of the invoice, if
935	935	different from the date of fuel delivery;
936	936	(5) the number of gallons of gasoline delivered;
937	937	(6) the amount of state or municipal gasoline taxes
938	938	paid [tax], either separately stated from the selling price or
939	939	stated with a notation that both state and municipal gasoline taxes
940	940	are included if both apply [the selling price includes the tax]; and
941	941	(7) the type of vehicle or equipment, such as a
942	942	motorboat, railway engine, motor vehicle, off-highway vehicle, or
943	943	refrigeration unit or stationary engine, into which the fuel is
944	944	delivered.
945	945	(d) A distributor or person who does not hold a license who
946	946	files a valid refund claim with the comptroller shall be paid by a
947	947	warrant issued by the comptroller. For purposes of this section, a
948	948	distributor meets the requirement of filing a valid refund claim
949	949	for state and municipal gasoline taxes if the distributor
950	950	designates the gallons of gasoline sold or used that are the subject
951	951	of the refund claim on the monthly report submitted by the
952	952	distributor to the comptroller.
953	953	SECTION 35. The heading to Section 162.201, Tax Code, is
954	954	amended to read as follows:
955	955	Sec. 162.201. POINT OF IMPOSITION OF STATE DIESEL FUEL TAX.
956	956	SECTION 36. Sections 162.201(a), (b), (c), and (f), Tax
957	957	Code, are amended to read as follows:
958	958	(a) A tax is imposed on the removal of diesel fuel from the
959	959	terminal using the terminal rack other than by bulk transfer. The
960	960	supplier or permissive supplier is liable for and shall collect the
961	961	tax imposed by this section [subchapter] from the person who orders
962	962	the withdrawal at the terminal rack.
963	963	(b) A tax is imposed at the time diesel fuel is imported into
964	964	this state, other than by a bulk transfer, for delivery to a
965	965	destination in this state. The supplier or permissive supplier is
966	966	liable for and shall collect the tax imposed by this section
967	967	[subchapter] from the person who imports the diesel fuel into this
968	968	state. If the seller is not a supplier or permissive supplier, the
969	969	person who imports the diesel fuel into this state is liable for and
970	970	shall pay the tax.
971	971	(c) A tax is imposed on the removal of diesel fuel from the
972	972	bulk transfer/terminal system in this state. The supplier is
973	973	liable for and shall collect the tax imposed by this section
974	974	[subchapter] from the person who orders the removal from the bulk
975	975	transfer/terminal system.
976	976	(f) The terminal operator in this state is considered a
977	977	supplier for the purpose of the tax imposed under this section
978	978	[subchapter] unless at the time of removal:
979	979	(1) the terminal operator has a terminal operator's
980	980	license issued for the facility from which the diesel fuel is
981	981	withdrawn;
982	982	(2) the terminal operator verifies that the person who
983	983	removes the diesel fuel has a supplier's license; and
984	984	(3) the terminal operator does not have a reason to
985	985	believe that the supplier's license is not valid.
986	986	SECTION 37. Subchapter C, Chapter 162, Tax Code, is amended
987	987	by adding Section 162.2011 to read as follows:
988	988	Sec. 162.2011. IMPOSITION OF MUNICIPAL DIESEL FUEL TAX;
989	989	POINT OF COLLECTION. (a) In a municipality that imposes taxes on
990	990	motor vehicle fuel authorized by Chapter 401, a tax is imposed on
991	991	the delivery of diesel fuel into the taxing municipality.
992	992	(b) The distributor shall collect the tax imposed by this
993	993	section from each person on delivery of diesel fuel into a taxing
994	994	municipality.
995	995	(c) A tax is imposed on diesel fuel that is otherwise exempt
996	996	from taxation under Section 162.204(a)(4) or (7) if the diesel fuel
997	997	is sold in this state to a person who does not hold a license under
998	998	Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel fuel is
999	999	subsequently delivered into a taxing municipality. The person who
1000	1000	delivered the diesel fuel into the taxing municipality is liable
1001	1001	for and shall collect the tax.
1002	1002	(d) A tax is imposed on diesel fuel that is otherwise exempt
1003	1003	from taxation under Section 162.204(a)(4) or (7) if before export
1004	1004	the diesel fuel is sold in this state to a person who holds a license
1005	1005	under Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel
1006	1006	fuel is subsequently delivered to a taxing municipality. The
1007	1007	person who delivered the diesel fuel into the taxing municipality
1008	1008	is liable for and shall pay the tax.
1009	1009	(e) In each subsequent sale of diesel fuel on which the tax
1010	1010	has been paid, the tax imposed by this section shall be collected
1011	1011	from the purchaser so that the tax is paid ultimately by the person
1012	1012	who uses the diesel fuel. Diesel fuel is considered to be used when
1013	1013	it is delivered into a fuel supply tank.
1014	1014	SECTION 38. Section 162.202, Tax Code, is amended to read as
1015	1015	follows:
1016	1016	Sec. 162.202. TAX RATES [RATE]. (a) Except as provided by
1017	1017	Section 162.2026, the state [The] diesel fuel tax rate is 20 cents
1018	1018	for each net gallon or fractional part of a net gallon on which the
1019	1019	tax is imposed under Section 162.201.
1020	1020	(b) In a taxing municipality, the municipal diesel fuel tax
1021	1021	rate for each net gallon or fractional part of a net gallon is the
1022	1022	rate established by Chapter 401, including the amount of
1023	1023	adjustments under Section 162.2026.
1024	1024	SECTION 39. The heading to Section 162.2025, Tax Code, is
1025	1025	amended to read as follows:
1026	1026	Sec. 162.2025. SEPARATE STATEMENT OF TAXES [TAX] COLLECTED
1027	1027	FROM PURCHASER.
1028	1028	SECTION 40. Sections 162.2025(a), (b), and (c), Tax Code,
1029	1029	are amended to read as follows:
1030	1030	(a) In each subsequent sale of diesel fuel on which the
1031	1031	taxes imposed by this subchapter have [tax has] been paid, the taxes
1032	1032	[tax imposed by this subchapter] shall be collected from the
1033	1033	purchaser so that the taxes are [tax is] paid ultimately by the
1034	1034	person who uses the diesel fuel. Diesel fuel is considered to be
1035	1035	used when it is delivered into a fuel supply tank.
1036	1036	(b) The taxes [tax] imposed by this subchapter must be
1037	1037	stated separately from the sales price of diesel fuel and
1038	1038	identified as diesel fuel taxes [tax] on the invoice or receipt
1039	1039	issued to a purchaser. Backup diesel fuel taxes [tax] may be
1040	1040	identified as diesel fuel taxes [tax]. The taxes [tax] must be
1041	1041	separately stated and identified in the same manner on a shipping
1042	1042	document, if the shipping document includes the sales price of the
1043	1043	diesel fuel.
