H.B. No. 3651
AN ACT
relating to motor fuel taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 162.001, Tax Code, is amended by
amending Subdivisions (1), (14), (42), (43), (56), and (61) and
adding Subdivisions (16-a) and (17-a) to read as follows:
(1) "Agricultural purpose" means a purpose associated
with the following activities:
(A) cultivating the soil;
(B) producing crops for human food, animal feed,
or planting seed or for the production of fibers;
(C) floriculture, viticulture, silviculture, and
horticulture, including the cultivation of plants in potting
containers or nonsoil media;
(D) raising, feeding, or keeping livestock or
other animals for the production of food or fiber, leather, pelts,
or other tangible products having a commercial value;
(E) wildlife management; and
(F) planting cover crops, including cover crops
cultivated for transplantation, or leaving land idle for the
purpose of participating in any governmental program or normal crop
or livestock rotation procedure.
(14) "Cargo tank" means an assembly that is used to
transport, haul, or deliver liquids and that consists of a tank
having one or more compartments [mounted] on a wagon, automobile,
truck, trailer, or wheels. The term includes accessory piping,
valves, and meters, but does not include a fuel supply tank
connected to the carburetor or fuel injector of a motor vehicle.
(16-a) "Container" means any receptacle used to store
motor fuel.
(17-a) "Delivery" means any transfer of motor fuel:
(A) into a fuel supply tank, cargo tank, or
container; or
(B) to a location or into a receptacle, as
specified by this chapter in connection with the term.
(42) "Motor fuel" means gasoline, diesel fuel,
gasoline blended fuel, compressed natural gas, liquefied natural
gas, and other products that are offered for sale, sold, used, or
capable of use as fuel for a motor vehicle licensed for use on a
public highway [gasoline-powered engine or a diesel-powered
engine].
(43) "Motor fuel transporter" means a person who
transports gasoline, diesel fuel, gasoline blended fuel, aviation
fuel, or any other motor fuel, except liquefied gas, compressed
natural gas, or liquefied natural gas, outside the bulk
transfer/terminal system by means of a transport vehicle, a
railroad tank car, or a marine vessel. The term does not include a
person who[:
[(A)] is licensed under this chapter as a
supplier, permissive supplier, or distributor [;] and:
(A) [(B)] exclusively transports gasoline,
diesel fuel, gasoline blended fuel, aviation fuel, or any other
motor fuel to which the person retains ownership while the fuel is
being transported by the person; or
(B) lawfully acquires motor fuel and retains
ownership of the fuel while the fuel is being transported.
(56) "Solid waste refuse vehicle" means a motor
vehicle equipped with a power takeoff or auxiliary power unit that
provides power to compact the refuse, open the back of the refuse
container before ejection, and eject the compacted refuse.
(61) "Transport vehicle" means any [a] vehicle
[designed or] used to carry motor fuel over a public highway and
includes a motor vehicle, straight truck, straight truck/trailer
combination, [and] semitrailer combination rig, and motor
vehicle/trailer combination.
SECTION 2. Section 162.101, Tax Code, is amended by
amending Subsection (g) and adding Subsection (h) to read as
follows:
(g) In each subsequent sale of gasoline on which the tax has
been paid, the amount of the tax shall be added to the selling price
so that the tax is paid by each person receiving the gasoline until
it is paid ultimately by the person using or consuming the gasoline.
(h) Gasoline is considered to be used when it is delivered
into a fuel supply tank.
SECTION 3. Section 162.103(a), Tax Code, is amended to read
as follows:
(a) A backup tax is imposed at the rate prescribed by
Section 162.102 on:
(1) a person who obtains a refund of tax on gasoline by
claiming the gasoline was used for an off-highway purpose, but
actually uses the gasoline to operate a motor vehicle on a public
highway;
(2) a person who operates a motor vehicle on a public
highway using gasoline on which tax has not been paid;
(3) a person who sells to the ultimate consumer
gasoline on which tax has not been paid and who knew or had reason to
know that the gasoline would be used for a taxable purpose; [and]
(4) a person, other than a person exempted under
Section 162.104, who acquires gasoline on which tax has not been
paid:
(A) in an original or subsequent sale; or
(B) from any source in this state; and
(5) a person who acquires gasoline by any unlawful
means, including by purchase through the unauthorized use of a
credit card, a debit card, or other money, regardless of whether tax
was previously paid on the gasoline or was added to the selling
price of the gasoline.
SECTION 4. Section 162.201, Tax Code, is amended by
amending Subsection (g) and adding Subsection (h) to read as
follows:
(g) In each subsequent sale of diesel fuel on which the tax
has been paid, the amount of the tax shall be added to the selling
price so that the tax is paid by each person receiving the diesel
fuel until it is paid ultimately by the person using or consuming
the diesel fuel.
(h) Diesel fuel is considered to be used when it is
delivered into a fuel supply tank.
SECTION 5. Section 162.203(a), Tax Code, is amended to read
as follows:
(a) A backup tax is imposed at the rate prescribed by
Section 162.202 on:
(1) a person who obtains a refund of tax on diesel fuel
by claiming the diesel fuel was used for an off-highway purpose, but
actually uses the diesel fuel to operate a motor vehicle on a public
highway;
(2) a person who operates a motor vehicle on a public
highway using diesel fuel on which tax has not been paid;
(3) a person who sells to the ultimate consumer diesel
fuel on which a tax has not been paid and who knew or had reason to
know that the diesel fuel would be used for a taxable purpose; [and]
(4) a person, other than a person exempted under
Section 162.204, who acquires diesel fuel on which tax has not been
paid:
(A) in an original or subsequent sale; or
(B) from any source in this state; and
(5) a person who acquires diesel fuel by any unlawful
means, including by purchase through the unauthorized use of a
credit card, a debit card, or other money, regardless of whether tax
was previously paid on the diesel fuel or was added to the selling
price of the diesel fuel.
SECTION 6. The changes in law made by this Act do not affect
tax liability accruing before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
SECTION 7. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3651 was passed by the House on April
27, 2023, by the following vote: Yeas 147, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3651 was passed by the Senate on May
11, 2023, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor