By: Haley S.B. No. 665
73R5438 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to an exemption from motor fuel taxes for certain
1-3 providers of school transportation services.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 153.104, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 153.104. Exceptions. The tax imposed by this
1-8 subchapter does not apply to gasoline:
1-9 (1) brought into this state in the fuel tank of a
1-10 vehicle with a capacity of less than 60 gallons when the tank is
1-11 connected to the carburetor or fuel injection system of the power
1-12 plant providing the propulsion of the vehicle;
1-13 (2) delivered by a permitted distributor to a common
1-14 or contract carrier, oceangoing vessel (including ship, tanker, or
1-15 boat), or a barge for export from this state if the gasoline is
1-16 moved forthwith outside the state;
1-17 (3) sold by a permitted distributor to another
1-18 permitted distributor;
1-19 (4) sold to the federal government for its exclusive
1-20 use;
1-21 (5) delivered by a permitted distributor into a
1-22 storage facility of a permitted aviation fuel dealer from which
1-23 gasoline will be delivered solely into the fuel supply tanks of
1-24 aircraft or aircraft servicing equipment;
2-1 (6) sold by one aviation fuel dealer to another
2-2 aviation fuel dealer who will deliver the aviation fuel exclusively
2-3 into the fuel supply tanks of aircraft or aircraft servicing
2-4 equipment; <or>
2-5 (7) sold to a public school district in this state for
2-6 its exclusive use; or
2-7 (8) sold to a commercial transportation company that
2-8 provides public school transportation services to a school district
2-9 under Section 21.181, Education Code, and used by the company
2-10 exclusively to provide those services.
2-11 SECTION 2. Section 153.119(a), Tax Code, is amended to read
2-12 as follows:
2-13 (a) A person who exports, sells to the federal government,
2-14 to <or> a public school district in this state, or to a commercial
2-15 transportation company for exclusive use in providing public school
2-16 transportation services to a school district under Section 21.181,
2-17 Education Code, without having added the amount of the tax imposed
2-18 by this chapter to his selling price, loses by fire or other
2-19 accident, or uses gasoline for the purpose of operating or
2-20 propelling a motorboat, tractor used for agricultural purposes, or
2-21 stationary engine, or for another purpose except in a vehicle
2-22 operated or intended to be operated on the public highways of this
2-23 state, and who has paid the tax imposed on gasoline by this chapter
2-24 either directly or indirectly is, when the person has complied with
2-25 the invoice and filing provisions of this section and the rules of
2-26 the comptroller, entitled to reimbursement of the tax paid by him,
2-27 less a filing fee and any amount allowed distributors, wholesalers
3-1 or jobbers, dealers, or others under Section 153.105(c) of this
3-2 code. A public school district that has paid the tax imposed under
3-3 this chapter on gasoline used by the district or a commercial
3-4 transportation company that has paid the tax imposed under this
3-5 chapter on gasoline used by the company exclusively to provide
3-6 public school transportation services to a school district under
3-7 Section 21.181, Education Code, is entitled to reimbursement of the
3-8 amount of the tax paid in the same manner and subject to the same
3-9 procedures as other exempted users.
3-10 SECTION 3. Section 153.203, Tax Code, is amended to read as
3-11 follows:
3-12 Sec. 153.203. Exceptions. The tax imposed by this
3-13 subchapter does not apply to:
3-14 (1) diesel fuel delivered by a permitted supplier to a
3-15 common or contract carrier, oceangoing vessel (including ship,
3-16 tanker, or boat), or barge for export from this state, if the
3-17 diesel fuel is moved forthwith outside this state;
3-18 (2) diesel fuel sold by a permitted supplier to the
3-19 federal government for its exclusive use;
3-20 (3) diesel fuel sold or delivered by a permitted
3-21 supplier to another permitted supplier or bonded user, to the bulk
3-22 storage facility of a diesel tax prepaid user, or to a purchaser
3-23 who provides a signed statement as provided by Section 153.205 of
3-24 this code, but not including a delivery of tax-free diesel fuel
3-25 into the fuel supply tanks of a motor vehicle, except for a motor
3-26 vehicle owned by the federal government;
3-27 (4) diesel fuel sold or delivered by a permitted
4-1 supplier into the storage facility of a permitted aviation fuel
4-2 dealer, from which diesel fuel will be sold or delivered solely
4-3 into the fuel supply tanks of aircraft or aircraft servicing
4-4 equipment;
4-5 (5) diesel fuel sold or delivered by a permitted
4-6 supplier into fuel supply tanks of railway engines, motorboats, or
4-7 refrigeration units or other stationary equipment powered by a
4-8 separate motor from a separate fuel supply tank;
4-9 (6) kerosene when delivered by a permitted supplier
4-10 into a storage facility at a retail business from which all
4-11 deliveries are exclusively for heating, cooking, lighting, or
4-12 similar nonhighway use;
4-13 (7) diesel fuel sold or delivered by one aviation fuel
4-14 dealer to another aviation fuel dealer who will deliver the diesel
4-15 fuel exclusively into the supply tanks of aircraft or aircraft
4-16 servicing equipment; <or>
4-17 (8) diesel fuel sold by a permitted supplier to a
4-18 public school district in this state for its exclusive use; or
4-19 (9) diesel fuel sold by a permitted supplier to a
4-20 commercial transportation company that provides public school
4-21 transportation services to a school district under Section 21.181,
4-22 Education Code, and used by the company exclusively to provide
4-23 those services.
