By Oliveira H.B. No. 3659
76R4652 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the sales and use tax on gasoline, diesel fuel, and
1-3 liquefied gas; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
1-6 adding Chapter 161 to read as follows:
1-7 CHAPTER 161. MOTOR FUEL TAXES
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Sec. 161.001. DEFINITIONS. In this chapter:
1-10 (1) "Aviation fuel dealer" means a person who:
1-11 (A) is the operator of an aircraft servicing
1-12 facility;
1-13 (B) delivers gasoline or diesel fuel exclusively
1-14 into the fuel supply tanks of aircraft or into equipment used
1-15 solely for servicing aircraft and used exclusively off-highway; and
1-16 (C) does not use, sell, or distribute gasoline
1-17 or diesel fuel on which a fuel tax is required to be collected or
1-18 paid to this state.
1-19 (2) "Blended fuel" means the resultant accountable
1-20 product produced by the blending process, other than a de minimis
1-21 amount of a product such as carburetor detergent or oxidation
1-22 inhibitor, that can be used as a fuel in a motor vehicle.
1-23 (3) "Blending" means the mixing together by any
1-24 process of any one or more products with other products regardless
2-1 of the original character of the products blended if the resulting
2-2 product obtained is suitable or practicable for use or is used as
2-3 a motor fuel. The term does not include the blending that may
2-4 occur in the process known as refining by the original refiner of
2-5 crude petroleum or the commingling of products during
2-6 transportation in a pipeline.
2-7 (4) "Bulk end user" means a person who receives
2-8 delivery of motor fuel into the person's own storage facilities
2-9 exclusively for the person's own consumption.
2-10 (5) "Bulk plant" means a reportable motor fuel storage
2-11 and distribution facility that is supplied by other than a pipeline
2-12 or vessel and from which reportable motor fuel may be removed at a
2-13 rack.
2-14 (6) "Bulk transfer" means a transfer of motor fuel
2-15 from one location to another by pipeline or vessel within a bulk
2-16 transfer or terminal transfer system.
2-17 (7) "Bulk transfer system" means the motor fuel
2-18 distribution system that consists of refineries, pipelines,
2-19 vessels, and terminals. For purposes of this chapter, petroleum in
2-20 a refinery, pipeline, vessel, or terminal is in the bulk transfer
2-21 system. Taxable motor fuel in the fuel supply tank of an engine,
2-22 or in a tank car, rail car, trailer, truck, or other equipment
2-23 suitable for ground transportation, is not in the bulk transfer
2-24 system.
2-25 (8) "Dealer" means a person who is the operator of a
2-26 service station or other retail outlet and who delivers motor fuel
2-27 into the fuel supply tanks of motor vehicles or motorboats.
3-1 (9) "Destination state" means any state, territory,
3-2 foreign country, or sovereign nation to which any reportable motor
3-3 fuel is directed for delivery into a storage facility, receptacle,
3-4 container, or type of transportation equipment for the purpose of
3-5 resale or use.
3-6 (10) "Diesel fuel" means any liquid that is commonly
3-7 known, offered for sale, or used as a fuel in diesel engines,
3-8 including any blended fuel used for the propulsion of
3-9 diesel-powered motor vehicles. The term includes products commonly
3-10 referred to as kerosene, light cycle oil, number two fuel oil,
3-11 distillate fuel, cutter stock, or heating oil. It does not include
3-12 aviation diesel if the buyer is registered to purchase aviation
3-13 diesel free of tax and the seller obtains certification of that
3-14 fact before making the sale.
3-15 (11) "Diversion number" means the tracking and
3-16 registration number assigned by the comptroller to a single
3-17 transport truck delivery of motor fuel diverted from its original
3-18 destination.
3-19 (12) "Dyed diesel fuel" means diesel fuel that is
3-20 required to be dyed under regulations of the United States
3-21 Environmental Protection Agency and Internal Revenue Service or
3-22 under any other requirements prescribed by the agency or service,
3-23 including any invisible marker requirements.
3-24 (13) "Eligible purchaser" means a person who has been
3-25 authorized by the comptroller to make an election to defer payment
3-26 of taxes to a supplier or bonded importer.
3-27 (14) "End user" means a person who uses taxable motor
4-1 fuel.
4-2 (15) "Export" means to obtain motor fuel in this state
4-3 for sale or other distribution in another state. For purposes of
4-4 this definition, motor fuel delivered out of state:
4-5 (A) by or for the seller constitutes an export
4-6 by the seller; and
4-7 (B) by or for the purchaser constitutes an
4-8 export by the purchaser.
4-9 (16) "Exporter" means a person who engages in the
4-10 practice of exporting motor fuels.
4-11 (17) "Fractionator" means a small distillation unit
4-12 that separates hydrocarbons based on their boiling points that is
4-13 used to separate transmix into gasoline and diesel fuels.
4-14 (18) "Fuel transportation vehicle" means a vehicle
4-15 that is designed for public highway use to transport taxable motor
4-16 fuels and that is used for that purpose. The term includes
4-17 transport trucks and tank wagons.
4-18 (19) "Gasohol" means blended fuel composed of gasoline
4-19 and fuel alcohol.
4-20 (20) "Gasoline" means all products commonly or
4-21 commercially known or sold as gasoline, including any liquid or
4-22 blended fuel offered for sale, sold, or used as the fuel for a
4-23 gasoline-powered engine. The term does not include aviation
4-24 gasoline if the buyer is registered to purchase aviation gasoline
4-25 free of tax and the seller obtains certification of that fact
4-26 before making the sale.
4-27 (21) "Gross gallons" means the total product measured
5-1 in United States gallons without temperature or barometric pressure
5-2 adjustments.
5-3 (22) "Heating oil" means any distillate fuel oil sold
5-4 and used for heating or industrial processing purposes.
5-5 (23) "Import" means to bring motor fuel into this
5-6 state for sale, use, or storage by any means of conveyance other
5-7 than the fuel supply tank of a motor vehicle. For purposes of this
5-8 definition, motor fuel delivered into this state from outside this
5-9 state:
5-10 (A) by or for the seller constitutes an import
5-11 by the seller; or
5-12 (B) by or for the purchaser constitutes an
5-13 import by the purchaser.
5-14 (24) "Import verification number" means the tracking
5-15 and registration number assigned by the comptroller with respect to
5-16 a single transport truck delivery into this state.
5-17 (25) "Importer" means any person engaged in the
5-18 practice of importing motor fuel.
5-19 (26) "Interstate trucker" means a person who, for
5-20 commercial purposes, operates in this state, another state, or
5-21 another country a motor vehicle that:
5-22 (A) has two axles and a registered gross weight
5-23 of more than 26,000 pounds;
5-24 (B) has three or more axles; or
5-25 (C) is used in combination and the registered
5-26 gross weight of the combination is more than 26,000 pounds.
5-27 (27) "Invoiced gallons" means the gallons actually
6-1 billed on an invoice in payment to a supplier.
6-2 (28) "Kerosene" means the petroleum fraction
6-3 containing hydrocarbons that are slightly heavier than those found
6-4 in gasoline and naphtha and that has a boiling point range of
6-5 approximately 180 to 300 degrees Celsius.
6-6 (29) "Lessor" means a person:
6-7 (A) whose principal business is the leasing or
6-8 renting of motor vehicles for compensation to the general public;
6-9 (B) who maintains established places of
6-10 business; and
6-11 (C) whose lease or rental contracts require the
6-12 motor vehicles to be returned to the established places of business
6-13 at the termination of the lease.
6-14 (30) "Liquefied gas" means any motor fuel other than
6-15 gasoline, gasohol, diesel fuel, dyed diesel fuel, kerosene, or dyed
6-16 kerosene. The term includes all forms of fuel commonly or
6-17 commercially known or sold as butane, propane, liquefied petroleum
6-18 gas, compressed natural gas product, or a combination of liquefied
6-19 petroleum gas and a compressed natural gas product used in an
6-20 internal combustion engine or motor to propel any form of vehicle,
6-21 machine, or mechanical contrivance.
6-22 (31) "Liquefied gas tax decal user" means a person who
6-23 owns or operates on the public highways of this state a motor
6-24 vehicle:
6-25 (A) equipped with a liquefied gas carburetion
6-26 system;
6-27 (B) required to be registered by the Texas
7-1 Department of Transportation; and
7-2 (C) required to have a Texas certificate of
7-3 inspection.
7-4 (32) "Motor fuel" includes gasoline, gasohol, diesel
7-5 fuel, blended fuel, liquefied gas, and other products that are
7-6 usable as propellants of a motor vehicle.
7-7 (33) "Motor fuel transporter" means a person who
7-8 transports motor fuel outside the terminal transfer system by
7-9 transport truck, railroad tank car, or marine vessel.
7-10 (34) "Motor vehicle" means a vehicle that is propelled
7-11 by an internal combustion engine or motor, licensed for public
7-12 highway use, or designed for mobile use on public highways. The
7-13 term does not include:
7-14 (A) farm machinery, including machinery designed
7-15 for off-road use but capable of movement on roads at low speeds;
7-16 (B) a vehicle operated on rails; or
7-17 (C) machinery designed principally for off-road
7-18 use.
7-19 (35) "Motorboat" means a vessel propelled by
7-20 machinery, whether or not the machinery is the principal source of
7-21 propulsion.
7-22 (36) "Net gallons" means the remaining product after
7-23 all considerations and deductions have been made, as measured in
7-24 United States gallons, corrected to a temperature of 60 degrees
7-25 Fahrenheit (13 degrees Celsius) and a pressure of 14-7/10 pounds a
7-26 square inch.
7-27 (37) "Permissive supplier" means a supplier who:
8-1 (A) is from outside this state;
8-2 (B) is an Internal Revenue Service qualified
8-3 supplier required by the Internal Revenue Service to register;
8-4 (C) is not an importer or exporter;
8-5 (D) elects to collect and remit motor fuel tax
8-6 to the destination state; and
8-7 (E) is not required to have a supplier's license
8-8 in this state.
8-9 (38) "Pipeline" means a fuel distribution system that
8-10 moves products in bulk through a pipe, either from a refinery to a
8-11 terminal or from a terminal to another terminal.
8-12 (39) "Point of delivery" means the specific address
8-13 of delivery, including the customer's name, street, city, state,
8-14 and zip code, to which reportable motor fuel is dispensed into any
8-15 storage facility, receptacle, or container or any type of
8-16 transportation equipment.
8-17 (40) "Position holder" means the person who holds the
8-18 inventory position in motor fuel in a terminal, as reflected on the
8-19 records of the terminal operator. A person holds the inventory
8-20 position in motor fuel if that person has a contract with the
8-21 terminal operator for the use of storage facilities and terminaling
8-22 services for fuel at the terminal. The term includes a terminal
8-23 operator who owns fuel in the terminal.
8-24 (41) "Public highway" means a way or place of whatever
8-25 nature open to the use of the public for the purpose of vehicular
8-26 travel, even if the way or place is temporarily closed for the
8-27 purpose of construction, maintenance, or repair.
9-1 (42) "Qualified terminal" means a qualified terminal
9-2 as defined under the regulations and practices prescribed by the
9-3 Internal Revenue Code of 1986, as amended, that has been assigned a
9-4 terminal control number by the Internal Revenue Service.
9-5 (43) "Rack" means a mechanism used to dispense motor
9-6 fuel from a refinery, terminal, or bulk plant into a transport
9-7 truck, a railroad tank car, or another means of transport for bulk
9-8 transfer outside of the bulk transfer or terminal transfer system.
9-9 (44) "Refiner" means a person who owns, operates, or
9-10 otherwise controls a refinery.
9-11 (45) "Refinery" means a facility used to process crude
9-12 oil, unfinished oils, natural gas liquids, or other hydrocarbons
9-13 into any motor fuel and from which taxable motor fuel may be
9-14 removed by pipeline, by vessel, or at a rack.
9-15 (46) "Removal" means a physical transfer of motor fuel
9-16 from the custody of customs or from a terminal, manufacturing
9-17 plant, pipeline, marine vessel, including a barge or tanker,
9-18 refinery, or any receptacle that stores taxable motor fuel.
9-19 (47) "Sale" means a transfer of title, exchange, or
9-20 barter of motor fuel, but does not include a transfer of possession
9-21 of motor fuel on consignment.
9-22 (48) "Supplier" means a person, other than a terminal
9-23 operator who only handles taxable motor fuel consigned to the
9-24 operator within the terminal, who:
9-25 (A) is required to collect and remit tax on
9-26 motor fuel removed from a terminal loading rack;
9-27 (B) is required to register and is registered
10-1 under Section 4101, Internal Revenue Code of 1986, as amended, to
10-2 engage in transactions in taxable motor fuels in the bulk transfer
10-3 and terminal distribution system; and
10-4 (C) is:
10-5 (i) the position holder in a terminal or
10-6 refinery in this state;
10-7 (ii) the importer of taxable motor fuel
10-8 into this state from a foreign country;
10-9 (iii) the acquirer of taxable motor fuel
10-10 from a terminal or refinery in this state from a position holder
10-11 under a two-party exchange; or
10-12 (iv) the position holder in a terminal or
10-13 refinery outside this state with respect to taxable motor fuel that
10-14 the person imports into this state on the person's account.
10-15 (49) "Tank wagon" means a straight truck having
10-16 multiple compartments designed or used to carry liquid motor fuel.
10-17 (50) "Taxable motor fuel" means gasoline, diesel fuel,
10-18 kerosene, blended fuel, and liquefied gas.
10-19 (51) "Terminal" means a motor fuel storage and
10-20 distribution facility that is supplied by a pipeline or vessel,
10-21 from which reportable motor fuel may be removed at a rack, and that
10-22 is required to be registered and has been registered as a qualified
10-23 terminal by the Internal Revenue Service. The term also includes
10-24 bulk plants that store reportable motor fuel for other persons.
10-25 (52) "Terminal bulk transfers" include:
10-26 (A) movement of fuel by a marine barge from a
10-27 refinery or terminal to a terminal;
11-1 (B) movement of fuel by a pipeline from a
11-2 refinery or terminal to a terminal;
11-3 (C) book transfers of products within a terminal
11-4 between suppliers before completion of removal across the rack; and
11-5 (D) two-party exchanges between licensed
11-6 suppliers.
11-7 (53) "Terminal operator" means a person who owns,
11-8 operates, or otherwise controls a terminal.
11-9 (54) "Terminal transfer system" means the motor fuel
11-10 distribution system consisting of refineries, pipelines, marine
11-11 vessels, and terminals. For purposes of this chapter, petroleum in
11-12 a refinery, pipeline, vessel, or terminal is in the terminal
11-13 transfer system. Taxable motor fuel in the fuel supply tank of an
11-14 engine or in a tank car, rail car, trailer, truck, or other
11-15 equipment suitable for ground transportation is not in the terminal
11-16 transfer system.
11-17 (55) "Transit company" means a business that:
11-18 (A) transports in a political subdivision
11-19 persons in carriers designed for 12 or more passengers;
11-20 (B) holds a franchise from a political
11-21 subdivision; and
11-22 (C) has its rates regulated by the political
11-23 subdivision or is owned or operated by the political subdivision.
11-24 (56) "Transmix" means a motor fuel that results from
11-25 the natural mixing of products at both the beginning and the end of
11-26 each batch of motor fuel shipped in a pipeline.
11-27 (57) "Transport truck" means a semitrailer combination
12-1 rig designed or used to transport loads of motor fuel over a public
12-2 highway.
12-3 (58) "Transporter" means a person who operates a
12-4 pipeline, barge, railroad car, or transport truck engaged in the
12-5 business of transporting taxable motor fuels.
12-6 (59) "Two-party exchange" means a transaction in which
12-7 motor fuel is transferred from one licensed supplier to another
12-8 licensed supplier under an exchange agreement in which a supplier
12-9 agrees to deliver motor fuel to the other supplier or the other
12-10 supplier's customer at the rack of the terminal at which the
12-11 delivering supplier is the position holder.
12-12 (60) "Vehicle supply tank" means a receptacle on a
12-13 motor vehicle from which fuel is supplied for the propulsion of the
12-14 motor vehicle.
12-15 (61) "Vendor" means a person who sells fuel, including
12-16 a refiner, supplier, permissive supplier, importer, exporter,
12-17 transporter, interstate carrier, bulk dealer, dealer, wholesaler,
12-18 aviation fuel dealer, liquefied fuel dealer, tank wagon, and bulk
12-19 plant.
12-20 (62) "Wholesaler" means a person who acquires motor
12-21 fuel from a supplier or another wholesaler for subsequent sale and
12-22 distribution at wholesale by tank car or motor vehicle, or both.
12-23 Sec. 161.002. AUDITS AND INSPECTIONS. (a) For the purpose
12-24 of determining the amount of tax collected and payable to this
12-25 state, the amount of tax accruing and due, and whether a tax
12-26 liability has been incurred under this chapter, the comptroller, or
12-27 an authorized deputy, employee, or agent, may audit and examine the
13-1 records, books, invoices, papers, shipping papers, and equipment of
13-2 a supplier, importer, wholesaler, bulk purchaser, terminal
13-3 operator, fuel vendor, or private or common carrier of motor fuel,
13-4 to verify the completeness and accuracy of any statement or report.
13-5 (b) The comptroller or the comptroller's representative,
13-6 including a federal government employee or a person contracting
13-7 with the state, may inspect the premises of a fuel vendor, motor
13-8 fuel transporter, or bulk purchaser and may require the immediate
13-9 disclosure of any shipping paper required by this chapter to be
13-10 maintained at the physical location at which the request is made,
13-11 including any location at which motor fuel is stored or held for
13-12 sale or transportation.
13-13 (c) The comptroller may inspect all records of a person
13-14 doing business in this state to determine information relating to
13-15 the sale, transportation, or possession of motor fuels. A person
13-16 must keep legible records, including shipping papers and invoices
13-17 recording each transaction of fuel, at the point of origin or at a
13-18 reasonable approved proximity for auditing purposes. A terminal
13-19 operator or supplier may maintain records at an approved central
13-20 recordkeeping facility within or outside this state.
13-21 Sec. 161.003. INSPECTION OF FUEL AND SHIPPING PAPERS. (a)
13-22 The comptroller or the comptroller's representative, including a
13-23 federal government employee or a person contracting with the state,
13-24 may conduct inspections and remove samples of fuel to determine
13-25 coloration of diesel fuel or to identify shipping paper violations
13-26 at any place at which taxable fuel is or may be produced, stored,
13-27 or loaded into transport vehicles. An inspector may:
14-1 (1) physically inspect, examine, or otherwise search a
14-2 tank, reservoir, or other container that can or may be used to
14-3 produce, store, or transport fuel;
14-4 (2) inspect equipment used for or in connection with
14-5 the production, storage, or transportation of fuel; and
14-6 (3) demand that a person transporting fuel produce for
14-7 immediate inspection the shipping papers, documents, and records
14-8 required to be kept by the person.
14-9 (b) The premises at which business is conducted for purposes
14-10 of this section and that are subject to inspection include:
14-11 (1) a terminal;
14-12 (2) a fuel storage facility that is not a terminal;
14-13 (3) a retail fuel facility;
14-14 (4) a highway rest stop; or
14-15 (5) a fixed or mobile designated inspection site such
14-16 as a state highway or waterway inspection station, weigh station,
14-17 agricultural inspection station, mobile station, or other location
14-18 designated by the comptroller.
14-19 (c) In addition to their other defined duties, an officer of
14-20 the Department of Public Safety, a motor carrier inspector in this
14-21 state, and other law enforcement officers and agents of the
14-22 comptroller may conduct inspections to determine violations under
14-23 this chapter using procedures established by the comptroller.
14-24 Agents of the comptroller have the same power and authority
14-25 provided to the comptroller to carry out inspections under this
14-26 chapter.
14-27 (d) An inspector may detain a person or equipment
15-1 transporting fuel in or through this state to determine whether the
15-2 person is operating in compliance with this chapter and any rules
15-3 adopted under this chapter. An inspector may detain a person or
15-4 equipment only for the period necessary to determine whether the
15-5 person or equipment is in compliance.
15-6 Sec. 161.004. OPERATION OF PERMANENT OR PORTABLE WEIGH
15-7 STATIONS. (a) The comptroller may assign qualified persons who
15-8 are not state peace officers to supervise or operate permanent or
15-9 portable weigh stations.