1044	1044	(c) Except as provided by Subsection (d), the sales price of
1045	1045	diesel fuel stated on an invoice, receipt, or shipping document is
1046	1046	presumed to be exclusive of the taxes [tax] imposed by this
1047	1047	subchapter. The seller or purchaser may overcome the presumption
1048	1048	by using the seller's records to show that the taxes [tax] imposed
1049	1049	by this subchapter were [was] included in the sales price.
1050	1050	SECTION 41. Subchapter C, Chapter 162, Tax Code, is amended
1051	1051	by adding Section 162.2026 to read as follows:
1052	1052	Sec. 162.2026. ANNUAL RATE CHANGE ACCORDING TO CONSUMER
1053	1053	PRICE INDEX. (a) In this section:
1054	1054	(1) "Consumer price index" means the consumer price
1055	1055	index for all urban consumers for all items and for all regions of
1056	1056	the United States combined, as determined by the United States
1057	1057	Department of Labor, Bureau of Labor Statistics, or, if that index
1058	1058	is discontinued or superseded, a similar index selected or
1059	1059	calculated by the comptroller.
1060	1060	(2) "Consumer price index percentage change" means the
1061	1061	percentage increase or decrease in the consumer price index of a
1062	1062	given state fiscal year from the consumer price index of the
1063	1063	preceding state fiscal year.
1064	1064	(b) On January 1 of each year, the rates of state and
1065	1065	municipal diesel fuel taxes imposed under this subchapter in the
1066	1066	preceding year are increased or decreased by a percentage that is
1067	1067	equal to the consumer price index percentage change for the
1068	1068	preceding state fiscal year.
1069	1069	(c) Not later than November 1 of each year, the comptroller
1070	1070	shall:
1071	1071	(1) compute the new tax rates as provided by this
1072	1072	section;
1073	1073	(2) give the new tax rates to the secretary of state
1074	1074	for publication in the Texas Register; and
1075	1075	(3) notify each license holder under this subchapter
1076	1076	of the new tax rates.
1077	1077	SECTION 42. The heading to Section 162.203, Tax Code, is
1078	1078	amended to read as follows:
1079	1079	Sec. 162.203. BACKUP STATE DIESEL FUEL TAX; LIABILITY.
1080	1080	SECTION 43. Sections 162.203(a) and (c), Tax Code, are
1081	1081	amended to read as follows:
1082	1082	(a) A backup tax is imposed at the rate prescribed by
1083	1083	Sections 162.202(a) and 162.2026 [Section 162.202] on:
1084	1084	(1) a person who obtains a refund of tax on diesel fuel
1085	1085	by claiming the diesel fuel was used for an off-highway purpose, but
1086	1086	actually uses the diesel fuel to operate a motor vehicle on a public
1087	1087	highway;
1088	1088	(2) a person who operates a motor vehicle on a public
1089	1089	highway using diesel fuel on which tax has not been paid;
1090	1090	(3) a person who sells to the ultimate consumer diesel
1091	1091	fuel on which a tax has not been paid and who knew or had reason to
1092	1092	know that the diesel fuel would be used for a taxable purpose; and
1093	1093	(4) a person, other than a person exempted under
1094	1094	Section 162.204, who acquires diesel fuel on which tax has not been
1095	1095	paid from any source in this state.
1096	1096	(c) The tax imposed by [under] Subsection (a)(3) is also
1097	1097	imposed on the ultimate consumer.
1098	1098	SECTION 44. Subchapter C, Chapter 162, Tax Code, is amended
1099	1099	by adding Section 162.2035 to read as follows:
1100	1100	Sec. 162.2035. BACKUP MUNICIPAL DIESEL FUEL TAX; LIABILITY.
1101	1101	(a) A backup tax is imposed at the rate prescribed by Sections
1102	1102	162.202(b) and 162.2026 on:
1103	1103	(1) a person who, in a taxing municipality:
1104	1104	(A) delivers diesel fuel into the fuel supply
1105	1105	tank of a motor vehicle;
1106	1106	(B) purchases or receives diesel fuel from
1107	1107	another person; or
1108	1108	(C) sells or delivers diesel fuel to another
1109	1109	person; and
1110	1110	(2) a person who obtains a refund of the tax imposed by
1111	1111	Section 162.2011 for diesel fuel that the person delivered into the
1112	1112	fuel supply tank of a motor vehicle, purchased or acquired, or sold
1113	1113	or delivered in a taxing municipality.
1114	1114	(b) A person who sells diesel fuel subject to the tax
1115	1115	imposed by this section shall at the time of sale collect the tax
1116	1116	from the purchaser or recipient of the diesel fuel in addition to
1117	1117	the selling price and is liable to this state for the taxes
1118	1118	collected at the time and in the manner provided by this chapter.
1119	1119	(c) The following are exempt from the tax imposed by this
1120	1120	section:
1121	1121	(1) diesel fuel on which the tax imposed by Section
1122	1122	162.2011 has been paid; and
1123	1123	(2) diesel fuel exempt under Section 162.204.
1124	1124	(d) The tax imposed by this section is in addition to any
1125	1125	penalty imposed under this chapter.
