LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION March 17, 2023 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2683 by Burns (Relating to the use of dyed diesel fuel to operate a motor vehicle during and for a limited period following certain disasters.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Section 162.235, Tax Code (relating to a prohibited use of dyed diesel fuel) to provide for the authorized use of dyed diesel fuel for the operation of a motor vehicle on a public highway in a disaster area.The bill would add Section 162.235(c) to provide that, notwithstanding the prohibition against use of dyed diesel on public highways, a person who purchases dyed motor fuel and provides to the licensed supplier or distributor a signed statement that contains an end user number issued by the Comptroller may operate a motor vehicle on a public highway with dyed motor fuel during, and in the area of, a declared disaster.A pertinent disaster declaration would be one declared by the governor under Section 418.014, Government Code due to a fire, flood, earthquake, tornado, hurricane, storm, or energy emergency.The period of lawful use of dyed fuel provided under the section would begin with the date of the disaster declaration and end on the 30th day after the declaration expires or is terminated and would pertain to a motor vehicle operated in the designated disaster area or in an area other than the disaster area if the dyed motor fuel was placed in the fuel supply tank of the motor vehicle in the designated disaster area.The use of dyed diesel fuel in a disaster area would be allowed by the bill notwithstanding the Section 162.235(a) prohibition of the use of dyed fuel for the operation of a motor vehicle on a public highway. The bill does not exempt such use from tax.Dyed diesel fuel is normally untaxed fuel purchased for nontaxable off-road uses. Current Tax Code Section 162.203(a)(2) imposes backup tax on a person who operates a motor vehicle on a public highway using diesel fuel on which tax has not been paid. Added Section 162.235(c) does not provide for exemption of use in a disaster area from the backup tax. Consequently, the bill would have no significant fiscal implications.The bill would take effect September 1, 2023. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
March 17, 2023
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2683 by Burns (Relating to the use of dyed diesel fuel to operate a motor vehicle during and for a limited period following certain disasters.), As Introduced
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB2683 by Burns (Relating to the use of dyed diesel fuel to operate a motor vehicle during and for a limited period following certain disasters.), As Introduced
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB2683 by Burns (Relating to the use of dyed diesel fuel to operate a motor vehicle during and for a limited period following certain disasters.), As Introduced
HB2683 by Burns (Relating to the use of dyed diesel fuel to operate a motor vehicle during and for a limited period following certain disasters.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Section 162.235, Tax Code (relating to a prohibited use of dyed diesel fuel) to provide for the authorized use of dyed diesel fuel for the operation of a motor vehicle on a public highway in a disaster area.The bill would add Section 162.235(c) to provide that, notwithstanding the prohibition against use of dyed diesel on public highways, a person who purchases dyed motor fuel and provides to the licensed supplier or distributor a signed statement that contains an end user number issued by the Comptroller may operate a motor vehicle on a public highway with dyed motor fuel during, and in the area of, a declared disaster.A pertinent disaster declaration would be one declared by the governor under Section 418.014, Government Code due to a fire, flood, earthquake, tornado, hurricane, storm, or energy emergency.The period of lawful use of dyed fuel provided under the section would begin with the date of the disaster declaration and end on the 30th day after the declaration expires or is terminated and would pertain to a motor vehicle operated in the designated disaster area or in an area other than the disaster area if the dyed motor fuel was placed in the fuel supply tank of the motor vehicle in the designated disaster area.The use of dyed diesel fuel in a disaster area would be allowed by the bill notwithstanding the Section 162.235(a) prohibition of the use of dyed fuel for the operation of a motor vehicle on a public highway. The bill does not exempt such use from tax.Dyed diesel fuel is normally untaxed fuel purchased for nontaxable off-road uses. Current Tax Code Section 162.203(a)(2) imposes backup tax on a person who operates a motor vehicle on a public highway using diesel fuel on which tax has not been paid. Added Section 162.235(c) does not provide for exemption of use in a disaster area from the backup tax. Consequently, the bill would have no significant fiscal implications.The bill would take effect September 1, 2023.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD
JMc, KK, SD