By Telford H.B. No. 3082
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 the collection of motor fuel tax; providing penalties.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 153.001, Tax Code is amended to read as
1-5 follows:
1-6 (19) "Motor fuel" includes gasoline, diesel fuel,
1-7 liquefied gas, and other products that are offered for sale, sold,
1-8 or used [usable] as propellants of a motor vehicle.
1-9 (28) "Export" means to deliver motor fuel to a point
1-10 outside this state. Motor fuel delivered outside this state by or
1-11 for the seller constitutes an export by the seller. Motor fuel
1-12 delivered outside this state by or for the purchaser constitutes an
1-13 export by the purchaser.
1-14 (29) "Import" means to deliver motor fuel to a point
1-15 inside this state from a point outside this state. Motor fuel
1-16 delivered into this state from outside this state by or for the
1-17 seller constitutes an import by the seller. Motor fuel delivered
1-18 into this state from outside this state by or for the purchaser
1-19 constitutes an import by the purchaser.
1-20 (30) "Bulk lot vehicle" means transport tank trucks,
1-21 and tank wagons with a capacity of at least 1,000 gallons.
2-1 (31) "Dyed diesel fuel" means any diesel fuel dyed
2-2 pursuant to regulations issued by the Internal Revenue Service or a
2-3 rule promulgated by the comptroller.
2-4 (33) "Undyed diesel fuel" means any diesel fuel that
2-5 has no detectable presence of dye.
2-6 (34) "Blended fuel" is a product produced by a
2-7 blending process other than a de minimis amount of a product such
2-8 as a carburetor detergent or oxidation inhibitor that can be used
2-9 as a fuel in a highway vehicle.
2-10 (35) "Blending" means to mix together one or more
2-11 products with other products to produce a resultant product offered
2-12 for use as a motor fuel, except such blending as may occur during
2-13 the refining process by the original refiner of crude petroleum.
2-14 The commingling of products during transportation in a pipeline is
2-15 not considered blending.
2-16 (36) "Shipping document" means a delivery document
2-17 issued by a terminal or bulk plant operator in conjunction with the
2-18 sale of motor fuel from a terminal or bulk plant.
2-19 SECTION 2. Section 153.010, Tax Code, is amended to read as
2-20 follows:
2-21 In order to enforce the provisions of this chapter, the
2-22 comptroller or a peace officer may stop a motor vehicle that
2-23 appears to be operating with or transporting motor fuel in order to
2-24 examine the shipping document, cargo manifest or invoices required
2-25 to be carried, examine a permit or copy of a permit that may be
3-1 required to be carried, take samples from the fuel supply or cargo
3-2 tanks, and make any other investigation that could reasonably be
3-3 made to determine whether the taxes have been paid or accounted for
3-4 by a distributor, supplier, dealer, user, jobber, or any person to
3-5 be so permitted. The comptroller, a peace officer, an employee of
3-6 the attorney general's office, an employee of the Texas Natural
3-7 Resource Conservation Commission, or an employee of the Department
3-8 of Agriculture may take samples of motor fuel from any storage tank
3-9 or container to determine whether the taxes have been paid or
3-10 accounted for.
3-11 SECTION 3. Section 153.403, Tax Code, is amended to read as
3-12 follows:
3-13 (19) transports motor fuel for which a cargo manifest
3-14 or shipping document is required to be carried without possessing
3-15 or exhibiting on demand by an officer authorized to make the demand
3-16 a cargo manifest or shipping document containing the information
3-17 required to be shown on the manifest;
3-18 (21) is a distributor, supplier, user, dealer,
3-19 interstate trucker, aviation fuel dealer, or other person required
3-20 to hold a permit under this chapter, or the agent or employee of
3-21 one of those persons and makes a false entry or fails to make an
3-22 entry in the books and records under this chapter to be made by the
3-23 person, or fails to retain a document as required under this
3-24 chapter;
3-25 (22) transports in any manner motor fuel under a false
4-1 cargo manifest or shipping document, or transports in any manner
4-2 motor fuel to any location and does not at the same time deliver at
4-3 that location a shipping document relating to that shipment;
4-4 (32) is a dealer who purchases any motor fuel tax free
4-5 when not authorized to make a tax-free purchase under this chapter,
4-6 or who accepts a delivery of motor fuel by any means and does not
4-7 at the same time accept or receive shipping documents relating to
4-8 that delivery;
4-9 (34) imports, sells, uses, distributes, or stores
4-10 motor fuel within this state upon which the taxes imposed by this
4-11 chapter are owed but have not been first paid to or reported by the
4-12 holder of a valid, un-revoked distributor's permit, supplier's
4-13 permit, jobber's permit, or aviation fuel dealer's permit.
