| 1 | 1 | | 89R753 RDS-F |
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| 2 | 2 | | By: Hall S.B. No. 935 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to an exemption from certain motor fuel taxes for counties |
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| 10 | 10 | | in this state. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 162.104(a), Tax Code, is amended to read |
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| 13 | 13 | | as follows: |
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| 14 | 14 | | (a) The tax imposed by this subchapter does not apply to |
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| 15 | 15 | | gasoline: |
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| 16 | 16 | | (1) sold to the United States for its exclusive use, |
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| 17 | 17 | | provided that the exemption does not apply with respect to fuel sold |
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| 18 | 18 | | or delivered to a person operating under a contract with the United |
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| 19 | 19 | | States; |
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| 20 | 20 | | (2) sold to a public school district in this state for |
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| 21 | 21 | | the district's exclusive use; |
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| 22 | 22 | | (2-a) sold to a county in this state for the county's |
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| 23 | 23 | | exclusive use; |
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| 24 | 24 | | (3) sold to a commercial transportation company or a |
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| 25 | 25 | | metropolitan rapid transit authority operating under Chapter 451, |
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| 26 | 26 | | Transportation Code, that provides public school transportation |
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| 27 | 27 | | services to a school district under Section 34.008, Education Code, |
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| 28 | 28 | | and that uses the gasoline only to provide those services; |
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| 29 | 29 | | (4) exported by either a licensed supplier or a |
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| 30 | 30 | | licensed exporter from this state to any other state, provided that |
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| 31 | 31 | | the bill of lading indicates the destination state and the supplier |
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| 32 | 32 | | collects the destination state tax; |
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| 33 | 33 | | (5) moved by truck or railcar between licensed |
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| 34 | 34 | | suppliers or licensed permissive suppliers and in which the |
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| 35 | 35 | | gasoline removed from the first terminal comes to rest in the second |
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| 36 | 36 | | terminal, provided that the removal from the second terminal rack |
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| 37 | 37 | | is subject to the tax imposed by this subchapter; |
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| 38 | 38 | | (6) delivered or sold into a storage facility of a |
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| 39 | 39 | | licensed aviation fuel dealer from which gasoline will be delivered |
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| 40 | 40 | | solely into the fuel supply tanks of aircraft or aircraft servicing |
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| 41 | 41 | | equipment, or sold from one licensed aviation fuel dealer to |
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| 42 | 42 | | another licensed aviation fuel dealer who will deliver the aviation |
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| 43 | 43 | | fuel exclusively into the fuel supply tanks of aircraft or aircraft |
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| 44 | 44 | | servicing equipment; |
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| 45 | 45 | | (7) exported to a foreign country if the bill of lading |
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| 46 | 46 | | or shipping documents indicate the foreign destination and the fuel |
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| 47 | 47 | | is actually exported to the foreign country; |
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| 48 | 48 | | (8) sold to a volunteer fire department in this state |
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| 49 | 49 | | for the department's exclusive use; |
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| 50 | 50 | | (9) sold to a nonprofit entity that is organized for |
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| 51 | 51 | | the sole purpose of and engages exclusively in providing emergency |
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| 52 | 52 | | medical services and that uses the gasoline exclusively to provide |
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| 53 | 53 | | emergency medical services, including rescue and ambulance |
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| 54 | 54 | | services; or |
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| 55 | 55 | | (10) sold to a nonprofit food bank and delivered into: |
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| 56 | 56 | | (A) the fuel supply tank of a motor vehicle with a |
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| 57 | 57 | | gross vehicle weight rating of at least 25,000 pounds that is owned |
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| 58 | 58 | | by the nonprofit food bank and used to deliver food; or |
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| 59 | 59 | | (B) a storage facility from which gasoline will |
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| 60 | 60 | | be delivered solely into the fuel supply tanks of motor vehicles |
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| 61 | 61 | | described by Paragraph (A). |
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| 62 | 62 | | SECTION 2. Section 162.125, Tax Code, is amended by |
