Bill Text: TX HB4183 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-29 - Referred to Ways & Means [HB4183 Detail]
Download: Texas-2021-HB4183-Introduced.html
87R8927 SMT-F | ||
By: Reynolds | H.B. No. 4183 |
|
||
|
||
relating to state and municipal motor fuel taxes; providing civil | ||
penalties; creating criminal offenses; requiring occupational | ||
licenses; authorizing the imposition of taxes; providing for | ||
increases and decreases in the rates of taxes. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Title 3, Tax Code, is amended by adding Subtitle | ||
E to read as follows: | ||
SUBTITLE E. LOCAL MOTOR FUEL TAXES | ||
CHAPTER 401. MUNICIPAL MOTOR FUEL TAXES | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 401.001. MEANINGS OF WORDS AND PHRASES. A word or | ||
phrase used in this chapter that is defined by Chapter 162 has the | ||
meaning assigned by that chapter. | ||
SUBCHAPTER B. TAX AUTHORIZED; USE OF REVENUE | ||
Sec. 401.051. MUNICIPAL MOTOR FUEL TAXES AUTHORIZED. (a) | ||
Notwithstanding Section 162.014, if approved by a majority of the | ||
votes cast in a municipality at an election held for that purpose, | ||
the municipality shall impose taxes at the rate of one cent per | ||
gallon on the sale of gasoline and diesel fuel that is sold in the | ||
municipality by a person, including a dealer, distributor, | ||
supplier, or permissive supplier, engaged in the sale of motor | ||
fuels used to propel a motor vehicle on the public highways of the | ||
state. The rates of the taxes shall be adjusted as provided by | ||
Sections 162.1026 and 162.2026 on January 1 of each year after the | ||
year in which the taxes are first imposed. | ||
(b) The tax authorized by this section is in addition to the | ||
tax imposed by Chapter 162 and shall be collected in conjunction | ||
with that tax when gasoline or diesel fuel is removed from a | ||
terminal using the terminal rack, other than by bulk transfer, to be | ||
sold or delivered into a municipality that has imposed the tax | ||
authorized by this section. | ||
Sec. 401.052. USE OF REVENUE. The revenue collected under | ||
this chapter may be used as provided by Section 7-a, Article VIII, | ||
Texas Constitution. | ||
SUBCHAPTER C. ELECTION | ||
Sec. 401.101. ELECTION. (a) The governing body of a | ||
municipality may call an election on the issue of imposing motor | ||
fuel taxes under this chapter by a vote of a majority of its | ||
members. | ||
(b) An election called under this section must be held on | ||
the uniform election date in May or November. | ||
Sec. 401.102. BALLOT WORDING. The ballot shall be printed | ||
to provide for voting for or against the proposition: "A motor fuel | ||
tax is adopted within the city at a rate of one cent per gallon of | ||
gasoline or diesel fuel sold in the city. The rate may be increased | ||
or decreased each year to account for inflation or deflation." | ||
Sec. 401.103. OFFICIAL RESULTS OF ELECTION. (a) Not later | ||
than 10 days after an election in which the voters approve the | ||
adoption of a tax authorized by this chapter, the governing body of | ||
the municipality shall by resolution or ordinance entered in its | ||
minutes of proceedings declare the results of the election. A | ||
resolution or ordinance under this section must include statements | ||
showing: | ||
(1) the date of the election; | ||
(2) the proposition on which the vote was held; | ||
(3) the total number of votes cast for and against the | ||
proposition; and | ||
(4) the number of votes by which the proposition was | ||
approved. | ||
(b) If the imposition of a tax under this chapter is | ||
approved by the voters, the municipal secretary shall send to the | ||
comptroller a certified copy of the resolution or the ordinance | ||
along with a map of the municipality clearly showing its | ||
boundaries. | ||
(c) Not later than the 30th day after the date the | ||
comptroller receives a certified copy of an ordinance or resolution | ||
showing the adoption of the tax, the comptroller shall notify the | ||
municipal secretary of the date provided by Section 401.151(d) or | ||
(e) when the comptroller will begin collecting the tax. | ||
SUBCHAPTER D. ADMINISTRATION | ||
Sec. 401.151. DUTIES OF COMPTROLLER RELATING TO MUNICIPAL | ||
MOTOR FUEL TAXES. (a) The comptroller shall administer, collect, | ||
and enforce a tax imposed on the sale of gasoline or diesel fuel | ||
approved in accordance with the provisions of this chapter. The tax | ||
shall be exclusively administered, collected, and enforced in | ||
conformance with Chapter 162 governing the taxes imposed on the | ||
sale of gasoline and diesel fuel, except that Subchapter F, Chapter | ||
162 does not apply. References in Chapter 162 to taxes imposed under | ||
that chapter also include taxes imposed under this chapter. | ||
(b) The exemptions provided by Sections 162.104 and 162.204 | ||
apply to taxes imposed under this chapter. | ||
(c) The comptroller may adopt reasonable rules and | ||
prescribe forms that are consistent with this chapter and Chapter | ||
162 for the administration, collection, reporting, and enforcement | ||
of the taxes imposed under this chapter. | ||
(d) Except as provided by Subsection (e), a tax authorized | ||
by this chapter takes effect on the first day of the first calendar | ||
quarter following the expiration of the first complete quarter | ||
occurring after the date of the election authorizing the tax under | ||
Section 401.051. | ||
(e) If the comptroller determines that an effective date | ||
provided by Subsection (d) will occur before the comptroller can | ||
reasonably take the action required to begin collecting the tax, | ||
the comptroller may delay the effective date until the first day of | ||
the first calendar quarter following the date the comptroller | ||
declares that the comptroller is ready to begin collecting the tax. | ||
(f) Before making a distribution to a municipality under | ||
Section 401.154, the comptroller shall deduct any costs incurred by | ||
the comptroller related to the comptroller's preparations to | ||
administer, collect, and enforce a tax on the sale of gasoline or | ||
diesel fuel approved in accordance with this chapter. Each | ||
municipality that approves the imposition of taxes on the sale of | ||
gasoline and diesel fuel shall pay a pro rata amount of the | ||
comptroller's costs in preparing to administer, collect, and | ||
enforce the taxes. If only one municipality elects to approve the | ||
imposition of taxes on the sale of gasoline and diesel fuel in its | ||
jurisdiction, that municipality bears all of the costs incurred by | ||
the comptroller but may recover pro rata shares of this cost from | ||
other municipalities that approve the imposition of the taxes. | ||
Sec. 401.152. ADOPTION OF RULES RELATING TO MOTOR FUEL | ||
TAXES. (a) Before the comptroller may adopt rules under Section | ||
401.151, the comptroller must consult with representatives of: | ||
(1) the entities that would be required to: | ||
(A) collect and remit a motor fuel tax imposed | ||
under this chapter; and | ||
(B) file reports with the comptroller relating to | ||
a motor fuel tax imposed under this chapter; and | ||
(2) municipalities in which the voters have approved | ||
the imposition of a motor fuel tax under this chapter. | ||
(b) Rules adopted under Section 401.151 must provide for the | ||
uniform administration and reporting of all motor fuel taxes | ||
imposed by a municipality under this chapter. A municipality may | ||
not impose requirements on an entity required to collect a motor | ||
fuel tax under this chapter that are not specifically authorized by | ||
the rules adopted under Section 401.151. | ||
(c) Rules adopted under Section 401.151: | ||
(1) may require the comptroller to report sufficient | ||
information to each municipality imposing a motor fuel tax under | ||
this chapter to ensure proper allocation of revenue by the | ||
municipality under this chapter; | ||
(2) may not require the comptroller to report | ||
proprietary information collected from an individual taxpayer in a | ||
way that would be subject to public disclosure; and | ||
(3) may not authorize a municipality imposing a motor | ||
fuel tax under this chapter to contract with a private entity to | ||
perform any duty or responsibility associated with the collection, | ||
enforcement, or administration of the tax. | ||
Sec. 401.153. TRUST ACCOUNT. The comptroller shall deposit | ||
the municipal taxes collected by the comptroller under this chapter | ||
and Chapter 162 in trust in a separate suspense account of the | ||
municipality for which the taxes were collected. | ||
Sec. 401.154. DISTRIBUTION OF TRUST FUNDS. The comptroller | ||
shall each month distribute to the municipality the municipality's | ||
share of the taxes collected by the comptroller under this chapter | ||
and Chapter 162. | ||
Sec. 401.155. STATE'S SHARE. Before making a distribution | ||
to a municipality under Section 401.154, the comptroller also shall | ||
deduct an amount not to exceed two percent of the amount of the | ||
taxes collected for the municipality during the period for which a | ||
distribution is made as the state's charge for its services. The | ||
comptroller shall credit the amount deducted to the general revenue | ||
fund. The comptroller shall adjust the percentage of the amount | ||
deducted each state fiscal year considering the projected | ||
expenditures necessary for the collection, administrative, and | ||
enforcement functions related to the municipal motor fuel taxes. | ||
Sec. 401.156. AMOUNTS RETAINED IN TRUST ACCOUNT. (a) The | ||
comptroller may retain in the suspense account of a municipality a | ||
portion of the municipality's share of the tax collected for the | ||
municipality under this chapter and Chapter 162 not to exceed five | ||
percent of the amount distributed to the municipality. | ||
(b) From the amounts retained in a municipality's suspense | ||
account, the comptroller may correct erroneous deposits to the | ||
account, make refunds for overpayments to the account, and redeem | ||
dishonored checks and drafts deposited to the credit of the | ||
account. | ||
Sec. 401.157. INTEREST ON TRUST ACCOUNT. Interest earned | ||
on all deposits made by the comptroller under this subchapter shall | ||
be credited to the suspense account of the municipality. | ||
SECTION 2. Section 162.001, Tax Code, is amended by adding | ||
Subdivisions (44-a), (44-b), (56-a), (56-b), and (57-a) to read as | ||
follows: | ||
(44-a) "Municipal diesel fuel tax" means the tax | ||
imposed by Section 162.2011 or 162.2035. | ||
(44-b) "Municipal gasoline tax" means the tax imposed | ||
by Section 162.1011 or 162.1035. | ||
(56-a) "State diesel fuel tax" means the tax imposed | ||
by Section 162.201 or 162.203. | ||
(56-b) "State gasoline tax" means the tax imposed by | ||
Section 162.101 or 162.103. | ||
(57-a) "Taxing municipality" means a destination | ||
municipality that has adopted the taxes authorized by Chapter 401. | ||
SECTION 3. Sections 162.004(e) and (g), Tax Code, are | ||
amended to read as follows: | ||
(e) A person to whom a shipping document was issued shall: | ||
(1) carry the shipping document in the barge, vessel, | ||
railroad tank car, or other transport vehicle for which the | ||
document was issued when transporting the motor fuel described in | ||
the document; | ||
(2) show the shipping document on request to any law | ||
enforcement officer, representative of the comptroller, or other | ||
authorized individual, when transporting the motor fuel described; | ||
(3) deliver the motor fuel to the destination state | ||
printed on the shipping document unless the person: | ||
(A) notifies the comptroller and the destination | ||
state, if a diversion program is in place, before transporting the | ||
motor fuel into a state other than the printed destination state, | ||
that the person has received instructions after the shipping | ||
document was issued to deliver the motor fuel to a different | ||
destination state; | ||
(B) receives from the comptroller and | ||
destination state, if a diversion program is in place, a diversion | ||
number authorizing the diversion; and | ||
(C) writes on the shipping document the change in | ||
destination state and the diversion number; [ |
||
(4) if delivering the motor fuel into a municipality | ||
in this state, denote on the shipping document the municipality to | ||
which the motor fuel will be delivered or, in the case of a split | ||