4-14 (35) blends products together to produce a blended
4-15 product which expands the volume of the original product in order
4-16 to evade paying applicable motor fuel taxes.
4-17 (36) evades or attempts to evade in any manner a tax
4-18 imposed upon motor fuel by this chapter.
4-19 SECTION 4. Tax Code, Title 2, Subtitle E. Sales, Excise and
4-20 Use Taxes, Chapter 153. Motor Fuel Taxes, Subchapter A is amended
4-21 to read as follows:
4-22 Sec. 153.018. IMPORTATION AND EXPORTATION OF MOTOR FUEL.
4-23 (a) No person or business entity shall import motor fuel into this
4-24 state or export motor fuel from this state in a bulk lot vehicle to
4-25 a destination unless the person or business entity possesses a
5-1 shipping document created by a terminal or bulk plant where the
5-2 bulk lot vehicle received the fuel. The terminal or bulk plant
5-3 shall provide the shipping document to the operator of the bulk lot
5-4 vehicle and the document must contain all of the following:
5-5 (1) The name and physical address of the terminal or
5-6 bulk plant from which the motor fuel was received for import or
5-7 export;
5-8 (2) The name of the carrier transporting the motor
5-9 fuel;
5-10 (3) The date the motor fuel was loaded;
5-11 (4) The type of motor fuel and the number of gallons
5-12 in temperature adjusted gallons if purchased from a terminal for
5-13 export or import. If fuel is purchased from a bulk plant for
5-14 export or import the number of gallons exported or imported may be
5-15 expressed in gross gallons;
5-16 (5) If delivery is to only one state, the destination
5-17 of the motor fuel as represented by the purchaser of the motor fuel
5-18 and the number of gallons of the fuel to be delivered. If delivery
5-19 is to more than one state, the split loads delivered to each state
5-20 from the bulk lot vehicle shall be documented by the terminal by
5-21 issuing shipping documents that list the destination state of each
5-22 portion of the motor fuel;
5-23 (6) The name, federal employee identification number,
5-24 permit number, and physical address of the purchaser of the motor
5-25 fuel;
6-1 (7) The name of the person or business entity
6-2 responsible for the payment of motor fuel excise tax, as given to
6-3 the terminal by the purchaser if different from the permitted
6-4 supplier or distributor; and
6-5 (8) Any other information that, in the opinion of the
6-6 comptroller, is necessary for the proper administration of this
6-7 chapter.
6-8 (b) A terminal, a bulk plant, the carrier, the permitted
6-9 distributor or supplier, and the person that received the motor
6-10 fuel shall retain a copy of the shipping document for a period of
6-11 four years after the date of receipt of the fuel and shall provide
6-12 within 10 working days after receiving a request, a copy of the
6-13 document to the comptroller or any other law enforcement officer.
6-14 (c) While transporting motor fuel imported into this state
6-15 or exported from this state, each operator of a bulk lot vehicle
6-16 shall have in its possession the shipping document issued by the
6-17 terminal or bulk plant. The operator shall show the document to
6-18 the comptroller or a peace officer upon request. The comptroller
6-19 may delegate authority to inspect the document to other
6-20 governmental agencies. The operator shall provide a copy of the
6-21 shipping document to the person that receives the fuel when it is
6-22 delivered.
6-23 (d) The operator of the bulk lot vehicle shall deliver motor
6-24 fuel only to the destination state or states as indicated on the
6-25 shipping document.
7-1 (e) Each terminal shall post a notice describing the duties
7-2 of operators of bulk lot vehicles under this section. The notice
7-3 shall be posted in a conspicuous location proximate to the point of
7-4 receipt of shipping papers by operators of bulk lot vehicles. The
7-5 comptroller may prescribe the language, type, style, and format of
7-6 the notice.