15-10 (b) A person assigned under this section may stop, inspect,
15-11 and issue citations for violations of this chapter to operators of
15-12 trucks, trailers, barges, or vessels having a declared gross weight
15-13 of 11,000 pounds or more, and buses. The person may perform this
15-14 duty at a permanent weigh station or other inspection point or
15-15 while operating a clearly marked state police vehicle.
15-16 Sec. 161.005. ANALYSTS, CHEMISTS, AND INSPECTORS APPOINTED.
15-17 The comptroller shall appoint analysts, chemists, and inspectors
15-18 required to carry out this chapter. The analysts, chemists, and
15-19 inspectors may:
15-20 (1) examine all barrels, tanks, or other vessels
15-21 containing motor fuels to determine if they are tagged properly;
15-22 (2) collect and test samples of motor fuels offered
15-23 for sale in this state; and
15-24 (3) collect and send samples to the Texas Department
15-25 of Agriculture for examination if instructed to.
15-26 Sec. 161.006. LAW ENFORCEMENT ASSISTANCE. On request of the
15-27 comptroller, the Department of Public Safety or another law
16-1 enforcement agency may assist in enforcing all laws relating to the
16-2 inspection of motor fuels.
16-3 Sec. 161.007. STANDARDS FOR MOTOR FUELS; TESTING. The Texas
16-4 Department of Agriculture may adopt rules prescribing standards for
16-5 motor fuel and methods for testing the fuel, including any
16-6 requirements relating to the chain of custody.
16-7 Sec. 161.008. RECORDS OF RECEIPT AND SHIPMENT OF MOTOR
16-8 FUELS. (a) A person who sells motor fuel or offers motor fuel for
16-9 sale in this state shall keep an accurate record of each lot of
16-10 shipment of motor fuels received by the person and of the motor
16-11 fuels shipped by the person.
16-12 (b) Each original or copy of a delivery shall include the
16-13 actual origin and destination of motor fuel by federal employer
16-14 identification number or other identifier acceptable to the
16-15 comptroller before the load leaves the terminal or location of
16-16 origination.
16-17 Sec. 161.009. COMPTROLLER TO ADOPT RULES AND PRESCRIBE
16-18 FORMS. The comptroller shall adopt rules and prescribe forms in
16-19 conformance with approved Federation of Tax Administrators
16-20 uniformity standards as necessary to carry out this chapter.
16-21 Sec. 161.010. AGREEMENTS WITH POLITICAL SUBDIVISIONS OR
16-22 INDIAN TRIBES. (a) In this section, "Indian tribe" means any
16-23 organized nation, tribe, band, or community recognized as an Indian
16-24 tribe by the United States Department of the Interior.
16-25 (b) The comptroller shall enter into agreements on behalf of
16-26 this state with political subdivisions or Indian tribes necessary
16-27 to improve motor fuel tax collection and to facilitate the
17-1 recording of transactions.
17-2 (c) The comptroller may enter into agreements with Indian
17-3 tribes to provide a method or formula to refund taxes paid on
17-4 tax-exempt motor fuel purchases or uses under this chapter.
17-5 Sec. 161.011. AGREEMENTS WITH OTHER STATES. (a) The
17-6 comptroller may enter into a cooperative agreement with another
17-7 state for the exchange of information and to audit end users of
17-8 motor fuel in fleets of motor vehicles that are operated or
17-9 intended to operate interstate. An agreement or amendment of an
17-10 agreement takes effect according to its terms, except that an
17-11 agreement or amendment may not take effect until the proposed
17-12 agreement or amendment is published in the Texas Register. An
17-13 agreement may prescribe:
17-14 (1) the method of determining the base state for motor
17-15 fuel end users;
17-16 (2) end user record requirements;
17-17 (3) audit procedures;
17-18 (4) methods for exchanges of information;
17-19 (5) persons eligible for tax licensing;
17-20 (6) licensing and license revocation procedures,
17-21 licenses, penalties, and fees;
17-22 (7) the method of defining qualified motor vehicles;
17-23 (8) the method of determining bonding procedures,
17-24 types, and amounts;
17-25 (9) reporting requirements and periods;
17-26 (10) refund procedures and limitations, including the
17-27 payment of interest;
18-1 (11) uniform penalties, fees, and interest rates;
18-2 (12) methods for collecting motor fuel taxes and for
18-3 collecting and forwarding motor fuel taxes, other than penalties,
18-4 due to another jurisdiction;
18-5 (13) the temporary remittal of funds, equal to the
18-6 amount of the taxes and interest due another jurisdiction but not
18-7 otherwise collected, subject to appropriation of funds for that
18-8 purpose; and
18-9 (14) other provisions necessary to facilitate the
18-10 administration of the agreement.
18-11 (b) The comptroller may, as required by the terms of an
18-12 agreement, forward to an officer of another state any information
18-13 in the comptroller's possession relating to the manufacture,
18-14 receipt, sale, use, transportation, or shipment of motor fuel by
18-15 any person. The comptroller may disclose to an officer of another
18-16 state the location of officers, motor vehicles, and other real and
18-17 personal property of end users of motor fuel.
18-18 (c) An agreement with another state may require each state
18-19 to audit the records of a person based in the state to determine if
18-20 the motor fuel taxes due each state that is a party to the
18-21 agreement are properly reported and paid. An agreement may require
18-22 each state to forward the findings of an audit performed on a
18-23 person based in the state to each other state in which the person
18-24 has taxable use of motor fuel. The comptroller may use an audit
18-25 performed by another state to make an assessment of motor fuel
18-26 taxes against a person not based in this state who has taxable use
18-27 of motor fuel in this state.
19-1 (d) Any agreement entered into under this section does not
19-2 affect the authority of the comptroller to audit any person under
19-3 any other law.
19-4 (e) An agreement entered into under this section prevails
19-5 over an inconsistent rule of the comptroller. Except as otherwise
19-6 provided by this section, a statute of this state prevails over an
19-7 inconsistent provision of an agreement entered into under this
19-8 section.
19-9 (f) The comptroller may segregate in a separate fund or
19-10 account the amount of motor fuel taxes, other than penalties,
19-11 estimated to be due to other jurisdictions, motor fuel taxes
19-12 subject to refund during the fiscal year, licensing fees, and other
19-13 costs collected under the agreement. On a determination of an
19-14 amount held that is due to be remitted to another jurisdiction, the
19-15 comptroller may issue a warrant or make an electronic transfer of
19-16 the amount as necessary to carry out the purposes of the agreement.
19-17 An auditing cost, membership fee, and other cost associated with
19-18 the agreement may be paid from interest earned on funds segregated
19-19 under this subsection. Any interest earnings in excess of the
19-20 costs associated with the agreement shall be credited to the
19-21 general revenue fund.
19-22 (g) The comptroller may enter into motor fuel tax agreements
19-23 with other jurisdictions that may provide for the temporary
19-24 remittal of amounts due other jurisdictions that exceed the amounts
19-25 collected. The comptroller shall ensure that reasonable measures
19-26 are developed to recover motor fuel taxes and other amounts due
19-27 this state during each biennium.
20-1 Sec. 161.012. TAX ON CONSUMER. (a) The tax imposed on
20-2 taxable motor fuel under this chapter is a levy and assessment on
20-3 the consumer, and a person required to remit a tax under this
20-4 chapter acts as an agent of this state for the collection of the
20-5 tax.
20-6 (b) This section does not affect the method of collecting
20-7 the tax prescribed by this chapter. The tax imposed by this
20-8 chapter must be collected and paid at the times, in the manner, and
20-9 by the persons prescribed by this chapter.
20-10 Sec. 161.013. OTHER MOTOR VEHICLE TAXES PROHIBITED. The
20-11 taxes imposed by this chapter are in lieu of any other occupation
20-12 or sales, use, or other excise tax imposed by a municipality,
20-13 county, or other political subdivision of this state on the sale,
20-14 use, or distribution of gasoline, diesel fuel, or liquefied gas.
20-15 Sec. 161.014. FOREIGN ENTITIES. A person with a business
20-16 based outside the political boundaries of the United States can be
20-17 liable for state motor fuel taxes due.
20-18 Sec. 161.015. PRESUMPTIONS RELATING TO USE OF FUEL. (a)
20-19 Except as provided by Section 161.161, there is a rebuttable
20-20 presumption that all taxable motor fuel delivered into a motor
20-21 vehicle fuel supply tank in this state is to be used or consumed to
20-22 produce or generate power for propelling the motor vehicle on the
20-23 public highways of this state.
20-24 (b) Except as provided by Section 161.161, there is a
20-25 rebuttable presumption that all taxable motor fuel that is removed
20-26 from a terminal in this state, imported into this state by other
20-27 than a bulk transfer within the bulk transfer system or terminal
21-1 transfer system, or delivered into an end user's storage tank is to
21-2 be used or consumed to produce or generate power for propelling
21-3 motor vehicles on the public highways of this state.
21-4 Sec. 161.016. PRESUMPTION OF TAX DUE. (a) A person who
21-5 fails to keep a record, issue an invoice, or file a report required
21-6 by this chapter is presumed to have sold or used for taxable
21-7 purposes all motor fuel shown by an audit by the comptroller to
21-8 have been sold to the person. Motor fuel unaccounted for is
21-9 presumed to have been sold or used for taxable purposes. The
21-10 comptroller may set or establish the amount of taxes, penalties,
21-11 and interest due this state from the records of deliveries or from
21-12 any records or information available to the comptroller. If a tax
21-13 claim developed under this section is not paid after the
21-14 opportunity to request a redetermination, the claim and any audit
21-15 made by the comptroller, or any report filed by the person, are
21-16 evidence in any suit or judicial proceedings filed by the attorney
21-17 general and are prima facie evidence of the correctness of the
21-18 claim or audit. A prima facie presumption of the correctness of
21-19 the claim may be overcome at trial by evidence produced by the
21-20 person.
21-21 (b) In the absence of records showing the number of miles
21-22 actually operated per gallon of motor fuel consumed, it is presumed
21-23 that not less than one gallon of motor fuel was consumed for every
21-24 four miles traveled. An importer or transporter may produce
21-25 evidence of motor fuel consumption to establish another mileage
21-26 factor. If an examination or audit made by the comptroller of the
21-27 records of an importer or transporter shows that a greater amount
22-1 of motor fuel was consumed than was reported by the importer or
22-2 transporter for tax purposes, the importer or transporter is liable
22-3 for the tax, penalties, and interest on the additional amount
22-4 shown. Conversely, an importer or transporter is entitled to a
22-5 credit or refund on overpayments of tax established by the audit.
22-6 Sec. 161.017. FUTURE INCREASES IN MOTOR FUEL TAX RATES. (a)
22-7 On the effective date of an increase in the rate of a tax imposed
22-8 by this chapter, a dealer or other person who possesses for the
22-9 purpose of sale 2,000 or more gallons of gasoline or diesel fuel at
22-10 each business location on which the taxes imposed by this chapter
22-11 at a previous rate have been paid shall report to the comptroller
22-12 the volume of that gasoline and diesel fuel and, at the time of the
22-13 report, shall pay a tax on that gasoline and diesel fuel at a rate
22-14 equal to the rate of the tax increase.
22-15 (b) On the effective date of a reduction in the rate of a
22-16 tax imposed by this chapter, a dealer who possesses for the purpose
22-17 of sale 2,000 or more gallons of gasoline or diesel fuel at each
22-18 business location on which the taxes imposed by this chapter at the
22-19 previous rate have been paid becomes entitled to a refund in an
22-20 amount equal to the difference in the amount of taxes paid on that
22-21 gasoline or diesel fuel at the previous rate and at the rate in
22-22 effect on the effective date of the reduction in the tax rate. The
22-23 comptroller shall adopt rules prescribing the method for claiming a
22-24 refund under this section and may require that the refund be paid
22-25 through the person from whom the dealer received the fuel.
22-26 (Sections 161.018-161.050 reserved for expansion
22-27 SUBCHAPTER B. TAXES IMPOSED ON GASOLINE AND DIESEL FUEL
23-1 Sec. 161.051. TAX ON GASOLINE. (a) Subject to the
23-2 exemptions provided by this chapter, a tax is imposed on all
23-3 gasoline used or consumed in this state in producing or generating
23-4 power for propelling a motor vehicle on the public highways of this
23-5 state.
23-6 (b) Except as provided by Subsection (c), the gasoline tax
23-7 rate is 20 cents a gallon.
23-8 (c) The gasoline tax rate for gasoline sold to a transit
23-9 company for exclusive use in its transit carrier vehicles under an
23-10 exemption certificate promulgated by the comptroller is 19 cents a
23-11 gallon.
23-12 Sec. 161.052. TAX ON DIESEL FUEL. (a) Subject to the
23-13 exemptions provided by this chapter, a tax is imposed on all diesel
23-14 fuel used or consumed in this state in producing or generating
23-15 power for propelling a motor vehicle on the public highways of this
23-16 state.
23-17 (b) Except as provided by Subsection (c), the diesel fuel
23-18 tax rate is 20 cents a gallon.
23-19 (c) The diesel fuel tax rate for gasoline sold to a transit
23-20 company for exclusive use in its transit carrier vehicles under an
23-21 exemption certificate promulgated by the comptroller is 19.5 cents
23-22 a gallon.
23-23 Sec. 161.053. TAX ON IMPORTED MOTOR FUEL. The tax imposed
23-24 by this chapter on the use of taxable gasoline or diesel fuel
23-25 imported into this state by a licensed importer for delivery to a
23-26 destination in this state, other than by a bulk transfer, shall
23-27 arise at the time the product enters this state. The amount of the
24-1 tax shall be measured by invoiced gallons received outside this
24-2 state at a refinery, terminal, or bulk plant.
24-3 Sec. 161.054. MEASUREMENT OF TAX ON MOTOR FUEL. (a) Except
24-4 as provided by Section 161.053, the tax imposed by this chapter on
24-5 the use of taxable gasoline or diesel fuel is measured by invoiced
24-6 gallons of taxable gasoline or diesel fuel removed:
24-7 (1) from a qualified terminal or refinery within this
24-8 state, other than by a bulk transfer, by a licensed supplier; and
24-9 (2) from a qualified terminal or refinery outside this
24-10 state for delivery to a location in this state as represented on
24-11 the shipping papers, if the supplier imports the taxable motor fuel
24-12 for the supplier's own account or the supplier has made a tax
24-13 precollection election under Section 161.062.
24-14 (b) The tax on motor fuel shall otherwise be determined in
24-15 the same manner as the tax imposed by Section 4081, Internal
24-16 Revenue Code of 1986, as amended, and applicable regulations in the
24-17 Code of Federal Regulations, as amended.
24-18 Sec. 161.055. PAYMENT OF TAX ON MOTOR FUEL IMPORTED FROM
24-19 ANOTHER STATE. (a) Except as otherwise provided by this chapter,
24-20 a tax imposed by this chapter on taxable motor fuel imported by a
24-21 licensed occasional importer from another state must be paid by
24-22 that licensed occasional importer. The licensed occasional
24-23 importer must make the payment not later than the third business
24-24 day after the earlier of the time the nonexempt taxable motor fuel
24-25 entered the state or the date a valid import verification number
24-26 required by Section 161.207 was assigned by the comptroller.
24-27 (b) Except as otherwise provided by this section, a tax
25-1 imposed by this chapter on taxable motor fuel imported by a
25-2 licensed bonded importer from another state must be paid by the
25-3 licensed bonded importer who imported the nonexempt taxable motor
25-4 fuel during the month. The tax that accrues during a month is due
25-5 and payable:
25-6 (1) on or before the 9th day of each month for taxes
25-7 collected from the 25th day of the previous month to the 8th day of
25-8 the month of payment; and
25-9 (2) on or before the 25th day of each month for taxes
25-10 collected from the 9th to the 24th day of each month.
25-11 (c) If the date the taxes are due and payable is on a
25-12 weekend or on a state or banking holiday, the tax is due and
25-13 payable on the next succeeding business day.
25-14 (d) A supplier who has made a blanket election to precollect
25-15 tax under Section 161.056 is jointly liable with the importer for
25-16 the tax and shall remit the tax to the comptroller on behalf of the
25-17 importer under the same terms as a supplier payment is made under
25-18 Section 161.057, except that an import verification number is not
25-19 required and the supplier may retain the net percentage of the tax
25-20 collected that a supplier may retain under Section 161.066.
25-21 Sec. 161.056. BLANKET ELECTION TO TREAT ALL REMOVALS FROM
25-22 OUT-OF-STATE TERMINALS AS REMOVALS FROM IN-STATE TERMINALS. (a) A
25-23 licensed supplier or licensed permissive supplier may make a
25-24 blanket election to treat all removals from the supplier's
25-25 out-of-state terminals with a destination in this state, as shown
25-26 on the terminal-issued shipping paper, as if the removals were
25-27 removed across the rack by the supplier from a terminal in this
26-1 state.
26-2 (b) An election under this section must be made by filing a
26-3 notice of election with the comptroller as provided by this
26-4 section.
26-5 (c) The comptroller shall release a list of electing
26-6 suppliers on request of any person.
26-7 (d) A supplier who makes the election provided by this
26-8 section shall precollect the tax imposed by this chapter on all
26-9 removals from a qualified terminal on the supplier's account as a
26-10 position holder or as a person receiving fuel from a position
26-11 holder under a two-party exchange agreement, without regard to the
26-12 license status of the person acquiring the fuel from the supplier,
26-13 the point or terms of sale, or the character of delivery.
26-14 Sec. 161.057. TAX COLLECTED AND REMITTED BY SUPPLIER OR
26-15 PERMISSIVE SUPPLIER; DUE DATE; LATE TAXES. (a) The tax imposed by
26-16 this chapter on gasoline or diesel fuel removed by a licensed
26-17 supplier from a terminal or refinery in this state, other than by a
26-18 bulk transfer, must be collected and remitted to the state by the
26-19 supplier who removes the taxable gallons, as shown in the terminal
26-20 operator's records.
26-21 (b) The supplier and each reseller shall list the amount of
26-22 the tax as a separate line item on all invoices or billings.
26-23 (c) All tax to be paid by a supplier with respect to gallons
26-24 removed on the supplier's account is due and payable:
26-25 (1) on or before the 9th day of each month for taxes
26-26 collected from the 25th day of the previous month to the 8th day of
26-27 the month of payment; and
27-1 (2) on or before the 25th day of each month for taxes
27-2 collected from the 9th to the 24th day of each month.
27-3 (d) The supplier shall pay the taxes in concurrence with
27-4 payments to the Internal Revenue Service for federal excise taxes
27-5 due.
27-6 (e) If the date the taxes are due and payable is on a
27-7 weekend or on a state or banking holiday, the tax is due and
27-8 payable on the next succeeding business day.
27-9 (f) A supplier shall timely notify the comptroller of:
27-10 (1) late taxes remitted to the supplier by an eligible
27-11 purchaser; and
27-12 (2) late remittances, if the supplier previously gave
27-13 notice to the comptroller of an uncollectible tax amount under
27-14 Section 161.064.
27-15 Sec. 161.058. LIABILITY OF TERMINAL OPERATOR FOR MOTOR FUEL
27-16 TAXES. (a) The terminal operator of a terminal in this state is
27-17 jointly and severally liable for the tax imposed under this chapter
27-18 on gasoline and diesel fuel and shall remit payment to this state
27-19 if:
27-20 (1) the supplier of the taxable motor fuel is a person
27-21 other than the terminal operator and is not a licensed supplier; or
27-22 (2) in connection with the removal of diesel fuel that
27-23 is not dyed and marked in accordance with Internal Revenue Service
27-24 requirements, the terminal operator provides a person with a bill
27-25 of lading, shipping paper, or similar document indicating that the
27-26 diesel fuel is dyed and marked in accordance with Internal Revenue
27-27 Service requirements.
28-1 (b) A terminal operator is relieved of liability in a
28-2 situation described by Subsection (a)(1) if the operator
28-3 establishes that the terminal operator:
28-4 (1) has a terminal operator's license issued for the
28-5 facility from which the motor fuel is withdrawn;
28-6 (2) has an unexpired notification certificate from the
28-7 supplier as required by the comptroller or the Internal Revenue
28-8 Service; and
28-9 (3) does not have a reason to believe that any
28-10 information on the certificate is false.
28-11 (c) The terminal operator is jointly and severally liable
28-12 for the tax imposed by this chapter that is not allocable to a
28-13 licensed supplier. The terminal operator shall remit the tax due
28-14 with the annual report required by Section 161.256(d). The
28-15 operator may not take a collection credit or deduction with respect
28-16 to payment of a tax on lost gallons. If the number of gallons lost
28-17 or unaccounted for exceeds an amount equal to five percent of the
28-18 gallons removed from that terminal across the rack, the terminal
28-19 operator shall pay a penalty equal to 100 percent of the tax
28-20 otherwise due.
