73R6160 CBH-F
By Craddick H.B. No. 1702
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to an exemption from motor fuel taxes and vehicle
1-3 registration fees for certain providers of school transportation
1-4 services.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 153.104, Tax Code, is amended to read as
1-7 follows:
1-8 Sec. 153.104. Exceptions. The tax imposed by this
1-9 subchapter does not apply to gasoline:
1-10 (1) brought into this state in the fuel tank of a
1-11 vehicle with a capacity of less than 60 gallons when the tank is
1-12 connected to the carburetor or fuel injection system of the power
1-13 plant providing the propulsion of the vehicle;
1-14 (2) delivered by a permitted distributor to a common
1-15 or contract carrier, oceangoing vessel (including ship, tanker, or
1-16 boat), or a barge for export from this state if the gasoline is
1-17 moved forthwith outside the state;
1-18 (3) sold by a permitted distributor to another
1-19 permitted distributor;
1-20 (4) sold to the federal government for its exclusive
1-21 use;
1-22 (5) delivered by a permitted distributor into a
1-23 storage facility of a permitted aviation fuel dealer from which
1-24 gasoline will be delivered solely into the fuel supply tanks of
2-1 aircraft or aircraft servicing equipment;
2-2 (6) sold by one aviation fuel dealer to another
2-3 aviation fuel dealer who will deliver the aviation fuel exclusively
2-4 into the fuel supply tanks of aircraft or aircraft servicing
2-5 equipment; <or>
2-6 (7) sold to a public school district in this state for
2-7 its exclusive use; or
2-8 (8) sold to a commercial transportation company that
2-9 provides public school transportation services to a school district
2-10 under Section 21.181, Education Code, and used by the company
2-11 exclusively to provide those services.
2-12 SECTION 2. Section 153.119(a), Tax Code, is amended to read
2-13 as follows:
2-14 (a) A person who exports, sells to the federal government,
2-15 to <or> a public school district in this state, or to a commercial
2-16 transportation company for exclusive use in providing public school
2-17 transportation services to a school district under Section 21.181,
2-18 Education Code, without having added the amount of the tax imposed
2-19 by this chapter to his selling price, loses by fire or other
2-20 accident, or uses gasoline for the purpose of operating or
2-21 propelling a motorboat, tractor used for agricultural purposes, or
2-22 stationary engine, or for another purpose except in a vehicle
2-23 operated or intended to be operated on the public highways of this
2-24 state, and who has paid the tax imposed on gasoline by this chapter
2-25 either directly or indirectly is, when the person has complied with
2-26 the invoice and filing provisions of this section and the rules of
2-27 the comptroller, entitled to reimbursement of the tax paid by him,
3-1 less a filing fee and any amount allowed distributors, wholesalers
3-2 or jobbers, dealers, or others under Section 153.105(c) of this
3-3 code. A public school district that has paid the tax imposed under
3-4 this chapter on gasoline used by the district or a commercial
3-5 transportation company that has paid the tax imposed under this
3-6 chapter on gasoline used by the company exclusively to provide
3-7 public school transportation services to a school district under
3-8 Section 21.181, Education Code, is entitled to reimbursement of the
3-9 amount of the tax paid in the same manner and subject to the same
3-10 procedures as other exempted users.