1126	1126	SECTION 45. Sections 162.204(a) and (g), Tax Code, are
1127	1127	amended to read as follows:
1128	1128	(a) The taxes [tax] imposed by this subchapter do [does] not
1129	1129	apply to:
1130	1130	(1) diesel fuel sold to the United States for its
1131	1131	exclusive use, provided that the exemption does not apply to diesel
1132	1132	fuel sold or delivered to a person operating under a contract with
1133	1133	the United States;
1134	1134	(2) diesel fuel sold to a public school district in
1135	1135	this state for the district's exclusive use;
1136	1136	(3) diesel fuel sold to a commercial transportation
1137	1137	company or a metropolitan rapid transit authority operating under
1138	1138	Chapter 451, Transportation Code, that provides public school
1139	1139	transportation services to a school district under Section 34.008,
1140	1140	Education Code, and that uses the diesel fuel only to provide those
1141	1141	services;
1142	1142	(4) diesel fuel exported by either a licensed supplier
1143	1143	or a licensed exporter from this state to any other state, provided
1144	1144	that the bill of lading indicates the destination state and the
1145	1145	supplier collects the destination state tax;
1146	1146	(5) diesel fuel moved by truck or railcar between
1147	1147	licensed suppliers or licensed permissive suppliers and in which
1148	1148	the diesel fuel removed from the first terminal comes to rest in the
1149	1149	second terminal, provided that the removal from the second terminal
1150	1150	rack is subject to the state diesel fuel tax imposed by this
1151	1151	subchapter;
1152	1152	(6) diesel fuel delivered or sold into a storage
1153	1153	facility of a licensed aviation fuel dealer from which the diesel
1154	1154	fuel will be delivered solely into the fuel supply tanks of aircraft
1155	1155	or aircraft servicing equipment, or sold from one licensed aviation
1156	1156	fuel dealer to another licensed aviation fuel dealer who will
1157	1157	deliver the diesel fuel exclusively into the fuel supply tanks of
1158	1158	aircraft or aircraft servicing equipment;
1159	1159	(7) diesel fuel exported to a foreign country if the
1160	1160	bill of lading or shipping documents indicate the foreign
1161	1161	destination and the fuel is actually exported to the foreign
1162	1162	country;
1163	1163	(8) dyed diesel fuel sold or delivered by a supplier to
1164	1164	another supplier and dyed diesel fuel sold or delivered by a
1165	1165	supplier or distributor into the bulk storage facility of a dyed
1166	1166	diesel fuel bonded user or to a purchaser who provides a signed
1167	1167	statement as provided by Section 162.206;
1168	1168	(9) the volume of water, fuel ethanol, renewable
1169	1169	diesel, biodiesel, or mixtures thereof that are blended together
1170	1170	with taxable diesel fuel when the finished product sold or used is
1171	1171	clearly identified on the retail pump, storage tank, and sales
1172	1172	invoice as a combination of diesel fuel and water, fuel ethanol,
1173	1173	renewable diesel, biodiesel, or mixtures thereof;
1174	1174	(10) dyed diesel fuel sold by a supplier or permissive
1175	1175	supplier to a distributor, or by a distributor to another
1176	1176	distributor;
1177	1177	(11) dyed diesel fuel delivered by a license holder
1178	1178	into the fuel supply tanks of railway engines, motorboats, or
1179	1179	refrigeration units or other stationary equipment powered by a
1180	1180	separate motor from a separate fuel supply tank;
1181	1181	(12) dyed kerosene when delivered by a supplier,
1182	1182	distributor, or importer into a storage facility at a retail
1183	1183	business from which all deliveries are exclusively for heating,
1184	1184	cooking, lighting, or similar nonhighway use;
1185	1185	(13) diesel fuel used by a person, other than a
1186	1186	political subdivision, who owns, controls, operates, or manages a
1187	1187	commercial motor vehicle as defined by Section 548.001,
1188	1188	Transportation Code, if the fuel:
1189	1189	(A) is delivered exclusively into the fuel supply
1190	1190	tank of the commercial motor vehicle; and
1191	1191	(B) is used exclusively to transport passengers
1192	1192	for compensation or hire between points in this state on a fixed
1193	1193	route or schedule;
1194	1194	(14) diesel fuel sold to a volunteer fire department
1195	1195	in this state for the department's exclusive use; or
1196	1196	(15) diesel fuel sold to a nonprofit entity that is
1197	1197	organized for the sole purpose of and engages exclusively in
1198	1198	providing emergency medical services and that uses the diesel fuel
1199	1199	exclusively to provide emergency medical services, including
1200	1200	rescue and ambulance services.
1201	1201	(g) In lieu of claiming the exemption and complying with the
1202	1202	labeling requirements provided by Subsection (a)(9), a person to
1203	1203	whom Section 162.201 applies may elect to collect and remit the
1204	1204	taxes [tax] otherwise imposed by [under] this subchapter on the
1205	1205	materials described by Subsection (a)(9) as if the materials were
1206	1206	taxable diesel fuel. The labeling requirements provided by
1207	1207	Subsection (a)(9) do not apply to a dealer who sells taxable diesel
1208	1208	fuel blended with materials described by Subsection (a)(9) on which
1209	1209	a tax has been paid as provided by this subsection. Materials
1210	1210	described by Subsection (a)(9) on which a tax has been paid as
1211	1211	provided by this subsection are not exempt from taxation [tax]
1212	1212	under Subsection (a)(9) on a subsequent sale, and a license holder
1213	1213	or other purchaser is not entitled to a refund or credit under
1214	1214	Subsection (a)(9) for a purchase of taxable diesel fuel blended
1215	1215	with those materials.
1216	1216	SECTION 46. Section 162.205(a), Tax Code, is amended to
1217	1217	read as follows:
1218	1218	(a) A person shall obtain the appropriate license or
1219	1219	licenses issued by the comptroller before conducting the activities
1220	1220	of:
1221	1221	(1) a supplier, who may also act as a distributor,
1222	1222	importer, exporter, blender, motor fuel transporter, dealer, or
1223	1223	aviation fuel dealer without securing a separate license, but who
1224	1224	is subject to all other conditions, requirements, and liabilities
1225	1225	imposed on those license holders;
1226	1226	(2) a permissive supplier, who may also act as a
1227	1227	distributor, importer, exporter, blender, motor fuel transporter,
1228	1228	dealer, or aviation fuel dealer without securing a separate license
1229	1229	but who is subject to all other conditions, requirements, and
1230	1230	liabilities imposed on those license holders;
1231	1231	(3) a distributor, who may also act as an importer,
1232	1232	exporter, blender, [or] motor fuel transporter, or dealer without
1233	1233	securing a separate license, but who is subject to all other
1234	1234	conditions, requirements, and liabilities imposed on those license
1235	1235	holders;
1236	1236	(4) an importer, who may also act as an exporter,
1237	1237	blender, [or] motor fuel transporter, or dealer without securing a
1238	1238	separate license, but who is subject to all other conditions,
1239	1239	requirements, and liabilities imposed on those license holders;
1240	1240	(5) a terminal operator;
1241	1241	(6) an exporter;
1242	1242	(7) a blender;
1243	1243	(8) a motor fuel transporter;
1244	1244	(9) an aviation fuel dealer;
1245	1245	(10) an interstate trucker; [or]
1246	1246	(11) a dyed diesel fuel bonded user; or
1247	1247	(12) a dealer.
1248	1248	SECTION 47. Section 162.206(d), Tax Code, is amended to
1249	1249	read as follows:
1250	1250	(d) Any gallons purchased or sold in excess of the
1251	1251	limitations prescribed by Subsection (c) constitute a [taxable
1252	1252	purchase or] sale subject to the taxes imposed by this subchapter.
1253	1253	A purchaser that exceeds the limitations prescribed by Subsection
1254	1254	(c) shall be required to obtain a dyed diesel fuel bonded user
1255	1255	license.
1256	1256	SECTION 48. Sections 162.208(a) and (b), Tax Code, are
1257	1257	amended to read as follows:
1258	1258	(a) A person may elect to obtain a permissive supplier
1259	1259	license to collect the state diesel fuel tax imposed by [under] this
1260	1260	subchapter for diesel fuel that is removed at a terminal in another
1261	1261	state and has this state as the destination state.
1262	1262	(b) With respect to diesel fuel that is removed by the
1263	1263	licensed permissive supplier at a terminal located in another state
1264	1264	and that has this state as the destination state, a licensed
1265	1265	permissive supplier shall:
1266	1266	(1) collect the state diesel fuel tax due to this state
1267	1267	on the diesel fuel;
1268	1268	(2) waive any defense that this state lacks
1269	1269	jurisdiction to require the supplier to collect the state diesel
1270	1270	fuel tax due to this state on the diesel fuel under this subchapter;
1271	1271	(3) report and pay the state diesel fuel tax due on the
1272	1272	diesel fuel in the same manner as if the removal had occurred at a
1273	1273	terminal located in this state;
1274	1274	(4) keep records of the removal of the diesel fuel and
1275	1275	submit to audits concerning the diesel fuel as if the removal had
1276	1276	occurred at a terminal located in this state; and
1277	1277	(5) report sales by the permissive supplier to a
1278	1278	person who is not licensed in this state.