28-21 (d) Tax is not due if the terminal operator can establish
28-22 that the gallons lost were diesel fuel that was dyed before receipt
28-23 by that terminal operator.
28-24 Sec. 161.059. PAYMENT OF TAX BY LICENSED TANK WAGON
28-25 OPERATOR-IMPORTER. (a) A licensed tank wagon operator-importer is
28-26 liable for the tax imposed by this chapter on nonexempt gasoline
28-27 and diesel fuel imported by a tank wagon if the tax has not
29-1 previously been paid to a supplier.
29-2 (b) The person shall remit the tax for the preceding month's
29-3 import activities with the person's monthly report of activities.
29-4 (c) A licensed tank wagon operator-importer may retain a
29-5 percentage of the tax as an administrative credit in accordance
29-6 with Section 161.067(b).
29-7 Sec. 161.060. PAYMENT OF TAX BY LICENSED EXPORTER. (a) A
29-8 licensed exporter carrying in a transport truck, tank wagon, or
29-9 similar vehicle nonexempt gasoline or diesel fuel for which tax has
29-10 not previously been paid to a supplier shall remit the motor fuel
29-11 tax for the destination state to the comptroller with the
29-12 exporter's monthly report of activities.
29-13 (b) If the comptroller does not have an agreement with the
29-14 destination state for collection of state motor fuel taxes, the tax
29-15 shall be collected at the applicable rate prescribed by this
29-16 subchapter and shall be refunded when the licensed exporter
29-17 provides proof that the destination state taxes have been paid.
29-18 Sec. 161.061. COLLECTION OF TAX FROM ELIGIBLE PURCHASER;
29-19 ELECTION TO DEFER TAX PAYMENT. (a) A supplier or bonded importer
29-20 who sells taxable gasoline or diesel fuel shall collect from the
29-21 purchaser the motor fuel tax imposed under this chapter.
29-22 (b) The seller may not require an eligible purchaser to pay
29-23 the tax on transport truckloads of gasoline or diesel fuel before
29-24 payment for the fuel is due or before one business day before the
29-25 date the tax is required to be remitted by the supplier or bonded
29-26 importer under this subchapter.
29-27 (c) Failure of a supplier or bonded importer to comply with
30-1 this section may result in suspension or revocation of the person's
30-2 license.
30-3 (d) An eligible purchaser may deduct from the amount of tax
30-4 otherwise payable to a supplier or bonded importer an amount equal
30-5 to:
30-6 (1) the difference between the tax rate prescribed by
30-7 Sections 161.051(b) and (c) on gasoline that the eligible purchaser
30-8 received from the supplier or bonded importer and resold to a
30-9 transit company under an authorization letter issued by the
30-10 comptroller; and
30-11 (2) the difference between the tax rate prescribed by
30-12 Sections 161.052(b) and (c) on diesel fuel that the eligible
30-13 purchaser received from the supplier or bonded importer and resold
30-14 to a transit company under an authorization letter issued by the
30-15 comptroller.
30-16 Sec. 161.062. ELECTION OF PURCHASER. (a) A person who
30-17 elects to be an eligible purchaser and to defer payment of taxes
30-18 shall present evidence to the comptroller that the applicant:
30-19 (1) was a permittee in good standing under Chapter 153
30-20 as it existed on December 31, 2000, under which the person properly
30-21 remitted tax to the comptroller; or
30-22 (2) meets the financial responsibility and bonding
30-23 requirements imposed by this chapter.
30-24 (b) The election is subject to a requirement that the
30-25 eligible purchaser's remittances of all amounts of tax due the
30-26 seller must be paid by electronic funds transfer. The eligible
30-27 purchaser's election under this section may be terminated by the
31-1 seller if the eligible purchaser does not make timely payments to
31-2 the seller.
31-3 (c) The comptroller may require an eligible purchaser who
31-4 pays the tax to a supplier to file with the comptroller a surety
31-5 bond payable to the state on which the eligible purchaser is the
31-6 obligor or to file other financial security in an amount
31-7 satisfactory to the comptroller. The comptroller may require that
31-8 the bond indemnify the comptroller against uncollectible tax
31-9 credits claimed by the supplier under Section 161.064.
31-10 Sec. 161.063. RESCISSION OF ELIGIBLE PURCHASER'S ELECTION TO
31-11 DEFER PAYMENT OF TAX. (a) The comptroller may rescind an
31-12 eligible purchaser's election to defer remitting motor fuel taxes
31-13 to a supplier or bonded importer by sending written notice to all
31-14 suppliers and bonded importers or by publishing notice of the
31-15 rescission in at least one newspaper of general circulation in this
31-16 state. The comptroller may rescind the election after a hearing
31-17 and on a showing of good cause such as failure to make timely
31-18 tax-deferred payments to a supplier or bonded importer.
31-19 (b) Instead of rescinding an election, the comptroller may
31-20 require further assurance of the purchaser's financial
31-21 responsibility, may increase the bond requirement under Section
31-22 161.217 for that purchaser, or may take other action to ensure
31-23 remittance of the taxable motor fuel tax.
31-24 (c) The comptroller shall follow the revocation procedures
31-25 prescribed by this chapter in rescinding an eligible purchaser's
31-26 election.
31-27 Sec. 161.064. CREDITS FOR LICENSED SUPPLIERS, PERMISSIVE
32-1 SUPPLIERS, AND BONDED IMPORTERS. (a) In computing the amount of
32-2 motor fuel tax due, a supplier or bonded importer is entitled to a
32-3 credit against the tax payable in an amount equal to the amount of
32-4 tax paid by the supplier or bonded importer that is uncollectible
32-5 from an eligible purchaser.
32-6 (b) The supplier or bonded importer shall provide notice to
32-7 the comptroller of a failure to collect tax not later than the 10th
32-8 day after the earliest date the supplier or bonded importer was
32-9 entitled to collect the tax from the eligible purchaser under this
32-10 subchapter.
32-11 (c) The comptroller by rule shall establish the evidence a
32-12 supplier or bonded importer must provide to receive the credit.
32-13 (d) A supplier or bonded importer must claim the credit on
32-14 the first return after the date the eligible purchaser fails to pay
32-15 the tax if the payment remains unpaid as of the filing date of that
32-16 return.
32-17 (e) The claim for the credit must identify the defaulting
32-18 eligible purchaser and any tax liability that remains unpaid.
32-19 (f) The supplier's or bonded importer's credit is limited to
32-20 the amount due from the eligible purchaser, plus any tax due from
32-21 that purchaser for the period ending on the date the supplier or
32-22 bonded importer receives notice from the comptroller that the
32-23 eligible purchaser's election has been rescinded.
32-24 (g) A supplier or bonded importer may not receive an
32-25 additional credit under this section in relation to a particular
32-26 purchaser after the purchaser's election is rescinded unless the
32-27 comptroller authorizes the purchaser to make a new election.
33-1 Sec. 161.065. PAYMENT OF TAX BY ELECTRONIC FUNDS TRANSFER. A
33-2 supplier or bonded importer required to remit motor fuel taxes
33-3 shall remit the taxes due by electronic funds transfer in the
33-4 manner required by the comptroller on or before the date the taxes
33-5 are due.
33-6 Sec. 161.066. RETENTION FOR ADMINISTRATIVE COSTS. (a) A
33-7 supplier or permissive supplier who properly remits taxes under
33-8 this chapter may retain each month an amount equal to three-fourths
33-9 of one percent of the taxes collected and remitted by that supplier
33-10 in accordance with this chapter to cover administrative costs,
33-11 including reporting, audit compliance, dye injection, and shipping
33-12 paper preparation costs.
33-13 (b) A licensed bonded importer who properly remits taxes
33-14 under this chapter may retain an amount equal to one-half of one
33-15 percent of the taxes collected and remitted by that importer in
33-16 accordance with this chapter, provided that the importer may not
33-17 retain more than $2,000 each month. The importer may retain the
33-18 amount to cover administrative costs, including reporting, audit
33-19 compliance, and shipping paper preparation costs.
33-20 Sec. 161.067. ELIGIBLE PURCHASERS AND SUPPLIERS TO SHARE
33-21 ADMINISTRATIVE CREDITS. (a) An eligible purchaser who lawfully
33-22 engages in the distribution of tax-paid motor fuel within this
33-23 state shall receive on removal of the taxable motor fuel from the
33-24 terminal a credit from the terminal in an amount equal to one-half
33-25 of one percent of the tax due to offset the cost of recordkeeping
33-26 and electronic transmission of those records. However, the credit
33-27 is not applicable more than once to any taxable motor fuel. The
34-1 supplier may choose not to transfer the credit to an eligible
34-2 purchaser that is also a company store.
34-3 (b) A supplier who makes a sale of tax-paid motor fuel to a
34-4 person who is not an eligible purchaser is entitled to the
34-5 allowance provided by Subsection (a). The supplier shall receive
34-6 the allowance through a credit against tax remittances due to this
34-7 state and payable by the person.
34-8 Sec. 161.068. TAX COLLECTED ON MOTOR FUEL BELONGS TO STATE
34-9 AND IS HELD IN TRUST BY COLLECTOR. (a) The tax that a person
34-10 collects on the sale of taxable motor fuel belongs to this state
34-11 and the person holds the money in trust for this state and for
34-12 payment to the comptroller as provided by this chapter.
34-13 (b) Each officer, employee, or agent of a corporation or
34-14 partnership has a duty to collect the tax and is personally liable
34-15 for the tax, penalty, and interest.
34-16 Sec. 161.069. DIVERSION OF TAXABLE MOTOR FUEL. (a) An
34-17 exporter who diverts taxable motor fuel removed from a terminal in
34-18 this state from an intended destination outside this state, as
34-19 shown on the terminal-issued shipping papers, to a destination
34-20 within this state shall:
34-21 (1) notify this state of the diversion and obtain a
34-22 diversion or import verification number required by Subsection (g);
34-23 and
34-24 (2) pay the tax imposed by this chapter to this state,
34-25 if the tax has not been paid, on the same terms as if the exporter
34-26 were an occasional importer licensed under Section 161.207, without
34-27 deducting the allowances provided by Section 161.066.
35-1 (b) An exporter who removes from a bulk plant in this state
35-2 taxable motor fuel on which the tax imposed by this chapter
35-3 previously has been paid may apply for a refund of the tax. The
35-4 comptroller shall issue a refund of that tax, without including the
35-5 allowance provided by Section 161.066, on a showing of proof of
35-6 export that satisfies the comptroller.
35-7 (c) An unlicensed importer who diverts taxable motor fuel
35-8 from a destination outside this state to a destination inside this
35-9 state after having removed the product from a terminal outside this
35-10 state shall:
35-11 (1) notify this state of the diversion and obtain a
35-12 diversion or import verification number under Subsection (g); and
35-13 (2) pay the tax imposed by this chapter to this state,
35-14 on the same terms and conditions as if the unlicensed importer were
35-15 a licensed occasional importer subject to Section 161.207, without
35-16 deducting the allowances provided by Section 161.066.
35-17 (d) A licensed importer shall report and pay tax on
35-18 diversions into this state of imported taxable motor fuel in
35-19 accordance with the rules that apply to that license class. A
35-20 licensed importer may not take an allowance under Section 161.066
35-21 for diverted shipments.
35-22 (e) An importer who purchases the product from a licensed
35-23 supplier, by mutual agreement with the supplier, may permit the
35-24 supplier to assume the importer's liability and adjust the
35-25 importer's taxes payable to the supplier.
35-26 (f) If a monthly report is filed or the amount due is
35-27 remitted after the date required by this chapter, the tax remitter
36-1 shall pay to the comptroller all of the motor fuel tax the remitter
36-2 collected from the sale of taxable motor fuel during the taxable
36-3 period in addition to penalties and interest.
36-4 (g) Under all circumstances, diverted loads and imported
36-5 loads must obtain a diversion or import verification number from
36-6 the comptroller before:
36-7 (1) leaving this state;
36-8 (2) entering this state; or
36-9 (3) being delivered.
36-10 Sec. 161.070. PERSONS BLENDING OR FRACTIONATING UNTAXED
36-11 MATERIALS; PAYMENT OF TAX. (a) A person blending untaxed
36-12 materials, including blendstocks and additives, with taxable motor
36-13 fuels shall pay and remit any unpaid tax imposed by this chapter.
36-14 (b) A person fractionating fuels shall:
36-15 (1) comply with the requirements of Section 161.316
36-16 relating to correct fuel formulation; and
36-17 (2) pay and remit any unpaid tax imposed by this
36-18 chapter.
36-19 (c) A fuel vendor required to pay a tax under Subsection (a)
36-20 shall remit the tax with the report required by Section 161.261(b)
36-21 or otherwise required from a person who is a miscellaneous fuel tax
36-22 license holder.
36-23 (d) A person, other than a fuel vendor required to pay tax
36-24 under Subsection (a), shall remit the tax directly to the
36-25 comptroller not later than the 30th day after the blending event in
36-26 accordance with comptroller rules.
36-27 Sec. 161.071. BACK-UP TAX COLLECTION. (a) A tax is imposed
37-1 by this chapter on tax-exempt motor fuel that is used in a taxable
37-2 or illegal manner and on a tax-exempt end user who uses tax-exempt
37-3 fuel in a taxable or illegal manner.
37-4 (b) The ultimate vendor of taxable motor fuel is jointly and
37-5 severably liable for the tax imposed by this section if the
37-6 ultimate vendor knows or has reason to know that the tax-exempt
37-7 motor fuel is or will be used in a manner that will make the fuel
37-8 subject to taxation under this section.
37-9 (Sections 161.072-161.100 reserved for expansion
37-10 SUBCHAPTER C. TAXES IMPOSED ON LIQUEFIED GAS
37-11 Sec. 161.101. LIQUEFIED GAS. (a) Subject to the exemptions
37-12 provided by this chapter, a tax is imposed on all liquefied gas
37-13 used or consumed in this state in producing or generating power for
37-14 propelling a motor vehicle on the public highways of this state.
37-15 (b) The liquefied gas tax rate is 15 cents a gallon.
37-16 Sec. 161.102. PAYMENT OF TAX. (a) A person using a
37-17 liquefied gas-propelled motor vehicle, including a motor vehicle
37-18 equipped to use liquefied gas interchangeably with another motor
37-19 fuel, that is required to be licensed in this state for use on the
37-20 public highways of this state shall prepay the liquefied gas tax to
37-21 the comptroller on an annual basis. A person who holds a motor
37-22 vehicle dealer's liquefied gas tax decal or an interstate trucker
37-23 whose vehicle is registered in this state but who may operate in
37-24 other states under a multistate fuels tax agreement shall pay the
37-25 tax to a permitted dealer at the time the fuel is delivered into
37-26 the fuel supply tank of the motor vehicle.
37-27 (b) An interstate trucker operating a motor vehicle licensed
38-1 in a base state other than this state and any other out-of-state
38-2 user shall pay the tax on delivery of the liquefied gas into the
38-3 fuel supply tanks of a motor vehicle.
38-4 Sec. 161.103. LICENSES; APPLICATION; DISPLAY. (a) A dealer
38-5 who sells taxable liquefied gas, an interstate trucker, a liquefied
38-6 gas tax decal user, or a motor vehicle dealer's liquefied gas tax
38-7 decal license holder shall file an application with the comptroller
38-8 for the kind and class of a nonassignable license required by this
38-9 subchapter.
38-10 (b) An application for a license must be filed on a form
38-11 provided by the comptroller showing the kind and class of license
38-12 desired, the odometer reading of a Class A through Class F motor
38-13 vehicle, and other information required by the comptroller.
38-14 (c) A license shall be posted in a conspicuous place or kept
38-15 available for inspection at the principal place of business of the
38-16 owner. A license holder shall reproduce the license and keep a
38-17 copy on display at each additional place of business from which
38-18 liquefied gas is sold, delivered, or used in motor vehicles. A
38-19 person holding an interstate trucker's license shall reproduce the
38-20 license and carry a copy with each motor vehicle being operated
38-21 into or from this state. The liquefied gas tax decal user shall
38-22 affix the decal in the lower right corner of the front windshield
38-23 of the passenger side of the vehicle.
38-24 Sec. 161.104. DEALER'S LICENSE. A dealer's license
38-25 authorizes a dealer to collect and remit taxes on liquefied gas
38-26 delivered into the fuel supply tank of a motor vehicle displaying
38-27 an out-of-state license plate, the motor vehicle of an interstate
39-1 trucker licensed under an agreement entered into under Section
39-2 161.011, or a motor vehicle displaying a motor vehicle dealer's
39-3 liquefied gas tax decal.
39-4 Sec. 161.105. LIQUEFIED GAS TAX DECAL LICENSE. (a) A
39-5 person who uses liquefied gas in producing or generating power for
39-6 propelling a motor vehicle on the public highways of this state
39-7 shall pay in advance annually, on each motor vehicle owned,
39-8 operated, and registered in this state by that person, a tax based
39-9 on the registered gross weight and mileage driven the previous year
39-10 in the following schedule:
39-11 Less 5,000 10,000 15,000
39-12 Than to to Miles
39-13 5,000 9,999 14,999 and
39-14 Miles Miles Miles Over
39-15 Class A: Less than 4,000 $30 $60 $90 $120
39-16 pounds
39-17 Class B: 4,000 to 10,000 $42 $84 $126 $168
39-18 pounds
39-19 Class C: 10,001 to $48 $96 $144 $192
39-20 15,000 pounds
39-21 Class D: 15,001 to $84 $168 $252 $336
39-22 27,500 pounds
39-23 Class E: 27,501 to $126 $252 $378 $504
39-24 43,500 pounds
39-25 Class F: 43,501 pounds $186 $372 $558 $744
39-26 and over
39-27 (b) The first issuance of a liquefied gas tax decal for a
40-1 Class A through Class F motor vehicle shall be issued on the basis
40-2 of the number of miles estimated to be driven during the period
40-3 ending on the first anniversary of the date of issuance of the
40-4 decal.
40-5 (c) A special use liquefied gas tax decal and tax shall be
40-6 required in accordance with this subsection for the following types
40-7 of vehicles:
40-8 Class T: Transit carrier vehicles operated by a transit
40-9 company ........................................ $444.
40-10 (d) An entity holding a registration under Chapter 503,
40-11 Transportation Code, may obtain a decal for each
40-12 liquefied-gas-powered motor vehicle held for sale or resale and pay
40-13 the tax on each gallon to a licensed dealer on each delivery of
40-14 liquefied gas into the fuel supply tank of the motor vehicle. An
40-15 interstate trucker is not required to prepay the tax under
40-16 Subsection (a) for a motor vehicle operated for commercial
40-17 purposes.
40-18 Sec. 161.106. LICENSES: PERIODS OF VALIDITY. (a) A
40-19 dealer's license is permanent and valid as long as the license
40-20 holder provides timely reports to the comptroller as required, or
40-21 until the license is surrendered by the holder or canceled by the
40-22 comptroller.
40-23 (b) A liquefied gas tax decal license is valid from the date
40-24 of its initial issuance through the last day of the same month of
40-25 the year following the year it was issued, unless the motor vehicle
40-26 for which the tax is prepaid is sold or no longer used on a public
40-27 highway. After its initial issuance, a liquefied gas tax decal
41-1 license shall be issued annually and is valid until the first
41-2 anniversary of the date of its issuance unless the motor vehicle
41-3 for which the tax is prepaid is sold or no longer used on a public
41-4 highway. A liquefied gas tax decal license holder must apply for a
41-5 new license each year. The ending odometer reading must be
41-6 provided on the renewal application. In the absence of an ending
41-7 odometer reading, the previous year's mileage of the motor vehicle
41-8 shall be presumed to be at least 15,000 miles.
41-9 (c) A motor vehicle dealer's liquefied gas tax decal license
41-10 shall be issued annually and is valid from the date of its issuance
41-11 through December 31 of each calendar year unless the motor vehicle
41-12 is sold, at which time the decal shall be removed by the dealer
41-13 from the motor vehicle. A motor vehicle dealer's liquefied gas tax
41-14 decal license holder must make application for a new license each
41-15 year. The fee for a dealer's license is $50.