load, each municipality in which a portion of the motor fuel will be | ||
delivered; and | ||
(5) give a copy of the shipping document to the person | ||
to whom the motor fuel is delivered. | ||
(g) The person to whom motor fuel is delivered by barge, | ||
vessel, railroad tank car, or transport vehicle may not accept | ||
delivery of the motor fuel if the destination state shown on the | ||
shipping document for the motor fuel is a state other than this | ||
state, except that the person may accept the [ |
||
document contains a diversion number authorized by the comptroller | ||
and destination state, if applicable, and has received a properly | ||
completed shipping document listing the municipality, if | ||
applicable, in this state in which the person accepts delivery. The | ||
person to whom the motor fuel is delivered shall examine the | ||
shipping document to determine that the destination state is this | ||
state and, if applicable, that the municipality in this state is the | ||
municipality in which the person accepts delivery, and shall retain | ||
a copy of the shipping document at the delivery location or another | ||
place until the fourth anniversary of the date of delivery. | ||
SECTION 4. Section 162.005(e), Tax Code, is amended to read | ||
as follows: | ||
(e) The comptroller may revoke a license if the license | ||
holder: | ||
(1) purchases for export motor fuel on which the tax | ||
was not paid under this chapter and subsequently diverts or causes | ||
the motor fuel to be diverted to a destination in this state or to | ||
any destination other than the originally designated state or | ||
country without first obtaining a diversion number; or | ||
(2) delivers motor fuel on which the municipal | ||
gasoline tax or municipal diesel fuel tax is due without issuing a | ||
properly completed shipping document listing the taxing | ||
municipality in which the delivery occurred. | ||
SECTION 5. Section 162.006(a), Tax Code, is amended to read | ||
as follows: | ||
(a) The comptroller may suspend a person's license without | ||
notice or a hearing for the person's failure to comply with this | ||
chapter or a rule adopted under this chapter or Chapter 401 if the | ||
person's continued operation constitutes an immediate and | ||
substantial threat to the collection of taxes imposed by this | ||
chapter and attributable to the person's operation. | ||
SECTION 6. Section 162.012, Tax Code, is amended to read as | ||
follows: | ||
Sec. 162.012. PRESUMPTIONS. (a) A person licensed under | ||
this chapter or required to be licensed under this chapter, or other | ||
user, who fails to keep a record, issue an invoice, or file a return | ||
or report required by this chapter is presumed to have sold or used | ||
for taxable purposes all motor fuel shown by an audit by the | ||
comptroller to have been sold to the license holder or other | ||
user. Motor fuel unaccounted for is presumed to have been sold or | ||
used for taxable purposes. | ||
(b) If an exporter claims an exemption under Section | ||
162.104(a)(4) or 162.204(a)(4) and fails to report subsequent | ||
tax-free sales in this state of the motor fuel for which the | ||
exemption was claimed as required by Section 162.1155 or 162.2165, | ||
or to produce proof of payment of tax to the destination state or | ||
proof that the transaction was exempt in the destination state, the | ||
exporter is presumed to have not paid the destination state's tax or | ||
this state's tax on the motor fuel and the comptroller shall assess | ||
the tax imposed by this chapter on the motor fuel against the | ||
exporter. | ||
(c) If a person claims an exemption from the municipal motor | ||
fuels tax and fails to produce proof of delivery to a nontaxing | ||
municipality or an unincorporated area of the state, the person is | ||
presumed to have delivered the motor fuel to a taxing municipality | ||
that imposes the tax on motor vehicle fuels authorized by Chapter | ||
401. | ||
(d) The comptroller may fix or establish the amount of | ||
taxes, penalties, and interest due this state from the records of | ||
deliveries or from any records or information available. If a tax | ||
claim, as developed from this procedure, is not paid, after the | ||
opportunity to request a redetermination, the claim and any audit | ||
made by the comptroller or any report filed by the license holder or | ||
other user is evidence in any suit or judicial proceedings filed by | ||
the attorney general and is prima facie evidence of the correctness | ||
of the claim or audit. A prima facie presumption of the | ||
correctness of the claim may be overcome at the trial by evidence | ||
adduced by the license holder or other user. | ||
(e) [ |
||
miles actually operated per gallon of motor fuel consumed, it is | ||
presumed that not less than one gallon of motor fuel was consumed | ||
for every four miles traveled. An interstate trucker may produce | ||
evidence of motor fuel consumption to establish another mileage | ||
factor. If an examination or audit made by the comptroller from the | ||
records of an interstate trucker shows that a greater amount of | ||
motor fuel was consumed than was reported by the interstate trucker | ||
for tax purposes, the interstate trucker is liable for the tax, | ||
penalties, and interest on the additional amount shown or the | ||
trucker is entitled to a credit or refund on overpayments of tax | ||
established by the audit. | ||
SECTION 7. Section 162.015, Tax Code, is amended to read as | ||
follows: | ||
Sec. 162.015. ADDITIONAL TAX APPLIES TO INVENTORIES. (a) | ||
On the effective date of an increase in the rate [ |
||
[ |
||
possesses for the purpose of sale 2,000 or more gallons of gasoline | ||
or diesel fuel at each business location on which a tax [ |
||
imposed by this chapter at a previous rate has [ |
||
shall report to the comptroller the volume of that gasoline and | ||
diesel fuel, and at the time of the report shall pay a tax on that | ||
gasoline and diesel fuel at a rate equal to the rate of the tax | ||
increase. | ||
(b) On the effective date of a reduction of the rate [ |
||
of a tax [ |
||
that possesses for the purpose of sale 2,000 or more gallons of | ||
gasoline or diesel fuel at each business location on which a tax | ||
[ |
||
been paid becomes entitled to a refund in an amount equal to the | ||
difference in the amount of the tax [ |
||
diesel fuel at the previous rate and at the rate in effect on the | ||
effective date of the reduction in the tax rate [ |
||
of the comptroller shall provide for the method of claiming a refund | ||
under this chapter and may require that the refund for the dealer be | ||
paid through the distributor or supplier from whom the dealer | ||
received the fuel. | ||
SECTION 8. Section 162.016, Tax Code, is amended by | ||
amending Subsection (a) and adding Subsection (g-1) to read as | ||
follows: | ||
(a) A person may not import motor fuel to a destination in | ||
this state or export motor fuel to a destination outside this state | ||
by any means unless the person possesses a shipping document for | ||
that fuel. The shipping document must include: | ||
(1) the name and physical address of the terminal or | ||
bulk plant from which the motor fuel was received for import or | ||
export; | ||
(2) the name of the carrier transporting the motor | ||
fuel; | ||
(3) the date the motor fuel was loaded; | ||
(4) the type of motor fuel; | ||
(5) the number of gallons: | ||
(A) in temperature-adjusted gallons if purchased | ||
from a terminal for export or import; or | ||
(B) in temperature-adjusted gallons or in gross | ||
gallons if purchased from a bulk plant; | ||
(6) the destination state and, if the destination | ||
state is this state and the gasoline or diesel fuel will be | ||
delivered to a municipality, the municipality in this state to | ||
which the gasoline or diesel fuel will be delivered [ |
||
number of gallons of the fuel to be delivered, if delivery is to | ||
only one state; | ||
(7) the name and physical address of the purchaser of | ||
the motor fuel; | ||
(8) the name of the person responsible for paying the | ||
tax imposed by this chapter, as given to the terminal by the | ||
purchaser if different from the licensed supplier or distributor; | ||
(9) the destination state of each portion of a split | ||
load of motor fuel if the motor fuel is to be delivered to more than | ||
one state and, if a destination state is this state and the gasoline | ||
or diesel fuel will be delivered to a municipality, the | ||
municipality in this state to which the gasoline or diesel fuel will | ||
be delivered; and | ||
(10) any other information that, in the opinion of the | ||
comptroller, is necessary for the proper administration of this | ||
chapter. | ||
(g-1) An importer or exporter who wants to deliver a single | ||
cargo tank of motor fuel to a municipality in this state must issue | ||
a properly completed shipping document denoting the municipality to | ||
which the motor fuel will be delivered or, in the case of a split | ||
load, each municipality to which a portion of the motor fuel will be | ||
delivered. | ||
SECTION 9. The heading to Section 162.101, Tax Code, is | ||
amended to read as follows: | ||
Sec. 162.101. POINT OF IMPOSITION OF STATE GASOLINE TAX. | ||
SECTION 10. Sections 162.101(a), (b), (c), and (f), Tax | ||
Code, are amended to read as follows: | ||
(a) A tax is imposed on the removal of gasoline from the | ||
terminal using the terminal rack, other than by bulk transfer. The | ||
supplier or permissive supplier is liable for and shall collect the | ||
tax imposed by this section [ |
||
the withdrawal at the terminal rack. | ||
(b) A tax is imposed at the time gasoline is imported into | ||
this state, other than by a bulk transfer, for delivery to a | ||
destination in this state. The supplier or permissive supplier is | ||
liable for and shall collect the tax imposed by this section | ||
[ |
||
state. If the seller is not a supplier or permissive supplier, | ||
then the person who imports the gasoline into this state is liable | ||
for and shall pay the tax. | ||
(c) A tax is imposed on the removal of gasoline from the bulk | ||
transfer/terminal system in this state. The supplier is liable for | ||
and shall collect the tax imposed by this section [ |
||
the person who orders the removal from the bulk transfer terminal | ||
system. | ||
(f) A terminal operator in this state is considered a | ||
supplier for the purpose of the tax imposed by [ |
||
[ |
||
(1) the terminal operator has a terminal operator's | ||
license issued for the facility from which the gasoline is | ||
withdrawn; | ||
(2) the terminal operator verifies that the person who | ||
removes the gasoline has a supplier's license; and | ||
(3) the terminal operator does not have a reason to | ||
believe that the supplier's license is not valid. | ||
SECTION 11. Subchapter B, Chapter 162, Tax Code, is amended | ||
by adding Section 162.1011 to read as follows: | ||
Sec. 162.1011. IMPOSITION OF MUNICIPAL GASOLINE TAX; POINT | ||
OF COLLECTION. (a) In a municipality that imposes taxes on motor | ||
vehicle fuel authorized by Chapter 401, a tax is imposed on the | ||
delivery of gasoline into the taxing municipality. | ||
(b) A tax is imposed on gasoline that is otherwise exempt | ||
from taxation under Section 162.104(a)(4) or (7) if the gasoline is | ||
sold in this state to a person who does not hold a license under | ||
Section 162.105(1), (2), (3), (4), or (6) and the gasoline is | ||
subsequently delivered into a taxing municipality. The person who | ||
delivered the gasoline into the taxing municipality is liable for | ||
and shall collect the tax. | ||
(c) A tax is imposed on gasoline that is otherwise exempt | ||
from taxation under Section 162.104(a)(4) or (7) if before export | ||
the gasoline is sold in this state to a person who holds a license | ||
under Section 162.105(1), (2), (3), (4), or (6) and the gasoline is | ||
delivered into a taxing municipality. The person who delivered the | ||
gasoline into the taxing municipality is liable for and shall pay | ||
the tax. | ||
(d) The distributor shall collect the tax imposed by this | ||
section from each person on delivery of gasoline into a taxing | ||
municipality. | ||
(e) In each subsequent sale of gasoline on which the tax has | ||
been paid, the tax imposed by this section shall be collected from | ||
the purchaser so that the tax is paid ultimately by the person who | ||
uses the gasoline. Gasoline is considered to be used when it is | ||
