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.
    1-6        SECTION 1.  Subtitle E, Title 2, Tax Code, is amended by
    1-7  adding Chapter 161 to read as follows:
    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
   1-17        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.
   1-24  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.