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| 63 | 63 | | amending Subsection (a) and adding Subsection (g-3) to read as |
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| 64 | 64 | | follows: |
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| 65 | 65 | | (a) A license holder may take a credit on a return for the |
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| 66 | 66 | | period in which the sale occurred if the license holder paid tax on |
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| 67 | 67 | | the purchase of gasoline and subsequently resells the gasoline |
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| 68 | 68 | | without collecting the tax to: |
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| 69 | 69 | | (1) the United States government for its exclusive |
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| 70 | 70 | | use, provided that a credit is not allowed for gasoline used by a |
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| 71 | 71 | | person operating under contract with the United States; |
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| 72 | 72 | | (2) a public school district in this state for the |
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| 73 | 73 | | district's exclusive use; |
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| 74 | 74 | | (2-a) a county in this state for the county's exclusive |
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| 75 | 75 | | use; |
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| 76 | 76 | | (3) an exporter licensed under this subchapter if the |
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| 77 | 77 | | seller is a licensed supplier or distributor and the exporter |
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| 78 | 78 | | subsequently exports the gasoline to another state; |
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| 79 | 79 | | (4) a licensed aviation fuel dealer if the seller is a |
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| 80 | 80 | | licensed distributor; |
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| 81 | 81 | | (5) a commercial transportation company or a |
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| 82 | 82 | | metropolitan rapid transit authority operating under Chapter 451, |
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| 83 | 83 | | Transportation Code, that provides public school transportation |
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| 84 | 84 | | services to a school district under Section 34.008, Education Code, |
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| 85 | 85 | | and that uses the gasoline exclusively to provide those services; |
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| 86 | 86 | | or |
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| 87 | 87 | | (6) a nonprofit food bank that delivers or will |
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| 88 | 88 | | deliver the gasoline into the fuel supply tank of a motor vehicle |
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| 89 | 89 | | with a gross vehicle weight rating of at least 25,000 pounds that is |
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| 90 | 90 | | owned by the nonprofit food bank and used to deliver food. |
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| 91 | 91 | | (g-3) A county exempt from the tax imposed under this |
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| 92 | 92 | | subchapter that paid tax on the purchase of gasoline is entitled to |
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| 93 | 93 | | a refund of the tax paid, and the county may file a refund claim with |
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| 94 | 94 | | the comptroller for that amount. |
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| 95 | 95 | | SECTION 3. Section 162.204(a), Tax Code, is amended to read |
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| 96 | 96 | | as follows: |
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| 97 | 97 | | (a) The tax imposed by this subchapter does not apply to: |
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| 98 | 98 | | (1) diesel fuel sold to the United States for its |
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| 99 | 99 | | exclusive use, provided that the exemption does not apply to diesel |
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| 100 | 100 | | fuel sold or delivered to a person operating under a contract with |
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| 101 | 101 | | the United States; |
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| 102 | 102 | | (2) diesel fuel sold to a public school district in |
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| 103 | 103 | | this state for the district's exclusive use; |
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| 104 | 104 | | (2-a) diesel fuel sold to a county in this state for |
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| 105 | 105 | | the county's exclusive use; |
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| 106 | 106 | | (3) diesel fuel sold to a commercial transportation |
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| 107 | 107 | | company or a metropolitan rapid transit authority operating under |
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| 108 | 108 | | Chapter 451, Transportation Code, that provides public school |
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| 109 | 109 | | transportation services to a school district under Section 34.008, |
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| 110 | 110 | | Education Code, and that uses the diesel fuel only to provide those |
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| 111 | 111 | | services; |
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| 112 | 112 | | (4) diesel fuel exported by either a licensed supplier |
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| 113 | 113 | | or a licensed exporter from this state to any other state, provided |
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| 114 | 114 | | that the bill of lading indicates the destination state and the |
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| 115 | 115 | | supplier collects the destination state tax; |
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| 116 | 116 | | (5) diesel fuel moved by truck or railcar between |
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| 117 | 117 | | licensed suppliers or licensed permissive suppliers and in which |