7-7 (f)(1) Any operator of a bulk lot vehicle that violates any
7-8 requirement of this section is subject to a penalty of two thousand
7-9 dollars or five times the amount of the unpaid tax, whichever is
7-10 greater, for each violation.
7-11 (2) Any person or business entity receiving motor fuel
7-12 who accepts a shipping document that does not conform with
7-13 subsection (a) of this section is subject to a penalty of two
7-14 thousand dollars or five times the amount of the unpaid tax,
7-15 whichever is greater, for each occurrence.
7-16 (3) Any person or business entity operating a bulk
7-17 plant or terminal who issues a shipping document that does not
7-18 conform with subsection (a) of this section is subject to a
7-19 penalty of two thousand dollars or five times the amount of the
7-20 unpaid tax, whichever is greater, for each occurrence.
7-21 (4) Any person operating a terminal or bulk plant who
7-22 does not post notice as required under subsection (f) of this
7-23 section is subject to a penalty of one hundred dollars for each day
7-24 the notice is not posted as required by that division.
7-25 SECTION 5. Section 153.006, Tax Code, is amended by adding a
8-1 new subsection (e) to read as follows:
8-2 (e) The comptroller may revoke a distributor or supplier
8-3 permit in the following circumstances:
8-4 (1) A distributor or supplier purchases, for export,
8-5 motor fuel in this state exclusive of the motor fuel tax, and
8-6 subsequently diverts or causes the motor fuel to be diverted to a
8-7 destination in this state or any other state other than the
8-8 originally designated state.
8-9 SECTION 6. Section 153.117 (a), Tax Code is amended to read
8-10 as follows:
8-11 (a) A distributor shall keep a record showing the number of
8-12 gallons of:
8-13 (1) all gasoline inventories on hand at the first of
8-14 each month;
8-15 (2) all gasoline refined, compounded, or blended;
8-16 (3) all gasoline purchased or received, showing the
8-17 name of the seller and date of each purchase or receipt;
8-18 (4) all gasoline sold, distributed, or used, showing
8-19 the name of the purchaser and the date of the sale or use; [and]
8-20 (5) all gasoline lost by fire or accident;
8-21 (6) an itemized statement showing by load the number
8-22 of gallons of all gasoline received during the preceding calendar
8-23 month for export, the location of the loading, and the destination
8-24 of each load;
8-25 (7) an itemized statement showing by load the number
9-1 of gallons of all gasoline exported from the state; and
9-2 (8) an itemized statement showing by load the number
9-3 of gallons of all gasoline imported during the preceding calendar
9-4 month;
9-5 SECTION 7. Section 153.219 (a), Tax Code, is amended to read
9-6 as follows:
9-7 (a) A supplier shall keep a record showing the number of
9-8 gallons of:
9-9 (1) all diesel fuel inventories on hand at the first
9-10 of each month;
9-11 (2) all diesel fuel refined, compounded, or blended;
9-12 (3) all diesel fuel purchased or received, showing the
9-13 name of the seller and the date of each purchase or receipt;
9-14 (4) all diesel fuel sold, distributed, or used for
9-15 which tax was paid, showing the name of each [the] purchaser and
9-16 the date of the sale or use; [and]
9-17 (5) all diesel fuel lost by fire or accident;
9-18 (6) an itemized statement showing by load the number
9-19 of gallons of all diesel fuel received during the preceding
9-20 calendar month for export;
9-21 (7) an itemized statement showing by load the number
9-22 of gallons of all diesel fuel exported from the state;
9-23 (8) an itemized statement showing by load the number
9-24 of gallons of all diesel fuel imported during the preceding
9-25 calendar month;
10-1 (9) an itemized statement showing by purchaser,
10-2 end-user number, or agricultural user exemption number, the number
10-3 of gallons of dyed and undyed diesel fuel sold tax-free to a
10-4 purchaser utilizing a signed statement in accordance with Section
10-5 153.205, Tax Code. The statement shall differentiate between dyed
10-6 and undyed fuel.
10-7 (10) an itemized statement showing by purchaser, end
10-8 user number, or agricultural user exemption number the number of
10-9 gallons of dyed diesel fuel sold tax free to bonded purchasers.
