87R11277 RDS-D
	By: Bailes	H.B. No. 4246

	A BILL TO BE ENTITLED
	AN ACT
	relating to the exemption of hospitals from the diesel fuel tax.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 162.204(a), Tax Code, is amended to read
	as follows:
	(a)  The tax imposed by this subchapter does not 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 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; or
	(16)  diesel fuel sold to a hospital in this state for
	the hospital's exclusive use.
	SECTION 2.  Section 162.227, Tax Code, is amended by adding
	Subsection (f-3) to read as follows:
	(f-3)  A hospital exempt from the tax imposed under this
	subchapter that paid tax on the purchase of diesel fuel is entitled
	to a refund of the tax paid, and the hospital may file a refund claim
	with the comptroller for that amount.
	SECTION 3.  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 4.  This Act takes effect September 1, 2021.