41-16 Sec. 161.107. COMPUTATION OF TAXES; ALLOWANCES. (a) A
41-17 licensed dealer who makes a sale or delivery of liquefied gas into
41-18 a fuel supply tank of a motor vehicle on which the tax is required
41-19 to be collected is liable to this state for the tax imposed and
41-20 shall report and pay the tax in the manner required by this
41-21 subchapter.
41-22 (b) The tax on one-half of one percent of the taxable
41-23 gallons of liquefied gas sold in this state by a licensed dealer
41-24 shall be allocated to the licensed dealer for the expense of
41-25 collecting, accounting for, reporting, and remitting the taxes
41-26 collected and keeping the records. The allocation allowance shall
41-27 be deducted by the licensed dealer in the payment to this state.
42-1 (c) The tax on one-half of one percent of the taxable
42-2 gallons of liquefied gas sold in this state to a person licensed as
42-3 an interstate trucker shall be allocated to the interstate trucker
42-4 making the use of the liquefied gas for the expense of accounting
42-5 for, reporting, and remitting the taxes due.
42-6 Sec. 161.108. RECORDS. (a) Each taxable sale or delivery
42-7 of liquefied gas into the fuel supply tank of a motor vehicle,
42-8 including deliveries by interstate truckers from bulk storage, must
42-9 be covered by an invoice. The invoice must be printed and contain:
42-10 (1) the preprinted or stamped name and address of the
42-11 licensed dealer or interstate trucker;
42-12 (2) the date;
42-13 (3) the number of gallons delivered;
42-14 (4) the mileage recorded on the odometer;
42-15 (5) the state and state highway license number;
42-16 (6) the signature of the driver of the motor vehicle;
42-17 and
42-18 (7) the amount of tax paid or accounted for separately
42-19 from the selling price.
42-20 (b) The invoice must be carried with the vehicle, and the
42-21 invoice serves as a trip permit.
42-22 (c) A liquefied gas tax decal license holder required to
42-23 report beginning and ending odometer readings may deduct the miles
42-24 traveled outside this state from the total miles traveled. A
42-25 record of miles traveled by the vehicle in states other than this
42-26 state must be maintained and submitted with the renewal each year.
42-27 A decal may not be renewed for an amount less than the rate for
43-1 4,999 miles annually.
43-2 Sec. 161.109. REPORTS AND PAYMENTS. (a) A licensed dealer,
43-3 on or before the 25th day of the month following the end of each
43-4 calendar quarter, shall file a report and remit the amount of tax
43-5 due.
43-6 (b) A licensed dealer who has not made taxable sales during
43-7 the reporting period shall file with the comptroller a report that
43-8 includes the facts or information.
43-9 Sec. 161.110. REFUNDS; TRANSFER OF DECALS. (a) If a motor
43-10 vehicle with a liquefied gas tax decal is sold or transferred, the
43-11 seller and purchaser shall promptly notify the comptroller of the
43-12 sale or transfer, and a new decal shall be issued in the new
43-13 purchaser's name.
43-14 (b) If a motor vehicle with a liquefied gas tax decal is
43-15 destroyed or the liquefied gas carburetor system is removed, the
43-16 owner is entitled to a refund of the unused portion of the advance
43-17 taxes paid for that year. The owner or operator shall submit to
43-18 the comptroller an affidavit identifying the vehicle, the license
43-19 number, the decal number assigned to the vehicle, the circumstances
43-20 entitling the person to a refund, and all other information
43-21 required by the comptroller. On receipt of the affidavit, and if
43-22 satisfied as to the circumstances, the comptroller shall refund
43-23 that portion of the tax payment that corresponds to the number of
43-24 complete months remaining in the year for which the tax has been
43-25 paid, beginning with the month following the date the vehicle or
43-26 the liquefied gas carburetor was not used. The comptroller may not
43-27 make a refund if the use of the vehicle ceased within the last
44-1 month of the year.
44-2 (Sections 161.111-161.130 reserved for expansion
44-3 SUBCHAPTER D. INTERNATIONAL FUEL TAX AGREEMENT
44-4 Sec. 161.131. INTERNATIONAL FUEL TAX AGREEMENT LICENSE
44-5 REQUIREMENT. (a) An interstate trucker who imports motor fuel
44-6 into this state in the fuel supply tanks of a motor vehicle
44-7 described in the definition of "interstate trucker" in Section
44-8 161.001 that is operated for commercial purposes shall obtain a
44-9 license as an interstate trucker to:
44-10 (1) report and pay the tax due on motor fuel that is
44-11 imported and used on the public highways in this state; or
44-12 (2) claim a credit or refund of the tax paid on motor
44-13 fuel purchased in this state and used in other states.
44-14 (b) An interstate trucker's license is valid:
44-15 (1) from the date of issuance through December 31 of
44-16 that year; or
44-17 (2) until the trucker surrenders the license or the
44-18 comptroller cancels the license.
44-19 (c) The comptroller may renew the license each year if the
44-20 license holder reports as required by the comptroller.
44-21 (d) The comptroller shall determine from the information on
44-22 the application or from other investigations the kind or class of
44-23 license or permit to be issued.
44-24 (e) The comptroller shall issue a license to an applicant on
44-25 approval of the application.
44-26 (f) A person who holds an interstate trucker's license shall
44-27 reproduce the license and carry a photocopy in each vehicle the
45-1 person operates into or from this state.
45-2 (g) A license is not transferable.
45-3 Sec. 161.132. TRIP PERMIT. (a) Instead of obtaining an
45-4 annual interstate trucker's license, an interstate trucker may
45-5 obtain a trip permit.
45-6 (b) The trip permit must be obtained before or at the time
45-7 of entry into this state.
45-8 (c) The comptroller may not issue more than five trip
45-9 permits for a person during a calendar year. The comptroller shall
45-10 collect a fee for each trip permit in the amount of $50 for each
45-11 vehicle for each trip.
45-12 (d) A report is not required with respect to that vehicle.
45-13 (e) A trip permit is not transferable.
45-14 Sec. 161.133. OPERATING WITHOUT LICENSE OR PERMIT. An
45-15 interstate trucker who operates a motor vehicle without an
45-16 interstate trucker's license or trip permit may be subject to a
45-17 penalty under Subchapter I.
45-18 Sec. 161.134. RECORD REQUIREMENT. (a) An interstate
45-19 trucker shall keep a record of:
45-20 (1) the total miles traveled in all states by all
45-21 vehicles traveling into or from this state and the total quantity
45-22 of motor fuel consumed in those vehicles; and
45-23 (2) the total miles traveled in this state and the
45-24 total quantity of motor fuel purchased in this state, showing both
45-25 tax-paid fuel delivered into the fuel supply tanks of motor
45-26 vehicles and tax-free fuel delivered into storage facilities in
45-27 this state.
46-1 (b) The interstate trucker shall keep the records required
46-2 for four years. The records are open to inspection at all times by
46-3 the comptroller and the attorney general.
46-4 Sec. 161.135. REPORTS. (a) On or before the 25th day of
46-5 the month following the end of each calendar quarter, an
46-6 interstate trucker shall file a report on forms provided by the
46-7 comptroller.
46-8 (b) The report must include complete and detailed
46-9 information required by the comptroller, including the number of
46-10 miles traveled in this state and the number of miles traveled
46-11 outside this state.
46-12 (c) An interstate trucker who has not used any motor fuel
46-13 during the reporting period shall file with the comptroller a
46-14 report stating that fact.
46-15 (d) The failure of an interstate trucker to obtain forms
46-16 from the comptroller is not an excuse for the failure to file a
46-17 report containing the information required to be reported.
46-18 (e) The comptroller may waive a report required by this
46-19 section if substantially similar data is available from federal
46-20 government sources.
46-21 Sec. 161.136. PAYMENT OF TAX. (a) An interstate trucker
46-22 may not make tax-free purchases of motor fuel.
46-23 (b) An interstate trucker shall remit the amount of tax due
46-24 with the report required by Section 161.135.
46-25 (c) An interstate trucker shall remit all taxes due by the
46-26 trucker based on the applicable tax rate for each gallon of motor
46-27 fuel consumed in this state at the time the report is filed.
47-1 (d) A licensed interstate trucker is entitled to deduct an
47-2 amount equal to one-half of one percent of the taxable gallons of
47-3 motor fuel on payment of taxes to this state for the expense of
47-4 recordkeeping, reporting, and remitting the tax.
47-5 Sec. 161.137. CREDIT FOR MOTOR FUEL CONSUMED OUTSIDE STATE.
47-6 (a) A licensed interstate trucker is entitled to a credit equal to
47-7 the tax rate for each gallon on all tax-paid motor fuel that is
47-8 consumed in a vehicle outside this state.
47-9 (b) An interstate trucker may accumulate credits for four
47-10 successive calendar quarters, but must take the credit or claim a
47-11 refund on a report filed on or after the 25th day after the end of
47-12 the fourth quarter.
47-13 (c) If the amount of a credit to which the interstate
47-14 trucker is entitled for a calendar quarter exceeds the amount of
47-15 tax for which the interstate trucker is liable for motor fuel
47-16 consumed in the person's vehicles during the reporting period, the
47-17 comptroller may allow the trucker to claim the excess as a credit
47-18 or refund on a timely filed quarterly report against tax for which
47-19 the interstate trucker would be otherwise liable for any of the
47-20 next three quarters.
47-21 (d) An interstate trucker claiming a tax refund or credit
47-22 must provide evidence of the mileage traveled and gallons consumed
47-23 and the payment of the tax on a form required by or satisfactory to
47-24 the comptroller.
47-25 (e) An interstate trucker must file a claim for a credit or
47-26 refund not later than the first anniversary of the day after the
47-27 first day of the calendar month following the purchase or use.
48-1 Sec. 161.138. INTERSTATE TRUCKERS AND LESSORS; PAYMENT OF
48-2 TAX. (a) Unless a lessor is liable under Subsection (b), an
48-3 interstate trucker is liable for the tax on motor fuel imported
48-4 into this state in the fuel supply tanks of motor vehicles leased
48-5 to the trucker and used on the public highways of this state to the
48-6 same extent and in the same manner as the trucker is liable for the
48-7 tax on motor fuel imported in the trucker's own motor vehicles and
48-8 used on the public highways of this state.
48-9 (b) A lessor who regularly engages in the business of
48-10 leasing motor vehicles and equipment for compensation to carriers
48-11 or other lessees for interstate operation may be considered to be
48-12 the end user or interstate trucker if the lessor supplies or pays
48-13 for the motor fuel consumed in those vehicles. A lessor may be
48-14 issued a license as an interstate trucker if an application is
48-15 properly filed with and approved by the comptroller.
48-16 (c) A lessee may exclude a motor vehicle that the person
48-17 leases from the person's reports and liabilities under this
48-18 chapter, but only if the motor vehicle has been leased from a
48-19 lessor who holds a license as a bonded interstate trucker for the
48-20 calendar year.
48-21 (d) A lessor described by Subsection (b) may file with the
48-22 person's application for an interstate trucker license one copy of
48-23 the form lease or service contract the person enters into with the
48-24 lessees of the person's motor vehicles. On approval of the
48-25 license, the lessor may make and assign to each motor vehicle the
48-26 person leases for interstate operation a photocopy of the license
48-27 to be carried in the cab compartment of the motor vehicle. The
49-1 photocopy of the license must have typed or printed on the back the
49-2 unit or motor number of the motor vehicle to which it is assigned
49-3 and the name of the lessee. The lessor is responsible for the
49-4 proper use of the photocopy of the license issued and for its
49-5 return to the lessor with the motor vehicle to which it is
49-6 assigned.
49-7 (Sections 161.139-161.160 reserved for expansion
49-8 SUBCHAPTER E. EXEMPTIONS, REFUNDS, AND CREDITS
49-9 Sec. 161.161. EXEMPTIONS FROM TAX ON MOTOR FUEL. (a)
49-10 Subject to the conditions and prohibitions imposed by this chapter,
49-11 the following are exempt from the tax on motor fuel imposed by this
49-12 chapter:
49-13 (1) aviation fuels delivered to or by a licensed
49-14 aviation fuels dealer exclusively for the supply tanks of aircraft
49-15 or aircraft servicing equipment;
49-16 (2) red-dyed diesel fuel;
49-17 (3) taxable diesel fuel that has been contaminated by
49-18 dye so as to be unsellable or unusable as public highway fuel;
49-19 (4) kerosene sold at retail through barricaded
49-20 dispensers designed and constructed to prevent delivery directly
49-21 from the dispenser into a vehicle's fuel supply tank;
49-22 (5) kerosene sold at retail through nonbarricaded
49-23 dispensers in quantities of not more than 21 gallons for use other
49-24 than for public highway purposes;
49-25 (6) red-dyed kerosene in accordance with federal
49-26 regulations;
49-27 (7) motor fuel brought into this state in the fuel
50-1 supply tank of a vehicle operated by a person not required to be
50-2 licensed as an importer or transporter;
50-3 (8) motor fuel sales to the federal government or a
50-4 public school district for its exclusive use;
50-5 (9) motor fuel sold to a commercial transportation
50-6 company that provides public school transportation services to a
50-7 school district under Section 34.008, Education Code, and used by
50-8 the company exclusively to provide those services;
50-9 (10) liquefied gas sold to a county government for its
50-10 exclusive use;
50-11 (11) motor fuel sold for export, including motor fuel
50-12 that is:
50-13 (A) sold by a supplier for immediate export to a
50-14 state for which the destination state's motor fuel tax has been
50-15 paid to a supplier licensed to remit the tax to the destination
50-16 state;
50-17 (B) destined for use other than for resale
50-18 within the destination state and for which an exemption has been
50-19 made available by the destination state;
50-20 (C) exported by refineries and transported by
50-21 pipeline, railroad car, marine barge, or oceangoing vessel; or
50-22 (D) acquired by a licensed or unlicensed
50-23 exporter for which the tax imposed by this chapter has previously
50-24 been paid or accrued, and placed into storage in this state and
50-25 subsequently exported by transport truck by or on behalf of the
50-26 exporter;
50-27 (12) motor fuel imports that have valid shipping
51-1 papers with a registered terminal listed as the destination if the
51-2 terminal is licensed as a permissive supplier by this state; or
51-3 (13) motor fuel exchanged as part of a two-party motor
51-4 fuel exchange that occurs at or above the terminal level in the
51-5 bulk transfer system.
51-6 (b) Motor fuel delivered to a farm or ranch for agricultural
51-7 purposes shall be delivered tax-free if the fuel is delivered in
51-8 quantities of 3,000 gallons or less per delivery, with a maximum of
51-9 10,000 gallons in any month. The ultimate vendor shall pay the
51-10 tax on behalf of the farm or ranch and may request a refund under
51-11 Section 161.162.
51-12 Sec. 161.162. REFUNDS OF MOTOR FUEL TAX PAID. (a) A person
51-13 who has paid tax on motor fuel that is used for a nontaxable
51-14 purpose described by this subsection may apply to the comptroller
51-15 for a refund using a form prescribed by the comptroller. The
51-16 comptroller shall make the refund for taxes paid on motor fuel used
51-17 for the following purposes on receipt of the application and proof
51-18 the comptroller considers acceptable:
51-19 (1) motor fuel exempted under Section 161.161(a)(3),
51-20 (8), (9), (10), (11), or (12);
51-21 (2) motor fuel used in a motor vehicle that is
51-22 operated exclusively off-road, including motor fuel described by
51-23 Section 161.161(b); and
51-24 (3) motor fuel used in auxiliary power take-off
51-25 equipment and other off-road stationary engines, if accurately
51-26 metered or documented according to rules adopted by the
51-27 comptroller.
52-1 (b) A person who files a claim for a tax refund forfeits the
52-2 person's right to the entire amount of the claim if:
52-3 (1) the claim is filed for motor fuel used for a
52-4 purpose for which a tax refund is not authorized; or
52-5 (2) the person files an invoice supporting a refund
52-6 claim on which the date, computations, or any material information
52-7 has been falsified or altered.
52-8 (c) The comptroller may grant all or part of a refund under
52-9 Subsection (b) if the person provides proof satisfactory to the
52-10 comptroller that the incorrect refund claim was filed because of a
52-11 clerical or mathematical computation error.
52-12 (d) The comptroller shall credit or pay a refund directly to
52-13 the person who paid the tax. A credit or refund is not assignable
52-14 or transferable.
52-15 Sec. 161.163. CLAIM FOR REFUND ON TAXES PAID ON EXEMPT SALES
52-16 TO GOVERNMENTAL ENTITIES. (a) This section applies to:
52-17 (1) a sale of taxable motor fuel for use by the
52-18 federal government or a public school district;
52-19 (2) taxable motor fuel sold to a commercial
52-20 transportation company that provides public school transportation
52-21 to a school district under Section 34.008, Education Code, and used
52-22 by the company exclusively to provide those services; and
52-23 (3) liquefied gas sold to a county for its exclusive
52-24 use.
52-25 (b) The licensed fuel vendor that made a sale described by
52-26 Subsection (a) as an ultimate vendor to an exempt government end
52-27 user may apply for a refund on behalf of the exempt end user.
53-1 (c) The licensed fuel vendor shall apply directly with the
53-2 comptroller in accordance with the rules and forms prescribed by
53-3 the comptroller.
53-4 (d) An ultimate vendor may apply for a government exempt
53-5 bulk sales permit that entitles the vendor to make purchases of
53-6 gasoline tax-free for resale to an exempt government end user. The
53-7 ultimate vendor must apply on a form acceptable to the comptroller
53-8 and include on or with the application:
53-9 (1) proof of financial responsibility or a bond in an
53-10 amount not to exceed the tax on the total gallons to be purchased
53-11 tax-exempt in any year;
53-12 (2) an estimate of total tax-exempt gallons to be sold
53-13 under the permit on an annual basis;
53-14 (3) the name of the suppliers from which the applicant
53-15 will make tax-exempt purchases under the permit;
53-16 (4) a list of government tax-exempt purchasers
53-17 qualifying under Subsection (f) and estimated volumes for each
53-18 purchaser; and
53-19 (5) any other information the comptroller requires by
53-20 rule.
53-21 (e) If the comptroller determines that tax collections would
53-22 not be jeopardized by issuance of a government exempt bulk sales
53-23 permit, the comptroller shall issue a permit to the applicant that
53-24 authorizes the applicant to make tax-exempt sales of motor fuel
53-25 during the year in an amount not to exceed the estimate included on
53-26 the application. The comptroller shall provide a copy of the permit
53-27 to each supplier named by the applicant under Subsection (d)(3).
54-1 (f) A governmental entity may not qualify as a purchaser
54-2 eligible for tax-exempt sales under this section unless the
54-3 ultimate vendor:
54-4 (1) obtains a properly completed federal Form 1094,
54-5 its state equivalent, or a successor form from the governmental
54-6 entity;
54-7 (2) sends a copy of the form to the comptroller; and
54-8 (3) includes with the copy an estimate of the annual
54-9 quantity of taxable motor fuel to be supplied to that purchaser.
54-10 (g) The comptroller shall assign an approval number for the
54-11 governmental entity and ultimate vendor location described by
54-12 Subsection (f).
54-13 (h) The comptroller may not require that the identical
54-14 gallons purchased by the ultimate vendor under the permit be
54-15 delivered to the eligible entity under this section. The
54-16 comptroller may require that the total gallons purchased tax-exempt
54-17 under the permit equal the total gallons delivered to all eligible
54-18 entities.
54-19 (i) If the ultimate vendor fails to deliver purchased
54-20 tax-exempt motor fuel to an eligible entity under this section, the
54-21 ultimate vendor is liable for the tax on that motor fuel. If the
54-22 number of tax-exempt gallons purchased tax-free exceeds the number
54-23 of gallons sold for tax-exempt use by 10 percent or more, the
54-24 comptroller may levy a penalty equal to 10 percent of the tax due.
54-25 (j) If the ultimate vendor needs to purchase more gallons
54-26 than the amount the vendor included in the estimate prescribed by
54-27 Subsection (d) to fulfill the vendor's commitments, the vendor
55-1 shall notify the comptroller. If the comptroller is satisfied with
55-2 the reports previously submitted by the vendor that account for the
55-3 tax-exempt fuel, the comptroller shall increase the quantity
55-4 authorized on the permit and shall notify each supplier of the
55-5 increase.
