1-1 AN ACT
1-2 relating to the application of the diesel fuel tax and a diesel
1-3 fuel fee to diesel fuel used in certain passenger commercial motor
1-4 vehicles.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 153.203, Tax Code, is amended to read as
1-7 follows:
1-8 Sec. 153.203. EXCEPTIONS. The tax imposed by this
1-9 subchapter does not apply to:
1-10 (1) diesel fuel delivered by a permitted supplier to a
1-11 common or contract carrier, oceangoing vessel (including ship,
1-12 tanker, or boat), or barge for export from this state, if the
1-13 diesel fuel is moved forthwith outside this state;
1-14 (2) diesel fuel sold by a permitted supplier to the
1-15 federal government for its exclusive use;
1-16 (3) diesel fuel sold or delivered by a permitted
1-17 supplier to another permitted supplier or bonded user, to the bulk
1-18 storage facility of a diesel tax prepaid user, or to a purchaser
1-19 who provides a signed statement as provided by Section 153.205 of
1-20 this code, but not including a delivery of tax-free diesel fuel
1-21 into the fuel supply tanks of a motor vehicle, except for a motor
1-22 vehicle owned by the federal government;
1-23 (4) diesel fuel sold or delivered by a permitted
1-24 supplier into the storage facility of a permitted aviation fuel
2-1 dealer, from which diesel fuel will be sold or delivered solely
2-2 into the fuel supply tanks of aircraft or aircraft servicing
2-3 equipment;
2-4 (5) diesel fuel sold or delivered by a permitted
2-5 supplier into fuel supply tanks of railway engines, motorboats, or
2-6 refrigeration units or other stationary equipment powered by a
2-7 separate motor from a separate fuel supply tank;
2-8 (6) kerosene when delivered by a permitted supplier
2-9 into a storage facility at a retail business from which all
2-10 deliveries are exclusively for heating, cooking, lighting, or
2-11 similar nonhighway use;
2-12 (7) diesel fuel sold or delivered by one aviation fuel
2-13 dealer to another aviation fuel dealer who will deliver the diesel
2-14 fuel exclusively into the supply tanks of aircraft or aircraft
2-15 servicing equipment;
2-16 (8) diesel fuel sold by a permitted supplier to a
2-17 public school district in this state for its exclusive use; [or]
2-18 (9) diesel fuel sold by a permitted supplier to a
2-19 commercial transportation company that provides public school
2-20 transportation services to a school district under Section 34.008,
2-21 Education Code, and used by the company exclusively to provide
2-22 those services; or
2-23 (10) diesel fuel sold by a permitted supplier to a
2-24 person, other than a political subdivision, who owns, controls,
2-25 operates, or manages a commercial motor vehicle as defined by
2-26 Section 548.001, Transportation Code, if the fuel:
2-27 (A) is delivered exclusively into the fuel
3-1 supply tank of the commercial motor vehicle; and
3-2 (B) is used exclusively to transport passengers
3-3 for compensation or hire between points in this state on a fixed
3-4 route or schedule.
3-5 SECTION 2. Section 153.222(a), Tax Code, is amended to read
3-6 as follows:
3-7 (a) A dealer or diesel fuel jobber who has paid tax on
3-8 diesel fuel that has been used or sold for use by the dealer or
3-9 diesel fuel jobber for any purpose other than propelling a motor
3-10 vehicle on the public highways of this state or that has been sold
3-11 to the United States or a public school district in this state for
3-12 the exclusive use of the purchaser, or to a commercial
3-13 transportation company for exclusive use in providing public school
3-14 transportation services to a school district under Section 34.008,
3-15 Education Code, without adding the amount of the tax to his selling
3-16 price, and a user who has paid tax on any diesel fuel that has been
3-17 used by him for a purpose other than propelling a motor vehicle on
3-18 the public highways, is a public school district and has paid the
3-19 tax on diesel fuel purchased for its exclusive use, [or] is a
3-20 commercial transportation company and has paid the tax on diesel
3-21 fuel used by the company exclusively to provide public school
3-22 transportation services to a school district under Section 34.008,
3-23 Education Code, or is a person who has paid tax on diesel fuel used
3-24 in a commercial motor vehicle as provided by Section 153.203(10)
3-25 may file a claim for a refund of taxes paid, less the deduction
3-26 allowed vendors and a filing fee.
3-27 SECTION 3. Chapter 20, Transportation Code, is amended by
4-1 adding Section 20.002 to read as follows:
4-2 Sec. 20.002. SCHOOL FUND BENEFIT FEE ON DIESEL FUEL USED BY
4-3 CERTAIN MOTOR VEHICLES. (a) In this section, "commercial motor
4-4 vehicle" has the meaning assigned by Section 548.001.
4-5 (b) This section applies to a person, other than a political
4-6 subdivision, who:
4-7 (1) owns, controls, operates, or manages a commercial
4-8 motor vehicle; and
4-9 (2) is exempt from the state diesel fuel tax under
4-10 Section 153.203, Tax Code.
4-11 (c) A fee to benefit the available school fund is imposed on
4-12 a person for the use of diesel fuel that is:
4-13 (1) delivered exclusively into the fuel supply tank of
4-14 a commercial motor vehicle; and
4-15 (2) used exclusively to transport passengers for
4-16 compensation or hire between points in this state on a fixed route
4-17 or schedule.
4-18 (d) The fee imposed by this section is equal to 25 percent
4-19 of the diesel fuel tax rate imposed under Section 153.202(b), Tax
4-20 Code.
4-21 (e) The comptroller shall prescribe the method for
4-22 collecting a fee imposed under this section and shall deposit
4-23 revenue received from the fee to the credit of the available school
4-24 fund.
4-25 SECTION 4. This Act takes effect September 1, 1999, and
4-26 applies only to diesel fuel purchased on or after that date.
4-27 Diesel fuel purchased before the effective date of this Act is
5-1 governed by the law in effect when the diesel fuel was purchased,
5-2 and that law is continued in effect for the purposes of the
5-3 liability for and collection of taxes.
5-4 SECTION 5. The importance of this legislation and the
5-5 crowded condition of the calendars in both houses create an
5-6 emergency and an imperative public necessity that the
5-7 constitutional rule requiring bills to be read on three several
5-8 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3159 was passed by the House on May
4, 1999, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 3159 on May 26, 1999, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 3159 was passed by the Senate, with
amendments, on May 21, 1999, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor