1-1 By: Craddick (Senate Sponsor - Haley) H.B. No. 1702
1-2 (In the Senate - Received from the House April 13, 1993;
1-3 April 14, 1993, read first time and referred to Committee on
1-4 Finance; May 10, 1993, reported favorably by the following vote:
1-5 Yeas 13, Nays 0; May 10, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to an exemption from motor fuel taxes and vehicle
1-24 registration fees for certain providers of school transportation
1-25 services.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. Section 153.104, Tax Code, is amended to read as
1-28 follows:
1-29 Sec. 153.104. Exceptions. The tax imposed by this
1-30 subchapter does not apply to gasoline:
1-31 (1) brought into this state in the fuel tank of a
1-32 vehicle with a capacity of less than 60 gallons when the tank is
1-33 connected to the carburetor or fuel injection system of the power
1-34 plant providing the propulsion of the vehicle;
1-35 (2) delivered by a permitted distributor to a common
1-36 or contract carrier, oceangoing vessel (including ship, tanker, or
1-37 boat), or a barge for export from this state if the gasoline is
1-38 moved forthwith outside the state;
1-39 (3) sold by a permitted distributor to another
1-40 permitted distributor;
1-41 (4) sold to the federal government for its exclusive
1-42 use;
1-43 (5) delivered by a permitted distributor into a
1-44 storage facility of a permitted aviation fuel dealer from which
1-45 gasoline will be delivered solely into the fuel supply tanks of
1-46 aircraft or aircraft servicing equipment;
1-47 (6) sold by one aviation fuel dealer to another
1-48 aviation fuel dealer who will deliver the aviation fuel exclusively
1-49 into the fuel supply tanks of aircraft or aircraft servicing
1-50 equipment; <or>
1-51 (7) sold to a public school district in this state for
1-52 its exclusive use; or
1-53 (8) sold to a commercial transportation company that
1-54 provides public school transportation services to a school district
1-55 under Section 21.181, Education Code, and used by the company
1-56 exclusively to provide those services.
1-57 SECTION 2. Section 153.119(a), Tax Code, is amended to read
1-58 as follows:
1-59 (a) A person who exports, sells to the federal government,
1-60 to <or> a public school district in this state, or to a commercial
1-61 transportation company for exclusive use in providing public school
1-62 transportation services to a school district under Section 21.181,
1-63 Education Code, without having added the amount of the tax imposed
1-64 by this chapter to his selling price, loses by fire or other
1-65 accident, or uses gasoline for the purpose of operating or
1-66 propelling a motorboat, tractor used for agricultural purposes, or
1-67 stationary engine, or for another purpose except in a vehicle
1-68 operated or intended to be operated on the public highways of this
2-1 state, and who has paid the tax imposed on gasoline by this chapter
2-2 either directly or indirectly is, when the person has complied with
2-3 the invoice and filing provisions of this section and the rules of
2-4 the comptroller, entitled to reimbursement of the tax paid by him,
2-5 less a filing fee and any amount allowed distributors, wholesalers
2-6 or jobbers, dealers, or others under Section 153.105(c) of this
2-7 code. A public school district that has paid the tax imposed under
2-8 this chapter on gasoline used by the district or a commercial
2-9 transportation company that has paid the tax imposed under this
2-10 chapter on gasoline used by the company exclusively to provide
2-11 public school transportation services to a school district under
2-12 Section 21.181, Education Code, is entitled to reimbursement of the
2-13 amount of the tax paid in the same manner and subject to the same
2-14 procedures as other exempted users.
