1-1     By:  Brown                                            S.B. No. 1183

 1-2           (In the Senate - Filed March 11, 1997; March 17, 1997, read

 1-3     first time and referred to Committee on Finance; April 28, 1997,

 1-4     reported adversely, with favorable Committee Substitute by the

 1-5     following vote:  Yeas 13, Nays 0; April 28, 1997, sent to printer.)

 1-6     COMMITTEE SUBSTITUTE FOR S.B. No. 1183                   By:  Brown

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to refunds and credits of motor fuels taxes.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 111.107, Tax Code, is amended to read as

1-12     follows:

1-13           Sec. 111.107.  When Refund or Credit is Permitted.  Except as

1-14     otherwise expressly provided, a person may request a refund or a

1-15     credit or the comptroller may make a refund or issue a credit for

1-16     the overpayment of a tax imposed by this title at any time before

1-17     the expiration of the period during which the comptroller may

1-18     assess a deficiency for the tax and not thereafter unless the

1-19     refund or credit is requested:

1-20                 (1)  under Subchapter B of Chapter 112  and the refund

1-21     is made or the credit is issued under a court order;

1-22                 (2)  under the provision of Section 111.104(c)(3)

1-23     applicable to a refund claim filed after a jeopardy or deficiency

1-24     determination becomes final;

1-25                 (3)  under Chapter 153, except Section 153.1195(e),

1-26     153.121(d), 153.2225(e), or 153.224(d); or

1-27                 (4)  under Section 151.318(g) or (n).

1-28           SECTION 2.  Subsection (e), Section 153.119, Tax Code, is

1-29     amended to read as follows:

1-30           (e)  A person who exports or loses by fire or other accident

1-31     100 or more gallons of gasoline on which the tax has been paid, or

1-32     sells gasoline in any quantity to the United States government for

1-33     the exclusive use of that government on which the tax has been

1-34     paid, may file a claim for a refund of the net tax paid to the

1-35     state in the manner provided by this chapter or as the comptroller

1-36     may direct.  [A permitted distributor who establishes proof

1-37     satisfactory to the comptroller of export, loss by accident, or

1-38     sale to the United States, may take a credit for the net amount of

1-39     the tax paid to the state on any subsequent monthly report and tax

1-40     payment made to the comptroller within one year after the date of

1-41     the exportation, loss, or sale.]

1-42           SECTION 3.  Section 153.1195, Tax Code, is amended by adding

1-43     Subsection (e) to read as follows:

1-44           (e)  A credit under this section must be taken before the

1-45     expiration of the applicable limitation period as provided by

1-46     Chapter 111.

1-47           SECTION 4.  Section 153.121, Tax Code, is amended by adding

1-48     Subsection (d) to read as follows:

1-49           (d)  A permitted distributor that determines taxes were

1-50     erroneously reported and remitted or that paid more taxes than were

1-51     due this state because of a mistake of fact or law may take a

1-52     credit on the monthly tax report on which the error has occurred

1-53     and tax payment made to the comptroller.  The credit must be taken

1-54     before the expiration of the applicable period of limitation as

1-55     provided by Chapter 111.

1-56           SECTION 5.  Section 153.2225, Tax Code, is amended by adding

1-57     Subsection (e) to read as follows:

1-58           (e)  A credit under this section must be taken before the

1-59     expiration of the applicable limitation period as provided by

1-60     Chapter 111.

1-61           SECTION 6.  Section 153.224, Tax Code, is amended by adding

1-62     Subsection (d) to read as follows:

1-63           (d)  A permitted supplier or bonded user that determines

1-64     taxes were erroneously reported or that paid more taxes than were

 2-1     due this state because of a mistake of fact or law may take a

 2-2     credit on the supplier or bonded user tax report on which the error

 2-3     has occurred and tax payment made to the comptroller. The credit

 2-4     must be taken before the expiration of the applicable period of

 2-5     limitation as provided by Chapter 111.

 2-6           SECTION 7.  This Act takes effect October 1, 1997.

 2-7           SECTION 8.  The importance of this legislation and the

 2-8     crowded condition of the calendars in both houses create an

 2-9     emergency and an imperative public necessity that the

2-10     constitutional rule requiring bills to be read on three several

2-11     days in each house be suspended, and this rule is hereby suspended.

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