55-6 (k) If an ultimate vendor makes a sale of taxable motor fuel
55-7 to an eligible entity under this section at a fixed retail pump
55-8 available to the general public without including the tax, the
55-9 ultimate vendor who made the sale may:
55-10 (1) apply to the comptroller for a refund in
55-11 accordance with Subsections (b) and (c); or
55-12 (2) apply to the comptroller for a refund or a credit
55-13 against its liabilities otherwise arising under this chapter if the
55-14 purchase is charged to a credit card issued to the eligible entity
55-15 and the issuer of the card elects to be the ultimate vendor.
55-16 (l) If an ultimate vendor makes a sale of taxable motor fuel
55-17 to an eligible entity under this section at a fixed retail pump
55-18 available to the general public and includes the tax, the entity
55-19 may apply for a refund from the comptroller. The entity must
55-20 submit with the application any supporting documentation the
55-21 comptroller prescribes by rule.
55-22 Sec. 161.164. REFUND OF MOTOR FUEL TAX ERRONEOUSLY PAID.
55-23 (a) If any taxes, interest, or penalties imposed by this chapter
55-24 have been erroneously paid or illegally collected, the comptroller
55-25 shall permit the person who paid the tax to:
55-26 (1) take a credit against a subsequent tax report for
55-27 the amount erroneously or illegally paid; or
56-1 (2) apply for a refund.
56-2 (b) An election to take a credit must be made not later than
56-3 the first anniversary of the date of the erroneous collection or
56-4 payment.
56-5 Sec. 161.165. REFUND CLAIMS. (a) Except as otherwise
56-6 provided by this chapter, to claim a refund under Sections
56-7 161.162-161.164, a person must:
56-8 (1) file the claim not later than the first
56-9 anniversary of the date the taxable motor fuel was purchased;
56-10 (2) list on the claim the total amount of taxable
56-11 motor fuel purchased and used for an exempt purpose;
56-12 (3) state on the claim that payment for the purchase
56-13 has been made and that the amount of tax paid on the purchase has
56-14 been remitted to the seller; and
56-15 (4) verify in writing that the claim is made under
56-16 penalties of perjury.
56-17 (b) The comptroller shall investigate a claim as the
56-18 comptroller considers necessary before issuing a refund. The
56-19 comptroller may also investigate a refund after the refund has been
56-20 issued and within the period for making adjustments to the tax
56-21 under this chapter.
56-22 (c) If a refund is payable to a supplier, the supplier may
56-23 claim a credit instead of the refund.
56-24 (d) To facilitate efficient administration and instead of an
56-25 individual refund procedure, the comptroller by rule may provide an
56-26 alternative election by the applicant for a refund by allowing a
56-27 credit against state tax liability.
57-1 (e) The comptroller shall deduct from a refund the amount
57-2 originally deducted under Subchapter B by the licensed entity
57-3 making the sale.
57-4 Sec. 161.166. INTEREST ON REFUND. The comptroller shall pay
57-5 interest on a claim for refund at the rate and in the manner
57-6 provided by comptroller rules.
57-7 (Sections 161.167-161.200 reserved for expansion
57-8 SUBCHAPTER F. LICENSING
57-9 Sec. 161.201. REQUIREMENT FOR LICENSE. A person who wants
57-10 to engage in any form of fuel storage, transportation, purchase,
57-11 sale, or delivery in this state must notify the comptroller of that
57-12 intent and obtain an appropriate license.
57-13 Sec. 161.202. SUPPLIER'S LICENSE; FEE. (a) A person who
57-14 wants to be engaged in business in this state as a supplier must
57-15 obtain a supplier's license.
57-16 (b) The fee for a supplier's license is $2,000.
57-17 Sec. 161.203. PERMISSIVE SUPPLIER'S LICENSE; FEE. (a) A
57-18 person who wants to collect the tax imposed by this chapter as a
57-19 supplier and who meets the definition of a permissive supplier may
57-20 obtain a permissive supplier's license.
57-21 (b) Application for or possession of a permissive supplier's
57-22 license does not by itself subject the applicant or license holder
57-23 to the jurisdiction of this state for a purpose other than
57-24 administration and enforcement of this chapter.
57-25 (c) The fee for a permissive supplier's license is $250.
57-26 Sec. 161.204. TERMINAL OPERATOR'S LICENSE; FEE. (a) A
57-27 person, other than a supplier licensed under Section 161.202, who
58-1 wants to be engaged in business in this state as a terminal
58-2 operator must obtain a terminal operator's license for each
58-3 terminal site.
58-4 (b) The fee for a terminal operator's license is $100.
58-5 Sec. 161.205. EXPORTER'S LICENSE; FEE. (a) The
58-6 comptroller may require a person to obtain an exporter's license if
58-7 the person exports products to another state without first paying
58-8 that destination state's motor fuel tax to the supplier.
58-9 (b) The fee for an exporter's license is $250.
58-10 Sec. 161.206. TRANSPORTER'S LICENSE; FEE. (a) A person who
58-11 is not licensed as a supplier or as an aviation fuel dealer must
58-12 obtain a transporter's license before transporting taxable motor
58-13 fuel, whether from a point outside this state to a point inside
58-14 this state or from a point inside this state to a point outside
58-15 this state, regardless of whether the person is engaged for hire in
58-16 interstate or intrastate commerce.
58-17 (b) Leased vehicles must be registered to transport motor
58-18 fuel within the state in the same manner as owned vehicles.
58-19 (c) The fee for a transporter's license is $100.
58-20 Sec. 161.207. OCCASIONAL IMPORTER'S LICENSE (TRIP LICENSE)
58-21 OR BONDED IMPORTER'S LICENSE; FEES. (a) A person shall apply for
58-22 and obtain an occasional importer's license or a bonded importer's
58-23 license, at the discretion of the applicant, if:
58-24 (1) the person wants to cause taxable motor fuel to be
58-25 delivered into this state on the person's behalf, for the person's
58-26 own account, or for resale to a purchaser in this state;
58-27 (2) the motor fuel is delivered from another state in
59-1 a fuel transport truck or in a pipeline or barge shipment into
59-2 storage facilities that are not a qualified terminal; and
59-3 (3) the person has not entered into an agreement to
59-4 prepay this state's taxable motor fuel tax to the supplier or
59-5 permissive supplier with respect to the imports.
59-6 (b) This section does not apply to a person who:
59-7 (1) exclusively imports taxable motor fuel that is
59-8 exempted because it has been dyed; or
59-9 (2) imports nonexempt taxable motor fuel:
59-10 (A) that is subject to one or more tax
59-11 precollection agreements with suppliers under Section 161.056; and
59-12 (B) for which the prior collection of the motor
59-13 fuel tax by the supplier is expressly evidenced on the
59-14 terminal-issued shipping paper provided under Section 161.301.
59-15 (c) A person described by Subsection (a) shall obtain:
59-16 (1) an occasional importer's license for the fee of
59-17 $500 that allows for a maximum of 10 trips each year; or
59-18 (2) a bonded importer's license for the fee of $2,000,
59-19 subject to the bonding requirements of Section 161.216(b).
59-20 (d) A person required to obtain a license under this section
59-21 shall:
59-22 (1) obtain, not later than 24 hours before entering
59-23 this state, an import verification number from the comptroller for
59-24 each separate import into this state; and
59-25 (2) display the import verification number on the
59-26 terminal-issued shipping papers required by Section 161.301.
59-27 (e) An importer's license issued under this section must be
60-1 specific to each state that is the source of supply.
60-2 Sec. 161.208. TANK WAGON OPERATOR-IMPORTER LICENSE; FEE.
60-3 (a) A person must obtain a tank wagon operator-importer license
60-4 from the comptroller before the person imports motor fuel by tank
60-5 wagon if the destination of that tank wagon is within 25 miles of a
60-6 border of this state.
60-7 (b) Registration as a tank wagon operator-importer does not
60-8 constitute authorization to acquire nonexempt motor fuel free of
60-9 the tax imposed by this chapter at a terminal either in or outside
60-10 this state for direct delivery to a location in this state.
60-11 (c) A person who possesses a valid importer's license may
60-12 act as a tank wagon operator-importer without issuance of a
60-13 separate license if the importer also operates one or more bulk
60-14 plants outside this state.
60-15 (d) A person who operates a tank wagon that delivers
60-16 products into this state must also obtain an importer's license
60-17 under Section 161.207.
60-18 (e) The fee for a tank wagon operator-importer license is
60-19 $150.
60-20 Sec. 161.209. FUEL VENDOR'S LICENSE; FEE. (a) A person who
60-21 wants to engage in the business of selling taxable motor fuel at
60-22 wholesale or retail or in storing or distributing taxable motor
60-23 fuel for resale within this state must obtain a fuel vendor's
60-24 license.
60-25 (b) A fuel vendor shall maintain detailed records of all
60-26 purchases and sales at all locations in this state until the third
60-27 anniversary of the date of the transaction. All fuel vendor
61-1 records must be maintained in English and Arabic numerals or in a
61-2 manner acceptable to electronic formats.
61-3 (c) A fuel vendor shall make an annual report of taxable
61-4 gallons sold at retail in accordance with Section 161.261.
61-5 (d) The comptroller may exempt from the requirements of
61-6 Subsection (a) a person who possesses a valid supplier's, terminal
61-7 operator's, transporter's, importer's, tank wagon
61-8 operator-importer, or exporter's license.
61-9 (e) The fee for a fuel vendor's license is $50.
61-10 Sec. 161.210. AVIATION FUEL DEALER'S LICENSE; FEE. (a) A
61-11 person who wants to engage in business in this state as a dealer,
61-12 wholesaler, vendor, or transporter of aviation fuels or who stores
61-13 those fuels shall obtain an aviation fuel dealer's license for each
61-14 business site.
61-15 (b) An aviation fuel dealer's license authorizes a person to
61-16 deliver gasoline or diesel fuel exclusively into the fuel supply
61-17 tanks of aircraft or aircraft servicing equipment. The holder of
61-18 an aviation fuel dealer's license may sell or deliver diesel fuel
61-19 to another aviation fuel dealer who will deliver the diesel fuel
61-20 exclusively into the fuel supply tanks of aircraft or aircraft
61-21 servicing equipment. The holder of an aviation fuel dealer's
61-22 license may not act as a supplier of gasoline or diesel fuel other
61-23 than as allowed by this section.
61-24 (c) The fee for an aviation fuel dealer's license is $50.
61-25 Sec. 161.211. MISCELLANEOUS FUEL TAX LICENSE; FEE. Each
61-26 person who is liable for the tax imposed by this chapter but is not
61-27 licensed under Sections 161.202-161.210 shall obtain a
62-1 miscellaneous fuel tax license. There is no fee for this license.
62-2 Sec. 161.212. APPLICATION FOR LICENSE. (a) To obtain a
62-3 license, an applicant must file an application with the comptroller
62-4 on a form prescribed by the comptroller that requires information
62-5 relating to:
62-6 (1) the name under which the applicant transacts or
62-7 intends to transact business;
62-8 (2) the applicant's principal office, residence, or
62-9 place of business in this state;
62-10 (3) if the applicant is not an individual, the name of
62-11 each principal officer or partner and the office and street number
62-12 of each individual; and
62-13 (4) other information required by the comptroller.
62-14 (b) A person may not apply for a license as a refiner,
62-15 supplier, terminal operator, importer, exporter, blender, or
62-16 transporter unless the person:
62-17 (1) is incorporated in this state or authorized to
62-18 transact business in this state, if the person is a corporation;
62-19 (2) is organized in this state or authorized to
62-20 transact business in this state, if the person is a limited
62-21 liability company;
62-22 (3) is formed in this state or authorized to transact
62-23 business in this state, if the person is a limited partnership; or
62-24 (4) designates an agent for service of process and
62-25 gives the agent's name and address, if the person is an individual
62-26 or general partnership.
62-27 (c) A person may not apply for a license as a refiner,
63-1 supplier, permissive supplier, or terminal operator unless the
63-2 person has a federal certificate of registry that is issued under
63-3 Section 4101, Internal Revenue Code of 1986, as amended, that
63-4 authorizes the person to enter into federal tax-free transactions
63-5 in taxable motor fuel in the terminal transfer system. The
63-6 applicant must include the registration number of the certificate
63-7 on the license application.
63-8 (d) A person applying for a license as an importer who has a
63-9 federal certificate of registry that is issued under Section 4101,
63-10 Internal Revenue Code of 1986, as amended, must include the
63-11 registration number of the certificate on the license application.
63-12 (e) A person applying for a license as an importer must
63-13 include on the application a list of each state from which the
63-14 applicant intends to import motor fuel. If a listed state requires
63-15 a license, the person must be licensed in that state to obtain a
63-16 license in this state.
63-17 (f) A person applying for a license as an exporter must
63-18 include on the application a list of each state to which the
63-19 applicant intends to export motor fuel that is received in this
63-20 state by a transfer outside the terminal transfer system. If a
63-21 listed state requires a license, the person must be licensed in
63-22 that state to obtain a license in this state.
63-23 Sec. 161.213. INVESTIGATION OF APPLICANT FOR LICENSE. The
63-24 comptroller shall investigate each applicant for a license under
63-25 this chapter. The comptroller may not issue a license to a person
63-26 if the comptroller determines that:
63-27 (1) the applicant is not the real party in interest;
64-1 (2) the license of the real party in interest has been
64-2 canceled for cause;
64-3 (3) the applicant has a prior conviction for motor
64-4 fuel tax evasion;
64-5 (4) with respect to an exporter's license the
64-6 applicant is not licensed in the intended specific state of
64-7 destination; or
64-8 (5) there is another reasonable cause for not issuing
64-9 the license.
64-10 Sec. 161.214. REQUIREMENT FOR FINANCIAL STATEMENTS. (a)
64-11 The comptroller may require a license holder or an applicant for a
64-12 license to provide current financial statements that have been
64-13 verified by a certified public accountant.
64-14 (b) The comptroller may make an independent inquiry into the
64-15 financial condition of the applicant and is not required to accept
64-16 as accurate financial statements that have not been certified or
64-17 independently audited.
64-18 (c) If the comptroller determines that a license holder's
64-19 financial condition warrants an increase in a bond or cash deposit,
64-20 the comptroller may require the license holder to provide the
64-21 increased bond or cash deposit.
64-22 Sec. 161.215. FINGERPRINTING REQUIREMENT; EXEMPTIONS. (a)
64-23 The comptroller may require an applicant for a license, including a
64-24 corporate officer, partner, or individual, to submit the person's
64-25 fingerprints to the comptroller when applying for the license.
64-26 (b) The following people are exempt from the requirement
64-27 prescribed by Subsection (a):
65-1 (1) an officer of a publicly held corporation or of a
65-2 subsidiary of such a corporation; and
65-3 (2) an applicant for an importer's license who
65-4 continuously possessed a license or permit issued under Chapter
65-5 153, as it existed on December 31, 2000, from at least January 1,
65-6 1995.
65-7 (c) A person required to submit fingerprints must submit the
65-8 fingerprints on forms prescribed by the comptroller. The
65-9 comptroller may forward all fingerprints submitted by license
65-10 applicants to the Federal Bureau of Investigation or any other
65-11 agency for processing. The receiving agency shall issue the
65-12 agency's findings to the comptroller. The comptroller shall use
65-13 the license application fee to pay the cost of the investigation.
65-14 (d) The comptroller or another state agency may maintain a
65-15 file of fingerprints.
65-16 Sec. 161.216. APPLICATION MUST BE FILED WITH SURETY BOND OR
65-17 CASH DEPOSIT. (a) Except as otherwise provided by this section,
65-18 concurrently with the filing of an application for a license under
65-19 this chapter, the comptroller shall require the applicant to file
65-20 with the comptroller a surety bond or cash deposit that:
65-21 (1) is in an amount determined by the comptroller of
65-22 not less than $2,000, or not more than a three-month tax liability
65-23 for the applicant, as estimated by the comptroller; and
65-24 (2) is conditioned on the keeping of records and the
65-25 making of full and complete reports and payments as required by
65-26 this chapter.
65-27 (b) A supplier or bonded importer shall post a bond of not
66-1 less than $2 million. If a person is registered as a taxable fuel
66-2 registrant under Section 4101, Internal Revenue Code of 1986, as
66-3 amended, the comptroller may reduce the bond to not less than $1
66-4 million. A person may show proof of financial responsibility
66-5 instead of posting of bond. Proof of a net worth of at least $5
66-6 million constitutes evidence of financial responsibility in the
66-7 absence of circumstances indicating to the comptroller that
66-8 collection of the taxes from the applicant is at risk.
66-9 (c) If the applicant files a bond, the bond must:
66-10 (1) name the applicant as the principal and this state
66-11 as the obliged;
66-12 (2) be with a surety company approved by the
66-13 comptroller, which may be an affiliate in the business of assuring
66-14 the obligations; and
66-15 (3) be in the form prescribed by the comptroller.
66-16 (d) A person is exempt from the bonding requirements of this
66-17 section if the person is:
66-18 (1) a fuel vendor licensed under Section 161.209 who
66-19 is not required to be licensed under another section; or
66-20 (2) a person who holds a miscellaneous fuel tax
66-21 license under Section 161.211.
66-22 Sec. 161.217. REQUIREMENT FOR LICENSE HOLDER TO FILE NEW
66-23 BOND OR ADDITIONAL DEPOSIT. (a) The comptroller may require a
66-24 license holder to file a new bond with a satisfactory surety in the
66-25 same form and amount if:
66-26 (1) the liability on the previous bond is discharged
66-27 or reduced by a judgment rendered or payment made or the amount of
67-1 the bond otherwise becomes unsatisfactory; or
67-2 (2) in the opinion of the comptroller, a surety on the
67-3 previous bond becomes insufficient.
67-4 (b) If the new bond is unsatisfactory, the comptroller shall
67-5 cancel the person's license. If the new bond is satisfactory, the
67-6 comptroller shall release in writing the surety on the previous
67-7 bond from liability accruing after the effective date of the new
67-8 bond.
67-9 (c) If a license holder has a cash deposit with the
67-10 comptroller and the deposit is reduced by a judgment rendered or
67-11 payment made or the amount otherwise becomes insufficient, the
67-12 comptroller may require the license holder to make a new deposit
67-13 equal to the amount of the insufficiency.
67-14 Sec. 161.218. AMOUNT OF BOND OR DEPOSIT; CANCELLATION OF
67-15 LICENSE. (a) A license holder shall file a new bond or increase a
67-16 cash deposit if the comptroller:
67-17 (1) determines that the amount of the existing bond or
67-18 cash deposit is insufficient to ensure payment to this state of the
67-19 tax and of any penalty and interest for which the license holder is
67-20 or may become liable; and
67-21 (2) makes a written demand for the new bond or
67-22 increased deposit.
67-23 (b) The comptroller shall allow the license holder at least
67-24 15 days to secure the increased bond or cash deposit.
67-25 (c) The new bond or cash deposit must meet the requirements
67-26 prescribed by this chapter.
67-27 (d) If the new bond or cash deposit required under this
68-1 section is unsatisfactory, the comptroller shall cancel the
68-2 person's license.
68-3 Sec. 161.219. ISSUANCE OF LICENSE. If the applicant and
68-4 bond are approved, the comptroller shall issue:
68-5 (1) a license for the applicant; and
68-6 (2) a number of copies equal to the number of places
68-7 of business that the person has for which a license is required.
68-8 Sec. 161.220. RECORDS OF LICENSE HOLDERS IN THIS STATE. (a)
68-9 Not later than the 20th day of each month, the comptroller will
68-10 update the list of all motor fuel license holders in this state by
68-11 category.
68-12 (b) The list must:
68-13 (1) indicate changes from the previous month; and
68-14 (2) include each purchaser who is eligible to share
68-15 the terminal administrative credit under Section 161.067.
68-16 (c) The comptroller shall make the list available by mail if
68-17 requested.
68-18 (d) A current and effective license or the list provided by
68-19 the comptroller is evidence of the validity of the license until
68-20 the comptroller notifies suppliers and bonded importers of a change
68-21 in the status of a license holder.
68-22 Sec. 161.221. LICENSE IS NONTRANSFERABLE. (a) A license
68-23 may not be transferred to another person or to another place of
68-24 business.
68-25 (b) For purposes of this section, a transfer means the
68-26 transfer of a majority interest in a business association, other
68-27 than a publicly held association, including a corporation,
69-1 partnership, trust, joint venture, and any other business
69-2 association, to another person.
69-3 Sec. 161.222. LICENSE MUST BE DISPLAYED AT PLACE OF
69-4 BUSINESS. Each license must be preserved and conspicuously
69-5 displayed at the place of business for which it is issued. The
69-6 comptroller may waive this requirement for any class of license
69-7 holder.