delivered into a fuel supply tank. | ||
SECTION 12. Section 162.102, Tax Code, is amended to read as | ||
follows: | ||
Sec. 162.102. TAX RATES [ |
||
Section 162.1026, the state [ |
||
each net gallon or fractional part of a net gallon on which the tax | ||
is imposed under Section 162.101. | ||
(b) In a taxing municipality, the municipal gasoline tax | ||
rate for each net gallon or fractional part of a net gallon is the | ||
rate established by Chapter 401, including the amount of | ||
adjustments under Section 162.1026. | ||
SECTION 13. The heading to Section 162.1025, Tax Code, is | ||
amended to read as follows: | ||
Sec. 162.1025. SEPARATE STATEMENT OF TAXES [ |
||
FROM PURCHASER. | ||
SECTION 14. Sections 162.1025(a), (b), and (c), Tax Code, | ||
are amended to read as follows: | ||
(a) In each subsequent sale of gasoline on which the taxes | ||
imposed by this subchapter have [ |
||
so that the taxes are [ |
||
uses the gasoline. Gasoline is considered to be used when it is | ||
delivered into a fuel supply tank. | ||
(b) The taxes [ |
||
stated separately from the sales price of gasoline and identified | ||
as gasoline taxes [ |
||
purchaser. Backup gasoline taxes [ |
||
gasoline taxes [ |
||
identified in the same manner on a shipping document, if the | ||
shipping document includes the sales price of the gasoline. | ||
(c) Except as provided by Subsection (d), the sales price of | ||
gasoline stated on an invoice, receipt, or shipping document is | ||
presumed to be exclusive of the taxes [ |
||
subchapter. The seller or purchaser may overcome the presumption | ||
by using the seller's records to show that the taxes [ |
||
by this subchapter were [ |
||
SECTION 15. Subchapter B, Chapter 162, Tax Code, is amended | ||
by adding Section 162.1026 to read as follows: | ||
Sec. 162.1026. ANNUAL RATE CHANGE ACCORDING TO CONSUMER | ||
PRICE INDEX. (a) In this section: | ||
(1) "Consumer price index" means the consumer price | ||
index for all urban consumers for all items and for all regions of | ||
the United States combined, as determined by the United States | ||
Department of Labor, Bureau of Labor Statistics, or, if that index | ||
is discontinued or superseded, a similar index selected or | ||
calculated by the comptroller. | ||
(2) "Consumer price index percentage change" means the | ||
percentage increase or decrease in the consumer price index of a | ||
given state fiscal year from the consumer price index of the | ||
preceding state fiscal year. | ||
(b) On January 1 of each year, the rates of state and | ||
municipal gasoline taxes imposed under this subchapter are | ||
increased or decreased by a percentage that is equal to the consumer | ||
price index percentage change for the preceding fiscal year. | ||
(c) Not later than November 1 of each year, the comptroller | ||
shall: | ||
(1) compute the new tax rates as provided by this | ||
section; | ||
(2) give the new tax rates to the secretary of state | ||
for publication in the Texas Register; and | ||
(3) notify each license holder under this subchapter | ||
of the applicable new tax rates. | ||
SECTION 16. The heading to Section 162.103, Tax Code, is | ||
amended to read as follows: | ||
Sec. 162.103. BACKUP STATE GASOLINE TAX; LIABILITY. | ||
SECTION 17. Sections 162.103(a) and (c), Tax Code, are | ||
amended to read as follows: | ||
(a) A backup tax is imposed at the rate prescribed by | ||
Sections 162.102(a) and 162.1026 [ |
||
(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 from any source in this state. | ||
(c) The tax imposed by [ |
||
imposed on the ultimate consumer. | ||
SECTION 18. Subchapter B, Chapter 162, Tax Code, is amended | ||
by adding Section 162.1035 to read as follows: | ||
Sec. 162.1035. BACKUP MUNICIPAL GASOLINE TAX; LIABILITY. | ||
(a) A backup tax is imposed at the rate prescribed by Sections | ||
162.102(b) and 162.1026 on: | ||
(1) a person who, in a taxing municipality: | ||
(A) delivers gasoline into the fuel supply tank | ||
of a motor vehicle; | ||
(B) purchases or receives gasoline from another | ||
person; or | ||
(C) sells or delivers gasoline to another person; | ||
and | ||
(2) a person who obtains a refund of the tax imposed by | ||
Section 162.1011 for gasoline that the person delivered into the | ||
fuel supply tank of a motor vehicle, purchased or acquired, or sold | ||
or delivered in a taxing municipality. | ||
(b) A person who sells gasoline subject to the tax imposed | ||
by this section shall at the time of sale collect the tax from the | ||
purchaser or recipient of the gasoline in addition to the selling | ||
price and is liable to this state for the taxes collected at the | ||
time and in the manner provided by this chapter. | ||
(c) The following are exempt from the tax imposed by this | ||
section: | ||
(1) gasoline on which the tax imposed by Section | ||
162.1011 has been paid; and | ||
(2) gasoline exempt under Section 162.104. | ||
(d) The tax imposed by this section is in addition to any | ||
penalty imposed under this chapter. | ||
SECTION 19. Section 162.104(a), Tax Code, is amended to | ||
read as follows: | ||
(a) The taxes [ |
||
apply to gasoline: | ||
(1) sold to the United States for its exclusive use, | ||
provided that the exemption does not apply with respect to fuel sold | ||
or delivered to a person operating under a contract with the United | ||
States; | ||
(2) sold to a public school district in this state for | ||
the district's exclusive use; | ||
(3) sold to a commercial transportation company or a | ||
metropolitan rapid transit authority operating under Chapter 451, | ||
Transportation Code, that provides public school transportation | ||
services to a school district under Section 34.008, Education Code, | ||
and that uses the gasoline only to provide those services; | ||
(4) exported by either a licensed supplier or a | ||
licensed exporter from this state to any other state, provided that | ||
the bill of lading indicates the destination state and the supplier | ||
collects the destination state tax; | ||
(5) moved by truck or railcar between licensed | ||
suppliers or licensed permissive suppliers and in which the | ||
gasoline removed from the first terminal comes to rest in the second | ||
terminal, provided that the removal from the second terminal rack | ||
is subject to the state gasoline tax imposed by this subchapter; | ||
(6) delivered or sold into a storage facility of a | ||
licensed aviation fuel dealer from which gasoline will be delivered | ||
solely into the fuel supply tanks of aircraft or aircraft servicing | ||
equipment, or sold from one licensed aviation fuel dealer to | ||
another licensed aviation fuel dealer who will deliver the aviation | ||
fuel exclusively into the fuel supply tanks of aircraft or aircraft | ||
servicing equipment; | ||
(7) exported to a foreign country if the bill of lading | ||
or shipping documents indicate the foreign destination and the fuel | ||
is actually exported to the foreign country; | ||
(8) sold to a volunteer fire department in this state | ||
for the department's exclusive use; or | ||
(9) sold to a nonprofit entity that is organized for | ||
the sole purpose of and engages exclusively in providing emergency | ||
medical services and that uses the gasoline exclusively to provide | ||
emergency medical services, including rescue and ambulance | ||
services. | ||
SECTION 20. Section 162.105, Tax Code, is amended to read as | ||
follows: | ||
Sec. 162.105. PERSONS REQUIRED TO BE LICENSED. A person | ||
shall obtain the appropriate license or licenses issued by the | ||
comptroller before conducting the activities of: | ||
(1) a supplier, who may also act as a distributor, | ||
importer, exporter, blender, motor fuel transporter, dealer, or | ||
aviation fuel dealer without securing a separate license, but who | ||
is subject to all other conditions, requirements, and liabilities | ||
imposed on those license holders; | ||
(2) a permissive supplier, who may also act as a | ||
distributor, importer, exporter, blender, motor fuel transporter, | ||
dealer, or aviation fuel dealer without securing a separate | ||
license, but who is subject to all other conditions, requirements, | ||
and liabilities imposed on those license holders; | ||
(3) a distributor, who may also act as an importer, | ||
exporter, blender, [ |
||
securing a separate license, but who is subject to all other | ||
conditions, requirements, and liabilities imposed on those license | ||
holders; | ||
(4) an importer, who may also act as an exporter, | ||
blender, [ |
||
separate license, but who is subject to all other conditions, | ||
requirements, and liabilities imposed on those license holders; | ||
(5) a terminal operator; | ||
(6) an exporter; | ||
(7) a blender; | ||
(8) a motor fuel transporter; | ||
(9) an aviation fuel dealer; [ |
||
(10) an interstate trucker; or | ||
(11) a dealer. | ||
SECTION 21. Sections 162.107(a) and (b), Tax Code, are | ||
amended to read as follows: | ||
(a) A person may elect to obtain a permissive supplier | ||
license to collect the state gasoline tax imposed by [ |
||
subchapter for gasoline that is removed at a terminal in another | ||
state and has this state as the destination state. | ||
(b) With respect to gasoline that is removed by the licensed | ||
permissive supplier at a terminal located in another state and that | ||
has this state as the destination state, a licensed permissive | ||
supplier shall: | ||
(1) collect the state gasoline tax due to this state on | ||
the gasoline; | ||
(2) waive any defense that this state lacks | ||
jurisdiction to require the supplier to collect the state gasoline | ||
tax due to this state on the gasoline under this subchapter; | ||
(3) report and pay the state gasoline tax and the | ||
municipal gasoline tax due on the gasoline in the same manner as if | ||
the removal had occurred at a terminal located in this state; | ||
(4) keep records of the removal of the gasoline and | ||
submit to audits concerning the gasoline as if the removal had | ||
occurred at a terminal located in this state; and | ||
(5) report sales by the permissive supplier to a | ||
person who is not licensed in this state. | ||
SECTION 22. Section 162.108, Tax Code, is amended by adding | ||
Subsection (a-1) to read as follows: | ||
(a-1) In addition to the information required by Subsection | ||
(a), an applicant for a license as a dealer must list on the | ||
application: | ||
(1) the street address, municipality, county, and zip | ||
code of the location for which the applicant seeks a license to sell | ||
or dispense motor fuel at retail; | ||
(2) the applicant's social security number, driver's | ||
license number, and federal employer identification number if the | ||
applicant is a natural person who is not licensed as a supplier, | ||
permissive supplier, or terminal operator; and | ||
(3) if the applicant is a corporation, limited | ||
liability company, professional association, partnership, or other | ||
entity that is not licensed as a supplier, permissive supplier, or | ||
terminal operator and is not wholly owned by an entity that is | ||
licensed as a supplier, permissive supplier, or terminal operator, | ||
the physical address, mailing address, social security number, and | ||
driver's license number of: | ||
(A) each natural person responsible for the | ||
purchase of motor fuel for sale by the applicant; and | ||
(B) each officer, director, manager, member, | ||
shareholder, and partner of the applicant. | ||
SECTION 23. Section 162.110(a), Tax Code, is amended to | ||
read as follows: | ||
(a) The license issued to a supplier, permissive supplier, | ||
distributor, importer, exporter, terminal operator, blender, [ |
||
motor fuel transporter, or dealer is permanent and is valid during | ||
the period the license holder has in force and effect the required | ||
bond or security and furnishes timely reports and supplements as | ||
required, or until the license is surrendered by the holder or | ||
canceled by the comptroller. The comptroller shall cancel a | ||
license under this subsection if a purchase, sale, or use of | ||
gasoline has not been reported by the license holder during the | ||
previous nine months. | ||
SECTION 24. Section 162.111(a), Tax Code, is amended to | ||
read as follows: | ||
(a) The comptroller shall determine the amount of security | ||
required of a supplier, permissive supplier, distributor, | ||
exporter, importer, dealer, or blender, taking into consideration | ||
the amount of tax that has or is expected to become due from the | ||
