Texas 2023 - 88th Regular

Texas House Bill HB3599 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 3599
2	2
3	3
4	4	AN ACT
5	5	relating to an exemption from certain motor fuel taxes for, and
6	6	registration fees for motor vehicles owned by, certain nonprofit
7	7	food banks.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 162.001, Tax Code, is amended by adding
10	10	Subdivision (45-a) to read as follows:
11	11	(45-a) "Nonprofit food bank" means a nonprofit entity
12	12	that solicits, stores, and redistributes edible food to agencies
13	13	that feed needy families and individuals.
14	14	SECTION 2. Section 162.104(a), Tax Code, is amended to read
15	15	as follows:
16	16	(a) The tax imposed by this subchapter does not apply to
17	17	gasoline:
18	18	(1) sold to the United States for its exclusive use,
19	19	provided that the exemption does not apply with respect to fuel sold
20	20	or delivered to a person operating under a contract with the United
21	21	States;
22	22	(2) sold to a public school district in this state for
23	23	the district's exclusive use;
24	24	(3) sold to a commercial transportation company or a
25	25	metropolitan rapid transit authority operating under Chapter 451,
26	26	Transportation Code, that provides public school transportation
27	27	services to a school district under Section 34.008, Education Code,
28	28	and that uses the gasoline only to provide those services;
29	29	(4) exported by either a licensed supplier or a
30	30	licensed exporter from this state to any other state, provided that
31	31	the bill of lading indicates the destination state and the supplier
32	32	collects the destination state tax;
33	33	(5) moved by truck or railcar between licensed
34	34	suppliers or licensed permissive suppliers and in which the
35	35	gasoline removed from the first terminal comes to rest in the second
36	36	terminal, provided that the removal from the second terminal rack
37	37	is subject to the tax imposed by this subchapter;
38	38	(6) delivered or sold into a storage facility of a
39	39	licensed aviation fuel dealer from which gasoline will be delivered
40	40	solely into the fuel supply tanks of aircraft or aircraft servicing
41	41	equipment, or sold from one licensed aviation fuel dealer to
42	42	another licensed aviation fuel dealer who will deliver the aviation
43	43	fuel exclusively into the fuel supply tanks of aircraft or aircraft
44	44	servicing equipment;
45	45	(7) exported to a foreign country if the bill of lading
46	46	or shipping documents indicate the foreign destination and the fuel
47	47	is actually exported to the foreign country;
48	48	(8) sold to a volunteer fire department in this state
49	49	for the department's exclusive use; [or]
50	50	(9) sold to a nonprofit entity that is organized for
51	51	the sole purpose of and engages exclusively in providing emergency
52	52	medical services and that uses the gasoline exclusively to provide
53	53	emergency medical services, including rescue and ambulance
54	54	services; or
55	55	(10) sold to a nonprofit food bank and delivered into:
56	56	(A) the fuel supply tank of a motor vehicle with a
57	57	gross vehicle weight rating of at least 25,000 pounds that is owned
58	58	by the nonprofit food bank and used to deliver food; or
59	59	(B) a storage facility from which gasoline will
60	60	be delivered solely into the fuel supply tanks of motor vehicles
61	61	described by Paragraph (A).
62	62	SECTION 3. Section 162.125(a), Tax Code, is amended to read
63	63	as follows:
64	64	(a) A license holder may take a credit on a return for the
65	65	period in which the sale occurred if the license holder paid tax on
66	66	the purchase of gasoline and subsequently resells the gasoline
67	67	without collecting the tax to:
68	68	(1) the United States government for its exclusive
69	69	use, provided that a credit is not allowed for gasoline used by a
70	70	person operating under contract with the United States;
71	71	(2) a public school district in this state for the
72	72	district's exclusive use;
73	73	(3) an exporter licensed under this subchapter if the
74	74	seller is a licensed supplier or distributor and the exporter
75	75	subsequently exports the gasoline to another state;
76	76	(4) a licensed aviation fuel dealer if the seller is a
77	77	licensed distributor; [or]
78	78	(5) a commercial transportation company or a
79	79	metropolitan rapid transit authority operating under Chapter 451,
80	80	Transportation Code, that provides public school transportation
81	81	services to a school district under Section 34.008, Education Code,
82	82	and that uses the gasoline exclusively to provide those services;
83	83	or
84	84	(6) a nonprofit food bank that delivers or will
85	85	deliver the gasoline into the fuel supply tank of a motor vehicle
86	86	with a gross vehicle weight rating of at least 25,000 pounds that is
87	87	owned by the nonprofit food bank and used to deliver food.
88	88	SECTION 4. Subchapter B, Chapter 162, Tax Code, is amended
89	89	by adding Section 162.1276 to read as follows:
90	90	Sec. 162.1276. REFUND FOR CERTAIN NONPROFIT FOOD BANKS.
