By: Jackson H.B. No. 897
73R3140 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the sales and use tax on gasoline.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 153.101, Tax Code, is amended by adding
1-5 Subsection (c) to read as follows:
1-6 (c) The first taxable sale occurs when the distributor who
1-7 refined, distilled, manufactured, produced, or blended the gasoline
1-8 in this state sells the gasoline to another person in this state,
1-9 including another distributor. If the gasoline is imported into
1-10 this state, the first taxable sale occurs when the importing
1-11 distributor sells the gasoline to another person in this state,
1-12 including another distributor.
1-13 SECTION 2. Section 153.103(a), Tax Code, is amended to read
1-14 as follows:
1-15 (a) The amount of the tax shall be computed and paid over to
1-16 the state on the temperature-adjusted volume of gallons of taxable
1-17 gasoline sold to distributors, wholesalers, jobbers, dealers, or
1-18 other persons purchasing gasoline for resale, where such sales are
1-19 made in single deliveries of 5,000 gallons or more, or in lesser
1-20 quantities where required by city ordinance. The comptroller may
1-21 publish and distribute a table to be used for converting the
1-22 measurement of gross gallons of gasoline to temperature-adjusted
1-23 gallons of gasoline.
1-24 SECTION 3. Section 153.104, Tax Code, is amended to read as
2-1 follows:
2-2 Sec. 153.104. Exceptions. The tax imposed by this
2-3 subchapter does not apply to gasoline:
2-4 (1) brought into this state in the fuel tank of a
2-5 vehicle with a capacity of less than 60 gallons when the tank is
2-6 connected to the carburetor or fuel injection system of the power
2-7 plant providing the propulsion of the vehicle;
2-8 (2) delivered by a permitted distributor to a common
2-9 or contract carrier, oceangoing vessel (including ship, tanker, or
2-10 boat), or a barge for export from this state if the gasoline is
2-11 moved forthwith outside the state;
2-12 (3) <sold by a permitted distributor to another
2-13 permitted distributor;>
2-14 <(4)> sold to the federal government for its exclusive
2-15 use;
2-16 (4) <(5)> delivered by a permitted distributor into a
2-17 storage facility of a permitted aviation fuel dealer from which
2-18 gasoline will be delivered solely into the fuel supply tanks of
2-19 aircraft or aircraft servicing equipment;
2-20 (5) <(6)> sold by one aviation fuel dealer to another
2-21 aviation fuel dealer who will deliver the aviation fuel exclusively
2-22 into the fuel supply tanks of aircraft or aircraft servicing
2-23 equipment; or
2-24 (6) <(7)> sold to a public school district in this
2-25 state for its exclusive use.
2-26 SECTION 4. Section 153.403, Tax Code, is amended to read as
2-27 follows:
3-1 Sec. 153.403. Criminal Offenses. Except as provided by
3-2 Section 153.404 of this code, a person commits an offense if the
3-3 person:
3-4 (1) refuses to stop and permit the inspection and
3-5 examination of a motor vehicle transporting or using motor fuel on
3-6 the demand of a peace officer or the comptroller;
3-7 (2) is required to hold a valid trip permit or
3-8 interstate trucker's permit, but operates a motor vehicle in this
3-9 state without a valid trip permit or interstate trucker's permit;
3-10 (3) operates a liquefied gas-propelled motor vehicle
3-11 that is required to be licensed in Texas, including a motor vehicle
3-12 equipped with dual carburetion, and does not display a current
3-13 liquefied gas tax decal;
3-14 (4) transports gasoline or diesel fuel in any cargo
3-15 tank that has a connection by pipe, tube, valve, or otherwise with
3-16 the fuel injector or carburetor or with the fuel supply tank
3-17 feeding the fuel injector or carburetor of the motor vehicle
3-18 transporting the product;
3-19 (5) sells or delivers gasoline or diesel fuel from a
3-20 fuel supply tank that is connected with the fuel injector or
3-21 carburetor of a motor vehicle;