2-15 SECTION 3. Section 153.203, Tax Code, is amended to read as
2-16 follows:
2-17 Sec. 153.203. Exceptions. The tax imposed by this
2-18 subchapter does not apply to:
2-19 (1) diesel fuel delivered by a permitted supplier to a
2-20 common or contract carrier, oceangoing vessel (including ship,
2-21 tanker, or boat), or barge for export from this state, if the
2-22 diesel fuel is moved forthwith outside this state;
2-23 (2) diesel fuel sold by a permitted supplier to the
2-24 federal government for its exclusive use;
2-25 (3) diesel fuel sold or delivered by a permitted
2-26 supplier to another permitted supplier or bonded user, to the bulk
2-27 storage facility of a diesel tax prepaid user, or to a purchaser
2-28 who provides a signed statement as provided by Section 153.205 of
2-29 this code, but not including a delivery of tax-free diesel fuel
2-30 into the fuel supply tanks of a motor vehicle, except for a motor
2-31 vehicle owned by the federal government;
2-32 (4) diesel fuel sold or delivered by a permitted
2-33 supplier into the storage facility of a permitted aviation fuel
2-34 dealer, from which diesel fuel will be sold or delivered solely
2-35 into the fuel supply tanks of aircraft or aircraft servicing
2-36 equipment;
2-37 (5) diesel fuel sold or delivered by a permitted
2-38 supplier into fuel supply tanks of railway engines, motorboats, or
2-39 refrigeration units or other stationary equipment powered by a
2-40 separate motor from a separate fuel supply tank;
2-41 (6) kerosene when delivered by a permitted supplier
2-42 into a storage facility at a retail business from which all
2-43 deliveries are exclusively for heating, cooking, lighting, or
2-44 similar nonhighway use;
2-45 (7) diesel fuel sold or delivered by one aviation fuel
2-46 dealer to another aviation fuel dealer who will deliver the diesel
2-47 fuel exclusively into the supply tanks of aircraft or aircraft
2-48 servicing equipment; <or>
2-49 (8) diesel fuel sold by a permitted supplier to a
2-50 public school district in this state for its exclusive use; or
2-51 (9) diesel fuel sold by a permitted supplier to a
2-52 commercial transportation company that provides public school
2-53 transportation services to a school district under Section 21.181,
2-54 Education Code, and used by the company exclusively to provide
2-55 those services.
2-56 SECTION 4. Section 153.222(a), Tax Code, is amended to read
2-57 as follows:
2-58 (a) A dealer who has paid tax on diesel fuel that has been
2-59 used or sold for use by the dealer for any purpose other than
2-60 propelling a motor vehicle on the public highways of this state or
2-61 that has been sold to the United States or a public school district
2-62 in this state for the exclusive use of the purchaser, or to a
2-63 commercial transportation company for exclusive use in providing
2-64 public school transportation services to a school district under
2-65 Section 21.181, Education Code, without adding the amount of the
2-66 tax to his selling price, and a user who has paid tax on any diesel
2-67 fuel that has been used by him for a purpose other than propelling
2-68 a motor vehicle on the public highways, <or who> is a public school
2-69 district and has paid the tax on diesel fuel purchased for its
2-70 exclusive use, or is a commercial transportation company and has
3-1 paid the tax on diesel fuel used by the company exclusively to
3-2 provide public school transportation services to a school district
3-3 under Section 21.181, Education Code, may file a claim for a refund
3-4 of taxes paid, less the deduction allowed vendors and a filing fee.
3-5 SECTION 5. Section 153.3021, Tax Code, is amended to read as
3-6 follows:
3-7 Sec. 153.3021. SCHOOL DISTRICT TRANSPORTATION AND COUNTY
3-8 EXEMPTION. (a) The tax imposed by this subchapter does not apply
3-9 to the sale of liquefied petroleum gas to a public school district
3-10 or county in this state or to the use of liquefied petroleum gas by
3-11 a public school district or county in this state.
3-12 <(b)> A motor vehicle that uses liquefied petroleum gas and
3-13 that is operated by a public school district or county in this
3-14 state is not required to have a liquefied gas tax decal or a
3-15 special use liquefied gas tax decal.
3-16 (b) The tax imposed by this subchapter does not apply to the
3-17 sale of liquefied petroleum gas to a commercial transportation
3-18 company that uses the gas exclusively to provide public school
3-19 transportation services to a school district under Section 21.181,
3-20 Education Code, or to the use of liquefied petroleum gas by such a
3-21 company for that purpose. A motor vehicle that uses liquefied
3-22 petroleum gas and that is owned by a commercial transportation
3-23 company and used exclusively to provide public school
3-24 transportation services to a school district under Section 21.181,
3-25 Education Code, is not required to have a liquefied gas tax decal
3-26 or a special use liquefied gas tax decal.