1279	1279	SECTION 49. Section 162.209, Tax Code, is amended by adding
1280	1280	Subsection (a-1) to read as follows:
1281	1281	(a-1) In addition to the information required by Subsection
1282	1282	(a), an applicant for a license as a dealer must list on the
1283	1283	application:
1284	1284	(1) the street address, municipality, county, and zip
1285	1285	code of the location for which the applicant seeks a license to sell
1286	1286	or dispense motor fuel at retail;
1287	1287	(2) the applicant's social security number, driver's
1288	1288	license number, and federal employer identification number if the
1289	1289	applicant is a natural person who is not licensed as a supplier,
1290	1290	permissive supplier, or terminal operator; and
1291	1291	(3) if the applicant is a corporation, limited
1292	1292	liability company, professional association, partnership or other
1293	1293	entity that is not licensed as a supplier, permissive supplier, or
1294	1294	terminal operator and is not wholly owned by an entity that is
1295	1295	licensed as a supplier, permissive supplier, or terminal operator,
1296	1296	the physical address, mailing address, social security number, and
1297	1297	driver's license number of:
1298	1298	(A) each natural person responsible for the
1299	1299	purchase of motor fuel for sale by the applicant; and
1300	1300	(B) each officer, director, manager, member,
1301	1301	shareholder, and partner of the applicant.
1302	1302	SECTION 50. Section 162.211(a), Tax Code, is amended to
1303	1303	read as follows:
1304	1304	(a) The license issued to a supplier, permissive supplier,
1305	1305	distributor, importer, terminal supplier, exporter, blender,
1306	1306	dealer, motor fuel transporter, or dyed diesel fuel bonded user is
1307	1307	permanent and is valid during the period the license holder has in
1308	1308	force and effect the required bond or security and furnishes timely
1309	1309	reports and supplements as required, or until the license is
1310	1310	surrendered by the holder or canceled by the comptroller. The
1311	1311	comptroller shall cancel a license under this subsection if a
1312	1312	purchase, sale, or use of diesel fuel has not been reported by the
1313	1313	license holder during the previous nine months.
1314	1314	SECTION 51. Section 162.212(a), Tax Code, is amended to
1315	1315	read as follows:
1316	1316	(a) The comptroller shall determine the amount of security
1317	1317	required of a supplier, permissive supplier, distributor,
1318	1318	exporter, importer, dealer, blender, or dyed diesel fuel bonded
1319	1319	user, taking into consideration the amount of tax that has or is
1320	1320	expected to become due from the person, any past history of the
1321	1321	person as a license holder under this chapter and its predecessor,
1322	1322	and the necessity to protect this state against the failure to pay
1323	1323	the tax as the tax becomes due.
1324	1324	SECTION 52. Section 162.213(a), Tax Code, is amended to
1325	1325	read as follows:
1326	1326	(a) The comptroller, on or before December 20 of each year,
1327	1327	shall make available to all license holders an alphabetical list of
1328	1328	licensed suppliers, permissive suppliers, distributors, aviation
1329	1329	fuel dealers, importers, exporters, blenders, dealers, terminal
1330	1330	operators, and dyed diesel fuel bonded users. A supplemental list
1331	1331	of additions and deletions shall be made available to the license
1332	1332	holders each month. A current and effective license or the list
1333	1333	furnished by the comptroller is evidence of the validity of the
1334	1334	license until the comptroller notifies license holders of a change
1335	1335	in the status of a license holder.
1336	1336	SECTION 53. Sections 162.214(c), (d), (d-1), and (e), Tax
1337	1337	Code, are amended to read as follows:
1338	1338	(c) If the supplier or permissive supplier cannot secure
1339	1339	from the licensed distributor or licensed importer payment of taxes
1340	1340	due for state diesel fuel removed from the terminal during the
1341	1341	previous reporting period and the supplier elects to take a credit
1342	1342	against a subsequent payment of diesel fuel tax to this state for
1343	1343	the taxes not remitted to the supplier or permissive supplier by the
1344	1344	licensed distributor or licensed importer, the supplier or
1345	1345	permissive supplier shall notify the comptroller of the licensed
1346	1346	distributor's or licensed importer's failure to remit tax in
1347	1347	conjunction with the report requesting a credit.
1348	1348	(d) The supplier or permissive supplier, after requesting a
1349	1349	credit under this section, shall terminate the ability of the
1350	1350	licensed distributor or licensed importer to defer the payment of
1351	1351	state diesel fuel tax. The supplier or permissive supplier may not
1352	1352	reinstate the right of the licensed distributor or licensed
1353	1353	importer to defer the payment of state diesel fuel tax until the
1354	1354	first anniversary of the date the supplier or permissive supplier
1355	1355	requested the credit, subject to Subsection (d-1).
1356	1356	(d-1) A supplier or permissive supplier may reinstate the
1357	1357	right of a licensed distributor or licensed importer to defer the
1358	1358	payment of state diesel fuel tax before the date prescribed by
1359	1359	Subsection (d) if the comptroller determines that:
1360	1360	(1) the supplier or permissive supplier erroneously
1361	1361	requested the credit that resulted in the termination of the
1362	1362	licensed distributor's or licensed importer's right to defer
1363	1363	payment; or
1364	1364	(2) the licensed distributor or licensed importer
1365	1365	failed to pay state diesel fuel taxes due because of circumstances
1366	1366	that may have been outside the distributor's or importer's control.
1367	1367	(e) A licensed distributor or licensed importer who makes
1368	1368	timely payments of the state diesel fuel tax imposed by [under] this
1369	1369	subchapter is entitled to retain an amount equal to 1.75 percent of
1370	1370	the total state diesel fuel tax [taxes] to be paid to the supplier
1371	1371	or permissive supplier to cover administrative expenses.
1372	1372	SECTION 54. Section 162.215(a), Tax Code, is amended to
1373	1373	read as follows:
1374	1374	(a) Except as provided by Subsection (b), each person who is
1375	1375	liable for the taxes [tax] imposed by this subchapter, a terminal
1376	1376	operator, a dealer, and a licensed distributor shall file a return
1377	1377	on or before the 25th day of the month following the end of each
1378	1378	calendar month.