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| 118 | 118 | | the diesel fuel removed from the first terminal comes to rest in the |
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| 119 | 119 | | second terminal, provided that the removal from the second terminal |
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| 120 | 120 | | rack is subject to the tax imposed by this subchapter; |
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| 121 | 121 | | (6) diesel fuel delivered or sold into a storage |
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| 122 | 122 | | facility of a licensed aviation fuel dealer from which the diesel |
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| 123 | 123 | | fuel will be delivered solely into the fuel supply tanks of aircraft |
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| 124 | 124 | | or aircraft servicing equipment, or sold from one licensed aviation |
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| 125 | 125 | | fuel dealer to another licensed aviation fuel dealer who will |
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| 126 | 126 | | deliver the diesel fuel exclusively into the fuel supply tanks of |
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| 127 | 127 | | aircraft or aircraft servicing equipment; |
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| 128 | 128 | | (7) diesel fuel exported to a foreign country if the |
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| 129 | 129 | | bill of lading or shipping documents indicate the foreign |
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| 130 | 130 | | destination and the fuel is actually exported to the foreign |
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| 131 | 131 | | country; |
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| 132 | 132 | | (8) dyed diesel fuel sold or delivered by a supplier to |
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| 133 | 133 | | another supplier and dyed diesel fuel sold or delivered by a |
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| 134 | 134 | | supplier or distributor into the bulk storage facility of a dyed |
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| 135 | 135 | | diesel fuel bonded user or to a purchaser who provides a signed |
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| 136 | 136 | | statement as provided by Section 162.206; |
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| 137 | 137 | | (9) the volume of water, fuel ethanol, renewable |
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| 138 | 138 | | diesel, biodiesel, or mixtures thereof that are blended together |
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| 139 | 139 | | with taxable diesel fuel when the finished product sold or used is |
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| 140 | 140 | | clearly identified on the retail pump, storage tank, and sales |
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| 141 | 141 | | invoice as a combination of diesel fuel and water, fuel ethanol, |
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| 142 | 142 | | renewable diesel, biodiesel, or mixtures thereof; |
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| 143 | 143 | | (10) dyed diesel fuel sold by a supplier or permissive |
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| 144 | 144 | | supplier to a distributor, or by a distributor to another |
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| 145 | 145 | | distributor; |
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| 146 | 146 | | (11) dyed diesel fuel delivered by a license holder |
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| 147 | 147 | | into the fuel supply tanks of railway engines, motorboats, or |
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| 148 | 148 | | refrigeration units or other stationary equipment powered by a |
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| 149 | 149 | | separate motor from a separate fuel supply tank; |
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| 150 | 150 | | (12) dyed kerosene when delivered by a supplier, |
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| 151 | 151 | | distributor, or importer into a storage facility at a retail |
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| 152 | 152 | | business from which all deliveries are exclusively for heating, |
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| 153 | 153 | | cooking, lighting, or similar nonhighway use; |
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| 154 | 154 | | (13) diesel fuel used by a person, other than a |
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| 155 | 155 | | political subdivision, who owns, controls, operates, or manages a |
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| 156 | 156 | | commercial motor vehicle as defined by Section 548.001, |
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| 157 | 157 | | Transportation Code, if the fuel: |
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| 158 | 158 | | (A) is delivered exclusively into the fuel supply |
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| 159 | 159 | | tank of the commercial motor vehicle; and |
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| 160 | 160 | | (B) is used exclusively to transport passengers |
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| 161 | 161 | | for compensation or hire between points in this state on a fixed |
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| 162 | 162 | | route or schedule; |
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| 163 | 163 | | (14) diesel fuel sold to a volunteer fire department |
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| 164 | 164 | | in this state for the department's exclusive use; |
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| 165 | 165 | | (15) diesel fuel sold to a nonprofit entity that is |
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| 166 | 166 | | organized for the sole purpose of and engages exclusively in |
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| 167 | 167 | | providing emergency medical services and that uses the diesel fuel |
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| 168 | 168 | | exclusively to provide emergency medical services, including |
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| 169 | 169 | | rescue and ambulance services; or |