91	91	(a) A nonprofit food bank is entitled to and may file a claim with
92	92	the comptroller for a refund in the amount provided by this section
93	93	of taxes paid under this subchapter for gasoline delivered into the
94	94	fuel supply tank of a motor vehicle with a gross vehicle weight
95	95	rating of at least 25,000 pounds that is owned by the nonprofit food
96	96	bank and used to deliver food.
97	97	(b) The amount of the refund under Subsection (a) is equal
98	98	to the amount of tax paid under this subchapter for gasoline that
99	99	qualifies for the refund and is purchased by the nonprofit food
100	100	bank.
101	101	(c) A nonprofit food bank that requests a refund under this
102	102	section shall maintain all supporting documentation relating to the
103	103	refund until the sixth anniversary of the date of the request.
104	104	SECTION 5. Section 162.204(a), Tax Code, is amended to read
105	105	as follows:
106	106	(a) The tax imposed by this subchapter does not apply to:
107	107	(1) diesel fuel sold to the United States for its
108	108	exclusive use, provided that the exemption does not apply to diesel
109	109	fuel sold or delivered to a person operating under a contract with
110	110	the United States;
111	111	(2) diesel fuel sold to a public school district in
112	112	this state for the district's exclusive use;
113	113	(3) diesel fuel sold to a commercial transportation
114	114	company or a metropolitan rapid transit authority operating under
115	115	Chapter 451, Transportation Code, that provides public school
116	116	transportation services to a school district under Section 34.008,
117	117	Education Code, and that uses the diesel fuel only to provide those
118	118	services;
119	119	(4) diesel fuel exported by either a licensed supplier
120	120	or a licensed exporter from this state to any other state, provided
121	121	that the bill of lading indicates the destination state and the
122	122	supplier collects the destination state tax;
123	123	(5) diesel fuel moved by truck or railcar between
124	124	licensed suppliers or licensed permissive suppliers and in which
125	125	the diesel fuel removed from the first terminal comes to rest in the
126	126	second terminal, provided that the removal from the second terminal
127	127	rack is subject to the tax imposed by this subchapter;
128	128	(6) diesel fuel delivered or sold into a storage
129	129	facility of a licensed aviation fuel dealer from which the diesel
130	130	fuel will be delivered solely into the fuel supply tanks of aircraft
131	131	or aircraft servicing equipment, or sold from one licensed aviation
132	132	fuel dealer to another licensed aviation fuel dealer who will
133	133	deliver the diesel fuel exclusively into the fuel supply tanks of
134	134	aircraft or aircraft servicing equipment;
135	135	(7) diesel fuel exported to a foreign country if the
136	136	bill of lading or shipping documents indicate the foreign
137	137	destination and the fuel is actually exported to the foreign
138	138	country;
139	139	(8) dyed diesel fuel sold or delivered by a supplier to
140	140	another supplier and dyed diesel fuel sold or delivered by a
141	141	supplier or distributor into the bulk storage facility of a dyed
142	142	diesel fuel bonded user or to a purchaser who provides a signed
143	143	statement as provided by Section 162.206;
144	144	(9) the volume of water, fuel ethanol, renewable
145	145	diesel, biodiesel, or mixtures thereof that are blended together
146	146	with taxable diesel fuel when the finished product sold or used is
147	147	clearly identified on the retail pump, storage tank, and sales
148	148	invoice as a combination of diesel fuel and water, fuel ethanol,
149	149	renewable diesel, biodiesel, or mixtures thereof;
150	150	(10) dyed diesel fuel sold by a supplier or permissive
151	151	supplier to a distributor, or by a distributor to another
152	152	distributor;
153	153	(11) dyed diesel fuel delivered by a license holder
154	154	into the fuel supply tanks of railway engines, motorboats, or
155	155	refrigeration units or other stationary equipment powered by a
156	156	separate motor from a separate fuel supply tank;
157	157	(12) dyed kerosene when delivered by a supplier,
158	158	distributor, or importer into a storage facility at a retail
159	159	business from which all deliveries are exclusively for heating,
160	160	cooking, lighting, or similar nonhighway use;
161	161	(13) diesel fuel used by a person, other than a
162	162	political subdivision, who owns, controls, operates, or manages a
163	163	commercial motor vehicle as defined by Section 548.001,
164	164	Transportation Code, if the fuel:
165	165	(A) is delivered exclusively into the fuel supply
166	166	tank of the commercial motor vehicle; and
167	167	(B) is used exclusively to transport passengers
168	168	for compensation or hire between points in this state on a fixed
169	169	route or schedule;
170	170	(14) diesel fuel sold to a volunteer fire department
171	171	in this state for the department's exclusive use; [or]
172	172	(15) diesel fuel sold to a nonprofit entity that is
173	173	organized for the sole purpose of and engages exclusively in
174	174	providing emergency medical services and that uses the diesel fuel
175	175	exclusively to provide emergency medical services, including
176	176	rescue and ambulance services; or
177	177	(16) diesel fuel sold to a nonprofit food bank and
178	178	delivered into:
179	179	(A) the fuel supply tank of a motor vehicle with a
180	180	gross vehicle weight rating of at least 25,000 pounds that is owned
181	181	by the nonprofit food bank and used to deliver food; or
182	182	(B) a storage facility from which diesel fuel
183	183	will be delivered solely into the fuel supply tanks of motor
184	184	vehicles described by Paragraph (A).