3-22 (6) owns or operates a motor vehicle for which reports
3-23 or mileage records are required by this chapter without an
3-24 operating odometer or other device in good working condition to
3-25 record accurately the miles traveled;
3-26 (7) as a diesel tax prepaid user fails to prepay the
3-27 tax on every diesel-powered motor vehicle owned or operated by him;
4-1 (8) makes a tax-free sale or delivery of liquefied gas
4-2 into the fuel supply tank of a motor vehicle that does not display
4-3 a current Texas liquefied gas tax decal;
4-4 (9) makes a sale or delivery of liquefied gas on which
4-5 the person knows the tax is required to be collected, if at the
4-6 time the sale is made the person does not hold a valid dealer's
4-7 permit;
4-8 (10) makes a tax-free sale or delivery of liquefied
4-9 gas into the fuel supply tank of a motor vehicle bearing
4-10 out-of-state license plates;
4-11 (11) makes a tax-free or taxable sale or delivery of
4-12 liquefied gas into the fuel supply tank of a motor vehicle bearing
4-13 Texas license plates and no Texas liquefied gas tax decal;
4-14 (12) refuses to permit the comptroller or the attorney
4-15 general to inspect, examine, or audit a book or record required to
4-16 be kept by a distributor, supplier, user, dealer, interstate
4-17 trucker, aviation fuel dealer, common or contract carrier, or any
4-18 person required to hold a permit under this chapter;
4-19 (13) refuses to permit the comptroller or the attorney
4-20 general to inspect or examine any plant, equipment, materials, or
4-21 premises where motor fuel is produced, processed, stored, sold,
4-22 delivered, or used;
4-23 (14) refuses to permit the comptroller or the attorney
4-24 general to measure or gauge the contents of or take samples from a
4-25 storage tank or container on premises where motor fuel is produced,
4-26 processed, stored, sold, delivered, or used;
4-27 (15) is a distributor, bonded user, interstate
5-1 trucker, or supplier and fails or refuses to make or deliver to the
5-2 comptroller a report required by this chapter to be made and
5-3 delivered to the comptroller;
5-4 (16) conceals motor fuel with the intent of engaging
5-5 in any conduct proscribed by this chapter or refuses to make sales
5-6 of motor fuel on the volume-corrected basis prescribed by this
5-7 chapter;
5-8 (17) refuses, while transporting motor fuel, to stop
5-9 the motor vehicle he is operating when called on to do so by a
5-10 person authorized to stop the motor vehicle;
5-11 (18) refuses to surrender a motor vehicle and cargo
5-12 for impoundment after being ordered to do so by a person authorized
5-13 to impound the motor vehicle and cargo;
5-14 (19) transports motor fuel for which a cargo manifest
5-15 is required to be carried without possessing or exhibiting on
5-16 demand by an officer authorized to make the demand a cargo manifest
5-17 containing the information required to be shown on the manifest;
5-18 (20) mutilates, destroys, or secretes a book or record
5-19 required by this chapter to be kept by a distributor, supplier,
5-20 user, dealer, interstate trucker, aviation fuel dealer, or person
5-21 required to hold a permit under this chapter;
5-22 (21) is a distributor, supplier, user, dealer,
5-23 interstate trucker, aviation fuel dealer, or other person required
5-24 to hold a permit under this chapter, or the agent or employee of
5-25 one of those persons and makes a false entry or fails to make an
5-26 entry in the books and records required under this chapter to be
5-27 made by the person;
6-1 (22) transports in any manner motor fuel under a false
6-2 cargo manifest;
6-3 (23) engages in a motor fuel transaction that requires
6-4 that the person have a permit under this chapter without then and
6-5 there holding the required permit;
6-6 (24) makes and delivers to the comptroller a report
6-7 required under this chapter to be made and delivered to the
6-8 comptroller, if the report contains false information;
6-9 (25) forges, falsifies, or alters an invoice
