By: Conley H.B. No. 278
73R1956 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the imposition, collection, allocation, and civil and
1-3 criminal enforcement of a tax on the above-ground storage of
1-4 aviation fuel.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
1-7 adding Chapter 161 to read as follows:
1-8 CHAPTER 161. ABOVE-GROUND STORAGE OF AVIATION FUEL
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 161.001. DEFINITIONS. In this chapter:
1-11 (1) "Aviation fuel" means a product used as the
1-12 propellant fuel in an aircraft engine, and the term includes
1-13 aviation gasoline (AVGAS) or aviation diesel (JET) fuel.
1-14 (2) "Tax" means the tax imposed by this chapter.
1-15 (Sections 161.002-161.050 reserved for expansion
1-16 SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
1-17 Sec. 161.051. TAX IMPOSED. (a) A tax is imposed on each
1-18 person who stores aviation fuel in tanks located above the ground.
1-19 The tax is measured by the average daily number of gallons of fuel
1-20 stored by the person in all above-ground tanks owned or operated by
1-21 the person during a calendar year.
1-22 (b) The rate of the tax is 3 cents for each gallon.
1-23 Sec. 161.052. AVERAGE DAILY NUMBER OF GALLONS OF AVIATION
1-24 FUEL STORED. (a) A person shall determine the person's average
2-1 daily number of gallons of aviation fuel stored by dividing by 365
2-2 the sum of the daily number of gallons of fuel stored during a
2-3 calendar year in tanks that are located above the ground during the
2-4 year and that are owned or operated by the person.
2-5 (b) A person that has stored aviation fuel in tanks located
2-6 above the ground for less than a calendar year shall determine the
2-7 person's annual average daily number of gallons of fuel stored by
2-8 dividing the sum of the daily number of gallons of fuel stored for
2-9 the portion of the year in which the fuel has been stored by the
2-10 number of days in the portion of the year in which the fuel has
2-11 been stored and by multiplying that quotient by a fraction the
2-12 numerator of which is the number of days the person stored fuel
2-13 during the year and the denominator of which is 365. Above-ground
2-14 fuel tanks owned or operated by a corporation affiliated with a
2-15 person, for the purpose of the computation of the average daily
2-16 number of gallons of fuel stored by the person, are owned or
2-17 operated by the person.
2-18 Sec. 161.053. EXEMPTIONS. A person is exempt from the tax
2-19 if the person's average daily number of gallons of aviation fuel
2-20 stored is less than 500,000.
2-21 Sec. 161.054. DATE ON WHICH PAYMENT IS DUE. The tax is due
2-22 on or before February 15 following the year for which the tax is
2-23 imposed.
2-24 Sec. 161.055. PAYMENT TO COMPTROLLER. Payment of the tax
2-25 shall be made to the comptroller.
2-26 Sec. 161.056. REPORT. A person required to pay the tax
2-27 shall accompany the payment with a report that includes, for the
3-1 tax year:
3-2 (1) the daily number of gallons of aviation fuel
3-3 stored in tanks above the ground;
3-4 (2) the average daily number of gallons of aviation
3-5 fuel stored above the ground; and
3-6 (3) any other information required by the
3-7 comptroller's rules.
3-8 Sec. 161.057. INTEREST AND PENALTY ON DELINQUENT TAX. The
3-9 interest, penalty, or both interest and penalty due on a delinquent
3-10 tax are determined as provided by Subchapter B, Chapter 111.
3-11 Sec. 161.058. FAILURE TO REPORT; CRIMINAL PENALTY. (a) A
3-12 person commits an offense if the person fails to file a report as
3-13 required by this chapter.
3-14 (b) An offense under this section is a Class B misdemeanor.
3-15 (Sections 161.059-161.100 reserved for expansion
3-16 SUBCHAPTER C. ALLOCATION OF TAX
3-17 Sec. 161.101. ALLOCATION OF TAX. The comptroller shall
3-18 allocate the tax collected as follows:
3-19 (1) 80 percent to the foundation school fund; and
3-20 (2) 20 percent to the aviation security fund.
3-21 SECTION 2. Chapter 344, Acts of the 49th Legislature, 1945
3-22 (Article 46c-1 et seq., Vernon's Texas Civil Statutes), is amended
3-23 by adding Section 9 to read as follows:
3-24 Sec. 9. AVIATION SECURITY FUND. (a) The aviation security
3-25 fund is created as a special account in the general revenue fund.
3-26 (b) The fund is to be used by the state or by units of local
3-27 government to institute, improve, or maintain security measures at
4-1 airports.
4-2 (c) The Texas Department of Aviation shall administer the
4-3 fund.
4-4 (d) The Texas Department of Aviation shall receive
4-5 applications from units of local government for money it has
4-6 allocated from the fund for the benefit of units of local
4-7 government. The department by rule shall determine the form and
4-8 content of the application.
4-9 SECTION 3. The tax imposed by Chapter 161, Tax Code, enacted
4-10 by this Act, applies to the storage of aviation fuel on and after
4-11 the effective date of this Act.
4-12 SECTION 4. The importance of this legislation and the
4-13 crowded condition of the calendars in both houses create an
4-14 emergency and an imperative public necessity that the
4-15 constitutional rule requiring bills to be read on three several
4-16 days in each house be suspended, and this rule is hereby suspended,
4-17 and that this Act take effect and be in force from and after its
4-18 passage, and it is so enacted.