person, any past history of the person as a license holder under | ||
this chapter or its predecessor, and the necessity to protect this | ||
state against the failure to pay the tax as the tax becomes due. | ||
SECTION 25. Sections 162.112(a) and (b), Tax Code, are | ||
amended to read as follows: | ||
(a) The comptroller, on or before December 20 of each year, | ||
shall make available to all license holders an alphabetical list of | ||
licensed suppliers, permissive suppliers, distributors, aviation | ||
fuel dealers, importers, exporters, blenders, dealers, and | ||
terminal operators. A supplemental list of additions and deletions | ||
shall be made available to the license holders each month. A | ||
current and effective license or the list furnished by the | ||
comptroller is evidence of the validity of the license until the | ||
comptroller notifies license holders of a change in the status of a | ||
license holder. | ||
(b) A licensed supplier, permissive supplier, dealer, or | ||
distributor who sells gasoline tax-free to a person whose | ||
supplier's, permissive supplier's, dealer's, or aviation fuel | ||
dealer's license has been canceled or revoked under this chapter is | ||
liable for any tax due on gasoline sold after receiving notice of | ||
the cancellation or revocation. | ||
SECTION 26. Sections 162.113(d), (d-1), and (e), Tax Code, | ||
are amended to read as follows: | ||
(d) The supplier or permissive supplier, after requesting a | ||
credit under this section, shall terminate the ability of the | ||
licensed distributor or licensed importer to defer the payment of | ||
state gasoline tax. The supplier or permissive supplier may not | ||
reinstate the right of the licensed distributor or licensed | ||
importer to defer the payment of state gasoline tax until the first | ||
anniversary of the date the supplier or permissive supplier | ||
requested the credit, subject to Subsection (d-1). | ||
(d-1) A supplier or permissive supplier may reinstate the | ||
right of a licensed distributor or licensed importer to defer the | ||
payment of state gasoline tax before the date prescribed by | ||
Subsection (d) if the comptroller determines that: | ||
(1) the supplier or permissive supplier erroneously | ||
requested the credit that resulted in the termination of the | ||
licensed distributor's or licensed importer's right to defer | ||
payment; or | ||
(2) the licensed distributor or licensed importer | ||
failed to pay state gasoline taxes due because of circumstances | ||
that may have been outside the distributor's or importer's control. | ||
(e) A licensed distributor or licensed importer who makes | ||
timely payments of the state gasoline tax imposed by [ |
||
subchapter is entitled to retain an amount equal to 1.75 percent of | ||
the total state gasoline tax [ |
||
permissive supplier to cover administrative expenses. | ||
SECTION 27. Section 162.114(a), Tax Code, is amended to | ||
read as follows: | ||
(a) Except as provided by Subsection (b), each person who is | ||
liable for the taxes [ |
||
operator, a dealer, and a licensed distributor shall file a return | ||
on or before the 25th day of the month following the end of each | ||
calendar month. | ||
SECTION 28. Sections 162.115(b), (c), (e), (g), and (h), | ||
Tax Code, are amended to read as follows: | ||
(b) A distributor shall keep: | ||
(1) a record showing the number of gallons of: | ||
(A) all gasoline inventories on hand at the first | ||
of each month; | ||
(B) all gasoline blended; | ||
(C) all gasoline purchased or received, showing | ||
the name of the seller and the date of each purchase or receipt; | ||
(D) all gasoline sold, distributed, or used, | ||
showing: | ||
(i) the name of the purchaser; | ||
(ii) if the gasoline was delivered to a | ||
municipality in this state, the municipality to which the gasoline | ||
was delivered; | ||
(iii) the amount of municipal gasoline tax | ||
collected from the purchaser, if any; and | ||
(iv) the date of the sale, distribution, or | ||
use; and | ||
(E) all gasoline lost by fire, theft, or | ||
accident; | ||
(2) an itemized statement showing by load the number | ||
of gallons of all gasoline: | ||
(A) received during the preceding calendar month | ||
for export and the location of the loading; | ||
(B) sold, distributed, or used, showing: | ||
(i) the name of the purchaser; | ||
(ii) the municipality or municipalities in | ||
this state, if applicable; | ||
(iii) the amount of municipal gasoline tax | ||
collected from the purchaser, if any; and | ||
(iv) the date of the sale, distribution, or | ||
use; | ||
(C) exported from this state by destination state | ||
or country; and | ||
(D) [ |
||
month by state or country of origin; [ |
||
(3) for gasoline exported from this state, proof of | ||
payment of tax to the destination state in a form acceptable to the | ||
comptroller; and | ||
(4) all shipping documents. | ||
(c) An importer shall keep: | ||
(1) a record showing the number of gallons of: | ||
(A) all gasoline inventories on hand at the first | ||
of each month; | ||
(B) all gasoline compounded or blended; | ||
(C) all gasoline purchased or received, showing | ||
the name of the seller and the date of each purchase or receipt; | ||
(D) all gasoline sold, distributed, or used, | ||
showing the name of the purchaser, the municipality in this state, | ||
if applicable, and the date of the sale, distribution, or use; and | ||
(E) all gasoline lost by fire, theft, or | ||
accident; and | ||
(2) an itemized statement showing by load the number | ||
of gallons of all gasoline: | ||
(A) received during the preceding calendar month | ||
for export and the location of the loading; | ||
(B) sold, distributed, or used, showing the name | ||
of the purchaser, the municipality or municipalities in this state, | ||
if applicable, and the date of the sale, distribution, or use; | ||
(C) exported from this state by destination state | ||
or country; and | ||
(D) [ |
||
month by state or country of origin. | ||
(e) A blender shall keep a record showing the number of | ||
gallons of: | ||
(1) all gasoline inventories on hand at the first of | ||
each month; | ||
(2) all gasoline compounded or blended; | ||
(3) all gasoline purchased or received, showing the | ||
name of the seller and the date of each purchase or receipt; | ||
(4) all gasoline sold, distributed, or used, showing | ||
the name of the purchaser, the municipality in this state, if | ||
applicable, and the date of the sale or use; and | ||
(5) all gasoline lost by fire, theft, or accident. | ||
(g) A motor fuel transporter shall keep a complete and | ||
separate record of each intrastate and interstate transportation of | ||
gasoline, showing: | ||
(1) the date of transportation; | ||
(2) the name of the consignor and consignee; | ||
(3) the means of transportation; | ||
(4) the quantity and kind of gasoline transported; | ||
(5) full data concerning the diversion of shipments, | ||
including the municipality in this state, if applicable, and the | ||
number of gallons diverted from interstate to intrastate and | ||
intrastate to interstate commerce; and | ||
(6) the points of origin and destination, the | ||
municipality in this state, if applicable, the number of gallons | ||
shipped or transported, the date, the consignee and the consignor, | ||
and the kind of gasoline that has been diverted. | ||
(h) A dealer shall keep all shipping documents and a record | ||
showing the number of gallons of: | ||
(1) gasoline inventories on hand at the first of each | ||
month; | ||
(2) all gasoline purchased or received, showing the | ||
name of the seller and the date of each purchase or receipt; | ||
(3) all gasoline sold or used, showing the date of the | ||
sale or use; and | ||
(4) all gasoline lost by fire, theft, or accident. | ||
SECTION 29. Section 162.116(c), Tax Code, is amended to | ||
read as follows: | ||
(c) A supplier or permissive supplier may take a credit for | ||
any state gasoline tax [ |
||
previous period to the supplier or permissive supplier by a | ||
licensed distributor or licensed importer as required by Section | ||
162.113. The supplier or permissive supplier is eligible to take | ||
the credit if the comptroller is notified of the default within 15 | ||
days after the default occurs. If a license holder pays to a | ||
supplier or permissive supplier the tax owed, but the payment | ||
occurs after the supplier or permissive supplier has taken a credit | ||
on its return, the supplier or permissive supplier shall remit the | ||
payment to the comptroller with the next monthly return after | ||
receipt of the tax, plus a penalty of 10 percent of the amount of | ||
unpaid taxes and interest at the rate provided by Section 111.060 | ||
beginning on the date the credit was taken. | ||
SECTION 30. Section 162.118, Tax Code, is amended to read as | ||
follows: | ||
Sec. 162.118. INFORMATION REQUIRED ON DISTRIBUTOR'S | ||
RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return | ||
and supplements of each distributor shall contain for the period | ||
covered by the return: | ||
(1) the number of net gallons of gasoline received by | ||
the distributor during the month, sorted by product code, seller, | ||
point of origin, destination state, carrier, and receipt date; | ||
(2) the number of net gallons of gasoline removed at a | ||
terminal rack by the distributor during the month, sorted by | ||
product code, seller, terminal code, and carrier; | ||
(3) the number of net gallons of gasoline removed by | ||
the distributor during the month for export, sorted by product | ||
code, terminal code, bulk plant address, destination state, and | ||
carrier; | ||
(4) the number of net gallons of gasoline removed by | ||
the distributor during the month from a terminal located in another | ||
state for conveyance to this state, as indicated on the shipping | ||
document for the gasoline, sorted by product code, seller, terminal | ||
code, bulk plant address, and carrier; | ||
(5) the number of net gallons of gasoline the | ||
distributor sold during the month in transactions exempt under | ||
Section 162.104, sorted by product code and purchaser; [ |
||
(6) the number of net gallons delivered into a taxing | ||
municipality sorted by taxing municipality and purchaser; and | ||
(7) any other information required by the comptroller. | ||
(b) A distributor or importer who makes timely payments of | ||
the municipal tax imposed by this subchapter is entitled to retain | ||
an amount equal to two percent of the total municipal gasoline taxes | ||
remitted to the comptroller to cover administrative expenses. | ||
SECTION 31. Section 162.123, Tax Code, is amended to read as | ||
follows: | ||
Sec. 162.123. INFORMATION REQUIRED ON BLENDER'S RETURN. | ||
The monthly return and supplements of each blender shall contain | ||
for the period covered by the return: | ||
(1) the number of net gallons of gasoline received by | ||
the blender during the month, sorted by product code, seller, point | ||
of origin, carrier, and receipt date; | ||
(2) the number of net gallons of product blended with | ||
gasoline during the month, sorted by product code, type of blending | ||
agent if no product code exists, seller, and carrier; | ||
(3) the number of net gallons of blended gasoline sold | ||
during the month and the license number or name, [ |
||
if applicable, municipality of the entity receiving the blended | ||
gasoline; and | ||
(4) any other information required by the comptroller. | ||
SECTION 32. Subchapter B, Chapter 162, Tax Code, is amended | ||
by adding Section 162.1235 to read as follows: | ||
Sec. 162.1235. INFORMATION REQUIRED ON DEALER'S RETURN. | ||
The monthly return and supplements of each dealer shall contain for | ||
the period covered by the return: | ||
(1) the number of gallons of gasoline inventories on | ||
hand at the first of each month, sorted by product code; | ||
(2) the number of gallons of gasoline received by the | ||
dealer during the month, sorted by seller; | ||
(3) the number of gallons of gasoline inventories on | ||
hand at the end of each month; and | ||
(4) any other information required by the comptroller. | ||
SECTION 33. Sections 162.125(g-1) and (g-2), Tax Code, are | ||
amended to read as follows: | ||
(g-1) A volunteer fire department exempt from the taxes | ||
[ |
||
of gasoline is entitled to a refund of the tax paid, and the | ||
volunteer fire department may file a refund claim with the | ||
comptroller for that amount. | ||
(g-2) A nonprofit entity exempted under Section | ||