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| 170 | 170 | | (16) diesel fuel sold to a nonprofit food bank and |
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| 171 | 171 | | delivered into: |
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| 172 | 172 | | (A) the fuel supply tank of a motor vehicle with a |
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| 173 | 173 | | gross vehicle weight rating of at least 25,000 pounds that is owned |
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| 174 | 174 | | by the nonprofit food bank and used to deliver food; or |
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| 175 | 175 | | (B) a storage facility from which diesel fuel |
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| 176 | 176 | | will be delivered solely into the fuel supply tanks of motor |
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| 177 | 177 | | vehicles described by Paragraph (A). |
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| 178 | 178 | | SECTION 4. Section 162.227, Tax Code, is amended by |
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| 179 | 179 | | amending Subsection (a) and adding Subsection (f-3) to read as |
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| 180 | 180 | | follows: |
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| 181 | 181 | | (a) A license holder may take a credit on a return for the |
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| 182 | 182 | | period in which the sale occurred if the license holder paid tax on |
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| 183 | 183 | | the purchase of diesel fuel and subsequently resells the diesel |
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| 184 | 184 | | fuel without collecting the tax to: |
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| 185 | 185 | | (1) the United States government for its exclusive |
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| 186 | 186 | | use, provided that a credit is not allowed for gasoline used by a |
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| 187 | 187 | | person operating under a contract with the United States; |
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| 188 | 188 | | (2) a public school district in this state for the |
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| 189 | 189 | | district's exclusive use; |
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| 190 | 190 | | (2-a) a county in this state for the county's exclusive |
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| 191 | 191 | | use; |
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| 192 | 192 | | (3) an exporter licensed under this subchapter if the |
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| 193 | 193 | | seller is a licensed supplier or distributor and the exporter |
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| 194 | 194 | | subsequently exports the diesel fuel to another state; |
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| 195 | 195 | | (4) a licensed aviation fuel dealer if the seller is a |
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| 196 | 196 | | licensed distributor; |
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| 197 | 197 | | (5) a commercial transportation company or a |
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| 198 | 198 | | metropolitan rapid transit authority operating under Chapter 451, |
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| 199 | 199 | | Transportation Code, that provides public school transportation |
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| 200 | 200 | | services to a school district under Section 34.008, Education Code, |
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| 201 | 201 | | and that uses the diesel fuel exclusively to provide those |
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| 202 | 202 | | services; or |
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| 203 | 203 | | (6) a nonprofit food bank that delivers or will |
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| 204 | 204 | | deliver the diesel fuel into the fuel supply tank of a motor vehicle |
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| 205 | 205 | | with a gross vehicle weight rating of at least 25,000 pounds that is |
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| 206 | 206 | | owned by the nonprofit food bank and used to deliver food. |
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| 207 | 207 | | (f-3) A county exempt from the tax imposed under this |
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| 208 | 208 | | subchapter that paid tax on the purchase of diesel fuel is entitled |
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| 209 | 209 | | to a refund of the tax paid, and the county may file a refund claim |
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| 210 | 210 | | with the comptroller for that amount. |
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| 211 | 211 | | SECTION 5. The changes in law made by this Act do not affect |
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| 212 | 212 | | tax liability accruing before the effective date of this Act. That |
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| 213 | 213 | | liability continues in effect as if this Act had not been enacted, |
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| 214 | 214 | | and the former law is continued in effect for the collection of |
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| 215 | 215 | | taxes due for civil and criminal enforcement of the liability of |
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| 216 | 216 | | those taxes. |
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| 217 | 217 | | SECTION 6. This Act takes effect July 1, 2025, if it |
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| 218 | 218 | | receives a vote of two-thirds of all the members elected to each |
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| 219 | 219 | | house, as provided by Section 39, Article III, Texas Constitution. |
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| 220 | 220 | | If this Act does not receive the vote necessary for effect on that |
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| 221 | 221 | | date, this Act takes effect September 1, 2025. |
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