4-24 SECTION 4. Section 153.222(a), Tax Code, is amended to read
4-25 as follows:
4-26 (a) A dealer who has paid tax on diesel fuel that has been
4-27 used or sold for use by the dealer for any purpose other than
5-1 propelling a motor vehicle on the public highways of this state or
5-2 that has been sold to the United States or a public school district
5-3 in this state for the exclusive use of the purchaser, or to a
5-4 commercial transportation company for exclusive use in providing
5-5 public school transportation services to a school district under
5-6 Section 21.181, Education Code, without adding the amount of the
5-7 tax to his selling price, and a user who has paid tax on any diesel
5-8 fuel that has been used by him for a purpose other than propelling
5-9 a motor vehicle on the public highways, <or who> is a public school
5-10 district and has paid the tax on diesel fuel purchased for its
5-11 exclusive use, or is a commercial transportation company and has
5-12 paid the tax on diesel fuel used by the company exclusively to
5-13 provide public school transportation services to a school district
5-14 under Section 21.181, Education Code, may file a claim for a refund
5-15 of taxes paid, less the deduction allowed vendors and a filing fee.
5-16 SECTION 5. Section 153.3021, Tax Code, is amended to read as
5-17 follows:
5-18 Sec. 153.3021. SCHOOL DISTRICT TRANSPORTATION AND COUNTY
5-19 EXEMPTION. (a) The tax imposed by this subchapter does not apply
5-20 to the sale of liquefied petroleum gas to a public school district
5-21 or county in this state or to the use of liquefied petroleum gas by
5-22 a public school district or county in this state.
5-23 <(b)> A motor vehicle that uses liquefied petroleum gas and
5-24 that is operated by a public school district or county in this
5-25 state is not required to have a liquefied gas tax decal or a
5-26 special use liquefied gas tax decal.
5-27 (b) The tax imposed by this subchapter does not apply to the
6-1 sale of liquefied petroleum gas to a commercial transportation
6-2 company that uses the gas exclusively to provide public school
6-3 transportation services to a school district under Section 21.181,
6-4 Education Code, or to the use of liquefied petroleum gas by such a
6-5 company for that purpose. A motor vehicle that uses liquefied
6-6 petroleum gas and that is owned by a commercial transportation
6-7 company and used exclusively to provide public school
6-8 transportation services to a school district under Section 21.181,
6-9 Education Code, is not required to have a liquefied gas tax decal
6-10 or a special use liquefied gas tax decal.
6-11 SECTION 6. This Act takes effect September 1, 1993, and
6-12 applies only to sales of gasoline, diesel fuel, and liquefied
6-13 petroleum gas made on or after that date; except that if a
6-14 commercial transportation company has purchased gasoline, diesel
6-15 fuel, or liquefied petroleum gas in bulk quantities before the
6-16 effective date of this Act, paid the amount of the tax imposed by
6-17 Chapter 153, Tax Code, and used the gasoline, diesel fuel, or
6-18 liquefied petroleum gas to provide school transportation services
6-19 to a school district after the effective date of this Act, the
6-20 company may apply for a refund for the amount of the taxes paid
6-21 only on the fuel so used after the effective date of this Act,
6-22 subject to the same allowances, deductions, and filing fees
6-23 applicable to refunds made for sales made after the effective date
6-24 of this Act. A refund of the amount of tax paid on liquefied
6-25 petroleum gas through the purchase of a liquefied gas tax decal
6-26 shall be calculated according to the method determined by the
6-27 comptroller of public accounts that fairly and equitably allocates
7-1 fuel use during the period of validity of the decal between use
7-2 before the effective date of this Act and after the effective date
7-3 of this Act.
7-4 SECTION 7. The importance of this legislation and the
7-5 crowded condition of the calendars in both houses create an
7-6 emergency and an imperative public necessity that the
7-7 constitutional rule requiring bills to be read on three several
7-8 days in each house be suspended, and this rule is hereby suspended.