162.104(a)(9) from the taxes [ |
||
that paid a tax on the purchase of gasoline is entitled to a refund | ||
of the tax paid, and the entity may file a refund claim with the | ||
comptroller for that amount. | ||
SECTION 34. Sections 162.127(a) and (d), Tax Code, are | ||
amended to read as follows: | ||
(a) A refund claim must be filed on a form provided by the | ||
comptroller, be supported by the original invoice issued by the | ||
seller, and contain: | ||
(1) the stamped or preprinted name and address, | ||
including, if applicable, municipality of the seller; | ||
(2) the name and address of the purchaser; | ||
(3) the date of delivery of the gasoline; | ||
(4) the date of the issuance of the invoice, if | ||
different from the date of fuel delivery; | ||
(5) the number of gallons of gasoline delivered; | ||
(6) the amount of state or municipal gasoline taxes | ||
paid [ |
||
stated with a notation that both state and municipal taxes are | ||
included if both apply [ |
||
(7) the type of vehicle or equipment, such as a | ||
motorboat, railway engine, motor vehicle, off-highway vehicle, or | ||
refrigeration unit or stationary engine, into which the fuel is | ||
delivered. | ||
(d) A distributor or person who does not hold a license who | ||
files a valid refund claim with the comptroller shall be paid by a | ||
warrant issued by the comptroller. For purposes of this section, a | ||
distributor meets the requirement of filing a valid refund claim | ||
for state and municipal gasoline taxes if the distributor | ||
designates the gallons of gasoline sold or used that are the subject | ||
of the refund claim on the monthly report submitted by the | ||
distributor to the comptroller. | ||
SECTION 35. The heading to Section 162.201, Tax Code, is | ||
amended to read as follows: | ||
Sec. 162.201. POINT OF IMPOSITION OF STATE DIESEL FUEL TAX. | ||
SECTION 36. Sections 162.201(a), (b), (c), and (f), Tax | ||
Code, are amended to read as follows: | ||
(a) A tax is imposed on the removal of diesel fuel from the | ||
terminal using the terminal rack other than by bulk transfer. The | ||
supplier or permissive supplier is liable for and shall collect the | ||
tax imposed by this section [ |
||
the withdrawal at the terminal rack. | ||
(b) A tax is imposed at the time diesel fuel is imported into | ||
this state, other than by a bulk transfer, for delivery to a | ||
destination in this state. The supplier or permissive supplier is | ||
liable for and shall collect the tax imposed by this section | ||
[ |
||
state. If the seller is not a supplier or permissive supplier, the | ||
person who imports the diesel fuel into this state is liable for and | ||
shall pay the tax. | ||
(c) A tax is imposed on the removal of diesel fuel from the | ||
bulk transfer/terminal system in this state. The supplier is | ||
liable for and shall collect the tax imposed by this section | ||
[ |
||
transfer/terminal system. | ||
(f) The terminal operator in this state is considered a | ||
supplier for the purpose of the tax imposed under this section | ||
[ |
||
(1) the terminal operator has a terminal operator's | ||
license issued for the facility from which the diesel fuel is | ||
withdrawn; | ||
(2) the terminal operator verifies that the person who | ||
removes the diesel fuel has a supplier's license; and | ||
(3) the terminal operator does not have a reason to | ||
believe that the supplier's license is not valid. | ||
SECTION 37. Subchapter C, Chapter 162, Tax Code, is amended | ||
by adding Section 162.2011 to read as follows: | ||
Sec. 162.2011. IMPOSITION OF MUNICIPAL DIESEL FUEL TAX; | ||
POINT OF COLLECTION. (a) In a municipality that imposes taxes on | ||
motor vehicle fuel authorized by Chapter 401, a tax is imposed on | ||
the delivery of diesel fuel into the taxing municipality. | ||
(b) The distributor shall collect the tax imposed by this | ||
section from each person on delivery of diesel fuel into a taxing | ||
municipality. | ||
(c) A tax is imposed on diesel fuel that is otherwise exempt | ||
from taxation under Section 162.204(a)(4) or (7) if the diesel fuel | ||
is sold in this state to a person who does not hold a license under | ||
Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel fuel is | ||
subsequently delivered into a taxing municipality. The person who | ||
delivered the diesel fuel into the taxing municipality is liable | ||
for and shall collect the tax. | ||
(d) A tax is imposed on diesel fuel that is otherwise exempt | ||
from taxation under Section 162.204(a)(4) or (7) if before export | ||
the diesel fuel is sold in this state to a person who holds a license | ||
under Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel | ||
fuel is subsequently delivered to a taxing municipality. The | ||
person who delivered the diesel fuel into the taxing municipality | ||
is liable for and shall pay the tax. | ||
(e) In each subsequent sale of diesel fuel on which the tax | ||
has been paid, the tax imposed by this section shall be collected | ||
from the purchaser so that the tax is paid ultimately by the person | ||
who uses the diesel fuel. Diesel fuel is considered to be used when | ||
it is delivered into a fuel supply tank. | ||
SECTION 38. Section 162.202, Tax Code, is amended to read as | ||
follows: | ||
Sec. 162.202. TAX RATES [ |
||
Section 162.2026, the state [ |
||
for each net gallon or fractional part of a net gallon on which the | ||
tax is imposed under Section 162.201. | ||
(b) In a taxing municipality, the municipal diesel fuel tax | ||
rate for each net gallon or fractional part of a net gallon is the | ||
rate established by Chapter 401, including the amount of | ||
adjustments under Section 162.2026. | ||
SECTION 39. The heading to Section 162.2025, Tax Code, is | ||
amended to read as follows: | ||
Sec. 162.2025. SEPARATE STATEMENT OF TAXES [ |
||
FROM PURCHASER. | ||
SECTION 40. Sections 162.2025(a), (b), and (c), Tax Code, | ||
are amended to read as follows: | ||
(a) In each subsequent sale of diesel fuel on which the | ||
taxes imposed by this subchapter have [ |
||
[ |
||
purchaser so that the taxes are [ |
||
person who uses the diesel fuel. Diesel fuel is considered to be | ||
used when it is delivered into a fuel supply tank. | ||
(b) The taxes [ |
||
stated separately from the sales price of diesel fuel and | ||
identified as diesel fuel taxes [ |
||
issued to a purchaser. Backup diesel fuel taxes [ |
||
identified as diesel fuel taxes [ |
||
separately stated and identified in the same manner on a shipping | ||
document, if the shipping document includes the sales price of the | ||
diesel fuel. | ||
(c) Except as provided by Subsection (d), the sales price of | ||
diesel fuel stated on an invoice, receipt, or shipping document is | ||
presumed to be exclusive of the taxes [ |
||
subchapter. The seller or purchaser may overcome the presumption | ||
by using the seller's records to show that the taxes [ |
||
by this subchapter were [ |
||
SECTION 41. Subchapter C, Chapter 162, Tax Code, is amended | ||
by adding Section 162.2026 to read as follows: | ||
Sec. 162.2026. ANNUAL RATE CHANGE ACCORDING TO CONSUMER | ||
PRICE INDEX. (a) In this section: | ||
(1) "Consumer price index" means the consumer price | ||
index for all urban consumers for all items and for all regions of | ||
the United States combined, as determined by the United States | ||
Department of Labor, Bureau of Labor Statistics, or, if that index | ||
is discontinued or superseded, a similar index selected or | ||
calculated by the comptroller. | ||
(2) "Consumer price index percentage change" means the | ||
percentage increase or decrease in the consumer price index of a | ||
given state fiscal year from the consumer price index of the | ||
preceding state fiscal year. | ||
(b) On January 1 of each year, the rates of state and | ||
municipal diesel fuel taxes imposed under this subchapter are | ||
increased or decreased by a percentage that is equal to the consumer | ||
price index percentage change for the preceding fiscal year. | ||
(c) Not later than November 1 of each year, the comptroller | ||
shall: | ||
(1) compute the new tax rates as provided by this | ||
section; | ||
(2) give the new tax rates to the secretary of state | ||
for publication in the Texas Register; and | ||
(3) notify each license holder under this subchapter | ||
of the applicable new tax rates. | ||
SECTION 42. The heading to Section 162.203, Tax Code, is | ||
amended to read as follows: | ||
Sec. 162.203. BACKUP STATE DIESEL FUEL TAX; LIABILITY. | ||
SECTION 43. Sections 162.203(a) and (c), Tax Code, are | ||
amended to read as follows: | ||
(a) A backup tax is imposed at the rate prescribed by | ||
Sections 162.202(a) and 162.2026 [ |
||
(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 from any source in this state. | ||
(c) The tax imposed by [ |
||
imposed on the ultimate consumer. | ||
SECTION 44. Subchapter C, Chapter 162, Tax Code, is amended | ||
by adding Section 162.2035 to read as follows: | ||
Sec. 162.2035. BACKUP MUNICIPAL DIESEL FUEL TAX; LIABILITY. | ||
(a) A backup tax is imposed at the rate prescribed by Sections | ||
162.202(b) and 162.2026 on: | ||
(1) a person who, in a taxing municipality: | ||
(A) delivers diesel fuel into the fuel supply | ||
tank of a motor vehicle; | ||
(B) purchases or receives diesel fuel from | ||
another person; or | ||
(C) sells or delivers diesel fuel to another | ||
person; and | ||
(2) a person who obtains a refund of the tax imposed by | ||
Section 162.2011 for diesel fuel that the person delivered into the | ||
fuel supply tank of a motor vehicle, purchased or acquired, or sold | ||
or delivered in a taxing municipality. | ||
(b) A person who sells diesel fuel subject to the tax | ||
imposed by this section shall at the time of sale collect the tax | ||
from the purchaser or recipient of the diesel fuel in addition to | ||
the selling price and is liable to this state for the taxes | ||
collected at the time and in the manner provided by this chapter. | ||
(c) The following are exempt from the tax imposed by this | ||
section: | ||
(1) diesel fuel on which the tax imposed by Section | ||
162.2011 had been paid; and | ||
(2) diesel fuel exempt under Section 162.204. | ||
(d) The tax imposed by this section is in addition to any | ||
penalty imposed under this chapter. | ||
SECTION 45. Sections 162.204(a) and (g), Tax Code, are | ||
amended to read as follows: | ||
(a) The taxes [ |
||
apply to: | ||
(1) diesel fuel sold to the United States for its | ||
exclusive use, provided that the exemption does not apply to diesel | ||
fuel sold or delivered to a person operating under a contract with | ||
the United States; | ||
(2) diesel fuel sold to a public school district in | ||
this state for the district's exclusive use; | ||
(3) diesel fuel sold to a commercial transportation | ||
company or a metropolitan rapid transit authority operating under | ||
Chapter 451, Transportation Code, that provides public school | ||
transportation services to a school district under Section 34.008, | ||
Education Code, and that uses the diesel fuel only to provide those | ||
services; | ||
(4) diesel fuel exported by either a licensed supplier | ||
or a licensed exporter from this state to any other state, provided | ||
that the bill of lading indicates the destination state and the | ||
supplier collects the destination state tax; | ||
(5) diesel fuel moved by truck or railcar between | ||
licensed suppliers or licensed permissive suppliers and in which | ||
the diesel fuel removed from the first terminal comes to rest in the | ||
second terminal, provided that the removal from the second terminal | ||
rack is subject to the state diesel fuel tax imposed by this | ||
subchapter; | ||
(6) diesel fuel delivered or sold into a storage | ||
facility of a licensed aviation fuel dealer from which the diesel | ||
fuel will be delivered solely into the fuel supply tanks of aircraft | ||
or aircraft servicing equipment, or sold from one licensed aviation | ||
fuel dealer to another licensed aviation fuel dealer who will | ||
deliver the diesel fuel exclusively into the fuel supply tanks of | ||
aircraft or aircraft servicing equipment; | ||
(7) diesel fuel exported to a foreign country if the | ||
bill of lading or shipping documents indicate the foreign | ||
destination and the fuel is actually exported to the foreign | ||
country; | ||
(8) dyed diesel fuel sold or delivered by a supplier to | ||
another supplier and dyed diesel fuel sold or delivered by a | ||