3-11 SECTION 3. Section 153.203, Tax Code, is amended to read as
3-12 follows:
3-13 Sec. 153.203. Exceptions. The tax imposed by this
3-14 subchapter does not apply to:
3-15 (1) diesel fuel delivered by a permitted supplier to a
3-16 common or contract carrier, oceangoing vessel (including ship,
3-17 tanker, or boat), or barge for export from this state, if the
3-18 diesel fuel is moved forthwith outside this state;
3-19 (2) diesel fuel sold by a permitted supplier to the
3-20 federal government for its exclusive use;
3-21 (3) diesel fuel sold or delivered by a permitted
3-22 supplier to another permitted supplier or bonded user, to the bulk
3-23 storage facility of a diesel tax prepaid user, or to a purchaser
3-24 who provides a signed statement as provided by Section 153.205 of
3-25 this code, but not including a delivery of tax-free diesel fuel
3-26 into the fuel supply tanks of a motor vehicle, except for a motor
3-27 vehicle owned by the federal government;
4-1 (4) diesel fuel sold or delivered by a permitted
4-2 supplier into the storage facility of a permitted aviation fuel
4-3 dealer, from which diesel fuel will be sold or delivered solely
4-4 into the fuel supply tanks of aircraft or aircraft servicing
4-5 equipment;
4-6 (5) diesel fuel sold or delivered by a permitted
4-7 supplier into fuel supply tanks of railway engines, motorboats, or
4-8 refrigeration units or other stationary equipment powered by a
4-9 separate motor from a separate fuel supply tank;
4-10 (6) kerosene when delivered by a permitted supplier
4-11 into a storage facility at a retail business from which all
4-12 deliveries are exclusively for heating, cooking, lighting, or
4-13 similar nonhighway use;
4-14 (7) diesel fuel sold or delivered by one aviation fuel
4-15 dealer to another aviation fuel dealer who will deliver the diesel
4-16 fuel exclusively into the supply tanks of aircraft or aircraft
4-17 servicing equipment; <or>
4-18 (8) diesel fuel sold by a permitted supplier to a
4-19 public school district in this state for its exclusive use; or
4-20 (9) diesel fuel sold by a permitted supplier to a
4-21 commercial transportation company that provides public school
4-22 transportation services to a school district under Section 21.181,
4-23 Education Code, and used by the company exclusively to provide
4-24 those services.
4-25 SECTION 4. Section 153.222(a), Tax Code, is amended to read
4-26 as follows:
4-27 (a) A dealer who has paid tax on diesel fuel that has been
5-1 used or sold for use by the dealer for any purpose other than
5-2 propelling a motor vehicle on the public highways of this state or
5-3 that has been sold to the United States or a public school district
5-4 in this state for the exclusive use of the purchaser, or to a
5-5 commercial transportation company for exclusive use in providing
5-6 public school transportation services to a school district under
5-7 Section 21.181, Education Code, without adding the amount of the
5-8 tax to his selling price, and a user who has paid tax on any diesel
5-9 fuel that has been used by him for a purpose other than propelling
5-10 a motor vehicle on the public highways, <or who> is a public school
5-11 district and has paid the tax on diesel fuel purchased for its
5-12 exclusive use, or is a commercial transportation company and has
5-13 paid the tax on diesel fuel used by the company exclusively to
5-14 provide public school transportation services to a school district
5-15 under Section 21.181, Education Code, may file a claim for a refund
5-16 of taxes paid, less the deduction allowed vendors and a filing fee.
5-17 SECTION 5. Section 153.3021, Tax Code, is amended to read as
5-18 follows:
5-19 Sec. 153.3021. SCHOOL DISTRICT TRANSPORTATION AND COUNTY
5-20 EXEMPTION. (a) The tax imposed by this subchapter does not apply
5-21 to the sale of liquefied petroleum gas to a public school district
5-22 or county in this state or to the use of liquefied petroleum gas by
5-23 a public school district or county in this state.
5-24 <(b)> A motor vehicle that uses liquefied petroleum gas and
5-25 that is operated by a public school district or county in this
5-26 state is not required to have a liquefied gas tax decal or a
5-27 special use liquefied gas tax decal.
6-1 (b) The tax imposed by this subchapter does not apply to the
6-2 sale of liquefied petroleum gas to a commercial transportation
6-3 company that uses the gas exclusively to provide public school
6-4 transportation services to a school district under Section 21.181,
6-5 Education Code, or to the use of liquefied petroleum gas by such a
6-6 company for that purpose. A motor vehicle that uses liquefied
6-7 petroleum gas and that is owned by a commercial transportation
6-8 company and used exclusively to provide public school
6-9 transportation services to a school district under Section 21.181,
6-10 Education Code, is not required to have a liquefied gas tax decal
6-11 or a special use liquefied gas tax decal.
