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House Bill 2148 |
House Author: Hilderbran |
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Effective: 9-1-13 |
Senate Sponsor: Williams |
House Bill 2148 amends the Tax Code to impose a tax on the sale of compressed natural gas (CNG) or liquefied natural gas (LNG) that is delivered into the fuel supply tank of a motor vehicle in connection with a sale of the gas, for which the dealer is liable, and on the delivery of CNG or LNG into the fuel supply tank of a motor vehicle by a fleet user or other dealer not in connection with a sale of the gas, for which the fleet user or other dealer is liable. The bill sets the tax rate at 15 cents for each gasoline or diesel gallon equivalent or fractional part of CNG or LNG, with that equivalence determined by whether the natural gas is supplied to the dispenser from a pipeline or other nonliquefied source or from a liquefied source. The bill also sets out provisions for a backup tax and tax exemptions similar to the backup taxes and tax exemptions applicable to the gasoline and diesel fuel taxes.
House Bill 2148 sets out licensing requirements for a CNG and LNG dealer's license issued by the comptroller of public accounts, which authorizes a dealer to sell or deliver CNG or LNG subject to the tax or to act as an aviation fuel dealer delivering CNG or LNG, and provides for an interstate trucker's license authorizing a trucker to report and pay the tax and take a credit or claim a refund if the trucker operates a CNG- or LNG-fueled motor vehicle. The bill also sets out tax credit and tax refund provisions applicable to CNG and LNG taxpayers.
House Bill 2148 provides for the allocation and deposit of one-fourth of the remainder of the CNG and LNG taxes collected to the credit of the available school fund and three-fourths of the remainder of such taxes to the credit of the state highway fund. The bill expands the conduct that constitutes the Class B misdemeanor offense involving motor fuel taxes to include delivering CNG or LNG into the fuel supply tank of a motor vehicle without a valid CNG and LNG dealer's license and making a tax-free delivery of CNG or LNG into the fuel supply tank of a motor vehicle if the delivery is not specifically exempted. The bill establishes that such conduct also makes a person liable for a civil penalty to the state of not less than $25 and not more than $200.
The bill authorizes a person who holds a liquefied gas tax decal license that is effective on or after the bill's effective date for a vehicle fueled by CNG or LNG to apply and obtain a prorated refund of the taxes paid in advance for the period after the bill's effective date. The bill authorizes a person who operates motor vehicles used to provide the services of a transit company and who held a liquefied gas tax decal license on or before August 31, 2013, to pay the liquefied gas tax on CNG or LNG delivered into the fuel supply tank of such a motor vehicle from a refueling facility and to operate those vehicles on Texas public highways using the gas.