1379	1379	SECTION 55. Sections 162.216(b), (c), (e), (g), and (h),
1380	1380	Tax Code, are amended to read as follows:
1381	1381	(b) A distributor shall keep:
1382	1382	(1) a record showing the number of gallons of:
1383	1383	(A) all diesel fuel inventories on hand at the
1384	1384	first of each month;
1385	1385	(B) all diesel fuel blended;
1386	1386	(C) all diesel fuel purchased or received,
1387	1387	showing the name of the seller and the date of each purchase or
1388	1388	receipt;
1389	1389	(D) all diesel fuel sold, distributed, or used,
1390	1390	showing:
1391	1391	(i) the name of the purchaser;
1392	1392	(ii) if the diesel fuel was delivered to a
1393	1393	municipality in this state, the municipality to which the diesel
1394	1394	fuel was delivered;
1395	1395	(iii) the amount of municipal diesel fuel
1396	1396	tax collected from the purchaser, if any; and
1397	1397	(iv) the date of the sale, distribution, or
1398	1398	use; and
1399	1399	(E) all diesel fuel lost by fire, theft, or
1400	1400	accident;
1401	1401	(2) an itemized statement showing by load the number
1402	1402	of gallons of all diesel fuel:
1403	1403	(A) received during the preceding calendar month
1404	1404	for export and the location of the loading;
1405	1405	(B) sold, distributed, or used, showing:
1406	1406	(i) the name of the purchaser;
1407	1407	(ii) if the diesel fuel was delivered to a
1408	1408	municipality in this state, the municipality to which the diesel
1409	1409	fuel was delivered;
1410	1410	(iii) the amount of municipal diesel fuel
1411	1411	tax collected from the purchaser, if any; and
1412	1412	(iv) the date of the sale, distribution, or
1413	1413	use;
1414	1414	(C) exported from this state by destination state
1415	1415	or country; and
1416	1416	(D) [(C)] imported during the preceding calendar
1417	1417	month, by state or country of origin; [and]
1418	1418	(3) for diesel fuel exported outside this state, proof
1419	1419	of payment of tax to the destination state, in a form acceptable to
1420	1420	the comptroller; and
1421	1421	(4) all shipping documents.
1422	1422	(c) An importer shall keep:
1423	1423	(1) a record showing the number of gallons of:
1424	1424	(A) all diesel fuel inventories on hand at the
1425	1425	first of each month;
1426	1426	(B) all diesel fuel compounded or blended;
1427	1427	(C) all diesel fuel purchased or received,
1428	1428	showing the name of the seller and the date of each purchase or
1429	1429	receipt;
1430	1430	(D) all diesel fuel sold, distributed, or used,
1431	1431	showing the name of the purchaser, the municipality in this state,
1432	1432	if applicable, and the date of the sale, distribution, or use; and
1433	1433	(E) all diesel fuel lost by fire, theft, or
1434	1434	accident; and
1435	1435	(2) an itemized statement showing by load the number
1436	1436	of gallons of all diesel fuel:
1437	1437	(A) received during the preceding calendar month
1438	1438	for export and the location of the loading;
1439	1439	(B) sold, distributed, or used, showing the name
1440	1440	of the purchaser, the municipality or municipalities in this state,
1441	1441	if applicable, and the date of sale, distribution, or use;
1442	1442	(C) exported from this state, by destination
1443	1443	state or country; and
1444	1444	(D) [(C)] imported during the preceding calendar
1445	1445	month, by state or country of origin.
1446	1446	(e) A blender shall keep a record showing the number of
1447	1447	gallons of:
1448	1448	(1) all diesel fuel inventories on hand at the first of
1449	1449	each month;
1450	1450	(2) all diesel fuel compounded or blended;
1451	1451	(3) all diesel fuel purchased or received, showing the
1452	1452	name of the seller and the date of each purchase or receipt;
1453	1453	(4) all diesel fuel sold, distributed, or used,
1454	1454	showing the name of the purchaser, the municipality in this state,
1455	1455	if applicable, and the date of the sale, distribution, or use; and
1456	1456	(5) all diesel fuel lost by fire, theft, or accident.
1457	1457	(g) A motor fuel transporter shall keep a complete and
1458	1458	separate record of each intrastate and interstate transportation of
1459	1459	diesel fuel, showing:
1460	1460	(1) the date of transportation;
1461	1461	(2) the name of the consignor and consignee;
1462	1462	(3) the method of transportation;
1463	1463	(4) the quantity and kind of diesel fuel transported;
1464	1464	(5) full data concerning the diversion of shipments,
1465	1465	including the municipality in this state, if applicable, and the
1466	1466	number of gallons diverted from interstate to intrastate and
1467	1467	intrastate to interstate commerce; and
1468	1468	(6) the points of origin and destination, the
1469	1469	municipality in this state, if applicable, the number of gallons
1470	1470	shipped or transported, the date, the consignee and the consignor,
1471	1471	and the kind of diesel fuel that has been diverted.
1472	1472	(h) A dealer shall keep all shipping documents and a record
1473	1473	showing the number of gallons of:
1474	1474	(1) diesel fuel inventories on hand at the first of
1475	1475	each month;
1476	1476	(2) all diesel fuel purchased or received, showing the
1477	1477	name of the seller and the date of each purchase or receipt;
1478	1478	(3) all diesel fuel sold or used, showing the date of
1479	1479	the sale or use; and
1480	1480	(4) all diesel fuel lost by fire, theft, or accident.
1481	1481	SECTION 56. Section 162.217(c), Tax Code, is amended to
1482	1482	read as follows:
1483	1483	(c) A supplier or permissive supplier may take a credit for
1484	1484	any state diesel fuel tax [taxes] that was [were] not remitted in a
1485	1485	previous period to the supplier or permissive supplier by a
1486	1486	licensed distributor or licensed importer as required by Section
1487	1487	162.214. The supplier or permissive supplier is eligible to take
1488	1488	this credit if the comptroller is notified of the default within 15
1489	1489	days after the default occurs. If a license holder pays to a
1490	1490	supplier or permissive supplier the tax owed, but the payment
1491	1491	occurs after the supplier or permissive supplier has taken a credit
1492	1492	on its return, the supplier or permissive supplier shall remit the
1493	1493	payment to the comptroller with the next monthly return after
1494	1494	receipt of the tax, plus a penalty of 10 percent of the amount of
1495	1495	unpaid taxes and interest at the rate provided by Section 111.060
1496	1496	beginning on the date the credit is taken.
1497	1497	SECTION 57. Section 162.219, Tax Code, is amended to read as
1498	1498	follows:
1499	1499	Sec. 162.219. INFORMATION REQUIRED ON DISTRIBUTOR'S
1500	1500	RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return and
1501	1501	supplements of each distributor shall contain for the period
1502	1502	covered by the return:
1503	1503	(1) the number of net gallons of diesel fuel received
1504	1504	by the distributor during the month, sorted by product code,
1505	1505	seller, point of origin, destination state, carrier, and receipt
1506	1506	date;
1507	1507	(2) the number of net gallons of diesel fuel removed at
1508	1508	a terminal rack by the distributor during the month, sorted by
1509	1509	product code, seller, terminal code, and carrier;
1510	1510	(3) the number of net gallons of diesel fuel removed by
1511	1511	the distributor during the month for export, sorted by product
1512	1512	code, terminal code, bulk plant address, destination state, and
1513	1513	carrier;
1514	1514	(4) the number of net gallons of diesel fuel removed by
1515	1515	the distributor during the month from a terminal located in another
1516	1516	state for conveyance to this state, as indicated on the shipping
1517	1517	document for the diesel fuel, sorted by product code, seller,
1518	1518	terminal code, bulk plant address, and carrier;
1519	1519	(5) the number of net gallons of diesel fuel the
1520	1520	distributor sold during the month in transactions exempt under
1521	1521	Section 162.204, dyed diesel fuel sold to a purchaser under a signed
1522	1522	statement, or dyed diesel fuel sold to a dyed diesel fuel bonded
1523	1523	user, sorted by product code and by the entity receiving the diesel
1524	1524	fuel; [and]
1525	1525	(6) the number of net gallons delivered into a taxing
1526	1526	municipality sorted by taxing municipality and purchaser; and
1527	1527	(7) any other information required by the comptroller.
