By:  Brown                                            S.B. No. 1183

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to refunds and credits of motor fuels taxes.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Section 111.107, Tax Code, is amended to read as

 1-4     follows:

 1-5           Sec. 111.107.  When Refund or Credit is Permitted.  Except as

 1-6     otherwise expressly provided, a person may request a refund or a

 1-7     credit or the comptroller may make a refund or issue a credit for

 1-8     the overpayment of a tax imposed by this title at any time before

 1-9     the expiration of the period during which the comptroller may

1-10     assess a deficiency for the tax and not thereafter unless the

1-11     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 Section 153.1195(e),

1-18     153.121(d), 153.2225(e), or 153.224(d); or

1-19                 (4)  under Section 151.318(g) or (n).

1-20           SECTION 2.  Subsection (e), Section 153.119, Tax Code, is

1-21     amended to read as follows:

1-22           (e)  A person who exports or loses by fire or other accident

1-23     100 or more gallons of gasoline on which the tax has been paid, or

 2-1     sells gasoline in any quantity to the United States government for

 2-2     the exclusive use of that government on which the tax has been

 2-3     paid, may file a claim for a refund of the net tax paid to the

 2-4     state in the manner provided by this chapter or as the comptroller

 2-5     may direct.  [A permitted distributor who establishes proof

 2-6     satisfactory to the comptroller of export, loss by accident, or

 2-7     sale to the United States, may take a credit for the net amount of

 2-8     the tax paid to the state on any subsequent monthly report and tax

 2-9     payment made to the comptroller within one year after the date of

2-10     the exportation, loss, or sale.]

2-11           SECTION 3.  Section 153.1195, Tax Code, is amended by adding

2-12     Subsection (e) to read as follows:

2-13           (e)  A credit under this section must be taken before the

2-14     expiration of the applicable limitation period as provided by

2-15     Chapter 111.

2-16           SECTION 4.  Section 153.121, Tax Code, is amended by adding

2-17     Subsection (d) to read as follows:

2-18           (d)  A permitted distributor that determines taxes were

2-19     erroneously reported and remitted or that paid more taxes than were

2-20     due this state because of a mistake of fact or law may take a

2-21     credit on the monthly tax report on which the error has occurred

2-22     and tax payment made to the comptroller.  The credit must be taken

2-23     before the expiration of the applicable period of limitation as

2-24     provided by Chapter 111.

2-25           SECTION 5.  Section 153.2225, Tax Code, is amended by adding

 3-1     Subsection (e) to read as follows:

 3-2           (e)  A credit under this section must be taken before the

 3-3     expiration of the applicable limitation period as provided by

 3-4     Chapter 111.

 3-5           SECTION 6.  Section 153.224, Tax Code, is amended by adding

 3-6     Subsection (d) to read as follows:

 3-7           (d)  A permitted supplier or bonded user that determines

 3-8     taxes were erroneously reported or that paid more taxes than were

 3-9     due this state because of a mistake of fact or law may take a

3-10     credit on the supplier or bonded user tax report on which the error

3-11     has occurred and tax payment made to the comptroller.  The credit

3-12     must be taken before the expiration of the applicable period of

3-13     limitation as provided by Chapter 111.

3-14           SECTION 7.  This Act takes effect October 1, 1997.

3-15           SECTION 8.  The importance of this legislation and the

3-16     crowded condition of the calendars in both houses create an

3-17     emergency and an imperative public necessity that the

3-18     constitutional rule requiring bills to be read on three several

3-19     days in each house be suspended, and this rule is hereby suspended.