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Senate Bill 1557 |
Senate Author: Kolkhorst |
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Effective: 1-1-18 |
House Sponsor: Shine et al. |
Senate Bill 1557 amends the Tax Code to impose a tax on gasoline and diesel fuel that is otherwise exempt from motor fuel taxation on the basis of being exported to another state or a foreign country if the gasoline or diesel fuel is sold in Texas to an unlicensed purchaser. The bill makes the person that sold the gasoline or diesel fuel liable for the tax and requires that person to collect the tax. The bill also imposes a tax on such gasoline and diesel fuel if before export the gasoline or diesel fuel is sold in Texas to a licensed purchaser and the gasoline or diesel fuel is delivered to a destination in Texas. The bill makes the person that redirected the delivery of the gasoline or diesel fuel to a destination in Texas liable for the tax, requires that person to pay the tax, and requires a person who fails to pay the tax when due to pay an additional penalty equal to the greater of $2,000 or five times the amount of the tax due on the motor fuel. The bill sets out related reporting requirements and a $200 penalty for failure to report a subsequent sale in Texas of tax-free motor fuel purchased for export.
Senate Bill 1557 amends the Water Code to transfer liability for the fee imposed on the delivery of a petroleum product on withdrawal from bulk of that product from each operator of a bulk facility to each supplier. The bill clarifies that, for purposes of the exemption from the fee of a delivery of a petroleum product destined for export from Texas on the basis of being in continuous movement to a destination outside Texas, a petroleum product ceases to be in continuous movement to a destination outside Texas if the product is delivered to a destination in Texas. The bill requires the person that directs the delivery of the product to a destination in Texas to pay the fee on that product.