1528	1528	(b) A distributor or importer who makes timely payments of
1529	1529	the municipal diesel fuel tax imposed by this subchapter is
1530	1530	entitled to retain an amount equal to two percent of the total
1531	1531	municipal diesel fuel taxes remitted to the comptroller to cover
1532	1532	administrative expenses.
1533	1533	SECTION 58. Section 162.224, Tax Code, is amended to read as
1534	1534	follows:
1535	1535	Sec. 162.224. INFORMATION REQUIRED ON BLENDER'S RETURN.
1536	1536	The monthly return and supplements of each blender shall contain
1537	1537	for the period covered by the return:
1538	1538	(1) the number of net gallons of diesel fuel received
1539	1539	by the blender during the month, sorted by product code, seller,
1540	1540	point of origin, carrier, and receipt date;
1541	1541	(2) the number of net gallons of product blended with
1542	1542	diesel fuel during the month, sorted by product code, type of
1543	1543	blending agent if no product code exists, seller, and carrier;
1544	1544	(3) the number of net gallons of blended diesel fuel
1545	1545	sold during the month and the license number or name, [and] address,
1546	1546	and, if applicable, municipality of the entity receiving the
1547	1547	blended diesel fuel; and
1548	1548	(4) any other information required by the comptroller.
1549	1549	SECTION 59. Subchapter C, Chapter 162, Tax Code, is amended
1550	1550	by adding Section 162.2245 to read as follows:
1551	1551	Sec. 162.2245. INFORMATION REQUIRED ON DEALER'S RETURN. The
1552	1552	monthly return and supplements of each dealer shall contain for the
1553	1553	period covered by the return:
1554	1554	(1) the number of gallons of diesel fuel inventories
1555	1555	on hand at the first of each month, sorted by product code;
1556	1556	(2) the number of gallons of diesel fuel received by
1557	1557	the dealer during the month, sorted by seller;
1558	1558	(3) the number of gallons of diesel fuel inventories
1559	1559	on hand at the end of each month; and
1560	1560	(4) any other information required by the comptroller.
1561	1561	SECTION 60. Sections 162.227(f-1) and (f-2), Tax Code, are
1562	1562	amended to read as follows:
1563	1563	(f-1) A volunteer fire department exempt from the taxes
1564	1564	[tax] imposed under this subchapter that paid a tax on the purchase
1565	1565	of diesel fuel is entitled to a refund of the tax paid, and the
1566	1566	volunteer fire department may file a refund claim with the
1567	1567	comptroller for that amount.
1568	1568	(f-2) A nonprofit entity exempted under Section
1569	1569	162.204(a)(15) from the taxes [tax] imposed under this subchapter
1570	1570	that paid a tax on the purchase of diesel fuel is entitled to a
1571	1571	refund of the tax paid, and the entity may file a refund claim with
1572	1572	the comptroller for that amount.
1573	1573	SECTION 61. Sections 162.229(a) and (d), Tax Code, are
1574	1574	amended to read as follows:
1575	1575	(a) A refund claim must be filed on a form provided by the
1576	1576	comptroller, be supported by the original invoice issued by the
1577	1577	seller, and contain:
1578	1578	(1) the stamped or preprinted name and address of the
1579	1579	seller, including, if applicable, the municipality to which the
1580	1580	diesel fuel was delivered;
1581	1581	(2) the name and address of the purchaser;
1582	1582	(3) the date of delivery of the diesel fuel;
1583	1583	(4) the date of the issuance of the invoice, if
1584	1584	different from the date of fuel delivery;
1585	1585	(5) the number of gallons of diesel fuel delivered;
1586	1586	(6) the amount of state or municipal diesel fuel taxes
1587	1587	paid [tax], either separately stated from the selling price or
1588	1588	stated with a notation that both state and municipal diesel fuel
1589	1589	taxes are included if both apply [the selling price includes the
1590	1590	tax]; and
1591	1591	(7) the type of vehicle or equipment into which the
1592	1592	fuel is delivered.
1593	1593	(d) A distributor or person who does not hold a license who
1594	1594	files a valid refund claim with the comptroller shall be paid by a
1595	1595	warrant issued by the comptroller. For purposes of this section, a
1596	1596	distributor meets the requirement of filing a valid refund claim
1597	1597	for state and municipal diesel fuel taxes if the distributor
1598	1598	designates the gallons of diesel fuel sold or used that are the
1599	1599	subject of the refund claim on the monthly report submitted by the
1600	1600	distributor to the comptroller.
1601	1601	SECTION 62. Sections 162.401(b), (c), and (f), Tax Code,
1602	1602	are amended to read as follows:
1603	1603	(b) The comptroller may add a penalty of 75 percent of the
1604	1604	amount of taxes, penalties, and interest due if failure to file the
1605	1605	report or pay the tax when it becomes due is attributable to fraud
1606	1606	or an intent to evade the application of this chapter or a rule
1607	1607	adopted under this chapter or Chapter 111 or 401.
1608	1608	(c) The penalties provided by Subsection (b) are intended to
1609	1609	be remedial in nature and are provided for the protection of state
1610	1610	and taxing municipality revenue and to reimburse the state and
1611	1611	taxing municipalities for expenses incurred as a result of fraud,
1612	1612	including expenses incurred in conducting an investigation.
1613	1613	(f) In addition to any other penalty authorized by this
1614	1614	section, a person who fails to pay the tax imposed by Section
1615	1615	162.101(e-2), 162.1011(c), [or] 162.201(e-2), or 162.2011(d) when
1616	1616	due shall pay a penalty equal to the greater of $2,000 or five times
1617	1617	the amount of the taxes [tax] due on the motor fuel.
