By: Eckels H.B. No. 234
73R683 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to an exemption for political subdivisions from motor fuel
1-3 taxes and vehicle registration fees.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 153.104, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 153.104. Exceptions. The tax imposed by this
1-8 subchapter does not apply to gasoline:
1-9 (1) brought into this state in the fuel tank of a
1-10 vehicle with a capacity of less than 60 gallons when the tank is
1-11 connected to the carburetor or fuel injection system of the power
1-12 plant providing the propulsion of the vehicle;
1-13 (2) delivered by a permitted distributor to a common
1-14 or contract carrier, oceangoing vessel (including ship, tanker, or
1-15 boat), or a barge for export from this state if the gasoline is
1-16 moved forthwith outside the state;
1-17 (3) sold by a permitted distributor to another
1-18 permitted distributor;
1-19 (4) sold to the federal government for its exclusive
1-20 use;
1-21 (5) delivered by a permitted distributor into a
1-22 storage facility of a permitted aviation fuel dealer from which
1-23 gasoline will be delivered solely into the fuel supply tanks of
1-24 aircraft or aircraft servicing equipment;
2-1 (6) sold by one aviation fuel dealer to another
2-2 aviation fuel dealer who will deliver the aviation fuel exclusively
2-3 into the fuel supply tanks of aircraft or aircraft servicing
2-4 equipment; or
2-5 (7) sold to a political subdivision of <public school
2-6 district in> this state for its exclusive use.
2-7 SECTION 2. Section 153.119(a), Tax Code, is amended to read
2-8 as follows:
2-9 (a) A person who exports, sells to the federal government or
2-10 to a political subdivision of <a public school district in> this
2-11 state without having added the amount of the tax imposed by this
2-12 chapter to his selling price, loses by fire or other accident, or
2-13 uses gasoline for the purpose of operating or propelling a
2-14 motorboat, tractor used for agricultural purposes, or stationary
2-15 engine, or for another purpose except in a vehicle operated or
2-16 intended to be operated on the public highways of this state, and
2-17 who has paid the tax imposed on gasoline by this chapter either
2-18 directly or indirectly is, when the person has complied with the
2-19 invoice and filing provisions of this section and the rules of the
2-20 comptroller, entitled to reimbursement of the tax paid by him, less
2-21 a filing fee and any amount allowed distributors, wholesalers or
2-22 jobbers, dealers, or others under Section 153.105(c) of this code.
2-23 A political subdivision of this state <public school district> that
2-24 has paid the tax imposed under this chapter on gasoline used by the
2-25 political subdivision <district> is entitled to reimbursement of
2-26 the amount of the tax paid in the same manner and subject to the
2-27 same procedures as other exempted users.
3-1 SECTION 3. Section 153.203, Tax Code, is amended to read as
3-2 follows:
3-3 Sec. 153.203. Exceptions. The tax imposed by this
3-4 subchapter does not apply to:
3-5 (1) diesel fuel delivered by a permitted supplier to a
3-6 common or contract carrier, oceangoing vessel (including ship,
3-7 tanker, or boat), or barge for export from this state, if the
3-8 diesel fuel is moved forthwith outside this state;
3-9 (2) diesel fuel sold by a permitted supplier to the
3-10 federal government for its exclusive use;
3-11 (3) diesel fuel sold or delivered by a permitted
3-12 supplier to another permitted supplier or bonded user, to the bulk
3-13 storage facility of a diesel tax prepaid user, or to a purchaser
3-14 who provides a signed statement as provided by Section 153.205 of
3-15 this code, but not including a delivery of tax-free diesel fuel
3-16 into the fuel supply tanks of a motor vehicle, except for a motor
3-17 vehicle owned by the federal government;
3-18 (4) diesel fuel sold or delivered by a permitted
3-19 supplier into the storage facility of a permitted aviation fuel
3-20 dealer, from which diesel fuel will be sold or delivered solely
3-21 into the fuel supply tanks of aircraft or aircraft servicing
3-22 equipment;
3-23 (5) diesel fuel sold or delivered by a permitted
3-24 supplier into fuel supply tanks of railway engines, motorboats, or
3-25 refrigeration units or other stationary equipment powered by a
3-26 separate motor from a separate fuel supply tank;
3-27 (6) kerosene when delivered by a permitted supplier
4-1 into a storage facility at a retail business from which all
4-2 deliveries are exclusively for heating, cooking, lighting, or
4-3 similar nonhighway use;
4-4 (7) diesel fuel sold or delivered by one aviation fuel
4-5 dealer to another aviation fuel dealer who will deliver the diesel
4-6 fuel exclusively into the supply tanks of aircraft or aircraft
4-7 servicing equipment; or
4-8 (8) diesel fuel sold by a permitted supplier to a
4-9 political subdivision of <public school district in> this state for
4-10 its exclusive use.
4-11 SECTION 4. Section 153.222(a), Tax Code, is amended to read
4-12 as follows:
4-13 (a) A dealer who has paid tax on diesel fuel that has been
4-14 used or sold for use by the dealer for any purpose other than
4-15 propelling a motor vehicle on the public highways of this state or
4-16 that has been sold to the United States or to a political
4-17 subdivision of <a public school district in> this state for the
4-18 exclusive use of the purchaser without adding the amount of the tax
4-19 to his selling price, and a user who has paid tax on any diesel
4-20 fuel that has been used by him for a purpose other than propelling
4-21 a motor vehicle on the public highways or who is a political
4-22 subdivision of this state <public school district> and has paid the
4-23 tax on diesel fuel purchased for its exclusive use may file a claim
4-24 for a refund of taxes paid, less the deduction allowed vendors and
4-25 a filing fee.