69-8 Sec. 161.223. SURRENDER OF LICENSE ON DISCONTINUANCE OR
69-9 RELOCATION. A license holder who discontinues conducting business
69-10 at a location or changes a business location shall immediately
69-11 surrender the license issued for the location to the comptroller.
69-12 Sec. 161.224. NOTICE THAT LICENSE HOLDER HAS DISCONTINUED,
69-13 SOLD, OR TRANSFERRED BUSINESS. (a) If a license holder
69-14 discontinues, sells, or transfers the person's business, the person
69-15 shall immediately notify the comptroller in writing of the
69-16 discontinuance, sale, or transfer.
69-17 (b) In addition to the notice required by Subsection (a), a
69-18 person who discontinues, sells, or transfers the person's business
69-19 shall file a final report as required by Section 161.263.
69-20 (c) The notice must give the date of discontinuance, sale,
69-21 or transfer and, for the sale or transfer of the business, the name
69-22 and address of the purchaser or transferee.
69-23 (d) The license holder is liable for all taxes, interest,
69-24 and penalties that accrue or may be owing and for any criminal
69-25 liability for misuse of the license that occurs before issuance of
69-26 the notice.
69-27 Sec. 161.225. CANCELLATION OR REFUSAL OF LICENSE. (a) The
70-1 comptroller may cancel or refuse to issue or reissue a motor fuel
70-2 license to a person who has violated or has failed to comply with
70-3 this chapter or a rule of the comptroller.
70-4 (b) Before a license may be canceled or the issuance or
70-5 reissuance refused, the comptroller shall give the license holder
70-6 or license applicant not less than 10 days notice of a hearing at
70-7 the office of the comptroller in Austin, or at a specified
70-8 comptroller's field office, granting the license holder or
70-9 applicant an opportunity to show cause before the comptroller why
70-10 the proposed action should not be taken. If a license is in
70-11 effect, the license remains in force pending the determination of
70-12 the show-cause hearing. Notice must be in writing and may be
70-13 mailed by registered or certified mail to the license holder or
70-14 applicant at the person's last known address or may be delivered by
70-15 the comptroller to the license holder or applicant. Other notice
70-16 is not necessary. In case of service by mail of a notice required
70-17 by this chapter, the service is complete at the time of deposit in
70-18 the United States mail.
70-19 (c) The comptroller may prescribe rules of procedure and
70-20 evidence for the hearings in accordance with Chapter 2001,
70-21 Government Code.
70-22 (d) If, after the hearing or the opportunity to be heard,
70-23 the license is canceled or the issuance or reissuance refused by
70-24 the comptroller, all taxes that have been collected or that have
70-25 accrued, although the taxes are not then due and payable to the
70-26 state, except by the provisions of this chapter, shall become due
70-27 and payable concurrently with the notice of cancellation of the
71-1 license. The license holder shall within five days make a report
71-2 covering the period not covered by a preceding report filed by the
71-3 license holder and ending with the date of cancellation and shall
71-4 remit and pay to the comptroller all taxes that have been collected
71-5 and that have accrued from the sale, use, or distribution of motor
71-6 fuel in this state.
71-7 Sec. 161.226. SUMMARY SUSPENSION OF LICENSE. (a) The
71-8 comptroller may suspend a person's license without notice or a
71-9 hearing if:
71-10 (1) the person fails to comply with this chapter or a
71-11 rule adopted under this chapter; or
71-12 (2) the person's continued operation constitutes an
71-13 immediate and substantial threat to the collection of taxes imposed
71-14 by this chapter, and the threat is attributable to the person's
71-15 operation.
71-16 (b) If the comptroller summarily suspends a person's
71-17 license, proceedings for a preliminary hearing before the
71-18 comptroller or the comptroller's representative must be initiated
71-19 simultaneously with the summary suspension. The preliminary
71-20 hearing shall be set for a date not later than the 10th day after
71-21 the date of the summary suspension, unless the parties agree to a
71-22 later date.
71-23 (c) At the preliminary hearing, the license holder must show
71-24 cause why the license should not remain suspended pending a final
71-25 hearing on suspension or revocation.
71-26 (d) To initiate a proceeding to summarily suspend a person's
71-27 license, the comptroller shall serve notice on the license holder
72-1 informing that person of the right to a preliminary hearing before
72-2 the comptroller or the comptroller's representative and of the time
72-3 and place of the preliminary hearing. The notice must be
72-4 personally served on the license holder, or an officer, employee,
72-5 or agent of the license holder, or sent by certified or registered
72-6 mail, return receipt requested, to the license holder's mailing
72-7 address as it appears on the comptroller's records. The notice
72-8 must state the alleged violations that constitute the grounds for
72-9 summary suspension. The suspension is effective when the notice is
72-10 served. If the notice is served in person, the license holder
72-11 shall immediately surrender the license to the comptroller or to
72-12 the comptroller's representative. If notice is served by mail, the
72-13 license holder shall immediately return the license to the
72-14 comptroller.
72-15 (e) Chapter 2001, Government Code, does not apply to a
72-16 summary suspension under this section.
72-17 Sec. 161.227. ENFORCEMENT OF LICENSE CANCELLATION,
72-18 SUSPENSION, OR REFUSAL. (a) The comptroller may examine any
72-19 business books and records of a person whose license has been
72-20 canceled or suspended on the person's failure to file a report
72-21 required by this chapter or to remit all taxes due. The
72-22 comptroller shall issue an audit deficiency determination of the
72-23 amount of delinquent taxes, penalties, and interest, containing a
72-24 demand for payment. The deficiency determination shall provide that
72-25 if neither a payment is made nor a request for a redetermination is
72-26 filed within 30 days after the date of the notice of the
72-27 deficiency, the amount of the determination becomes due and
73-1 payable. If the amount is not paid before the 45th day after the
73-2 date of service of the notice of deficiency determination, the bond
73-3 or other security required under this chapter is forfeited. The
73-4 demand for payment shall be addressed to the person who owes the
73-5 delinquency and to any surety of that person.
73-6 (b) If the forfeiture of the bond or other security does not
73-7 satisfy the delinquency, the comptroller shall certify the taxes,
73-8 penalty, and interest delinquent to the attorney general, who may
73-9 file suit against the person, the person's surety, or both, to
73-10 collect the amount due. After being given notice of an order of
73-11 cancellation or summary suspension, it shall be unlawful for any
73-12 person to continue to operate the person's business under a
73-13 canceled or suspended license. The attorney general may file suit
73-14 to enjoin the person from continuing to operate under the person's
73-15 license until the comptroller reissues the license.
73-16 (c) An appeal from an order of the comptroller canceling or
73-17 suspending or refusing the issuance or reissuance of a license may
73-18 be taken to a district court of Travis County by the aggrieved
73-19 license holder. The trial shall be de novo under the same rules as
73-20 ordinary civil suits, except that:
73-21 (1) an appeal must be perfected and filed not later
73-22 than the 30th day after the effective date of the order, decision,
73-23 or ruling of the comptroller;
73-24 (2) the trial of the case shall begin not later than
73-25 the 10th day after its filing; and
73-26 (3) the order, decision, or ruling of the comptroller
73-27 may be suspended or modified by the court pending a trial on the
74-1 merits.
74-2 (Sections 161.228-161.250 reserved for expansion
74-3 SUBCHAPTER G. REPORTS
74-4 Sec. 161.251. CONTENT AND FORMAT OF REQUIRED INFORMATION.
74-5 (a) A report required by this chapter must conform to the content
74-6 approved by the Federation of Tax Administrators and must
74-7 specifically indicate the federal employer identification number of
74-8 each handler of a load of fuel, including a common or private
74-9 carrier, broker, or contractor.
74-10 (b) The comptroller may adopt rules prescribing reporting
74-11 requirements for a person engaged in more than one activity for
74-12 which a license is required. The comptroller shall ensure that
74-13 each report is as simple and standardized as possible and requires
74-14 the minimum amount of information necessary for the comptroller's
74-15 compliance and enforcement activities.
74-16 (c) Except as otherwise provided by this chapter, each
74-17 person who holds a license under this chapter shall file a monthly
74-18 report with the comptroller on or before the 25th day of each month
74-19 that covers the tax liabilities that accrued during the preceding
74-20 calendar month.
74-21 (d) In addition to the monthly report, each person who holds
74-22 a license under this chapter shall file an annual report with the
74-23 comptroller on or before January 25 that covers the tax liabilities
74-24 that accrued in the preceding calendar year.
74-25 (e) A person who holds a license as a supplier, permissive
74-26 supplier, or bonded importer must submit each report required by
74-27 this chapter in an electronic format that conforms to the standards
75-1 approved by the Federation of Tax Administrators for electronic
75-2 data interchange.
75-3 (f) On or after January 1, 2004, the comptroller may require
75-4 other license holders to submit records electronically or by
75-5 electronic data interchange if the comptroller determines that the
75-6 requirement is in the best interests of this state. The
75-7 comptroller shall allow a person who is required to file in
75-8 accordance with this subsection to take a suitable tax credit to
75-9 accommodate the costs of installing equipment necessary to comply.
75-10 (g) The comptroller may waive a reporting requirement if
75-11 substantially similar data is readily available to this state from
75-12 an electronic federal excise tax report.
75-13 Sec. 161.252. INVENTORY RECORDS. A license holder shall
75-14 maintain inventory records as required by the comptroller for
75-15 purposes of reporting and determining tax liability under this
75-16 chapter.
75-17 Sec. 161.253. VERIFIED STATEMENT BY SUPPLIER; REPORTING OF
75-18 INFORMATION. (a) A supplier shall include in a monthly report
75-19 required by this subchapter the following information relating to
75-20 billed gallons of taxable motor fuel:
75-21 (1) each shipment of taxable motor fuel removed from a
75-22 terminal in this state on which the tax imposed by this chapter
75-23 previously was paid or accrued for direct delivery outside this
75-24 state by the exporter;
75-25 (2) removal of gallons of diesel fuel or heating oil
75-26 from a terminal to which dye has been added by the reporting
75-27 terminal to indicate the tax-exempt status of the fuel in
76-1 accordance with Internal Revenue Service and United States
76-2 Environmental Protection Agency dyeing standards;
76-3 (3) removal of gallons of motor fuel, tax-exempt in
76-4 this state, from terminals in this state by the reporting supplier
76-5 for export from this state by that supplier and as to which the
76-6 proper motor fuel tax for the destination state has been collected
76-7 or accrued by the reporting supplier at the time of removal from
76-8 the terminal, sorted by state of destination;
76-9 (4) removal of gallons of motor fuel, tax-exempt in
76-10 the destination state, from terminals in this state by the
76-11 reporting supplier for export by the person, sorted by destination
76-12 state, under a claim of destination state tax exemption for an
76-13 exempt use recognized by the comptroller under Section 161.161;
76-14 (5) removal of gallons of motor fuel, tax-exempt in
76-15 this state, from terminals in this state by the reporting supplier
76-16 for sale to exporters and as to which the proper motor fuel tax for
76-17 the destination state has been collected or accrued by the
76-18 reporting supplier at the time of removal from the terminal, sorted
76-19 by state of destination;
76-20 (6) removal of gallons of motor fuel from terminals in
76-21 this state for sale by the reporting supplier directly to the
76-22 federal government;
76-23 (7) removal of gallons of motor fuel from terminals in
76-24 this state for sale by the reporting supplier directly to end users
76-25 other than the federal government for any other exempt use for
76-26 which the end users have properly assigned refund claims to the
76-27 ultimate vendor and each supplier in the chain, including the
77-1 reporting supplier;
77-2 (8) total removals in this state;
77-3 (9) removal of gallons of motor fuel from a terminal
77-4 in another state by the reporting supplier, for tax-exempt sale to
77-5 a licensed importer for import into this state by that licensed
77-6 importer;
77-7 (10) removal of gallons of motor fuel from a terminal
77-8 in another state by the reporting supplier for import other than by
77-9 bulk transfer by that supplier into this state, or for sale by the
77-10 reporting supplier to a person for import into this state by that
77-11 person, and in either case, as to which this state's tax was
77-12 accrued by the reporting supplier at the time of removal from the
77-13 out-of-state terminal;
77-14 (11) removal of gallons of diesel fuel or heating oil
77-15 from a terminal in another state by the reporting supplier for
77-16 import or for sale for import into this state and as to which dye
77-17 has been added in accordance with Internal Revenue Service and
77-18 United States Environmental Protection Agency dyeing standards;
77-19 (12) total removals from out-of-state terminals with
77-20 this state as the destination state;
77-21 (13) corrections made by the supplier under Section
77-22 161.306 for changes in the destination state that affect the
77-23 supplier's or a customer's tax liability to this state;
77-24 (14) gallons removed by the supplier from a terminal
77-25 in or outside this state and sold to another supplier for resale to
77-26 an end user for an exempt purpose and as to which a refund claim
77-27 has been assigned by all parties to the supplier; and
78-1 (15) other information that the comptroller determines
78-2 is reasonably required to determine tax liability under this
78-3 chapter.
78-4 (b) The supplier must report the information required by
78-5 Subsection (a) in the aggregate and must identify whether the
78-6 billed gallons are net or gross.
78-7 (c) A licensed supplier or permissive supplier shall
78-8 separately include as part of the report required by this section
78-9 information that discloses and identifies any removal and sale, as
78-10 shown by the terminal-issued shipping paper, from the bulk transfer
78-11 system or terminal system in another state by that supplier to a
78-12 person other than a licensed supplier, permissive supplier, or
78-13 importer, of gallons of taxable motor fuel destined for this state
78-14 on which the tax imposed by this chapter has not been collected or
78-15 accrued by the supplier on removal. This subsection does not apply
78-16 to diesel fuel dyed in accordance with Internal Revenue Service
78-17 and United States Environmental Protection Agency dyeing standards.
78-18 (d) A supplier shall separately identify each tax-free sale
78-19 of K-1 kerosene, other than dyed diesel fuel, in accordance with
78-20 reporting requirements established by the comptroller.
78-21 Sec. 161.254. VERIFIED STATEMENT OF LICENSED OCCASIONAL
78-22 IMPORTER. (a) A licensed occasional importer shall include in a
78-23 monthly report required under this subchapter information relating
78-24 to:
78-25 (1) taxable gallons tax prepaid to a supplier on
78-26 removal from an out-of-state terminal;
78-27 (2) taxable gallons subject to the three-day payment
79-1 rule prescribed by Section 161.055, sorted by source state, by
79-2 supplier, by terminal, or by bulk plant location; and
79-3 (3) other information relating to the source and means
79-4 of transportation of nonexempt taxable motor fuel as the
79-5 comptroller may require on forms prescribed by the comptroller.
79-6 (b) The comptroller may waive the reporting requirement
79-7 prescribed by this section if the comptroller determines that one
79-8 or more states bordering this state have adopted and implemented
79-9 reciprocal terminal report requirements adequate to assure the
79-10 comptroller that the comptroller receives complete information
79-11 relating to motor fuel removed by and on behalf of suppliers from
79-12 terminals in border states that is destined for this state.
79-13 Sec. 161.255. VERIFIED STATEMENT OF LICENSED BONDED
79-14 IMPORTER. (a) A licensed bonded importer shall include in a
79-15 monthly report required under this subchapter information relating
79-16 to:
79-17 (1) taxable gallons tax prepaid to a supplier on
79-18 removal from an out-of-state terminal; and
79-19 (2) taxable gallons subject to tax remittance by the
79-20 bonded importer under Section 161.055, sorted by source state, by
79-21 supplier, by terminal, or by bulk plant location.
79-22 (b) The comptroller may waive a reporting requirement
79-23 prescribed by this section if the comptroller determines that one
79-24 or more states bordering this state have adopted and implemented
79-25 reciprocal terminal report requirements adequate to assure the
79-26 comptroller that the comptroller receives complete information
79-27 relating to motor fuel removed by and on behalf of suppliers from
80-1 terminals in border states that is destined for this state.
80-2 Sec. 161.256. TERMINAL OPERATOR STATEMENT OF OPERATIONS;
80-3 ANNUAL REPORT. (a) A person operating a terminal in this state
80-4 shall include in a monthly report required under this subchapter
80-5 the following information for each terminal location in this state:
80-6 (1) the terminal code assigned by the Internal Revenue
80-7 Service;
80-8 (2) the total inventory at the terminal operated by
80-9 the terminal operator;
80-10 (3) detailed schedules of receipts by shipment,
80-11 including:
80-12 (A) carrier name or alpha code;
80-13 (B) carrier federal employer identification
80-14 number;
80-15 (C) mode of transportation;
80-16 (D) date received;
80-17 (E) document number;
80-18 (F) net gallons received; and
80-19 (G) product type; and
80-20 (4) detailed schedules of removals by shipment,
80-21 including:
80-22 (A) carrier name or alpha code;
80-23 (B) carrier federal employer identification
80-24 number;
80-25 (C) mode of transportation;
80-26 (D) destination state;
80-27 (E) supplier federal employer identification
81-1 number;
81-2 (F) date removed from terminal;
81-3 (G) document number;
81-4 (H) net gallons; and
81-5 (I) gross gallons.
81-6 (b) The information must be transferred to this state
81-7 electronically. If sufficient and reliable information can be
81-8 obtained from Internal Revenue Service databases such as the Excise
81-9 Files Information Retrieval System or Excise Summary Terminal
81-10 Activity Reporting System, the comptroller may waive requiring a
81-11 separate electronic submission to this state.
81-12 (c) If the Internal Revenue Service provides a common system
81-13 of assigning carriers alphanumeric codes instead of names, the
81-14 operator shall provide the appropriate codes instead of carrier
81-15 names.
81-16 (d) A person operating a terminal in this state shall
81-17 include in an annual report required under this subchapter
81-18 information relating to:
81-19 (1) the net amount of monthly temperature adjusted,
81-20 net gallons, gains or losses;
81-21 (2) total net gallons removed from the terminal in
81-22 bulk and across the rack during the calendar year;
81-23 (3) total net gallons removed across the terminal rack
81-24 during the calendar year and other information as the comptroller
81-25 considers necessary to determine the tax liability of the terminal
81-26 operator under this chapter; and
81-27 (4) the amount of tax due.
82-1 Sec. 161.257. TERMINAL REPORTS REGARDING SOURCE STATE. (a)
82-2 If a source state does not require a terminal report that provides
82-3 information substantially similar to the information required by
82-4 Section 161.256, a terminal operator subject to the jurisdiction of
82-5 this state who operates a terminal outside this state shall provide
82-6 to the comptroller a report that includes information relating to
82-7 gallons removed from the source state as to which the operator
82-8 issued a shipping paper indicating this state as the destination
82-9 state.
82-10 (b) The report must include the information required by
82-11 Section 161.256.
82-12 (c) This section does not apply if substantially similar
82-13 information is readily available to this state from a federal
82-14 terminal report or from the source state.
82-15 Sec. 161.258. AVIATION FUEL DEALER MONTHLY REPORTS. (a) An
82-16 aviation fuel dealer shall keep a record showing the number of
82-17 gallons of:
82-18 (1) all aviation fuel inventories on hand at the first
82-19 of each month;
82-20 (2) all aviation fuel purchased or received, showing
82-21 the name of the seller and date of each purchase or receipt;
82-22 (3) all aviation fuel for use in aircraft or aircraft
82-23 servicing equipment; and
82-24 (4) all aviation fuel lost by fire or other accident.
82-25 (b) The records of an aviation fuel dealer made under
82-26 Subsection (a) must show:
82-27 (1) the name of the purchaser or end user of the fuel;
83-1 (2) the date of the sale or use of the fuel; and
83-2 (3) the registration or "N" number of the airplane or
83-3 a description or number of the aircraft or aircraft servicing
83-4 equipment in which the fuel is used.
83-5 (c) The records must be kept for at least four years.
83-6 Sec. 161.259. LICENSED EXPORTER REPORTS. (a) A person
83-7 licensed as an exporter shall include in a monthly report required
83-8 under this subchapter the following information relating to the
83-9 amount of taxable motor fuel exported from this state, other than
83-10 diesel fuel dyed in accordance with the Internal Revenue Code of
83-11 1986, as amended:
83-12 (1) all shipments of taxable motor fuel removed from a
83-13 terminal in this state for direct delivery outside of this state by
83-14 the exporter and as to which the tax imposed by this chapter
83-15 previously was paid or accrued;
83-16 (2) all shipments of taxable motor fuel acquired free
83-17 of this state's motor fuel tax at a terminal in this state for
83-18 direct delivery outside of this state, but as to which the
83-19 destination state's motor fuel tax was paid or accrued to the
83-20 supplier at the time of removal from the terminal;
83-21 (3) gallons delivered to taxing jurisdictions outside
83-22 this state out of bulk plant storage and whether by transport truck
83-23 or tank wagon;
83-24 (4) the name and federal employer identification
83-25 number of the person receiving the exported taxable motor fuel from
83-26 the exporter;
83-27 (5) the date of the shipments;
84-1 (6) the carrier name or alpha code and carrier federal
84-2 employer identification number; and
84-3 (7) the person who is responsible for paying taxes.