3-27 SECTION 6. Section 3(c), Chapter 88, General Laws, Acts of
3-28 the 41st Legislature, 2nd Called Session, 1929 (Article 6675a-3,
3-29 Vernon's Texas Civil Statutes), is amended to read as follows:
3-30 (c) Owners of motor vehicles, trailers and semi-trailers
3-31 which are the property of and used exclusively in the service of
3-32 the United States Government, the State of Texas, or any county,
3-33 city or school district thereof, or which are the property of a
3-34 commercial transportation company and are used exclusively to
3-35 provide public school transportation services to a school district
3-36 under Section 21.181, Education Code, and its subsequent
3-37 amendments, shall apply annually to the Department as provided in
3-38 Section 3-aa of this Act to register all such vehicles, but shall
3-39 not be required to pay the registration fees herein prescribed,
3-40 provided that application is made at the time of registration by a
3-41 person who has the proper authority to certify that such vehicles
3-42 are the property of and used exclusively in the service of the
3-43 United States Government, the State of Texas, or a county, city or
3-44 school district thereof, or are the property of a commercial
3-45 transportation company and are used exclusively to provide public
3-46 school transportation services to a school district under Section
3-47 21.181, Education Code, and its subsequent amendments, as the case
3-48 may be. Owners of vehicles designed and used exclusively for fire
3-49 fighting shall apply to the Department as provided in Section 3-aa
3-50 of this Act to register all such vehicles, but shall not be
3-51 required to pay the registration fees herein prescribed, provided
3-52 that application is made at the time of registration by a person
3-53 who has the proper authority to certify that such vehicles are used
3-54 exclusively for fire fighting; and provided further, that such
3-55 person shall supply the Department with a reasonable description of
3-56 the vehicle and the fire fighting equipment mounted thereon. A
3-57 vehicle owned by a volunteer fire department and used exclusively
3-58 in the conduct of business of the department shall be registered
3-59 without the payment of an annual registration fee, if the
3-60 application for registration is accompanied by a statement that the
3-61 vehicle is owned by, and used exclusively in the conduct of
3-62 business of, the department and signed by a person with authority
3-63 to act for the department, and if the application is approved as
3-64 provided in Section 3-aa of this Act. An owner of a land vehicle
3-65 used exclusively in county marine law enforcement activities, which
3-66 may include rescue operations, shall apply to the Department as
3-67 provided in Section 3-aa of this Act to register the vehicle but is
3-68 exempt from paying a registration fee. The owner shall include
3-69 with the application for registration a statement signed by a
3-70 person with authority to act for a county sheriff's department that
4-1 states that the vehicle is used exclusively in marine law
4-2 enforcement activities under the direction of the department. An
4-3 exempted vehicle may be privately owned and operated by a volunteer
4-4 if it is used only for marine law enforcement activities.
4-5 SECTION 7. (a) This Act takes effect September 1, 1993, and
4-6 applies only to vehicle registrations and sales of gasoline, diesel
4-7 fuel, and liquefied petroleum gas made on or after that date.
4-8 (b) If a commercial transportation company has purchased
4-9 gasoline, diesel fuel, or liquefied petroleum gas in bulk
4-10 quantities before the effective date of this Act, paid the amount
4-11 of the tax imposed by Chapter 153, Tax Code, and used the gasoline,
4-12 diesel fuel, or liquefied petroleum gas to provide school
4-13 transportation services to a school district after the effective
4-14 date of this Act, the company may apply for a refund for the amount
4-15 of the taxes paid only on the fuel so used after the effective date
4-16 of this Act, subject to the same allowances, deductions, and filing
4-17 fees applicable to refunds made for sales made after the effective
4-18 date of this Act.
4-19 (c) A refund of the amount of tax paid on liquefied
4-20 petroleum gas through the purchase of a liquefied gas tax decal
4-21 shall be calculated according to the method determined by the
4-22 comptroller of public accounts that fairly and equitably allocates
4-23 fuel use during the period of validity of the decal between use
4-24 before the effective date of this Act and after the effective date
4-25 of this Act.
4-26 SECTION 8. The importance of this legislation and the
4-27 crowded condition of the calendars in both houses create an
4-28 emergency and an imperative public necessity that the
4-29 constitutional rule requiring bills to be read on three several
4-30 days in each house be suspended, and this rule is hereby suspended.
4-31 * * * * *
4-32 Austin,
4-33 Texas
4-34 May 10, 1993
4-35 Hon. Bob Bullock
4-36 President of the Senate
4-37 Sir:
4-38 We, your Committee on Finance to which was referred H.B. No. 1702,
4-39 have had the same under consideration, and I am instructed to
4-40 report it back to the Senate with the recommendation that it do
4-41 pass and be printed.
4-42 Montford,
4-43 Chairman
4-44 * * * * *
4-45 WITNESSES
4-46 FOR AGAINST ON
4-47 ___________________________________________________________________
4-48 Name: Olga Garza x
4-49 Representing: Texas Assn of School Boards
4-50 City: Austin
4-51 -------------------------------------------------------------------
4-52 Name: John R. Edney, Sr. Vice Pres. x
4-53 Representing: Dunham Transportation
4-54 City: Austin
4-55 -------------------------------------------------------------------
4-56 Name: Ed Howard x
4-57 Representing: Tx Assn of Suburban Schools
4-58 City: Austin
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