6-12 SECTION 6. Section 3(c), Chapter 88, General Laws, Acts of
6-13 the 41st Legislature, 2nd Called Session, 1929 (Article 6675a-3,
6-14 Vernon's Texas Civil Statutes), is amended to read as follows:
6-15 (c) Owners of motor vehicles, trailers and semi-trailers
6-16 which are the property of and used exclusively in the service of
6-17 the United States Government, the State of Texas, or any county,
6-18 city or school district thereof, or which are the property of a
6-19 commercial transportation company and are used exclusively to
6-20 provide public school transportation services to a school district
6-21 under Section 21.181, Education Code, and its subsequent
6-22 amendments, shall apply annually to the Department as provided in
6-23 Section 3-aa of this Act to register all such vehicles, but shall
6-24 not be required to pay the registration fees herein prescribed,
6-25 provided that application is made at the time of registration by a
6-26 person who has the proper authority to certify that such vehicles
6-27 are the property of and used exclusively in the service of the
7-1 United States Government, the State of Texas, or a county, city or
7-2 school district thereof, or are the property of a commercial
7-3 transportation company and are used exclusively to provide public
7-4 school transportation services to a school district under Section
7-5 21.181, Education Code, and its subsequent amendments, as the case
7-6 may be. Owners of vehicles designed and used exclusively for fire
7-7 fighting shall apply to the Department as provided in Section 3-aa
7-8 of this Act to register all such vehicles, but shall not be
7-9 required to pay the registration fees herein prescribed, provided
7-10 that application is made at the time of registration by a person
7-11 who has the proper authority to certify that such vehicles are used
7-12 exclusively for fire fighting; and provided further, that such
7-13 person shall supply the Department with a reasonable description of
7-14 the vehicle and the fire fighting equipment mounted thereon. A
7-15 vehicle owned by a volunteer fire department and used exclusively
7-16 in the conduct of business of the department shall be registered
7-17 without the payment of an annual registration fee, if the
7-18 application for registration is accompanied by a statement that the
7-19 vehicle is owned by, and used exclusively in the conduct of
7-20 business of, the department and signed by a person with authority
7-21 to act for the department, and if the application is approved as
7-22 provided in Section 3-aa of this Act. An owner of a land vehicle
7-23 used exclusively in county marine law enforcement activities, which
7-24 may include rescue operations, shall apply to the Department as
7-25 provided in Section 3-aa of this Act to register the vehicle but is
7-26 exempt from paying a registration fee. The owner shall include
7-27 with the application for registration a statement signed by a
8-1 person with authority to act for a county sheriff's department that
8-2 states that the vehicle is used exclusively in marine law
8-3 enforcement activities under the direction of the department. An
8-4 exempted vehicle may be privately owned and operated by a volunteer
8-5 if it is used only for marine law enforcement activities.
8-6 SECTION 7. (a) This Act takes effect September 1, 1993, and
8-7 applies only to vehicle registrations and sales of gasoline, diesel
8-8 fuel, and liquefied petroleum gas made on or after that date.
8-9 (b) If a commercial transportation company has purchased
8-10 gasoline, diesel fuel, or liquefied petroleum gas in bulk
8-11 quantities before the effective date of this Act, paid the amount
8-12 of the tax imposed by Chapter 153, Tax Code, and used the gasoline,
8-13 diesel fuel, or liquefied petroleum gas to provide school
8-14 transportation services to a school district after the effective
8-15 date of this Act, the company may apply for a refund for the amount
8-16 of the taxes paid only on the fuel so used after the effective date
8-17 of this Act, subject to the same allowances, deductions, and filing
8-18 fees applicable to refunds made for sales made after the effective
8-19 date of this Act.
8-20 (c) A refund of the amount of tax paid on liquefied
8-21 petroleum gas through the purchase of a liquefied gas tax decal
8-22 shall be calculated according to the method determined by the
8-23 comptroller of public accounts that fairly and equitably allocates
8-24 fuel use during the period of validity of the decal between use
8-25 before the effective date of this Act and after the effective date
8-26 of this Act.
8-27 SECTION 8. The importance of this legislation and the
9-1 crowded condition of the calendars in both houses create an
9-2 emergency and an imperative public necessity that the
9-3 constitutional rule requiring bills to be read on three several
9-4 days in each house be suspended, and this rule is hereby suspended.