84-4 (b) The comptroller may waive the reporting requirement
84-5 prescribed by this section if the comptroller determines that the
84-6 report is not necessary to administer this chapter.
84-7 Sec. 161.260. PERSONS PURCHASING GALLONS TAX-EXEMPT FOR
84-8 RESALE TO GOVERNMENTAL ENTITIES MUST FILE REPORT. A person who
84-9 purchases gallons tax-exempt under Section 161.163 for resale to
84-10 governmental entities exempted under Section 161.161 shall include
84-11 in a monthly report required under this subchapter:
84-12 (1) the total volume of net gallons acquired from
84-13 authorized suppliers tax-exempt;
84-14 (2) information identifying each authorized supplier;
84-15 (3) a detailed listing of the bulk deliveries to each
84-16 tax-exempt person, segregated by authorization code;
84-17 (4) dates of deliveries;
84-18 (5) volume delivered;
84-19 (6) the amount by which tax-exempt gallons sold exceed
84-20 purchases or the amount by which tax-exempt purchases exceed sales;
84-21 (7) the amount of any penalty required under Section
84-22 161.163(i);
84-23 (8) a sworn statement by the vendor as to the accuracy
84-24 of the information contained in the report; and
84-25 (9) any other information the comptroller requires.
84-26 Sec. 161.261. REPORTS BY FUEL VENDORS. (a) A fuel vendor
84-27 shall file a quarterly report that lists total gallons of motor
85-1 fuel by fuel type sold by the vendor through a retail outlet
85-2 accessible to the general public. The vendor shall file the report
85-3 on or before the 25th day of the first month after the end of a
85-4 calendar quarter.
85-5 (b) A person who makes a sale of, or otherwise causes the
85-6 transfer of ownership of, kerosene, blendstocks, or transmix shall
85-7 file monthly with the comptroller a report in accordance with
85-8 Section 161.251. The vendor shall remit with the report any tax
85-9 payable under this chapter.
85-10 (c) In addition to the monthly report, a person described by
85-11 Subsection (b) shall keep a record of those sales or transfers for
85-12 at least three months in accordance with comptroller rules.
85-13 (d) A person who makes a sale as a vendor and is not
85-14 required to report under this subchapter shall maintain on the
85-15 premises for three months invoices and shipping papers indicating
85-16 the amount and source of each load of fuel sold or transferred to
85-17 the vendor. Each invoice must clearly state:
85-18 (1) from whom the fuel was purchased or transferred;
85-19 (2) the vendor's federal employer identification
85-20 number, name, and address;
85-21 (3) the amount and type of fuel; and
85-22 (4) the agent who is responsible for payment of taxes.
85-23 (e) The vendor shall make the records required by Subsection
85-24 (d) available to the comptroller or to the comptroller's agent
85-25 during normal business hours without prior notification.
85-26 (f) A person who makes a sale as a vendor shall retain for
85-27 four years purchase invoices for taxable motor fuels. The invoices
86-1 must clearly designate the amount of tax paid to this state as a
86-2 separate line item that is described generally as a "Texas Motor
86-3 Fuel Tax." If the vendor does not retain the invoices that relate
86-4 to these disclosures, the fuel vendor is jointly liable for the tax
86-5 imposed by this chapter and the comptroller may proceed against the
86-6 fuel vendor to collect the tax.
86-7 (g) A person who makes a sale as a vendor shall retain for
86-8 four years all terminal-issued shipping papers received from the
86-9 transporter for every shipment of taxable motor fuel that is
86-10 delivered to that vendor's retail outlets. The vendor shall keep
86-11 these documents at any location prescribed by comptroller rules.
86-12 Sec. 161.262. RECORDS. (a) A person who sells or transfers
86-13 motor fuel shall keep for four years a complete record of all motor
86-14 fuel sold or delivered for taxable purposes. The record is open to
86-15 inspection at all times by the comptroller and the attorney
86-16 general. The record must include shipping papers and invoices from
86-17 all transactions completed either directly or through a broker or
86-18 contractor.
86-19 (b) Each taxable sale or delivery of motor fuel, including a
86-20 delivery by an interstate trucker from bulk storage, shall be
86-21 covered by an invoice. The invoice must be printed and include:
86-22 (1) the preprinted or stamped name and address of the
86-23 licensed dealer or interstate trucker;
86-24 (2) the date;
86-25 (3) the number of gallons delivered;
86-26 (4) the mileage recorded on the odometer;
86-27 (5) the state and state highway license number;
87-1 (6) the signature of the driver of the motor vehicle;
87-2 and
87-3 (7) the amount of tax paid or accounted for separately
87-4 from the selling price.
87-5 (c) The invoice serves as a trip permit and must be carried
87-6 with the vehicle.
87-7 Sec. 161.263. FINAL REPORT AND PAYMENT BY LICENSE HOLDER.
87-8 A license holder who discontinues, sells, or transfers the person's
87-9 business or who has the person's license canceled, revoked, or
87-10 terminated by law under this chapter shall:
87-11 (1) file a report as required by this chapter not
87-12 later than the 30th day after the event;
87-13 (2) mark the report as a "Final Report"; and
87-14 (3) pay all motor fuel taxes and penalties that may be
87-15 due the state except as otherwise provided by law.
87-16 (Sections 161.264-161.300 reserved for expansion
87-17 SUBCHAPTER H. SHIPPING REQUIREMENTS
87-18 Sec. 161.301. MACHINE-PRINTED SHIPPING PAPERS; EXEMPTIONS.
87-19 (a) A person operating a refinery, terminal, or bulk plant in this
87-20 state shall prepare and provide to the driver of every fuel
87-21 transportation vehicle that receives taxable motor fuel into the
87-22 vehicle storage tank at the facility an automated machine-printed
87-23 shipping paper that includes on its face:
87-24 (1) the name and address of the terminal or bulk plant
87-25 from which the motor fuel was removed;
87-26 (2) the name of the responsible taxpaying agent and
87-27 amount of tax paid;
88-1 (3) the date the motor fuel was removed;
88-2 (4) the actual gallons and net gallons of motor fuel
88-3 removed;
88-4 (5) the destination state as represented to the
88-5 terminal operator by the transporter, the shipper, or the shipper's
88-6 agent;
88-7 (6) the federal employer identification number of the
88-8 place of origin and destination;
88-9 (7) the type of motor fuel removed by the transporter;
88-10 (8) the name and address of the position holder,
88-11 exporter, supplier, wholesaler, or other buyer of the motor fuel
88-12 removed by the transporter;
88-13 (9) the name of the transporter removing the fuel and
88-14 the name of the driver operating the transport truck removing the
88-15 motor fuel;
88-16 (10) any other information required by this
88-17 subchapter; and
88-18 (11) any other information required by the comptroller
88-19 to enforce this chapter.
88-20 (b) A terminal operator may manually prepare shipping papers
88-21 if, as a result of extraordinary and unforeseen circumstances,
88-22 including an act of God, the terminal operator is temporarily
88-23 unable to issue automated machine-generated shipping papers.
88-24 However, before manually preparing the papers, the terminal
88-25 operator shall provide notice to the comptroller by telephone and
88-26 obtain a service interruption authorization number. The operator
88-27 shall add this number to the manually prepared papers before
89-1 removal of an affected transport load from the terminal. The
89-2 service interruption authorization number is valid for use by the
89-3 terminal operator for not more than 24 hours. If the interruption
89-4 is not solved within the 24-hour period, the operator shall provide
89-5 additional notices to the comptroller and the comptroller may issue
89-6 additional interruption authorization numbers on explanation by the
89-7 terminal operator that is satisfactory to the comptroller.
89-8 (c) This section does not apply to an operator of a bulk
89-9 plant in this state that delivers taxable motor fuel into a tank
89-10 wagon for subsequent delivery to an end user in this state.
89-11 (d) A terminal operator may load split loads of motor fuel
89-12 in which a portion is destined for sale or use in this state and a
89-13 portion is destined for sale or use in another state. However, the
89-14 terminal operator shall document the split loads removed by issuing
89-15 shipping papers designating the destination state for each portion
89-16 of the fuel.
89-17 (e) Each terminal operator shall post a conspicuous notice,
89-18 proximally located to the point of receipt of shipping papers by
89-19 transport truck operators, that describes in clear and concise
89-20 terms the duties of the transport operator and retail dealer under
89-21 Section 161.302. The comptroller by rule may establish the format
89-22 of the notice.
89-23 (f) A person who violates this section commits an offense.
89-24 An offense under this section is a felony of the third degree.
89-25 Sec. 161.302. REQUIREMENTS RELATING TO SHIPPING PAPERS. (a)
89-26 A person may not transport taxable motor fuel in a fuel
89-27 transportation vehicle on the public highways of this state unless
90-1 the person carries on board the vehicle the shipping paper issued
90-2 by the terminal operator or the bulk plant operator of the facility
90-3 at which the taxable motor fuel was obtained, regardless of whether
90-4 the facility is inside or outside this state. The shipping paper
90-5 must state on its face the destination state of the taxable motor
90-6 fuel transported in the vehicle, as represented to the terminal
90-7 operator when the fuel transportation vehicle was loaded or as
90-8 otherwise prescribed by Subsection (c).
90-9 (b) A person described by Subsection (a) shall produce and
90-10 allow inspection and duplication of the shipping paper on request
90-11 of a law enforcement officer or representative of the comptroller
90-12 at any time while transporting, holding, or off-loading the motor
90-13 fuel described in the shipping paper.
90-14 (c) A person described by Subsection (a) may deliver taxable
90-15 motor fuel described in the shipping paper only to a point in the
90-16 destination state shown on the face of the document, unless the
90-17 person or the person's agent:
90-18 (1) notifies the comptroller, before the earlier of
90-19 the time of removal from the state in which the shipment originated
90-20 or the time of initiation of delivery, that the person received
90-21 instructions after the shipping paper was issued to deliver the
90-22 motor fuel to a different destination state;
90-23 (2) receives from the comptroller or the comptroller's
90-24 agent a diversion number authorizing the diversion; and
90-25 (3) writes on the shipping paper the change in
90-26 destination state and the diversion number for the diversion.
90-27 (d) A person described by Subsection (a) shall:
91-1 (1) provide a copy of the shipping paper to the person
91-2 who controls the facility to which the motor fuel is delivered; and
91-3 (2) comply with any other requirement or condition
91-4 the comptroller may require to enforce this chapter.
91-5 Sec. 161.303. TERMINAL-ISSUED SHIPPING PAPER PROVIDED ON
91-6 DELIVERY OF SHIPMENT. A person who transports taxable motor fuel
91-7 in a motor vehicle on the public highways of this state shall
91-8 provide the original or a copy of the terminal-issued shipping
91-9 paper accompanying the shipment to the operator of the retail
91-10 outlet, bulk plant, or end user bulk storage facility to which
91-11 delivery of the shipment is made.
91-12 Sec. 161.304. INSPECTION AND RETENTION OF TERMINAL-ISSUED
91-13 SHIPPING PAPER BY RECEIVER OF TAXABLE MOTOR FUEL. (a) An operator
91-14 of a taxable motor fuel retail outlet, bulk plant, or end user's
91-15 bulk storage facility shall receive and examine the terminal-issued
91-16 shipping paper received from the transporter for every shipment of
91-17 taxable motor fuel that is delivered to that location.
91-18 (b) The person shall retain the shipping paper for at least
91-19 90 days after the date of delivery at the delivery location. After
91-20 the 90th day, the person shall retain the shipping paper until the
91-21 fourth anniversary of the date of delivery at any location allowed
91-22 by comptroller rules.
91-23 Sec. 161.305. ACCEPTANCE OF DELIVERY WITHOUT PROPER SHIPPING
91-24 PAPER PROHIBITED. A retail dealer, bulk plant operator,
91-25 wholesaler, or bulk end user may not accept delivery of taxable
91-26 motor fuel into bulk storage facilities in this state if the
91-27 delivery is not accompanied by a shipping paper issued by the
92-1 terminal operator or bulk plant operator that includes on its face:
92-2 (1) a statement that this state is the destination
92-3 state of the taxable motor fuel or a diversion verification number
92-4 under Section 161.306; and
92-5 (2) any other information required by Sections 161.309
92-6 and 161.310.
92-7 Sec. 161.306. RELIEF IN CASE OF IMPROPERLY COMPLETED
92-8 SHIPPING PAPER; NOTIFICATION OF DIVERSION OR CORRECTION;
92-9 VERIFICATION NUMBER. (a) The comptroller shall provide for relief
92-10 in a situation in which a shipment of taxable motor fuel
92-11 legitimately is diverted from the represented destination state
92-12 after the shipping paper has been issued by the terminal operator
92-13 or in which the terminal operator failed to cause proper
92-14 information to be printed on the shipping paper.
92-15 (b) The relief provisions must include a provision requiring
92-16 that the shipper, the transporter, or an agent of either person
92-17 notify the comptroller of the intended diversion or correction
92-18 before the diversion or correction occurs and that a diversion
92-19 number be assigned and manually added to the face of the
92-20 terminal-issued shipping paper.
92-21 (c) The relief provisions must establish a protest procedure
92-22 that a person found to be in violation of Section 161.301 or
92-23 161.304 may use to establish a defense to a civil penalty imposed
92-24 under this chapter for violation of one or both of those sections.
92-25 The procedure must allow a person to establish, by substantial
92-26 evidence satisfactory to the comptroller, that the violation was
92-27 the result of an honest error made in good faith and that the
93-1 person made a reasonable effort to properly account for and report
93-2 fuel shipments and taxes.
93-3 (d) The comptroller shall make reasonable efforts to
93-4 coordinate with neighboring states and the Federation of Tax
93-5 Administrators for the operation of a common telephonic diversion
93-6 or verification number assignment system, including its shared
93-7 burdens.
93-8 Sec. 161.307. RELIANCE ON REPRESENTATIONS REGARDING
93-9 DESTINATION, TAX-EXEMPT USE, OR SUPPLIER'S OBLIGATION TO COLLECT
93-10 TAX. (a) The supplier and the terminal operator may rely for all
93-11 purposes on the representation by the transporter, the shipper, or
93-12 the shipper's agent as to the shipper's intended destination state
93-13 and whether the use of the motor fuel is tax-exempt.
93-14 (b) The shipper, the importer, the transporter, the
93-15 shipper's agent, and a purchaser are jointly liable for any tax
93-16 otherwise due to this state as a result of a diversion of the
93-17 taxable motor fuel from the represented destination state. The
93-18 supplier and terminal operator are not liable.
93-19 (c) A terminal operator may rely on the representation of a
93-20 licensed supplier with respect to the supplier's obligation to
93-21 collect tax and the related shipping paper representation to be
93-22 shown on the shipping paper as provided by Section 161.309(a). The
93-23 terminal operator or supplier must report any improbable or
93-24 patently false destination state information to the comptroller.
93-25 Sec. 161.308. UNLAWFUL SALE, USE, DELIVERY, OR STORAGE OF
93-26 TAXABLE MOTOR FUEL PROHIBITED; EXCEPTIONS. (a) Except as
93-27 expressly provided by Subsection (b), a person may not sell, use,
94-1 deliver, or store in this state, or import for sale, use, delivery,
94-2 or storage in this state, taxable motor fuel on which the tax
94-3 imposed by this chapter has not previously been paid to or accrued
94-4 by a licensed supplier or permissive supplier at the time of
94-5 removal from a terminal or from a licensed importer.
94-6 (b) Subsection (a) does not apply to:
94-7 (1) a supplier with respect to taxable motor fuel that
94-8 was manufactured in this state or imported into this state in a
94-9 bulk transfer and that is held within the bulk transfer system or
94-10 terminal system in this state;
94-11 (2) an end user with respect to taxable motor fuel
94-12 placed in that person's vehicle supply tank outside this state;
94-13 (3) any person with respect to dyed diesel fuel;
94-14 (4) taxable motor fuel in the process of exportation
94-15 by a licensed exporter in accordance with the shipping papers
94-16 required by Section 161.302, and as to which the destination state
94-17 tax has been paid or accrued to the supplier, if a statement
94-18 complying with Section 161.309(a)(2) is shown on the shipping
94-19 papers;
94-20 (5) gasoline used in aircraft;
94-21 (6) fuel in the possession of an end user to whom a
94-22 refund has been issued;
94-23 (7) federal government exempt fuel under Section
94-24 161.161; or
94-25 (8) a licensed importer who complies with Section
94-26 161.310.
94-27 Sec. 161.309. REQUIRED NOTATIONS ON TERMINAL-ISSUED SHIPPING
95-1 PAPER; EXCEPTIONS. (a) Except as provided by Subsections (c) and
95-2 (d), a person may not operate a transport truck that is engaged in
95-3 the shipment of taxable motor fuel on the public highways of this
95-4 state without having on board a terminal-issued shipping paper that
95-5 has, in addition to the information otherwise required by this
95-6 subchapter, a notation indicating, with respect to:
95-7 (1) diesel fuel acquired under a claim of exempt use,
95-8 a statement indicating the fuel is "DYED DIESEL FUEL, NONTAXABLE
95-9 USE ONLY, PENALTY FOR TAXABLE USE" for the load or the appropriate
95-10 portion of the load; or
95-11 (2) any other taxable motor fuel, a notation
95-12 indicating "(supplier name) responsible (state name) motor fuel
95-13 tax," or any other annotation acceptable to the comptroller that
95-14 otherwise indicates that the tax imposed by this chapter, or by the
95-15 destination state, has been paid to the supplier with respect to
95-16 the entire load or the appropriate portion of it.
95-17 (b) A person violates Subsection (a) if the person boards
95-18 the vehicle with a shipping paper that does not meet the
95-19 requirements prescribed by this section.
95-20 (c) A licensed importer or a transporter acting on the
95-21 transporter's behalf is exempt from the application of Subsection
95-22 (a)(2) if the person is otherwise required to comply with Section
95-23 161.310. However, the person is not exempt from the application of
95-24 this section with respect to shipments sourced to a state that has
95-25 adopted reciprocal legislation that has been recognized by the
95-26 comptroller.
95-27 (d) The comptroller may provide an advance notification
96-1 procedure with respect to documentation for imported motor fuel for
96-2 which the importer is unable to obtain terminal-issued shipping
96-3 papers that comply with this section.
96-4 Sec. 161.310. REQUIREMENTS FOR LICENSED IMPORTER REGARDING
96-5 FUEL THAT HAS NOT BEEN DYED AND ON WHICH TAX HAS NOT BEEN PAID OR
96-6 ACCRUED BY THE SUPPLIER. (a) This section applies to taxable
96-7 motor fuel destined for this state:
96-8 (1) that has not been dyed in accordance with the
96-9 Internal Revenue Code of 1986, as amended, and the regulations
96-10 issued under the code; or
96-11 (2) on which the tax has not been paid to or accrued
96-12 by the supplier at the time of removal from the out-of-state
96-13 terminal.
96-14 (b) A licensed importer who acquires motor fuel described by
96-15 Subsection (a) or the transporter operating on the importer's
96-16 behalf may not enter the motor fuel onto the public highways of
96-17 this state by loaded transport truck unless:
96-18 (1) the importer or the transporter obtains an import
96-19 verification number from the comptroller at least 24 hours before
96-20 entering this state;
96-21 (2) the import verification number is stated
96-22 prominently and indelibly on the face of each copy of the
96-23 terminal-issued shipping paper carried on board the transport
96-24 truck;
96-25 (3) the terminal origin and the importer's name and
96-26 address are also stated prominently on the face of each copy of the
96-27 terminal-issued shipping paper;
97-1 (4) the terminal-issued shipping paper information
97-2 otherwise required by this chapter is present; and
97-3 (5) all taxes imposed by this chapter with respect to
97-4 previously requested import verification number activity on the
97-5 account of the importer or the transporter have been remitted in a
97-6 timely manner.
97-7 (c) A person who violates this section commits an offense.