supplier or distributor into the bulk storage facility of a dyed | ||
diesel fuel bonded user or to a purchaser who provides a signed | ||
statement as provided by Section 162.206; | ||
(9) the volume of water, fuel ethanol, renewable | ||
diesel, biodiesel, or mixtures thereof that are blended together | ||
with taxable diesel fuel when the finished product sold or used is | ||
clearly identified on the retail pump, storage tank, and sales | ||
invoice as a combination of diesel fuel and water, fuel ethanol, | ||
renewable diesel, biodiesel, or mixtures thereof; | ||
(10) dyed diesel fuel sold by a supplier or permissive | ||
supplier to a distributor, or by a distributor to another | ||
distributor; | ||
(11) dyed diesel fuel delivered by a license holder | ||
into the fuel supply tanks of railway engines, motorboats, or | ||
refrigeration units or other stationary equipment powered by a | ||
separate motor from a separate fuel supply tank; | ||
(12) dyed kerosene when delivered by a supplier, | ||
distributor, or importer into a storage facility at a retail | ||
business from which all deliveries are exclusively for heating, | ||
cooking, lighting, or similar nonhighway use; | ||
(13) diesel fuel used by a person, other than a | ||
political subdivision, who owns, controls, operates, or manages a | ||
commercial motor vehicle as defined by Section 548.001, | ||
Transportation Code, if the fuel: | ||
(A) is delivered exclusively into the fuel supply | ||
tank of the commercial motor vehicle; and | ||
(B) is used exclusively to transport passengers | ||
for compensation or hire between points in this state on a fixed | ||
route or schedule; | ||
(14) diesel fuel sold to a volunteer fire department | ||
in this state for the department's exclusive use; or | ||
(15) diesel fuel sold to a nonprofit entity that is | ||
organized for the sole purpose of and engages exclusively in | ||
providing emergency medical services and that uses the diesel fuel | ||
exclusively to provide emergency medical services, including | ||
rescue and ambulance services. | ||
(g) In lieu of claiming the exemption and complying with the | ||
labeling requirements provided by Subsection (a)(9), a person to | ||
whom Section 162.201 applies may elect to collect and remit the | ||
taxes [ |
||
materials described by Subsection (a)(9) as if the materials were | ||
taxable diesel fuel. The labeling requirements provided by | ||
Subsection (a)(9) do not apply to a dealer who sells taxable diesel | ||
fuel blended with materials described by Subsection (a)(9) on which | ||
a tax has been paid as provided by this subsection. Materials | ||
described by Subsection (a)(9) on which a tax has been paid as | ||
provided by this subsection are not exempt from taxation [ |
||
under Subsection (a)(9) on a subsequent sale, and a license holder | ||
or other purchaser is not entitled to a refund or credit under | ||
Subsection (a)(9) for a purchase of taxable diesel fuel blended | ||
with those materials. | ||
SECTION 46. Section 162.205(a), Tax Code, is amended to | ||
read as follows: | ||
(a) A person shall obtain the appropriate license or | ||
licenses issued by the comptroller before conducting the activities | ||
of: | ||
(1) a supplier, who may also act as a distributor, | ||
importer, exporter, blender, motor fuel transporter, dealer, or | ||
aviation fuel dealer without securing a separate license, but who | ||
is subject to all other conditions, requirements, and liabilities | ||
imposed on those license holders; | ||
(2) a permissive supplier, who may also act as a | ||
distributor, importer, exporter, blender, motor fuel transporter, | ||
dealer, or aviation fuel dealer without securing a separate license | ||
but who is subject to all other conditions, requirements, and | ||
liabilities imposed on those license holders; | ||
(3) a distributor, who may also act as an importer, | ||
exporter, blender, [ |
||
securing a separate license, but who is subject to all other | ||
conditions, requirements, and liabilities imposed on those license | ||
holders; | ||
(4) an importer, who may also act as an exporter, | ||
blender, [ |
||
separate license, but who is subject to all other conditions, | ||
requirements, and liabilities imposed on those license holders; | ||
(5) a terminal operator; | ||
(6) an exporter; | ||
(7) a blender; | ||
(8) a motor fuel transporter; | ||
(9) an aviation fuel dealer; | ||
(10) an interstate trucker; [ |
||
(11) a dyed diesel fuel bonded user; or | ||
(12) a dealer. | ||
SECTION 47. Section 162.206(d), Tax Code, is amended to | ||
read as follows: | ||
(d) Any gallons purchased or sold in excess of the | ||
limitations prescribed by Subsection (c) constitute a [ |
||
purchaser that exceeds the limitations prescribed by Subsection (c) | ||
shall be required to obtain a dyed diesel fuel bonded user license. | ||
SECTION 48. Sections 162.208(a) and (b), Tax Code, are | ||
amended to read as follows: | ||
(a) A person may elect to obtain a permissive supplier | ||
license to collect the state diesel fuel tax imposed by [ |
||
subchapter for diesel fuel that is removed at a terminal in another | ||
state and has this state as the destination state. | ||
(b) With respect to diesel fuel that is removed by the | ||
licensed permissive supplier at a terminal located in another state | ||
and that has this state as the destination state, a licensed | ||
permissive supplier shall: | ||
(1) collect the state diesel fuel tax due to this state | ||
on the diesel fuel; | ||
(2) waive any defense that this state lacks | ||
jurisdiction to require the supplier to collect the state diesel | ||
fuel tax due to this state on the diesel fuel under this subchapter; | ||
(3) report and pay the state diesel fuel tax due on the | ||
diesel fuel in the same manner as if the removal had occurred at a | ||
terminal located in this state; | ||
(4) keep records of the removal of the diesel fuel and | ||
submit to audits concerning the diesel fuel as if the removal had | ||
occurred at a terminal located in this state; and | ||
(5) report sales by the permissive supplier to a | ||
person who is not licensed in this state. | ||
SECTION 49. Section 162.209, Tax Code, is amended by adding | ||
Subsection (a-1) to read as follows: | ||
(a-1) In addition to the information required by Subsection | ||
(a), an applicant for a license as a dealer must list on the | ||
application: | ||
(1) the street address, municipality, county, and zip | ||
code of the location for which the applicant seeks a license to sell | ||
or dispense motor fuel at retail; | ||
(2) the applicant's social security number, driver's | ||
license number, and federal employer identification number if the | ||
applicant is a natural person who is not licensed as a supplier, | ||
permissive supplier, or terminal operator; and | ||
(3) if the applicant is a corporation, limited | ||
liability company, professional association, partnership or other | ||
entity that is not licensed as a supplier, permissive supplier, or | ||
terminal operator and is not wholly owned by an entity that is | ||
licensed as a supplier, permissive supplier, or terminal operator, | ||
the physical address, mailing address, social security number, and | ||
driver's license number of: | ||
(A) each natural person responsible for the | ||
purchase of motor fuel for sale by the applicant; and | ||
(B) each officer, director, manager, member, | ||
shareholder, and partner of the applicant. | ||
SECTION 50. Section 162.211(a), Tax Code, is amended to | ||
read as follows: | ||
(a) The license issued to a supplier, permissive supplier, | ||
distributor, importer, terminal supplier, exporter, blender, | ||
dealer, motor fuel transporter, or dyed diesel fuel bonded user is | ||
permanent and is valid during the period the license holder has in | ||
force and effect the required bond or security and furnishes timely | ||
reports and supplements as required, or until the license is | ||
surrendered by the holder or canceled by the comptroller. The | ||
comptroller shall cancel a license under this subsection if a | ||
purchase, sale, or use of diesel fuel has not been reported by the | ||
license holder during the previous nine months. | ||
SECTION 51. Section 162.212(a), Tax Code, is amended to | ||
read as follows: | ||
(a) The comptroller shall determine the amount of security | ||
required of a supplier, permissive supplier, distributor, | ||
exporter, importer, dealer, blender, or dyed diesel fuel bonded | ||
user, taking into consideration the amount of tax that has or is | ||
expected to become due from the person, any past history of the | ||
person as a license holder under this chapter and its predecessor, | ||
and the necessity to protect this state against the failure to pay | ||
the tax as the tax becomes due. | ||
SECTION 52. Section 162.213(a), Tax Code, is amended to | ||
read as follows: | ||
(a) The comptroller, on or before December 20 of each year, | ||
shall make available to all license holders an alphabetical list of | ||
licensed suppliers, permissive suppliers, distributors, aviation | ||
fuel dealers, importers, exporters, blenders, dealers, terminal | ||
operators, and dyed diesel fuel bonded users. A supplemental list | ||
of additions and deletions shall be made available to the license | ||
holders each month. A current and effective license or the list | ||
furnished by the comptroller is evidence of the validity of the | ||
license until the comptroller notifies license holders of a change | ||
in the status of a license holder. | ||
SECTION 53. Sections 162.214(c), (d), (d-1), and (e), Tax | ||
Code, are amended to read as follows: | ||
(c) If the supplier or permissive supplier cannot secure | ||
from the licensed distributor or licensed importer payment of taxes | ||
due for state diesel fuel removed from the terminal during the | ||
previous reporting period and the supplier elects to take a credit | ||
against a subsequent payment of diesel fuel tax to this state for | ||
the taxes not remitted to the supplier or permissive supplier by the | ||
licensed distributor or licensed importer, the supplier or | ||
permissive supplier shall notify the comptroller of the licensed | ||
distributor's or licensed importer's failure to remit tax in | ||
conjunction with the report requesting a credit. | ||
(d) The supplier or permissive supplier, after requesting a | ||
credit under this section, shall terminate the ability of the | ||
licensed distributor or licensed importer to defer the payment of | ||
state diesel fuel tax. The supplier or permissive supplier may not | ||
reinstate the right of the licensed distributor or licensed | ||
importer to defer the payment of state diesel fuel tax until the | ||
first anniversary of the date the supplier or permissive supplier | ||
requested the credit, subject to Subsection (d-1). | ||
(d-1) A supplier or permissive supplier may reinstate the | ||
right of a licensed distributor or licensed importer to defer the | ||
payment of state diesel fuel tax before the date prescribed by | ||
Subsection (d) if the comptroller determines that: | ||
(1) the supplier or permissive supplier erroneously | ||
requested the credit that resulted in the termination of the | ||
licensed distributor's or licensed importer's right to defer | ||
payment; or | ||
(2) the licensed distributor or licensed importer | ||
failed to pay state diesel fuel taxes due because of circumstances | ||
that may have been outside the distributor's or importer's control. | ||
(e) A licensed distributor or licensed importer who makes | ||
timely payments of the state diesel fuel tax imposed by [ |
||
subchapter is entitled to retain an amount equal to 1.75 percent of | ||
the total state diesel fuel tax [ |
||
or permissive supplier to cover administrative expenses. | ||
SECTION 54. Section 162.215(a), Tax Code, is amended to | ||
read as follows: | ||
(a) Except as provided by Subsection (b), each person who is | ||
liable for the taxes [ |
||
operator, a dealer, and a licensed distributor shall file a return | ||
on or before the 25th day of the month following the end of each | ||
calendar month. | ||
SECTION 55. Sections 162.216(b), (c), (e), (g), and (h), | ||
Tax Code, are amended to read as follows: | ||
(b) A distributor shall keep: | ||
(1) a record showing the number of gallons of: | ||
(A) all diesel fuel inventories on hand at the | ||
first of each month; | ||
(B) all diesel fuel blended; | ||
(C) all diesel fuel purchased or received, | ||
showing the name of the seller and the date of each purchase or | ||