185	185	SECTION 6. Section 162.227(a), Tax Code, is amended to read
186	186	as follows:
187	187	(a) A license holder may take a credit on a return for the
188	188	period in which the sale occurred if the license holder paid tax on
189	189	the purchase of diesel fuel and subsequently resells the diesel
190	190	fuel without collecting the tax to:
191	191	(1) the United States government for its exclusive
192	192	use, provided that a credit is not allowed for gasoline used by a
193	193	person operating under a contract with the United States;
194	194	(2) a public school district in this state for the
195	195	district's exclusive use;
196	196	(3) an exporter licensed under this subchapter if the
197	197	seller is a licensed supplier or distributor and the exporter
198	198	subsequently exports the diesel fuel to another state;
199	199	(4) a licensed aviation fuel dealer if the seller is a
200	200	licensed distributor; [or]
201	201	(5) a commercial transportation company or a
202	202	metropolitan rapid transit authority operating under Chapter 451,
203	203	Transportation Code, that provides public school transportation
204	204	services to a school district under Section 34.008, Education Code,
205	205	and that uses the diesel fuel exclusively to provide those
206	206	services; or
207	207	(6) a nonprofit food bank that delivers or will
208	208	deliver the diesel fuel into the fuel supply tank of a motor vehicle
209	209	with a gross vehicle weight rating of at least 25,000 pounds that is
210	210	owned by the nonprofit food bank and used to deliver food.
211	211	SECTION 7. Subchapter C, Chapter 162, Tax Code, is amended
212	212	by adding Section 162.2276 to read as follows:
213	213	Sec. 162.2276. REFUND FOR CERTAIN NONPROFIT FOOD BANKS.
214	214	(a) A nonprofit food bank is entitled to and may file a claim with
215	215	the comptroller for a refund in the amount provided by this section
216	216	of taxes paid under this subchapter for diesel fuel delivered into
217	217	the fuel supply tank of a motor vehicle with a gross vehicle weight
218	218	rating of at least 25,000 pounds that is owned by the nonprofit food
219	219	bank and used to deliver food.
220	220	(b) The amount of the refund under Subsection (a) is equal
221	221	to the amount of tax paid under this subchapter for diesel fuel that
222	222	qualifies for the refund and is purchased by the nonprofit food
223	223	bank.
224	224	(c) A nonprofit food bank that requests a refund under this
225	225	section shall maintain all supporting documentation relating to the
226	226	refund until the sixth anniversary of the date of the request.
227	227	SECTION 8. Subchapter J, Chapter 502, Transportation Code,
228	228	is amended by adding Section 502.458 to read as follows:
229	229	Sec. 502.458. VEHICLES USED BY NONPROFIT FOOD BANKS. (a)
230	230	In this section, "nonprofit food bank" has the meaning assigned by
231	231	Section 162.001, Tax Code.
232	232	(b) The owner of a motor vehicle described by Section
233	233	162.104(a)(10)(A) or 162.204(a)(16)(A), Tax Code, may apply for
234	234	registration under Section 502.451 of this code and is exempt from
235	235	the payment of the registration fee that would otherwise be
236	236	required by this chapter if the vehicle is used by a nonprofit food
237	237	bank to deliver food.
238	238	(c) An application for registration under this section must
239	239	include:
240	240	(1) a statement by the owner of the vehicle that the
241	241	vehicle is used by a nonprofit food bank to deliver food; and
242	242	(2) a statement signed by an officer of the nonprofit
243	243	food bank that the vehicle has been used by a nonprofit food bank to
244	244	deliver food and qualifies for registration under this section.
245	245	SECTION 9. Chapter 162, Tax Code, as amended by this Act,
246	246	does not affect tax liability accruing before the effective date of
247	247	this Act. That liability continues in effect as if this Act had not
248	248	been enacted, and the former law is continued in effect for the
249	249	collection of taxes due and for civil and criminal enforcement of
250	250	the liability for those taxes.
251	251	SECTION 10. Section 502.458, Transportation Code, as added
252	252	by this Act, applies only to an application for registration
253	253	submitted on or after the effective date of this Act.
254	254	SECTION 11. This Act takes effect September 1, 2023.
255	255	______________________________ ______________________________
256	256	President of the Senate Speaker of the House
257	257	I certify that H.B. No. 3599 was passed by the House on May 8,
258	258	2023, by the following vote: Yeas 137, Nays 6, 1 present, not
259	259	voting.
260	260	______________________________
261	261	Chief Clerk of the House
262	262	I certify that H.B. No. 3599 was passed by the Senate on May
263	263	17, 2023, by the following vote: Yeas 30, Nays 1.
264	264	______________________________
265	265	Secretary of the Senate
266	266	APPROVED: _____________________
267	267	Date
268	268	_____________________
269	269	Governor