10-10 SECTION 8. Section 153.112 (a), Tax Code, is amended to read
10-11 as follows:
10-12 (a) A distributor's permit is permanent and is valid so long
10-13 as the permittee has in force and effect the required bond or
10-14 security and furnishes timely reports and supplements as required,
10-15 or until the permit is surrendered by the holder or canceled by the
10-16 comptroller. The comptroller shall [may] cancel a distributor's
10-17 permit if no purchase, sale, or use of gasoline has been reported
10-18 by the distributor for the prior 9 [12] months.
10-19 SECTION 9. Section 153.118, Tax Code, is amended to read as
10-20 follows:
10-21 (a) On or before the 25th day of each month, a distributor
10-22 or other person liable to the state for payment of tax under
10-23 Section 153.105 (a) shall file all reports and supplements as
10-24 required by the comptroller, and remit the amount of tax required
10-25 to be collected during the preceding month. The report shall be
11-1 executed by the distributor, his representative, or any other
11-2 person required to report and shall be filed with the comptroller
11-3 in a manner or on a form provided or approved by the comptroller,
11-4 containing complete and detailed information not inconsistent with
11-5 the requirements of this chapter of gasoline transactions. A
11-6 distributor required to file a report under this section who has
11-7 not sold or used any gasoline during the reporting period shall
11-8 file with the comptroller the report setting forth the facts or
11-9 information. The failure of a distributor or other person to
11-10 obtain forms or software from the comptroller is no excuse for the
11-11 failure to file a report containing all the information required to
11-12 be reported.
11-13 SECTION 10. Section 153.215 (a), Tax Code, is amended to
11-14 read as follows:
11-15 (a) A supplier's permit, a [and] dyed diesel bonded user
11-16 permit, and an agricultural bonded user permit are [is] permanent
11-17 and [is] valid so long as the permittee has in force and effect the
11-18 required bond or security and furnished timely reports and
11-19 supplements as required, or until the permit is surrendered by the
11-20 holder or canceled by the comptroller. The comptroller shall [may]
11-21 cancel a supplier's permit if no purchase, sale, or use of diesel
11-22 fuel has been reported by the supplier for the prior 9 [12] months.
11-23 SECTION 11. Section 153.221 (a), Tax Code, is amended to
11-24 read as follows:
11-25 (a) On or before the 25th day of each month, a supplier or a
12-1 dealer required to collect tax under Section 153.206(b) of this
12-2 code or a user required to pay tax under Section 153.206(c) of this
12-3 code shall file a report of diesel fuel transactions or of diesel
12-4 fuel delivered by a user into the fuel tank of a motor vehicle
12-5 owned or operated by him and such supplements as the comptroller
12-6 may require and remit the amount of tax required to be collected or
12-7 to be paid during the preceding month. A report must be filed on a
12-8 form or in a manner provided by the comptroller and contain
12-9 information required by the comptroller, showing complete and
12-10 detailed information of diesel fuel transactions or use during the
12-11 preceding month. A supplier required to file a report under this
12-12 section who has not sold, used, or distributed any diesel fuel
12-13 during the reporting period shall file with the comptroller the
12-14 report setting forth the information. The failure of a supplier,
12-15 dealer, or user to obtain forms or software from the comptroller is
12-16 no excuse for the failure to file a report. The report must be
12-17 executed by the supplier, dealer, or user, or his representative
12-18 and is the subject of penalties provided in this chapter.
12-19 SECTION 12. Section 153.201 (a), Tax Code, is amended to
12-20 read as follows:
12-21 (a) A tax is imposed on the first sale of undyed diesel fuel
12-22 in this state.