6-10 prescribed by law;
6-11 (26) makes any statement, knowing said statement to be
6-12 false, in a claim for a tax refund filed with the comptroller;
6-13 (27) furnishes to a supplier a signed statement for
6-14 purchasing diesel fuel tax free when he owns, operates, or acquires
6-15 a diesel-powered motor vehicle;
6-16 (28) holds an aviation fuel dealer's permit and makes
6-17 a taxable sale or use of any gasoline or diesel fuel;
6-18 (29) fails to remit any tax funds collected by a
6-19 distributor, supplier, user, dealer, interstate trucker, or any
6-20 other person required to hold a permit under this chapter;
6-21 (30) makes a sale of diesel fuel tax free into a
6-22 storage facility of a person who:
6-23 (A) is not permitted as a supplier, as an
6-24 aviation fuel dealer, as a bonded user, or as a diesel tax prepaid
6-25 user of diesel fuel; or
6-26 (B) does not furnish to the permitted supplier a
6-27 signed statement prescribed in Section 153.205 of this code;
7-1 (31) makes a sale of gasoline tax free to any person
7-2 who is not permitted as <either a distributor or> an aviation fuel
7-3 dealer;
7-4 (32) is a dealer who purchases any motor fuel tax free
7-5 when not authorized to make a tax-free purchase under this chapter;
7-6 or
7-7 (33) is a dealer who purchases motor fuel with the
7-8 intent to evade any tax imposed by this chapter.
7-9 SECTION 5. Section 153.404(d), Tax Code, is amended to read
7-10 as follows:
7-11 (d) The prohibition under Section 153.403(31) <of this code>
7-12 does not apply to the tax-free sale or distribution of gasoline
7-13 under Section 153.104(2) or (3) <(4) of this code>.
7-14 SECTION 6. Before using, consuming, delivering, or
7-15 transferring any gasoline on the effective date of this Act, each
7-16 wholesaler or dealer, as those persons are defined or were defined
7-17 immediately before the effective date of this Act under Chapter
7-18 153, Tax Code, shall inventory all supplies of gasoline possessed
7-19 by those persons in any storage tank, other than the fuel supply
7-20 tank of a motor vehicle connected to the fuel delivery system of
7-21 the engine of the motor vehicle. The person shall record the
7-22 inventory and shall determine the amount of tax-free gasoline in
7-23 the inventory. Under rules adopted by the comptroller, the person
7-24 shall report and pay to the comptroller the amount of tax imposed
7-25 under Chapter 153, Tax Code, on all gasoline that has been the
7-26 subject of a first sale as described by that chapter, but on which
7-27 the tax has not been paid. The report and payment required by this
8-1 section is due on or before the 45th day after the effective date
8-2 of this Act. A person who fails to report and pay as required by
8-3 the rules of the comptroller under this section is subject to the
8-4 same penalties that apply to the failure to report or pay under
8-5 Chapter 153, Tax Code.
8-6 SECTION 7. (a) This Act takes effect September 1, 1993.
8-7 (b) The change in law made by this Act does not affect tax
8-8 liability accruing before the effective date of this Act. That
8-9 liability continues in effect as if this Act had not been enacted,
8-10 and the former law is continued in effect for the collection of
8-11 taxes due and for civil and criminal enforcement of the liability
8-12 of those taxes.
8-13 (c) The change in law made by this Act also does not affect
8-14 the eligibility of a person to apply for and receive a refund under
8-15 Chapter 153, Tax Code, as that chapter existed on August 31, 1993,
8-16 for taxes paid before the effective date of this Act, and the
8-17 former law is continued in effect for that purpose.
8-18 SECTION 8. The importance of this legislation and the
8-19 crowded condition of the calendars in both houses create an
8-20 emergency and an imperative public necessity that the
8-21 constitutional rule requiring bills to be read on three several
8-22 days in each house be suspended, and this rule is hereby suspended.