| 1 | 1 | | 88R10726 SRA-F |
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| 2 | 2 | | By: Ashby H.B. No. 2737 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a credit or refund for diesel fuel taxes paid on diesel |
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| 8 | 8 | | fuel used in this state by auxiliary power units or power take-off |
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| 9 | 9 | | equipment. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 162.227, Tax Code, is amended by adding |
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| 12 | 12 | | Subsections (d-1), (d-2), and (d-3) to read as follows: |
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| 13 | 13 | | (d-1) A license holder may take a credit on a return for the |
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| 14 | 14 | | period in which the purchase occurred, and a person who does not |
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| 15 | 15 | | hold a license may file a refund claim with the comptroller, if the |
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| 16 | 16 | | license holder or person paid tax on diesel fuel and the diesel fuel |
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| 17 | 17 | | is used in this state by auxiliary power units or power take-off |
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| 18 | 18 | | equipment on any motor vehicle. If the quantity of that diesel fuel |
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| 19 | 19 | | can be accurately measured while the motor vehicle is stationary by |
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| 20 | 20 | | any metering or other measuring device or method designed to |
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| 21 | 21 | | measure the fuel separately from fuel used to propel the motor |
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| 22 | 22 | | vehicle, the comptroller may approve and adopt the use of the device |
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| 23 | 23 | | as a basis for determining the quantity of diesel fuel consumed in |
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| 24 | 24 | | those operations for a tax credit or tax refund. If there is no |
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| 25 | 25 | | separate metering device or other approved measuring method, the |
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| 26 | 26 | | license holder may take the credit and the person who does not hold |
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| 27 | 27 | | a license may claim the refund on a percentage of the diesel fuel |
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| 28 | 28 | | consumed by each motor vehicle equipped with an auxiliary power |
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| 29 | 29 | | unit or power take-off equipment. The comptroller shall determine |
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| 30 | 30 | | the percentage of diesel fuel for which the credit or refund may be |
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| 31 | 31 | | claimed. The climate-control air conditioning or heating system of |
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| 32 | 32 | | a motor vehicle that has a primary purpose of providing for the |
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| 33 | 33 | | convenience or comfort of the operator or passengers is not a power |
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| 34 | 34 | | take-off system, and a credit or refund may not be allowed for the |
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| 35 | 35 | | tax paid on any portion of the diesel fuel that is used for that |
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| 36 | 36 | | purpose. A credit or refund may not be allowed for the diesel fuel |
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| 37 | 37 | | tax paid on that portion of the diesel fuel that is used for idling. |
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| 38 | 38 | | (d-2) The comptroller shall reduce the amount of the credit |
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| 39 | 39 | | or refund to which a person is otherwise entitled under Subsection |
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| 40 | 40 | | (d-1) according to the following schedule: |
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| 41 | 41 | | (1) for fuel purchased on or after September 1, 2023, |
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| 42 | 42 | | but before January 1, 2024, the comptroller shall reduce the credit |
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| 43 | 43 | | or refund amount by 80 percent; |
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| 44 | 44 | | (2) for fuel purchased on or after January 1, 2024, but |
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| 45 | 45 | | before January 1, 2025, the comptroller shall reduce the credit or |
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| 46 | 46 | | refund amount by 60 percent; |
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| 47 | 47 | | (3) for fuel purchased on or after January 1, 2025, but |
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| 48 | 48 | | before January 1, 2026, the comptroller shall reduce the credit or |
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| 49 | 49 | | refund amount by 40 percent; and |
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| 50 | 50 | | (4) for fuel purchased on or after January 1, 2026, but |
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| 51 | 51 | | before January 1, 2027, the comptroller shall reduce the credit or |
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| 52 | 52 | | refund amount by 20 percent. |
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| 53 | 53 | | (d-3) Subsection (d-2) and this subsection expire January |
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| 54 | 54 | | 1, 2027. |
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| 55 | 55 | | SECTION 2. This Act takes effect September 1, 2023. |
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