12-23 SECTION 13. Section 153.203 (3), Tax Code, is amended and a
12-24 new subsection (10) is added to read as follows:
12-25 (3) undyed diesel fuel sold or delivered by a
13-1 permitted supplier to another permitted supplier or agricultural
13-2 bonded user, to the bulk storage facility of a diesel tax prepaid
13-3 user, or to a purchaser for an agricultural purpose [purchaser] who
13-4 provides a signed statement and end user number as provided by
13-5 Section 153.205 of this code, but not including a delivery of
13-6 tax-free diesel fuel into the fuel supply tanks of a motor vehicle,
13-7 except for a motor vehicle owned by the federal government;
13-8 (10) dyed diesel fuel;
13-9 SECTION 14. Section 153.205 (a), (b), (c), (d), (i), (j) Tax
13-10 Code, is amended and a new subsection (k) is added to read as
13-11 follows:
13-12 (a) The first sale or use of diesel fuel in this state is
13-13 taxable, except that [the] sales of dyed diesel fuel, or undyed
13-14 diesel fuel if the fuel will be used for an agricultural purpose,
13-15 may be made without collecting the tax if the purchaser furnishes
13-16 to a permitted supplier a signed statement, including an end user
13-17 number or agricultural user exemption number issued by the
13-18 comptroller's office, that stipulates that:
13-19 (1) the purchaser does not operate any diesel powered
13-20 motor vehicles on the public highway;
13-21 (2) all of the diesel fuel will be consumed by the
13-22 purchaser and no diesel fuel purchased on a signed statement will
13-23 be resold; and
13-24 (3) none of the diesel fuel purchased in this state
13-25 will be delivered or permitted by the purchaser to be delivered
14-1 into fuel supply tanks of motor vehicles.
14-2 (b) A person may not make a tax-free purchase of any diesel
14-3 fuel under this section using a signed statement:
14-4 (1) for the purchase of more than 3,000 gallons of
14-5 dyed or undyed diesel fuel in a single transaction; or (2) in a
14-6 calendar month in which the person has previously purchased more
14-7 than 10,000 gallons of dyed or undyed diesel fuel from all sources.
14-8 (c) The signed statement and end user number from the
14-9 purchaser relieves the permitted supplier from the burden of proof
14-10 that the sale of diesel fuel was not taxable to the purchaser and
14-11 remains in effect unless:
14-12 (1) the statement is revoked in writing by the
14-13 purchaser or supplier;
14-14 (2) the comptroller notifies the supplier in writing
14-15 that the purchaser may no longer make tax-free purchases; or
14-16 (3) the supplier is put on notice by making taxable
14-17 sales of diesel fuel to a purchaser who has previously submitted a
14-18 signed statement to this supplier.
14-19 (d) A taxable use of any part of the dyed or undyed diesel
14-20 fuel purchased under a signed statement shall, in addition to any
14-21 criminal penalty, forfeit the right of the person to purchase dyed
14-22 or undyed diesel fuel tax-free for a period of one year from the
14-23 date of the offense, and any tax, interest, and penalty found to be
14-24 due through false or erroneous execution or continuance of a
14-25 promissory statement by the purchaser, if assessed to the supplier,
15-1 is a debt of the purchaser to the supplier until paid, and is
15-2 recoverable at law in the same manner as the purchase price of the
15-3 fuel. The person may, however, claim a refund of the tax paid on
15-4 any undyed diesel fuel used for non-highway purposes under Section
15-5 153.222 of this code.
15-6 (i) A permitted supplier may not make a tax-free sale of
15-7 dyed fuel, or undyed diesel fuel for agricultural purposes, to a
15-8 purchaser using a signed statement;
15-9 (1) for the sale of more than 3,000 gallons of dyed or
15-10 undyed diesel fuel in a single transaction; or
15-11 (2) in a calendar month in which the supplier has
15-12 previously sold more than 10,000 gallons of dyed or undyed diesel
15-13 fuel to the purchaser.
15-14 (j)(1) A sale of dyed diesel, or undyed diesel fuel for
15-15 agricultural purposes, may be made without collecting tax from
15-16 [to] a purchaser who operates one or more motor vehicles on the
15-17 public highway and who furnishes to a permitted supplier a signed
15-18 statement and end user number only as provided in this subsection:
15-19 (2) The statement must stipulate that all the dyed or
15-20 undyed diesel fuel will be consumed by the purchaser for purposes
15-21 other than operating a motor vehicle on the public highway and that
15-22 no dyed or undyed diesel fuel purchased on a signed statement will
15-23 be resold or delivered into the fuel supply tanks of a motor
15-24 vehicle.
15-25 (k) Each person wishing to utilize a signed statement for
16-1 the purchase of dyed fuel, or undyed tax-free diesel fuel for
16-2 agricultural purposes shall apply to the comptroller for an
16-3 agricultural user exemption number to be used in conjunction with a
16-4 signed statement. No tax-free sales of any diesel fuel may be made
16-5 to a purchaser who does not have a valid end user number or
16-6 agricultural user exemption number issued by the comptroller's
16-7 office.