4-26 SECTION 5. Section 153.3021, Tax Code, is amended to read as
4-27 follows:
5-1 Sec. 153.3021. POLITICAL SUBDIVISION <SCHOOL DISTRICT AND
5-2 COUNTY> EXEMPTION. (a) The tax imposed by this subchapter does
5-3 not apply to the sale of liquefied petroleum gas to a political
5-4 subdivision of <public school district or county in> this state or
5-5 to the use of liquefied petroleum gas by a political subdivision of
5-6 <public school district or county in> this state.
5-7 (b) A motor vehicle that uses liquefied petroleum gas and
5-8 that is operated by a political subdivision of <public school
5-9 district or county in> this state is not required to have a
5-10 liquefied gas tax decal or a special use liquefied gas tax decal.
5-11 SECTION 6. Sections 3(c) and (i), Chapter 88, General Laws,
5-12 Acts of the 41st Legislature, 2nd Called Session, 1929 (Article
5-13 6675a-3, Vernon's Texas Civil Statutes), are amended to read as
5-14 follows:
5-15 (c) Owners of motor vehicles, trailers and semi-trailers
5-16 which are the property of and used exclusively in the service of
5-17 the United States Government, the State of Texas, or a political
5-18 subdivision of this State <any county, city or school district
5-19 thereof>, shall apply annually to the Department as provided in
5-20 Section 3-aa of this Act to register all such vehicles, but shall
5-21 not be required to pay the registration fees herein prescribed,
5-22 provided that application is made at the time of registration by a
5-23 person who has the proper authority to certify that such vehicles
5-24 are the property of and used exclusively in the service of the
5-25 United States Government, the State of Texas, or a political
5-26 subdivision of this State <county, city or school district
5-27 thereof>, as the case may be. Owners of vehicles designed and used
6-1 exclusively for fire fighting shall apply to the Department as
6-2 provided in Section 3-aa of this Act to register all such vehicles,
6-3 but shall not be required to pay the registration fees herein
6-4 prescribed, provided that application is made at the time of
6-5 registration by a person who has the proper authority to certify
6-6 that such vehicles are used exclusively for fire fighting; and
6-7 provided further, that such person shall supply the Department with
6-8 a reasonable description of the vehicle and the fire fighting
6-9 equipment mounted thereon. A vehicle owned by a volunteer fire
6-10 department and used exclusively in the conduct of business of the
6-11 department shall be registered without the payment of an annual
6-12 registration fee, if the application for registration is
6-13 accompanied by a statement that the vehicle is owned by, and used
6-14 exclusively in the conduct of business of, the department and
6-15 signed by a person with authority to act for the department, and if
6-16 the application is approved as provided in Section 3-aa of this
6-17 Act. An owner of a land vehicle used exclusively in county marine
6-18 law enforcement activities, which may include rescue operations,
6-19 shall apply to the Department as provided in Section 3-aa of this
6-20 Act to register the vehicle but is exempt from paying a
6-21 registration fee. The owner shall include with the application for
6-22 registration a statement signed by a person with authority to act
6-23 for a county sheriff's department that states that the vehicle is
6-24 used exclusively in marine law enforcement activities under the
6-25 direction of the department. An exempted vehicle may be privately
6-26 owned and operated by a volunteer if it is used only for marine law
6-27 enforcement activities.
7-1 (i) An all-terrain vehicle owned by this State or a
7-2 political subdivision of this State<, a county, or a municipality>
7-3 and operated exclusively to maintain public safety and welfare of
7-4 the residents of this State shall be registered without the payment
7-5 of an annual registration fee. The application for registration
7-6 must be accompanied by a statement signed by an official with
7-7 authority to affirm for the agency or political subdivision<,
7-8 county, or municipality> and stating that the vehicle is used
7-9 exclusively by the governmental entity to maintain public safety
7-10 and welfare. The application must be approved by the department as
7-11 provided by Section 3aa of this Act.
7-12 SECTION 7. (a) This Act takes effect September 1, 1993, and
7-13 applies only to vehicle registrations and sales of gasoline, diesel
7-14 fuel, and liquefied petroleum gas made on or after that date.
7-15 (b) If a political subdivision of this state has purchased
7-16 gasoline, diesel fuel, or liquefied petroleum gas in bulk
7-17 quantities before the effective date of this Act, paid the amount
7-18 of the tax imposed by Chapter 153, Tax Code, and used the gasoline,
7-19 diesel fuel, or liquefied petroleum gas after the effective date of
7-20 this Act, the political subdivision may apply for and is entitled
7-21 to receive a refund for the amount of the taxes paid only on the
7-22 fuel so used after the effective date of this Act, subject to the
7-23 same allowances, deductions, and filing fees applicable to refunds
7-24 made for sales made after the effective date of this Act.
7-25 (c) A refund of the amount of tax paid on liquefied
7-26 petroleum gas through the purchase of a liquefied gas tax decal
7-27 shall be computed according to the method determined by the
8-1 comptroller of public accounts that fairly and equitably allocates
8-2 fuel use during the period of validity of the decal between use
8-3 before the effective date of this Act and after the effective date
8-4 of this Act.
8-5 SECTION 8. The importance of this legislation and the
8-6 crowded condition of the calendars in both houses create an
8-7 emergency and an imperative public necessity that the
8-8 constitutional rule requiring bills to be read on three several
8-9 days in each house be suspended, and this rule is hereby suspended,
8-10 and that this Act take effect and be in force from and after its
8-11 passage, and it is so enacted.