By Ramsay H.B. No. 3502
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to refund, credits and exemptions from motor fuels taxes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 111.107, Tax Code, is amended to read as
1-5 follows:
1-6 Except as otherwise expressly provided, a person may request
1-7 a refund or a credit or the comptroller may make a refund or issue
1-8 a credit for the overpayment of a tax imposed by this title at any
1-9 time before the expiration of the period during which the
1-10 comptroller may assess a deficiency for the tax and not thereafter
1-11 unless the refund or credit is requested:
1-12 (1) under Subchapter B of Chapter 112 and the refund
1-13 is made or the credit is issued under a court order;
1-14 (2) under the provision of Section 111.104(c)(3)
1-15 applicable to a refund claim filed after a jeopardy or deficiency
1-16 determination becomes final;
1-17 (3) under Chapter 153, except as provided in Sections
1-18 153.121(d), 153.224(d), 153.1195(e), and 153.2225(e) of this code;
1-19 or
1-20 (4) under Section 151.318(g) or (n).
1-21 SECTION 2. Section 153.119(e), Tax Code, is amended to read
1-22 as follows:
2-1 (e) A person who exports or loses by fire or other accident
2-2 100 or more gallons of gasoline on which the tax has been paid, or
2-3 sells gasoline in any quantity to the United States government for
2-4 the exclusive use of that government on which the tax has been
2-5 paid, may file a claim for a refund of the net tax paid to the
2-6 state in the manner provided by this chapter or as the comptroller
2-7 may direct. [A permitted distributor who establishes proof
2-8 satisfactory to the comptroller of export, loss by accident, or
2-9 sale to the United States, may take a credit for the net amount of
2-10 the tax paid to the state on any subsequent monthly report and tax
2-11 payment made to the comptroller within one year after the date of
2-12 the exportation, loss, or sale.]
2-13 SECTION 3. Section 153.1195, Tax Code, is amended by adding
2-14 Subsection (e), to read as follows:
2-15 (e) A credit under this section must be taken before the
2-16 expiration of the applicable limitation period as provided by
2-17 Chapter 111 of this Code.
2-18 SECTION 4. Section 153.121, Tax Code, is amended by adding
2-19 Subsection (d), to read as follows:
2-20 (d) A permitted distributor that determines taxes were
2-21 erroneously reported and remitted or paid more taxes than were due
2-22 this state because of a mistake of fact or law may take a credit on
2-23 the monthly tax report on which the error has occurred and tax
2-24 payment made to the comptroller. The credit must be taken before
2-25 the expiration of the applicable period of limitation as provided
2-26 by Chapter 111 of this Code.
2-27 SECTION 5. Section 153.203, Tax Code, is amended to read as
3-1 follows:
3-2 The tax imposed by this subchapter does not apply to:
3-3 (1) diesel fuel delivered by a permitted supplier to a
3-4 common or contract carrier, oceangoing vessel (including ship,
3-5 tanker, or boat), or barge for export from this state, if the
3-6 diesel fuel is moved forthwith outside this state;
3-7 (2) diesel fuel sold by a permitted supplier to the
3-8 federal government for its exclusive use;
3-9 (3) diesel fuel sold or delivered by a permitted
3-10 supplier to another permitted supplier or bonded user, to the bulk
3-11 storage facility of a diesel tax prepaid user, or to a purchaser
3-12 who provides a signed statement as provided by Section 153.205 of
3-13 this code, but not including a delivery of tax-free diesel fuel
3-14 into the fuel supply tanks of a motor vehicle, except for a motor
3-15 vehicle owned by the federal government;
3-16 (4) diesel fuel sold or delivered by a permitted
3-17 supplier into the storage facility of a permitted aviation fuel
3-18 dealer, from which diesel fuel will be sold or delivered solely
3-19 into the fuel supply tanks of aircraft or aircraft servicing
3-20 equipment;
3-21 (5) diesel fuel sold or delivered by a permitted
3-22 supplier into fuel supply tanks of railway engines, motorboats, or
3-23 refrigeration units or other stationary equipment powered by a
3-24 separate motor from a separate fuel supply tank;
3-25 (6) kerosene when delivered by a permitted supplier
3-26 into a storage facility at a retail business from which all
3-27 deliveries are exclusively for heating, cooking, lighting, or
4-1 similar nonhighway use;
4-2 (7) diesel fuel sold or delivered by one aviation fuel
4-3 dealer to another aviation fuel dealer who will deliver the diesel
4-4 fuel exclusively into the supply tanks of aircraft or aircraft
4-5 servicing equipment;
4-6 (8) diesel fuel sold by a permitted supplier to a
4-7 public school district in this state for its exclusive use; or
4-8 (9) diesel fuel sold by a permitted supplier to a
4-9 commercial transportation company that provides public school
4-10 transportation services to a school district under Section 21.181,
4-11 Education Code, and used by the company exclusively to provide
4-12 those services.
4-13 SECTION 6. Section 153.210(a), Tax Code, is amended to read
4-14 as follows:
4-15 (a) A diesel tax prepaid user permit authorizes a person
4-16 whose use of diesel fuel is predominantly for nonhighway use, but
4-17 who owns or operates one or more passenger cars or light trucks
4-18 only in the weight class shown in this section to elect to prepay
4-19 an annual tax on the fuel delivered from his own tax-free storage.
4-20 If he elects to obtain a diesel tax prepaid user permit, he must
4-21 prepay the tax at the rate prescribed for each motor vehicle based
4-22 on the class of registered gross weight. A person whose purchases
4-23 of diesel fuel are predominantly for highway use does not qualify
4-24 for a diesel tax prepaid user permit.
4-25 SECTION 7. Section 153.2225, Tax Code, is amended by adding
4-26 Subsection (e), to read as follows:
4-27 (e) A credit under this section must be taken before the
5-1 expiration of the applicable limitation period as provided by
5-2 Chapter 111 of this code.
5-3 SECTION 8. Section 153.224, Tax Code, is amended by adding
5-4 Subsection (d), to read as follows:
5-5 (d) A permitted supplier or bonded user that determines
5-6 taxes were erroneously reported and remitted or paid more taxes
5-7 than were due the state because of mistake of fact or law may take
5-8 a credit on the supplier or bonded user tax report on which the
5-9 error has occurred and tax payment made to the comptroller. The
5-10 credit must be taken before the expiration of the applicable period
5-11 of limitation as provided by Chapter 111 of this code.
5-12 SECTION 9. This act takes effect October 1, 1997 and applies
5-13 to gasoline or diesel fuel purchased on or after that date.
5-14 Gasoline or diesel fuel purchased before that date is governed by
5-15 the law in effect on the date of purchase, and that law is
5-16 continued in effect for the collection of taxes due.
5-17 SECTION 10. The importance of this legislation and the
5-18 crowded condition of the calendars in both houses create an
5-19 emergency and an imperative public necessity that the
5-20 constitutional rule requiring bills to be read on three several
5-21 days in each house be suspended, and this rule is hereby suspended.