16-8 SECTION 15. Chapter 153, Tax Code, Subchapter C, is amended
16-9 by adding the following sections:
16-10 Sec. 153.226. NOTICE REGARDING DYED DIESEL FUEL. A notice
16-11 stating "DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE
16-12 USE" must be:
16-13 (1) provided by a permitted supplier to a person who
16-14 receives dyed diesel fuel;
16-15 (2) provided by a seller of dyed diesel fuel to its
16-16 buyer if the diesel fuel is located outside the bulk
16-17 transfer/terminal system and is not sold from a retail pump or bulk
16-18 plant posted in accordance with requirements of subsection (3); and
16-19 (3) posted by a seller on a retail pump or bulk plant
16-20 where it sells dyed diesel fuel for use by its buyers.
16-21 Sec. 153.227. DYED DIESEL FUEL NOTICE REQUIRED ON SHIPPING
16-22 DOCUMENTS, BILLS OF LADING, AND INVOICES. The form of notice
16-23 required by Section 153.226(1) and (2) must be provided at the time
16-24 of the removal or sale, and must appear on shipping documents,
16-25 bills of lading, cargo manifests, and invoices accompanying the
17-1 sale or removal of the dyed diesel fuel.
17-2 Sec. 153.228. UNAUTHORIZED SALE OR USE OF DYED DIESEL FUEL.
17-3 (a) No person may sell or hold for sale dyed diesel fuel for any
17-4 use that the person knows or has reason to know is a taxable use of
17-5 the diesel fuel.
17-6 (b) No person may use or hold for use dyed diesel fuel for a
17-7 use other than a non-taxable use if the person knew or had reason
17-8 to know that the diesel fuel was so dyed.
17-9 Sec. 153.229. ALTERATION OF DYE OR MARKER IN DYED DIESEL
17-10 FUEL PROHIBITED. No person, with the intent to evade payment of
17-11 tax, may alter or attempt to alter the strength or composition of a
17-12 dye or marker in dyed diesel fuel.
17-13 Sec. 153.330. USE OF DYED FUEL PROHIBITED. (a) No person
17-14 may operate a motor vehicle on a public highway in this state with
17-15 taxable motor fuel that contains dye in the fuel supply tank of the
17-16 motor vehicle.
17-17 (b) This section does not apply to:
17-18 (1) persons operating motor vehicles who have received
17-19 fuel into their fuel tanks outside of this state, in a jurisdiction
17-20 that licenses the introduction of dyed taxable motor fuel of that
17-21 color and type into the motor fuel tank of vehicles operated on
17-22 highways; or
17-23 (2) uses of dyed fuel that are lawful under the
17-24 Internal Revenue Code and implementing regulations including state
17-25 and local government vehicles and buses, unless otherwise
18-1 prohibited by this chapter.
18-2 (c) a person who violates this section is subject to a
18-3 criminal penalty.
18-4 SECTION 16. Section 153.209, Tax Code, is amended to read as
18-5 follows:
18-6 (a) A dyed diesel bonded user permit authorizes a user to
18-7 purchase dyed diesel fuel in excess of 10,000 gallons per month.
18-8 [whose purchases of diesel fuel are predominantly for nonhighway
18-9 use to purchase diesel fuel tax free from permitted suppliers and
18-10 to report and pay taxes to this state on that part of the diesel
18-11 fuel that is delivered into the fuel supply tank of motor vehicles
18-12 owned or operated by him.]
18-13 (b) An agricultural bonded user permit authorizes a user to
18-14 purchase undyed diesel fuel in excess of 10,000 gallons per month
18-15 for agricultural purposes only.
18-16 SECTION 17. Section 153.217 (a), Tax Code, is amended to
18-17 read as follows:
18-18 (a) The comptroller, on or before December 20 of each
18-19 calendar year, shall mail or distribute to each supplier a printed
18-20 alphabetical list of permitted suppliers, dyed diesel bonded users,
18-21 agricultural bonded users, aviation fuel dealers, and diesel fuel
18-22 jobbers. A permitted supplier, an agricultural bonded user, and an
18-23 aviation fuel dealer on the list are qualified to purchase dyed or
18-24 undyed diesel fuel tax free during the following calendar year. A
18-25 diesel fuel jobber on the list is qualified to purchase diesel fuel
19-1 tax-paid during the following calendar year. A supplemental list
19-2 of additions and deletions shall be delivered to each supplier each
19-3 month.