1618	1618	SECTION 63. Sections 162.402(a), (c), and (d), Tax Code,
1619	1619	are amended to read as follows:
1620	1620	(a) A person forfeits to the state a civil penalty of not
1621	1621	less than $25 and not more than $200 if the person:
1622	1622	(1) refuses to stop and permit the inspection and
1623	1623	examination of a motor vehicle transporting or using motor fuel on
1624	1624	demand of a peace officer or the comptroller;
1625	1625	(2) operates a motor vehicle in this state without a
1626	1626	valid interstate trucker's license or a trip permit when the person
1627	1627	is required to hold one of those licenses or permits;
1628	1628	(3) transports gasoline or diesel fuel in any cargo
1629	1629	tank that has a connection by pipe, tube, valve, or otherwise with
1630	1630	the fuel injector or carburetor of, or with the fuel supply tank
1631	1631	feeding the fuel injector or carburetor of, the motor vehicle
1632	1632	transporting the product;
1633	1633	(4) sells or delivers gasoline or diesel fuel from any
1634	1634	fuel supply tank connected with the fuel injector or carburetor of a
1635	1635	motor vehicle;
1636	1636	(5) owns or operates a motor vehicle for which reports
1637	1637	or mileage records are required by this chapter without an
1638	1638	operating odometer or other device in good working condition to
1639	1639	record accurately the miles traveled;
1640	1640	(6) furnishes to a licensed supplier or distributor a
1641	1641	signed statement for purchasing diesel fuel tax-free and then uses
1642	1642	the tax-free diesel fuel to operate a diesel-powered motor vehicle
1643	1643	on a public highway;
1644	1644	(7) fails or refuses to comply with or violates a
1645	1645	provision of this chapter;
1646	1646	(8) fails or refuses to comply with or violates a
1647	1647	comptroller's rule for administering or enforcing this chapter;
1648	1648	(9) is an importer who does not obtain an import
1649	1649	verification number when required by this chapter;
1650	1650	(10) purchases motor fuel for export, on which the
1651	1651	taxes [tax] imposed by this chapter have [has] not been paid, and
1652	1652	subsequently diverts or causes the motor fuel to be diverted to a
1653	1653	destination in this state or any other state or country other than
1654	1654	the originally designated state or country without first obtaining
1655	1655	a diversion number;
1656	1656	(11) delivers compressed natural gas or liquefied
1657	1657	natural gas into the fuel supply tank of a motor vehicle and the
1658	1658	person does not hold a valid compressed natural gas and liquefied
1659	1659	natural gas dealer's license; [or]
1660	1660	(12) makes a tax-free delivery of compressed natural
1661	1661	gas or liquefied natural gas into the fuel supply tank of a motor
1662	1662	vehicle, unless the delivery is exempt from tax under Section
1663	1663	162.356;
1664	1664	(13) transports motor fuel to a municipality in this
1665	1665	state other than the municipality stated on the shipping document;
1666	1666	or
1667	1667	(14) transports motor fuel to a municipality in this
1668	1668	state if the shipping document does not state a municipality.
1669	1669	(c) A person receiving motor fuel who accepts a shipping
1670	1670	document that does not conform with the requirements of Section
1671	1671	162.004 or 162.016(a) is liable to this state for a civil penalty of
1672	1672	$2,000 or five times the amount of the unpaid tax, whichever is
1673	1673	greater, for each occurrence.
1674	1674	(d) A person who issues a shipping document that does not
1675	1675	conform with the requirements of Section 162.004 or 162.016(a) is
1676	1676	liable to this state for a civil penalty of $2,000 or five times the
1677	1677	amount of the unpaid tax, whichever is greater, for each
1678	1678	occurrence.
1679	1679	SECTION 64. Section 162.403, Tax Code, is amended to read as
1680	1680	follows:
1681	1681	Sec. 162.403. CRIMINAL OFFENSES. Except as provided by
1682	1682	Section 162.404, a person commits an offense if the person:
1683	1683	(1) refuses to stop and permit the inspection and
1684	1684	examination of a motor vehicle transporting or using motor fuel on
1685	1685	the demand of a peace officer or the comptroller;
1686	1686	(2) is required to hold a valid trip permit or
1687	1687	interstate trucker's license, but operates a motor vehicle in this
1688	1688	state without a valid trip permit or interstate trucker's license;
1689	1689	(3) transports gasoline or diesel fuel in any cargo
1690	1690	tank that has a connection by pipe, tube, valve, or otherwise with
1691	1691	the fuel injector or carburetor or with the fuel supply tank feeding
1692	1692	the fuel injector or carburetor of the motor vehicle transporting
1693	1693	the product;
1694	1694	(4) sells or delivers gasoline or diesel fuel from a
1695	1695	fuel supply tank that is connected with the fuel injector or
1696	1696	carburetor of a motor vehicle;
1697	1697	(5) owns or operates a motor vehicle for which reports
1698	1698	or mileage records are required by this chapter without an
1699	1699	operating odometer or other device in good working condition to
1700	1700	record accurately the miles traveled;
1701	1701	(6) sells or delivers dyed diesel fuel for the
1702	1702	operation of a motor vehicle on a public highway;
1703	1703	(7) uses dyed diesel fuel for the operation of a motor
1704	1704	vehicle on a public highway except as allowed under Section
1705	1705	162.235;
1706	1706	(8) refuses to permit the comptroller or the attorney
1707	1707	general to inspect, examine, or audit a book or record required to
1708	1708	be kept by a license holder, other user, or any person required to
1709	1709	hold a license under this chapter;
1710	1710	(9) refuses to permit the comptroller or the attorney
1711	1711	general to inspect or examine any plant, equipment, materials, or
1712	1712	premises where motor fuel is produced, processed, blended, stored,
1713	1713	sold, delivered, or used;
1714	1714	(10) refuses to permit the comptroller, the attorney
1715	1715	general, an employee of either of those officials, a peace officer,
1716	1716	an employee of the Texas Commission on Environmental Quality, or an
1717	1717	employee of the Texas Department of Licensing and Regulation to
1718	1718	measure or gauge the contents of or take samples from a storage tank
1719	1719	or container on premises where motor fuel is produced, processed,
1720	1720	blended, stored, sold, delivered, or used;
1721	1721	(11) is a license holder, a person required to be
1722	1722	licensed, or another user and fails or refuses to make or deliver to
1723	1723	the comptroller a report required by this chapter to be made and
1724	1724	delivered to the comptroller;
1725	1725	(12) is an importer who does not obtain an import
1726	1726	verification number when required by this chapter;
1727	1727	(13) purchases motor fuel for export, on which the
1728	1728	taxes [tax] imposed by this chapter have [has] not been paid, and
1729	1729	subsequently diverts or causes the motor fuel to be diverted to a
1730	1730	destination in this state or any other state or country other than
1731	1731	the originally designated state or country without first obtaining
1732	1732	a diversion number;
1733	1733	(13-a) transports motor fuel to a municipality in this
1734	1734	state other than the municipality stated on the shipping document;
1735	1735	(13-b) transports motor fuel to a municipality in this
1736	1736	state if the shipping document does not state a municipality;
1737	1737	(14) conceals motor fuel with the intent of engaging
