By Brown                                        S.B. No. 1183

      75R8425 T                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the period of time in which a person has to apply for a

 1-3     tax refund or credit.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 111.107, Tax Code, is amended to read as

 1-6     follows:

 1-7           Except as otherwise expressly provided, a person may request

 1-8     a refund or a credit or the comptroller may make a refund or issue

 1-9     a credit for the overpayment of a tax imposed by this title at any

1-10     time before the expiration of the period during which the

1-11     comptroller may assess a deficiency for the tax and not thereafter

1-12     unless the refund or credit is requested:

1-13                 (1)  under Subchapter B of Chapter 112 and the refund

1-14     is made or the credit is issued under a court order;

1-15                 (2)  under the provision of Section 111.104(c)(3)

1-16     applicable to a refund claim filed after a jeopardy or deficiency

1-17     determination becomes final;

1-18                 (3)  under Chapter 153, except as provided in Sections

1-19     153.121(d), 153.224(d), 153.1195(e), and 153.2225(e) of this code;

1-20     or

1-21                 (4)  under Section 151.318(g) or (n).

1-22           SECTION 2.  Section 153.119(e), Tax Code, is amended to read

1-23     as follows:

1-24           (e)  A person who exports or loses by fire or other accident

 2-1     100 or more gallons of gasoline on which the tax has been paid, or

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

 2-3     the exclusive use of that government on which the tax has been

 2-4     paid, may file a claim for a refund of the net tax paid to the

 2-5     state in the manner provided by this chapter or as the comptroller

 2-6     may direct.  [A permitted distributor who establishes proof

 2-7     satisfactory to the comptroller of export, loss by accident, or

 2-8     sale to the United States, may take a credit for the net amount of

 2-9     the tax paid to the state on any subsequent monthly report and tax

2-10     payment made to the comptroller within one year after the date of

2-11     the exportation, loss, or sale.]

2-12           SECTION 3.  Section 153.1195, Tax Code, is amended by adding

2-13     subsection (e), to read as follows:

2-14           (e)  A credit under this section must be taken before the

2-15     expiration of the applicable limitation period as provided by

2-16     Chapter 111 of this Code.

2-17           SECTION 4.  Section 153.121, Tax Code, is amended by adding

2-18     subsection (d), to read as follows:

2-19           (d)  A permitted distributor that determines taxes were

2-20     erroneously reported and remitted or paid more taxes than were due

2-21     this State because of a mistake of fact or law may take a credit on

2-22     the monthly tax report on which the error has occurred and tax

2-23     payment made to the comptroller.  The credit must be taken before

2-24     the expiration of the applicable period of limitation as provided

2-25     by Chapter 111 of this Code.

2-26           SECTION 5.  Section 153.203, Tax Code, is amended to read as

2-27     follows:

 3-1           The tax imposed by this subchapter does not apply to:

 3-2                 (1)  diesel fuel delivered by a permitted supplier to a

 3-3     common or contract carrier, oceangoing vessel (including ship,

 3-4     tanker, or boat), or barge for export from this state, if the

 3-5     diesel fuel is moved forthwith outside this state;

 3-6                 (2)  diesel fuel sold by a permitted supplier to the

 3-7     federal government for its exclusive use;

 3-8                 (3)  diesel fuel sold or delivered by a permitted

 3-9     supplier to another permitted supplier or bonded user, to the bulk

3-10     storage facility of a diesel tax prepaid user, or to a purchaser

3-11     who provides a signed statement as provided by Section 153.205 of

3-12     this code, but not including a delivery of tax-free diesel fuel

3-13     into the fuel supply tanks of a motor vehicle, except for a motor

3-14     vehicle owned by the federal government or a motor vehicle owned by

3-15     a diesel tax prepaid user if the fuel is delivered into the prepaid

3-16     user's vehicle as provided in subsection (10) of this section;

3-17                 (4)  diesel fuel sold or delivered by a permitted

3-18     supplier into the storage facility of a permitted aviation fuel

3-19     dealer, from which diesel fuel will be sold or delivered solely

3-20     into the fuel supply tanks of aircraft or aircraft servicing

3-21     equipment;

3-22                 (5)  diesel fuel sold or delivered by a permitted

3-23     supplier into fuel supply tanks of railway engines, motorboats, or

3-24     refrigeration units or other stationary equipment powered by a

3-25     separate motor from a separate fuel supply tank;

3-26                 (6)  kerosene when delivered by a permitted supplier

3-27     into a storage facility at a retail business from which all

 4-1     deliveries are exclusively for heating, cooking, lighting, or

 4-2     similar nonhighway use;

 4-3                 (7)  diesel fuel sold or delivered by one aviation fuel

 4-4     dealer to another aviation fuel dealer who will deliver the diesel

 4-5     fuel exclusively into the supply tanks of aircraft or aircraft

 4-6     servicing equipment;

 4-7                 (8)  diesel fuel sold by a permitted supplier to a

 4-8     public school district in this state for its exclusive use; [or]

 4-9                 (9)  diesel fuel sold by a permitted supplier to a

4-10     commercial transportation company that provides public school

4-11     transportation services to a school district under Section 21.181,

4-12     Education Code, and used by the company exclusively to provide

4-13     those services; or

4-14                 (10)  diesel fuel sold by a permitted supplier from a

4-15     storage location owned by the permitted supplier where there is no

4-16     seller or agent present when the delivery is made into the fuel

4-17     supply tanks of a motor vehicle owned by a person who holds a valid

4-18     diesel tax prepaid user permit for the vehicle into which the

4-19     delivery is made.

4-20           SECTION 6.  Section 153.210(a), Tax Code, is amended to read

4-21     as follows:

4-22           (a)  A diesel tax prepaid user permit authorizes a person

4-23     whose use of diesel fuel is predominantly for nonhighway use, but

4-24     who owns or operates one or more passenger cars or light trucks

4-25     only in the weight class shown in this section to elect to prepay

4-26     an annual tax on the fuel delivered from his own tax-free storage

4-27     or delivered into his motor vehicle as authorized in Section

 5-1     153.210(10) rather than obtain a bonded user permit.  If he elects

 5-2     to obtain a diesel tax prepaid user permit, he must prepay the tax

 5-3     at the rate prescribed for each motor vehicle based on the class of

 5-4     registered gross weight.  A person whose purchases of diesel fuel

 5-5     are predominantly for highway use does not qualify for a diesel tax

 5-6     prepaid user permit.

 5-7           SECTION 7.  Section 153.2225, Tax Code, is amended by adding

 5-8     subsection (e), to read as follows:

 5-9           (e)  A credit under this section must be taken before the

5-10     expiration of the applicable limitation period as provided by

5-11     Chapter 111 of this code.

5-12           SECTION 8.  Section 153.224, Tax Code, is amended by adding

5-13     subsection (d), to read as follows:

5-14           (d)  A permitted supplier or bonded user that determines

5-15     taxes were erroneously reported or paid more taxes than were due

5-16     this state because of a mistake of fact or law may take a credit on

5-17     the supplier or bonded user tax report on which the error has

5-18     occurred and tax payment made to the comptroller.   The credit must

5-19     be taken before the expiration of the applicable period of

5-20     limitation as provided by Chapter 111 of this code.

5-21           SECTION 9.  This Act takes effect October 1, 1997.

5-22           SECTION 10.  The importance of this legislation and the

5-23     crowded condition of the calendars in both houses create an

5-24     emergency and an imperative public necessity that the

5-25     constitutional rule requiring bills to be read on three several

5-26     days in each house be suspended, and this rule is hereby suspended.