19-4 SECTION 18. Section 153.218, Subsections (a), (b), and (c),
19-5 Tax Code, is amended to read as follows:
19-6 (a) The comptroller shall determine the amount security
19-7 required of a supplier, dyed diesel bonded user, agricultural
19-8 bonded user, or diesel fuel jobber taking into consideration the
19-9 amount of the tax that has or is expected to become due from the
19-10 person, any past history of the person as a supplier, dyed diesel
19-11 bonded user, agricultural bonded user, or diesel fuel jobber and
19-12 the necessity to protect the state against the failure to pay the
19-13 tax as it becomes due.
19-14 (b) If it is determined that the posting of security is
19-15 necessary to protect the state, the comptroller may require a
19-16 supplier, [or] dyed diesel bonded user, or agricultural bonded user
19-17 to post a surety bond equal to two times the amount of tax that
19-18 could accrue on tax-free diesel fuel purchased or acquired during a
19-19 reporting period. A diesel fuel jobber shall post a bond in an
19-20 amount determined by the comptroller according to the past payment
19-21 history of the jobber. The minimum bond for a supplier or diesel
19-22 fuel jobber is $30,000 and the maximum bond is $600,000. The
19-23 minimum bond for a dyed diesel bonded user or agricultural bonded
19-24 user is $10,000 and the maximum bond is $600,000. However, if the
19-25 comptroller determines there is undue risk of loss of tax revenues,
20-1 the comptroller may require one or more bonds or securities in a
20-2 total amount exceeding $600,000.
20-3 (c) A supplier, dyed diesel bonded user, agricultural bonded
20-4 user or diesel fuel jobber who has filed a bond or other security
20-5 under this subchapter is exempted from the bond or other security
20-6 requirements of this subchapter and is entitled, on request, to
20-7 have the comptroller return, refund, or release the bond or
20-8 security if in the judgement of the comptroller the person has for
20-9 four consecutive years continuously complied with the conditions of
20-10 the bond or other security filed under this subchapter. However,
20-11 if the comptroller determines that the bond or other security filed
20-12 under this subchapter would be jeopardized by the return, refund,
20-13 or release of the bond or security, the comptroller may elect not
20-14 to return, refund, or release the bond or security, and may
20-15 reimpose a requirement of a bond or other security as the
20-16 comptroller determines is necessary to protect the revenues of the
20-17 state.
20-18 SECTION 21. Section 153.223 (a), Tax Code, is amended to
20-19 read as follows:
20-20 (a) A refund claim must be filed with the comptroller on
20-21 forms provided by the comptroller and show the date of filing, the
20-22 period covered in the claim, the number of gallons of diesel fuel
20-23 subject to refund, and other information required by the
20-24 comptroller. A claim must be supported by one or more original
20-25 invoices issued to or by the claimant, or such information as the
21-1 comptroller deems necessary. Permitted distributors are prohibited
21-2 from filing claims for refunds of taxes paid by purchasers of
21-3 undyed diesel fuel.
21-4 SECTION 22. Section 153.224 (a), Tax Code, is amended to
21-5 read as follows:
21-6 (a) Except as provided by this section, a claim for a refund
21-7 must be filed with the comptroller within one year after the first
21-8 day of the calendar month following the purchase, use, delivery,
21-9 export, or loss by fire or other accident of diesel fuel, whichever
21-10 period expires latest. Claims for refunds may be submitted to the
21-11 comptroller's office once a quarter or when the amount of potential
21-12 refund claim equals at least $200.
21-13 SECTION 23. This Act takes effect September 1, 1999.
21-14 SECTION 24. The importance of this legislation and the
21-15 crowded condition of the calendars in both houses create an
21-16 emergency and an imperative public necessity that constitutional
21-17 rule requiring bills to be read on three several days in each house
21-18 be suspended, and this rule is hereby suspended.