1738	1738	in any conduct proscribed by this chapter or refuses to make sales
1739	1739	of motor fuel on the volume-corrected basis prescribed by this
1740	1740	chapter;
1741	1741	(15) refuses, while transporting motor fuel, to stop
1742	1742	the motor vehicle the person is operating when called on to do so by
1743	1743	a person authorized to stop the motor vehicle;
1744	1744	(16) refuses to surrender a motor vehicle and cargo
1745	1745	for impoundment after being ordered to do so by a person authorized
1746	1746	to impound the motor vehicle and cargo;
1747	1747	(17) mutilates, destroys, or secretes a book or record
1748	1748	required by this chapter to be kept by a license holder, other user,
1749	1749	or person required to hold a license under this chapter;
1750	1750	(18) is a license holder, other user, or other person
1751	1751	required to hold a license under this chapter, or the agent or
1752	1752	employee of one of those persons, and makes a false entry or fails
1753	1753	to make an entry in the books and records required under this
1754	1754	chapter to be made by the person or fails to retain a document as
1755	1755	required by this chapter;
1756	1756	(19) transports in any manner motor fuel under a false
1757	1757	cargo manifest or shipping document, or transports in any manner
1758	1758	motor fuel to a location without delivering at the same time a
1759	1759	shipping document relating to that shipment;
1760	1760	(20) engages in a motor fuel transaction that requires
1761	1761	that the person have a license under this chapter without then and
1762	1762	there holding the required license;
1763	1763	(21) makes and delivers to the comptroller a report
1764	1764	required under this chapter to be made and delivered to the
1765	1765	comptroller, if the report contains false information;
1766	1766	(22) forges, falsifies, or alters an invoice or
1767	1767	shipping document prescribed by law;
1768	1768	(23) makes any statement, knowing said statement to be
1769	1769	false, in a claim for a tax refund filed with the comptroller;
1770	1770	(24) furnishes to a licensed supplier or distributor a
1771	1771	signed statement for purchasing diesel fuel tax-free and then uses
1772	1772	the tax-free diesel fuel to operate a diesel-powered motor vehicle
1773	1773	on a public highway;
1774	1774	(25) holds an aviation fuel dealer's license and makes
1775	1775	a taxable sale or use of any gasoline or diesel fuel;
1776	1776	(26) fails to remit any tax funds collected or
1777	1777	required to be collected by a license holder, another user, or any
1778	1778	other person required to hold a license under this chapter;
1779	1779	(27) makes a sale of dyed diesel fuel tax-free into a
1780	1780	storage facility of a person who:
1781	1781	(A) is not licensed as a distributor, as an
1782	1782	aviation fuel dealer, or as a dyed diesel fuel bonded user; or
1783	1783	(B) does not furnish to the licensed supplier or
1784	1784	distributor a signed statement prescribed in Section 162.206;
1785	1785	(28) makes a sale of gasoline tax-free to any person
1786	1786	who is not licensed as an aviation fuel dealer;
1787	1787	(29) purchases any motor fuel tax-free when not
1788	1788	authorized to make a tax-free purchase under this chapter;
1789	1789	(30) purchases motor fuel with the intent to evade any
1790	1790	tax imposed by this chapter or accepts a delivery of motor fuel by
1791	1791	any means and does not at the same time accept or receive a shipping
1792	1792	document relating to the delivery;
1793	1793	(31) transports motor fuel for which a cargo manifest
1794	1794	or shipping document is required to be carried without possessing
1795	1795	or exhibiting on demand by an officer authorized to make the demand
1796	1796	a cargo manifest or shipping document containing the information
1797	1797	required to be shown on the manifest or shipping document;
1798	1798	(32) imports, sells, uses, blends, distributes, or
1799	1799	stores motor fuel within this state on which a tax [the taxes]
1800	1800	imposed by this chapter is [are] owed but has [have] not been first
1801	1801	paid to or reported by a license holder, another user, or any other
1802	1802	person required to hold a license under this chapter;
1803	1803	(33) blends products together to produce a blended
1804	1804	fuel that is offered for sale, sold, or used and that expands the
1805	1805	volume of the original product to evade paying applicable motor
1806	1806	fuel taxes;
1807	1807	(34) evades or attempts to evade in any manner a tax
1808	1808	imposed on motor fuel by this chapter;
1809	1809	(35) delivers compressed natural gas or liquefied
1810	1810	natural gas into the fuel supply tank of a motor vehicle and the
1811	1811	person does not hold a valid compressed natural gas and liquefied
1812	1812	natural gas dealer's license; or
1813	1813	(36) makes a tax-free delivery of compressed natural
1814	1814	gas or liquefied natural gas into the fuel supply tank of a motor
1815	1815	vehicle, unless the delivery is exempt from tax under Section
1816	1816	162.356.
1817	1817	SECTION 65. Section 162.405(d), Tax Code, is amended to
1818	1818	read as follows:
1819	1819	(d) An offense under Section 162.403(6), (13-a), (13-b),
1820	1820	(17), (18), (19), (20), (21), (22), (23), or (24) is a felony of the
1821	1821	third degree.
1822	1822	SECTION 66. Section 20.002(d), Transportation Code, is
1823	1823	amended to read as follows:
1824	1824	(d) The fee imposed by this section is equal to 25 percent of
1825	1825	the diesel fuel tax rate imposed under Section 162.202(a)
1826	1826	[162.202], Tax Code.
1827	1827	SECTION 67. (a) A municipality may not impose a motor fuel
1828	1828	tax under Chapter 401, Tax Code, as added by this Act, before the
1829	1829	effective date of rules adopted by the comptroller of public
1830	1830	accounts under Section 401.151, Tax Code, as added by this Act.
1831	1831	(b) The comptroller of public accounts shall adopt rules as
1832	1832	provided by Section 401.151, Tax Code, as added by this Act, not
1833	1833	later than the 90th day after the date the voters approve the
1834	1834	imposition of a tax under Chapter 401, Tax Code, as added by this
1835	1835	Act, in the first municipality in this state in which imposition of
1836	1836	the tax is approved.
1837	1837	SECTION 68. The comptroller shall compute the initial
1838	1838	adjusted tax rates as required by Sections 162.1026(c) and
1839	1839	162.2026(c), Tax Code, as added by this Act, not later than November
1840	1840	1, 2024. The initial adjusted rates take effect January 1, 2025.
1841	1841	SECTION 69. The change in law made by this Act does not
1842	1842	affect tax liability accruing before the effective date of this
1843	1843	Act. That liability continues in effect as if this Act had not been
1844	1844	enacted, and the former law is continued in effect for the
1845	1845	collection of taxes due and for civil and criminal enforcement of
1846	1846	the liability for those taxes.
1847	1847	SECTION 70. If the constitution of this state requires that
1848	1848	one-fourth of the municipal motor fuels tax authorized by this Act
1849	1849	be allocated to the available school fund, the municipality shall
1850	1850	deposit that money into an account separate from the money
1851	1851	collected under other provisions of this Act and shall allocate the
1852	1852	money to the comptroller of public accounts for deposit in the state
1853	1853	treasury for the purpose required by the constitution.
1854	1854	SECTION 71. This Act takes effect September 1, 2023.