receipt; | ||
(D) all diesel fuel sold, distributed, or used, | ||
showing: | ||
(i) the name of the purchaser; | ||
(ii) if the diesel fuel is delivered to a | ||
municipality in this state, the municipality to which the diesel | ||
fuel was delivered; | ||
(iii) the amount of municipal diesel fuel | ||
tax collected from the purchaser, if any; and | ||
(iv) the date of the sale, distribution, or | ||
use; and | ||
(E) all diesel fuel lost by fire, theft, or | ||
accident; | ||
(2) an itemized statement showing by load the number | ||
of gallons of all diesel fuel: | ||
(A) received during the preceding calendar month | ||
for export and the location of the loading; | ||
(B) sold, distributed, or used, showing: | ||
(i) the name of the purchaser; | ||
(ii) the municipality or municipalities in | ||
this state, if applicable; | ||
(iii) the amount of municipal diesel fuel | ||
tax collected from the purchaser, if any; and | ||
(iv) the date of the sale, distribution, or | ||
use; | ||
(C) exported from this state by destination state | ||
or country; and | ||
(D) [ |
||
month, by state or country of origin; [ |
||
(3) for diesel fuel exported outside this state, proof | ||
of payment of tax to the destination state, in a form acceptable to | ||
the comptroller; and | ||
(4) all shipping documents. | ||
(c) An importer shall keep: | ||
(1) a record showing the number of gallons of: | ||
(A) all diesel fuel inventories on hand at the | ||
first of each month; | ||
(B) all diesel fuel compounded or blended; | ||
(C) all diesel fuel purchased or received, | ||
showing the name of the seller and the date of each purchase or | ||
receipt; | ||
(D) all diesel fuel sold, distributed, or used, | ||
showing the name of the purchaser, the municipality in this state, | ||
if applicable, and the date of the sale, distribution, or use; and | ||
(E) all diesel fuel lost by fire, theft, or | ||
accident; and | ||
(2) an itemized statement showing by load the number | ||
of gallons of all diesel fuel: | ||
(A) received during the preceding calendar month | ||
for export and the location of the loading; | ||
(B) sold, distributed, or used, showing the name | ||
of the purchaser, the municipality or municipalities in this state, | ||
if applicable, and the date of sale, distribution, or use; | ||
(C) exported from this state, by destination | ||
state or country; and | ||
(D) [ |
||
month, by state or country of origin. | ||
(e) A blender shall keep a record showing the number of | ||
gallons of: | ||
(1) all diesel fuel inventories on hand at the first of | ||
each month; | ||
(2) all diesel fuel compounded or blended; | ||
(3) all diesel fuel purchased or received, showing the | ||
name of the seller and the date of each purchase or receipt; | ||
(4) all diesel fuel sold, distributed, or used, | ||
showing the name of the purchaser, the municipality in this state, | ||
if applicable, and the date of the sale, distribution, or use; and | ||
(5) all diesel fuel lost by fire, theft, or accident. | ||
(g) A motor fuel transporter shall keep a complete and | ||
separate record of each intrastate and interstate transportation of | ||
diesel fuel, showing: | ||
(1) the date of transportation; | ||
(2) the name of the consignor and consignee; | ||
(3) the method of transportation; | ||
(4) the quantity and kind of diesel fuel transported; | ||
(5) full data concerning the diversion of shipments, | ||
including the municipality in this state, if applicable, and the | ||
number of gallons diverted from interstate to intrastate and | ||
intrastate to interstate commerce; and | ||
(6) the points of origin and destination, the | ||
municipality in this state, if applicable, the number of gallons | ||
shipped or transported, the date, the consignee and the consignor, | ||
and the kind of diesel fuel that has been diverted. | ||
(h) A dealer shall keep all shipping documents and a record | ||
showing the number of gallons of: | ||
(1) diesel fuel inventories on hand at the first of | ||
each month; | ||
(2) all diesel fuel purchased or received, showing the | ||
name of the seller and the date of each purchase or receipt; | ||
(3) all diesel fuel sold or used, showing the date of | ||
the sale or use; and | ||
(4) all diesel fuel lost by fire, theft, or accident. | ||
SECTION 56. Section 162.217(c), Tax Code, is amended to | ||
read as follows: | ||
(c) A supplier or permissive supplier may take a credit for | ||
any state diesel fuel tax [ |
||
previous period to the supplier or permissive supplier by a | ||
licensed distributor or licensed importer as required by Section | ||
162.214. The supplier or permissive supplier is eligible to take | ||
this credit if the comptroller is notified of the default within 15 | ||
days after the default occurs. If a license holder pays to a | ||
supplier or permissive supplier the tax owed, but the payment | ||
occurs after the supplier or permissive supplier has taken a credit | ||
on its return, the supplier or permissive supplier shall remit the | ||
payment to the comptroller with the next monthly return after | ||
receipt of the tax, plus a penalty of 10 percent of the amount of | ||
unpaid taxes and interest at the rate provided by Section 111.060 | ||
beginning on the date the credit is taken. | ||
SECTION 57. Section 162.219, Tax Code, is amended to read as | ||
follows: | ||
Sec. 162.219. INFORMATION REQUIRED ON DISTRIBUTOR'S | ||
RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return and | ||
supplements of each distributor shall contain for the period | ||
covered by the return: | ||
(1) the number of net gallons of diesel fuel received | ||
by the distributor during the month, sorted by product code, | ||
seller, point of origin, destination state, carrier, and receipt | ||
date; | ||
(2) the number of net gallons of diesel fuel removed at | ||
a terminal rack by the distributor during the month, sorted by | ||
product code, seller, terminal code, and carrier; | ||
(3) the number of net gallons of diesel fuel removed by | ||
the distributor during the month for export, sorted by product | ||
code, terminal code, bulk plant address, destination state, and | ||
carrier; | ||
(4) the number of net gallons of diesel fuel removed by | ||
the distributor during the month from a terminal located in another | ||
state for conveyance to this state, as indicated on the shipping | ||
document for the diesel fuel, sorted by product code, seller, | ||
terminal code, bulk plant address, and carrier; | ||
(5) the number of net gallons of diesel fuel the | ||
distributor sold during the month in transactions exempt under | ||
Section 162.204, dyed diesel fuel sold to a purchaser under a signed | ||
statement, or dyed diesel fuel sold to a dyed diesel fuel bonded | ||
user, sorted by product code and by the entity receiving the diesel | ||
fuel; [ |
||
(6) the number of net gallons delivered into a taxing | ||
municipality sorted by taxing municipality and purchaser; and | ||
(7) any other information required by the comptroller. | ||
(b) A distributor or importer who makes timely payments of | ||
the municipal tax imposed by this subchapter is entitled to retain | ||
an amount equal to two percent of the total municipal diesel fuel | ||
taxes remitted to the comptroller to cover administrative expenses. | ||
SECTION 58. Section 162.224, Tax Code, is amended to read as | ||
follows: | ||
Sec. 162.224. INFORMATION REQUIRED ON BLENDER'S RETURN. | ||
The monthly return and supplements of each blender shall contain | ||
for the period covered by the return: | ||
(1) the number of net gallons of diesel fuel received | ||
by the blender during the month, sorted by product code, seller, | ||
point of origin, carrier, and receipt date; | ||
(2) the number of net gallons of product blended with | ||
diesel fuel during the month, sorted by product code, type of | ||
blending agent if no product code exists, seller, and carrier; | ||
(3) the number of net gallons of blended diesel fuel | ||
sold during the month and the license number or name, [ |
||
and, if applicable, municipality of the entity receiving the | ||
blended diesel fuel; and | ||
(4) any other information required by the comptroller. | ||
SECTION 59. Subchapter C, Chapter 162, Tax Code, is amended | ||
by adding Section 162.2245 to read as follows: | ||
Sec. 162.2245. INFORMATION REQUIRED ON DEALER'S RETURN. The | ||
monthly return and supplements of each dealer shall contain for the | ||
period covered by the return: | ||
(1) the number of gallons of diesel fuel inventories | ||
on hand at the first of each month, sorted by product code; | ||
(2) the number of gallons of diesel fuel received by | ||
the dealer during the month, sorted by seller; | ||
(3) the number of gallons of diesel fuel inventories | ||
on hand at the end of each month; and | ||
(4) any other information required by the comptroller. | ||
SECTION 60. Sections 162.227(f-1) and (f-2), Tax Code, are | ||
amended to read as follows: | ||
(f-1) A volunteer fire department exempt from the taxes | ||
[ |
||
of diesel fuel is entitled to a refund of the tax paid, and the | ||
volunteer fire department may file a refund claim with the | ||
comptroller for that amount. | ||
(f-2) A nonprofit entity exempted under Section | ||
162.204(a)(15) from the taxes [ |
||
that paid a tax on the purchase of diesel fuel is entitled to a | ||
refund of the tax paid, and the entity may file a refund claim with | ||
the comptroller for that amount. | ||
SECTION 61. Sections 162.229(a) and (d), Tax Code, are | ||
amended to read as follows: | ||
(a) A refund claim must be filed on a form provided by the | ||
comptroller, be supported by the original invoice issued by the | ||
seller, and contain: | ||
(1) the stamped or preprinted name and address, | ||
including, if applicable, municipality of the seller; | ||
(2) the name and address of the purchaser; | ||
(3) the date of delivery of the diesel fuel; | ||
(4) the date of the issuance of the invoice, if | ||
different from the date of fuel delivery; | ||
(5) the number of gallons of diesel fuel delivered; | ||
(6) the amount of state or municipal diesel fuel taxes | ||
paid [ |
||
stated with a notation that both state and municipal taxes are | ||
included if both apply [ |
||
(7) the type of vehicle or equipment into which the | ||
fuel is delivered. | ||
(d) A distributor or person who does not hold a license who | ||
files a valid refund claim with the comptroller shall be paid by a | ||
warrant issued by the comptroller. For purposes of this section, a | ||
distributor meets the requirement of filing a valid refund claim | ||
for state and municipal diesel fuel taxes if the distributor | ||
designates the gallons of diesel fuel sold or used that are the | ||
subject of the refund claim on the monthly report submitted by the | ||
distributor to the comptroller. | ||
SECTION 62. Sections 162.401(b), (c), and (f), Tax Code, | ||
are amended to read as follows: | ||
(b) The comptroller may add a penalty of 75 percent of the | ||
amount of taxes, penalties, and interest due if failure to file the | ||
report or pay the tax when it becomes due is attributable to fraud | ||
or an intent to evade the application of this chapter or a rule | ||
adopted under this chapter or Chapter 111 or 401. | ||
(c) The penalties provided by Subsection (b) are intended to | ||
be remedial in nature and are provided for the protection of state | ||
and taxing municipality revenue and to reimburse the state and | ||
taxing municipalities for expenses incurred as a result of fraud, | ||
including expenses incurred in conducting an investigation. | ||
(f) In addition to any other penalty authorized by this | ||
section, a person who fails to pay the tax imposed by Section | ||
162.101(e-2), 162.1011(c), [ |
||
due shall pay a penalty equal to the greater of $2,000 or five times | ||
the amount of the taxes [ |
||
SECTION 63. Sections 162.402(a), (c), and (d), Tax Code, | ||
are amended to read as follows: | ||
(a) A person forfeits to the state a civil penalty of not | ||
less than $25 and not more than $200 if the person: | ||
(1) refuses to stop and permit the inspection and | ||
examination of a motor vehicle transporting or using motor fuel on | ||
demand of a peace officer or the comptroller; | ||
(2) operates a motor vehicle in this state without a | ||
valid interstate trucker's license or a trip permit when the person | ||
is required to hold one of those licenses or permits; | ||
(3) transports gasoline or diesel fuel in any cargo | ||
tank that has a connection by pipe, tube, valve, or otherwise with | ||
the fuel injector or carburetor of, or with the fuel supply tank | ||
feeding the fuel injector or carburetor of, the motor vehicle | ||
transporting the product; | ||
(4) sells or delivers gasoline or diesel fuel from any | ||
fuel supply tank connected with the fuel injector or carburetor of a | ||
motor vehicle; | ||
(5) owns or operates a motor vehicle for which reports | ||
or mileage records are required by this chapter without an | ||
operating odometer or other device in good working condition to | ||
record accurately the miles traveled; | ||
(6) furnishes to a licensed supplier or distributor a | ||
signed statement for purchasing diesel fuel tax-free and then uses | ||
the tax-free diesel fuel to operate a diesel-powered motor vehicle | ||
on a public highway; | ||
(7) fails or refuses to comply with or violates a | ||
provision of this chapter; | ||
(8) fails or refuses to comply with or violates a | ||
comptroller's rule for administering or enforcing this chapter; | ||
(9) is an importer who does not obtain an import | ||
verification number when required by this chapter; | ||
(10) purchases motor fuel for export, on which the | ||
taxes [ |
||
subsequently diverts or causes the motor fuel to be diverted to a | ||
destination in this state or any other state or country other than | ||
the originally designated state or country without first obtaining | ||
a diversion number; | ||
(11) delivers compressed natural gas or liquefied | ||
natural gas into the fuel supply tank of a motor vehicle and the | ||
person does not hold a valid compressed natural gas and liquefied | ||
natural gas dealer's license; [ |
||
(12) makes a tax-free delivery of compressed natural | ||
gas or liquefied natural gas into the fuel supply tank of a motor | ||
vehicle, unless the delivery is exempt from tax under Section | ||
162.356; | ||
(13) transports motor fuel to a municipality in this | ||
state other than the municipality stated on the shipping document; | ||
or | ||
(14) transports motor fuel to a municipality in this | ||
state if the shipping document does not state a municipality. | ||
(c) A person receiving motor fuel who accepts a shipping | ||
document that does not conform with the requirements of Section | ||
162.004 or 162.016(a) is liable to this state for a civil penalty of | ||
$2,000 or five times the amount of the unpaid tax, whichever is | ||
greater, for each occurrence. | ||
(d) A person who issues a shipping document that does not | ||
conform with the requirements of Section 162.004 or 162.016(a) is | ||
liable to this state for a civil penalty of $2,000 or five times the | ||
amount of the unpaid tax, whichever is greater, for each | ||
occurrence. | ||
SECTION 64. Section 162.403, Tax Code, is amended to read as | ||
follows: | ||
Sec. 162.403. CRIMINAL OFFENSES. Except as provided by | ||
Section 162.404, a person commits an offense if the person: | ||
(1) refuses to stop and permit the inspection and | ||
examination of a motor vehicle transporting or using motor fuel on | ||
the demand of a peace officer or the comptroller; | ||
(2) is required to hold a valid trip permit or | ||
interstate trucker's license, but operates a motor vehicle in this | ||
state without a valid trip permit or interstate trucker's license; | ||
(3) transports gasoline or diesel fuel in any cargo | ||
tank that has a connection by pipe, tube, valve, or otherwise with | ||
the fuel injector or carburetor or with the fuel supply tank feeding | ||
the fuel injector or carburetor of the motor vehicle transporting | ||
the product; | ||
(4) sells or delivers gasoline or diesel fuel from a | ||
fuel supply tank that is connected with the fuel injector or | ||
carburetor of a motor vehicle; | ||
(5) owns or operates a motor vehicle for which reports | ||
or mileage records are required by this chapter without an | ||
operating odometer or other device in good working condition to | ||
record accurately the miles traveled; | ||
(6) sells or delivers dyed diesel fuel for the | ||
operation of a motor vehicle on a public highway; | ||
(7) uses dyed diesel fuel for the operation of a motor | ||
vehicle on a public highway except as allowed under Section | ||
162.235; | ||
(8) refuses to permit the comptroller or the attorney | ||
general to inspect, examine, or audit a book or record required to | ||
be kept by a license holder, other user, or any person required to | ||
hold a license under this chapter; | ||
(9) refuses to permit the comptroller or the attorney | ||
general to inspect or examine any plant, equipment, materials, or | ||
premises where motor fuel is produced, processed, blended, stored, | ||
sold, delivered, or used; | ||
(10) refuses to permit the comptroller, the attorney | ||
general, an employee of either of those officials, a peace officer, | ||
an employee of the Texas Commission on Environmental Quality, or an | ||
employee of the Texas Department of Licensing and Regulation to | ||
measure or gauge the contents of or take samples from a storage tank | ||
or container on premises where motor fuel is produced, processed, | ||
blended, stored, sold, delivered, or used; | ||
(11) is a license holder, a person required to be | ||
licensed, or another user and fails or refuses to make or deliver to | ||
the comptroller a report required by this chapter to be made and | ||
delivered to the comptroller; | ||
(12) is an importer who does not obtain an import | ||
verification number when required by this chapter; | ||
(13) purchases motor fuel for export, on which the | ||
taxes [ |
||
subsequently diverts or causes the motor fuel to be diverted to a | ||
destination in this state or any other state or country other than | ||
the originally designated state or country without first obtaining | ||
a diversion number; | ||
(13-a) transports motor fuel to a municipality in this | ||
state other than the municipality stated on the shipping document; | ||
(13-b) transports motor fuel to a municipality in this | ||
state if the shipping document does not state a municipality; | ||
(14) conceals motor fuel with the intent of engaging | ||
in any conduct proscribed by this chapter or refuses to make sales | ||
of motor fuel on the volume-corrected basis prescribed by this | ||
chapter; | ||
(15) refuses, while transporting motor fuel, to stop | ||
the motor vehicle the person is operating when called on to do so by | ||
a person authorized to stop the motor vehicle; | ||
(16) refuses to surrender a motor vehicle and cargo | ||
for impoundment after being ordered to do so by a person authorized | ||
to impound the motor vehicle and cargo; | ||
(17) mutilates, destroys, or secretes a book or record | ||
required by this chapter to be kept by a license holder, other user, | ||
or person required to hold a license under this chapter; | ||
(18) is a license holder, other user, or other person | ||
required to hold a license under this chapter, or the agent or | ||
employee of one of those persons, and makes a false entry or fails | ||
to make an entry in the books and records required under this | ||
chapter to be made by the person or fails to retain a document as | ||
required by this chapter; | ||
(19) transports in any manner motor fuel under a false | ||
cargo manifest or shipping document, or transports in any manner | ||
motor fuel to a location without delivering at the same time a | ||
shipping document relating to that shipment; | ||
(20) engages in a motor fuel transaction that requires | ||
that the person have a license under this chapter without then and | ||
there holding the required license; | ||
(21) makes and delivers to the comptroller a report | ||
required under this chapter to be made and delivered to the | ||
comptroller, if the report contains false information; | ||
(22) forges, falsifies, or alters an invoice or | ||
shipping document prescribed by law; | ||
(23) makes any statement, knowing said statement to be | ||
false, in a claim for a tax refund filed with the comptroller; | ||
(24) furnishes to a licensed supplier or distributor a | ||
signed statement for purchasing diesel fuel tax-free and then uses | ||
the tax-free diesel fuel to operate a diesel-powered motor vehicle | ||
on a public highway; | ||
(25) holds an aviation fuel dealer's license and makes | ||
a taxable sale or use of any gasoline or diesel fuel; | ||
(26) fails to remit any tax funds collected or | ||
required to be collected by a license holder, another user, or any | ||
other person required to hold a license under this chapter; | ||
(27) makes a sale of dyed diesel fuel tax-free into a | ||
storage facility of a person who: | ||
(A) is not licensed as a distributor, as an | ||
aviation fuel dealer, or as a dyed diesel fuel bonded user; or | ||
(B) does not furnish to the licensed supplier or | ||
distributor a signed statement prescribed in Section 162.206; | ||
(28) makes a sale of gasoline tax-free to any person | ||
who is not licensed as an aviation fuel dealer; | ||
(29) purchases any motor fuel tax-free when not | ||
authorized to make a tax-free purchase under this chapter; | ||
(30) purchases motor fuel with the intent to evade any | ||
tax imposed by this chapter or accepts a delivery of motor fuel by | ||
any means and does not at the same time accept or receive a shipping | ||
document relating to the delivery; | ||
(31) transports motor fuel for which a cargo manifest | ||
or shipping document is required to be carried without possessing | ||
or exhibiting on demand by an officer authorized to make the demand | ||
a cargo manifest or shipping document containing the information | ||
required to be shown on the manifest or shipping document; | ||
(32) imports, sells, uses, blends, distributes, or | ||
stores motor fuel within this state on which a tax [ |
||
imposed by this chapter is [ |
||
paid to or reported by a license holder, another user, or any other | ||
person required to hold a license under this chapter; | ||
(33) blends products together to produce a blended | ||
fuel that is offered for sale, sold, or used and that expands the | ||
volume of the original product to evade paying applicable motor | ||
fuel taxes; | ||
(34) evades or attempts to evade in any manner a tax | ||
imposed on motor fuel by this chapter; | ||
(35) delivers compressed natural gas or liquefied | ||
natural gas into the fuel supply tank of a motor vehicle and the | ||
person does not hold a valid compressed natural gas and liquefied | ||
natural gas dealer's license; or | ||
(36) makes a tax-free delivery of compressed natural | ||
gas or liquefied natural gas into the fuel supply tank of a motor | ||
vehicle, unless the delivery is exempt from tax under Section | ||
162.356. | ||
SECTION 65. Section 162.405(d), Tax Code, is amended to | ||
read as follows: | ||
(d) An offense under Section 162.403(6), (13-a), (13-b), | ||
(17), (18), (19), (20), (21), (22), (23), or (24) is a felony of the | ||
third degree. | ||
SECTION 66. Section 20.002(d), Transportation Code, is | ||
amended to read as follows: | ||
(d) The fee imposed by this section is equal to 25 percent of | ||
the diesel fuel tax rate imposed under Section 162.202(a) | ||
[ |
||
SECTION 67. (a) A municipality may not impose a motor fuel | ||
tax under Chapter 401, Tax Code, as added by this Act, before the | ||
effective date of rules adopted by the comptroller of public | ||
accounts under Section 401.151, Tax Code, as added by this Act. | ||
(b) The comptroller of public accounts shall adopt the rules | ||
required by Section 401.151, Tax Code, as added by this Act, not | ||
later than December 1, 2021. | ||
SECTION 68. The comptroller shall compute the initial | ||
adjusted tax rates as required by Sections 162.1026(c) and | ||
162.2026(c), Tax Code, as added by this Act, not later than November | ||
1, 2022. The initial adjusted rates take effect January 1, 2023. | ||
SECTION 69. The change in law made by this Act does 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 70. If the constitution of this state requires that | ||
one-fourth of the municipal motor fuels tax authorized by this Act | ||
be allocated to the available school fund, the municipality shall | ||
deposit that money into an account separate from the money | ||
collected under other provisions of this Act and shall allocate the | ||
money to the comptroller of public accounts for deposit in the state | ||
treasury for the purpose required by the constitution. | ||
SECTION 71. This Act takes effect September 1, 2021. |