97-8 An offense under this section is a felony of the third degree.
97-9 Sec. 161.311. REQUIREMENTS FOR EXPORTING FUEL. (a) A
97-10 person may not export motor fuel from this state without first
97-11 paying the applicable destination state or this state's motor fuel
97-12 tax to the supplier unless the motor fuel complies with the export
97-13 exempt criteria prescribed by Section 161.161. The person must
97-14 also demonstrate proof of exporting in the form of a destination
97-15 state bill of lading.
97-16 (b) A person who violates this section commits an offense.
97-17 An offense under this section is a felony of the third degree.
97-18 (c) This section does not apply to an end user who exports
97-19 fuel in a vehicle fuel supply tank incident to interstate
97-20 transportation.
97-21 Sec. 161.312. NOTICE REGARDING DYED DIESEL FUEL. A notice
97-22 stating: "DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR
97-23 TAXABLE USE" must be:
97-24 (1) provided by the terminal operator to a person who
97-25 receives dyed diesel fuel at a terminal rack of that terminal
97-26 operator;
97-27 (2) provided by a seller of dyed diesel fuel to a
98-1 buyer if the diesel fuel is located outside the bulk transfer
98-2 system or terminal system and is not sold from a retail pump or
98-3 bulk plant that has the notice posted in accordance with
98-4 Subdivision (3); and
98-5 (3) posted by a seller on a retail pump or bulk plant
98-6 at which the person sells dyed diesel fuel for use by the person's
98-7 buyer.
98-8 Sec. 161.313. DYED DIESEL FUEL NOTICE REQUIRED ON SHIPPING
98-9 PAPERS, BILLS OF LADING, AND INVOICES. The form of notice required
98-10 by Sections 161.312(1) and (2) must be provided by the time of the
98-11 removal or sale and must appear on:
98-12 (1) shipping papers;
98-13 (2) bills of lading; and
98-14 (3) invoices accompanying the sale or removal of the
98-15 dyed diesel fuel.
98-16 Sec. 161.314. UNAUTHORIZED SALE OR USE OF DYED DIESEL FUEL
98-17 PROHIBITED. (a) A person may not sell or hold for sale dyed
98-18 diesel fuel for any use that the person knows or has reason to know
98-19 is not a tax-exempt use of the diesel fuel.
98-20 (b) A person may not use or hold for use dyed diesel fuel
98-21 for a use other than a tax-exempt use if the person knows or has
98-22 reason to know that the diesel fuel is dyed.
98-23 Sec. 161.315. ALTERATION OF DYE OR MARKER IN DYED DIESEL
98-24 FUEL PROHIBITED. A person, with intent to evade tax, may not alter
98-25 or attempt to alter the strength or composition of a dye or marker
98-26 in dyed diesel fuel.
98-27 Sec. 161.316. FUEL MUST MEET AMERICAN SOCIETY OF TESTING AND
99-1 MATERIALS STANDARDS. (a) A person may not sell or purchase a
99-2 product for general public highway use in the supply tank of a
99-3 motor vehicle that does not meet the standards of the American
99-4 Society of Testing and Materials as published in the annual Book of
99-5 Standards and its supplements, unless the standards are amended or
99-6 modified by the comptroller.
99-7 (b) The transporter and the transporter's agent and customer
99-8 have the exclusive duty to dispose in the manner provided by
99-9 federal and state law of any product that does not meet the
99-10 standards prescribed by this section.
99-11 (c) A person who violates this section commits an offense.
99-12 An offense under this section is a felony of the third degree.
99-13 Sec. 161.317. USE OF DYED DIESEL FUEL PROHIBITED;
99-14 EXCEPTIONS; PENALTIES. (a) A person may not operate a motor
99-15 vehicle on a public highway in this state with diesel fuel in the
99-16 fuel supply tank of the motor vehicle that contains dye.
99-17 (b) This section does not apply to:
99-18 (1) a person operating a motor vehicle who received
99-19 fuel into the vehicle's fuel supply tank in a jurisdiction outside
99-20 of this state that permits the introduction of dyed taxable diesel
99-21 fuel of that color and type into the fuel supply tanks of vehicles
99-22 operated on public highways; or
99-23 (2) a use of dyed fuel that is legal under the
99-24 Internal Revenue Code of 1986, as amended, and any implementing
99-25 regulations, including uses in state and local government vehicles
99-26 and buses, unless that use is otherwise prohibited by this chapter.
99-27 (c) A person who violates this section commits an offense.
100-1 An offense under this section is a felony of the third degree.
100-2 Sec. 161.318. DOING BUSINESS WITHOUT LICENSE; PENALTIES.
100-3 (a) A person may not engage in a business activity in this state
100-4 for which a license is required by Subchapter F unless the person
100-5 first obtains the license.
100-6 (b) A person who violates this section commits an offense.
100-7 An offense under this section is a Class B misdemeanor.
100-8 Sec. 161.319. INVOICED SALES. (a) A person who sells or
100-9 transfers a load of motor fuel must issue an invoice to the retail
100-10 outlet that:
100-11 (1) states the federal employer identification number,
100-12 name, and address of the seller or transferor; and
100-13 (2) clearly indicates the amount of tax paid, who paid
100-14 the tax, and on what product the tax was paid.
100-15 (b) A retail outlet may not accept a load of motor fuel
100-16 unless the outlet acquires an invoice that complies with Subsection
100-17 (a).
100-18 Sec. 161.320. FALSE STATEMENT ON SHIPPING PAPER REGARDING
100-19 LIABILITY FOR TAX; PENALTIES. (a) A terminal operator may not
100-20 imprint, and a supplier may not permit a terminal operator to
100-21 imprint on the supplier's behalf, a statement on a shipping paper
100-22 relating to motor fuel to be delivered to this state or to a state
100-23 having substantially the same shipping paper legending requirements
100-24 with respect to:
100-25 (1) a supplier's responsibility or liability for
100-26 payment of the tax imposed by this chapter; or
100-27 (2) the tax-paid or tax-collected status of a taxable
101-1 motor fuel unless the supplier or supplier's representative first
101-2 provides the terminal operator with a representation or direction
101-3 to make the statement on behalf of the supplier.
101-4 (b) A terminal operator who imprints a statement in
101-5 violation of this section is subject to a penalty in an amount
101-6 prescribed by the comptroller. A penalty provided by this section
101-7 is in addition to any other tax, fine, penalty, or sanction that
101-8 may be imposed.
101-9 (c) A supplier who violates this section is jointly liable
101-10 with the terminal operator.
101-11 Sec. 161.321. METERING DEVICE REQUIRED FOR FUEL DISPENSER
101-12 ACCESSIBLE BY PUBLIC; TAMPERING PROHIBITED. (a) A person
101-13 operating taxable motor fuel dispenser equipment accessible by the
101-14 general public shall:
101-15 (1) provide metering devices for each dispenser; and
101-16 (2) maintain records sufficient to enable the
101-17 comptroller to determine the volumes dispensed through that
101-18 equipment with reasonable accuracy.
101-19 (b) A person may not exchange, replace, roll back, or
101-20 otherwise tamper with the metering equipment in a manner that does
101-21 not comply with comptroller rules relating to legitimate
101-22 maintenance, repairs, and replacement purposes.
101-23 (c) A person who violates this section commits an offense.
101-24 An offense under this section is a felony of the third degree.
101-25 Sec. 161.322. TAMPER-RESISTANT SHIPPING PAPERS REQUIRED. A
101-26 terminal operator in this state, and every supplier licensed by
101-27 this state for the collection of tax on taxable motor fuel, shall
102-1 ensure that terminal-issued shipping papers meet tamper resistance
102-2 standards the comptroller by rule may require, including messages
102-3 that identify whether shipping papers have been photocopied,
102-4 numbering systems, nonreproducible coding, and other devices.
102-5 Sec. 161.323. TANK WAGONS MUST HAVE INTERNATIONAL FUEL TAX
102-6 AGREEMENT REGISTRATION; EXCEPTION. (a) A person may not operate a
102-7 tank wagon in this state unless the tank wagon:
102-8 (1) is registered under the International Fuel Tax
102-9 Agreement for use on the public highways of this state; and
102-10 (2) has displayed on the vehicle an International Fuel
102-11 Tax Agreement sticker designating the vehicle for use in this
102-12 state.
102-13 (b) This section does not apply to a vehicle registered in
102-14 this state that is exempt from the International Fuel Tax Agreement
102-15 regulations.
102-16 (Sections 161.324-161.350 reserved for expansion
102-17 SUBCHAPTER I. PENALTIES
102-18 Sec. 161.351. LIABILITY OF BUSINESS ENTITIES, PARTICIPATING
102-19 OFFICERS, EMPLOYEES, AND AGENTS. A business entity and its
102-20 officers, employees, and agents who wilfully participate in an
102-21 activity that violates Section 161.314 or 161.315 are jointly and
102-22 severally liable for the penalty imposed by Section 6715, Internal
102-23 Revenue Code of 1986, as amended, for a violation of those
102-24 sections.
102-25 Sec. 161.352. LIABILITY FOR UNCOLLECTED AND UNPAID TAX;
102-26 PENALTIES. A supplier, permissive supplier, or importer who fails
102-27 to collect and timely remit tax otherwise required to be paid to
103-1 the comptroller as required by Section 161.055 or 161.057, or as
103-2 required by a tax precollection agreement under Section 161.056, is
103-3 liable for the uncollected tax plus the penalties as imposed by the
103-4 comptroller.
103-5 Sec. 161.353. PENALTIES. (a) A person liable for the tax
103-6 who files a false or fraudulent return must pay in addition to the
103-7 tax a penalty in an amount equal to 75 percent of the taxes, other
103-8 penalties, and interest due.
103-9 (b) The comptroller shall impose a civil penalty of $1,000
103-10 for a person's first violation relating to transporting taxable
103-11 motor fuel without adequate shipping papers that are annotated as
103-12 required by Section 161.302 or 161.309.
103-13 (c) The comptroller shall impose a civil penalty of $2,000
103-14 on the operator of a vehicle for the first violation in a calendar
103-15 year of the prohibition on use of dyed diesel fuel on the public
103-16 highways of this state. Each subsequent offense in a calendar year
103-17 is subject to a civil penalty of $5,000.
103-18 (d) A supplier who makes a sale of taxable motor fuel for
103-19 export to a person who does not have an appropriate export license,
103-20 or without collecting the destination state's tax on taxable motor
103-21 fuel nonexempt in the destination state, is subject to a civil
103-22 penalty equal to the amount of the destination state's motor fuel
103-23 tax in addition to the tax due to this state.
103-24 (e) The comptroller may impose a penalty against a terminal
103-25 operator who wilfully fails to comply with the shipping paper
103-26 issuance requirements prescribed by Sections 161.058, 161.301, and
103-27 161.312 in an amount prescribed by the comptroller.
104-1 (f) The comptroller shall impose a penalty in an amount
104-2 equal to the penalty prescribed by Section 6715, Internal Revenue
104-3 Code of 1986, as amended, on the operator of a vehicle who violates
104-4 the prohibition on the sale or use of dyed diesel fuel on the
104-5 public highways of this state.
104-6 (g) An importer or transporter who imports undyed taxable
104-7 motor fuel in a transport truck without a valid importer license or
104-8 supplier license and an import verification number or a shipping
104-9 paper showing on its face, as required by this chapter, that this
104-10 state's motor fuel tax is not due is subject to a penalty of
104-11 $10,000 for each occurrence. This subsection does not apply to a
104-12 person who transports taxable motor fuel through this state in
104-13 interstate commerce.
104-14 Sec. 161.354. IMPOUNDMENT AND SEIZURE OF VEHICLE AND CARGO
104-15 FOR VIOLATION OF SHIPPING PAPER REQUIREMENTS. (a) A motor vehicle
104-16 and the vehicle's cargo are subject to impoundment, seizure, and
104-17 subsequent sale and forfeiture in accordance with the general laws
104-18 of this state relating to seizure and forfeiture if a person is
104-19 found operating the motor vehicle in violation of the shipping
104-20 paper requirements prescribed by Sections 161.302, 161.309,
104-21 161.310, and 161.312. The failure of the operator of a motor
104-22 vehicle to have on board when loaded a terminal-issued bill of
104-23 lading that has the destination state machine-printed on the face
104-24 of the bill of lading as required by Section 161.302, or that fails
104-25 to meet the descriptive annotation requirements prescribed by
104-26 Sections 161.309, 161.310, and 161.312, if applicable, is
104-27 presumptive evidence of a violation sufficient to warrant
105-1 impoundment and seizure of the vehicle and its cargo.
105-2 (b) If after examination or other investigation the
105-3 comptroller believes that the owner or operator of a motor vehicle
105-4 or cargo tank, or a person receiving, possessing, delivering, or
105-5 selling gasoline or diesel fuel, has not paid all motor fuel taxes
105-6 due or does not have a valid license entitling that person to
105-7 possess or transport tax-free motor fuel, the comptroller or any
105-8 peace officer may impound the fuel, the motor vehicle, cargo tanks,
105-9 storage tanks, equipment, paraphernalia, or other tangible personal
105-10 property used for or incident to the storage, sale, or
105-11 transportation of that motor fuel.
105-12 (c) The comptroller may demand payment of all taxes,
105-13 penalties, interest due to this state, and all costs of impoundment
105-14 unless the comptroller receives proof not later than the third
105-15 working day after the beginning of impoundment that:
105-16 (1) the owner, operator, or other person has paid the
105-17 taxes established to be due on the gasoline or diesel fuel stored,
105-18 sold, used, or transported and any other taxes due to this state;
105-19 or
105-20 (2) the owner, operator, or other person holds a
105-21 license to possess or transport tax-free motor fuel.
105-22 (d) The comptroller may seize the impounded property to
105-23 satisfy the tax liability if the owner or operator does not produce
105-24 the required documentation or required license or does not pay the
105-25 taxes, penalties, interest, and costs due not later than the third
105-26 working day after the beginning of the impoundment.
105-27 (e) The comptroller may seize:
106-1 (1) all motor fuel on which taxes are imposed by this
106-2 chapter that is found in the possession, custody, or control of a
106-3 person for the purpose of being sold, transported, removed, or used
106-4 by the person in violation of this chapter;
106-5 (2) all motor fuel that is removed from, or deposited,
106-6 stored, or concealed in, any place with the intent to avoid payment
106-7 of taxes;
106-8 (3) any automobile, truck, tank truck, boat, trailer
106-9 conveyance, or other vehicle used to remove or transport the motor
106-10 fuel to avoid payment of taxes; and
106-11 (4) all equipment, paraphernalia, storage tanks, or
106-12 tangible personal property incident to and used to avoid payment of
106-13 taxes and found in the place, building, or vehicle in which the
106-14 motor fuel is found.
106-15 Sec. 161.355. SALE OF SEIZED PROPERTY. (a) The comptroller
106-16 may sell property seized under Section 161.354.
106-17 (b) Notice of the time and place of a sale shall be given to
106-18 the delinquent person in writing by certified mail, not later than
106-19 the 20th day before the date set for the sale. The notice shall be
106-20 enclosed in an envelope addressed to the person at the person's
106-21 last known address or place of business. The notice shall be
106-22 deposited in the United States mail, postage prepaid. The notice
106-23 shall also be published once a week for two consecutive weeks
106-24 before the date of the sale in a newspaper of general circulation
106-25 published in the county in which the property seized is to be sold.
106-26 If there is not a newspaper of general circulation in the county,
106-27 notice shall be posted in three public places in the county not
107-1 later than the 14th day before the date set for the sale. The
107-2 notice must contain:
107-3 (1) a description of the property to be sold;
107-4 (2) a statement of the amount due, including interest,
107-5 penalties, and costs;
107-6 (3) the name of the delinquent person; and
107-7 (4) a statement that unless the amount due, including
107-8 any interest, penalties, and costs, is paid on or before the time
107-9 prescribed in the notice for the sale, the property, or as much of
107-10 the property as may be necessary, will be sold at public auction in
107-11 accordance with the law and the notice.
107-12 (c) At the sale, the comptroller shall sell the property and
107-13 shall deliver to the purchaser a bill of sale for personal property
107-14 or a deed for real property sold. The bill of sale or deed vests
107-15 the interest or title of the person liable for the amount in the
107-16 purchaser. The unsold portion of any property seized may be left
107-17 at the place of sale at the risk of the person liable for the
107-18 amount.
107-19 (d) The proceeds of a sale shall be allocated according to
107-20 the following priorities:
107-21 (1) the payment of expenses of seizure, appraisal,
107-22 custody, advertising, auction, and any other expenses incident to
107-23 the seizure and sale;
107-24 (2) the payment of the tax, penalty, and interest; and
107-25 (3) the repayment of the remaining balance to the
107-26 person liable for the amount, unless a claim is presented before
107-27 the sale by any other person who has an ownership interest in the
108-1 property, as evidenced by a financing statement or lien, in which
108-2 case the comptroller shall withhold the remaining balance pending a
108-3 determination of the rights of the respective parties.
108-4 Sec. 161.356. FAILURE TO PAY TAX OR REPORT. (a) A person
108-5 who holds a license under this chapter, is required to pay tax
108-6 under this chapter, and fails to file a report as required by this
108-7 chapter or fails to pay a tax imposed by this chapter when due
108-8 shall forfeit an amount equal to five percent of the amount due as
108-9 a penalty. If the person fails to file the report or pay the tax
108-10 not later than the 30th day after the day the tax or report is due,
108-11 the person forfeits an additional five percent.
108-12 (b) The comptroller may add a penalty in an amount equal to
108-13 75 percent of the amount of taxes, other penalties, and interest
108-14 due if failure to file the report or pay the tax when it becomes
108-15 due is attributable to fraud or an intent to evade the application
108-16 of this chapter or a rule adopted under this chapter or Chapter
108-17 111.
108-18 Sec. 161.357. PROHIBITED ACTS; CIVIL PENALTIES. A person
108-19 forfeits to the state a civil penalty of not less than $25 nor more
108-20 than $250 if the person:
108-21 (1) operates a motor vehicle in this state without a
108-22 bonded importer's or occasional importer's license if the person is
108-23 required to hold one of those licenses;
108-24 (2) operates a liquefied gas-propelled motor vehicle
108-25 that is required to be registered in this state, including a motor
108-26 vehicle equipped with dual carburetion, and does not display a
108-27 current liquefied gas tax decal or multistate fuels tax agreement
109-1 decal;
109-2 (3) makes a tax-free sale or delivery of liquefied gas
109-3 into the fuel supply tank of a motor vehicle that does not display
109-4 a current liquefied gas tax decal from this state;
109-5 (4) makes a taxable sale or delivery of liquefied gas
109-6 without holding a valid dealer's license;
109-7 (5) makes a tax-free sale or delivery of liquefied gas
109-8 into the fuel supply tank of a motor vehicle that has out-of-state
109-9 license plates;
109-10 (6) makes a delivery of liquefied gas into the fuel
109-11 supply tank of a motor vehicle that has license plates from this
109-12 state but does not have a liquefied gas tax decal from this state,
109-13 unless the motor vehicle is licensed under a multistate fuels tax
109-14 agreement;
109-15 (7) transports gasoline or diesel fuel in any cargo
109-16 tank that has a connection by pipe, tube, valve, or otherwise with
109-17 the fuel injector or carburetor or with the fuel supply tank
109-18 feeding the fuel injector or carburetor of the motor vehicle
109-19 transporting the product;
109-20 (8) sells or delivers gasoline or diesel fuel from any
109-21 fuel supply tank connected with the fuel injector or carburetor of
109-22 a motor vehicle; or
109-23 (9) owns or operates a motor vehicle, for which
109-24 reports or mileage records are required by this chapter, without an
109-25 operating odometer or other device in good working condition to
109-26 record accurately the miles traveled.
109-27 Sec. 161.358. CRIMINAL OFFENSES. A person commits an
110-1 offense if the person:
110-2 (1) refuses to stop and permit the inspection and
110-3 examination of a motor vehicle transporting or using motor fuel on
110-4 the demand of a peace officer or the comptroller or the
110-5 comptroller's agent;
110-6 (2) is required to hold a valid occasional importer's
110-7 license or importer's license, but operates a motor vehicle in this
110-8 state without a valid occasional importer's license or importer's
110-9 license;
110-10 (3) operates a liquefied gas-propelled motor vehicle
110-11 that is required to be licensed in this state, including a motor
110-12 vehicle equipped with dual carburetion, and does not display a
110-13 current liquefied gas tax decal or multistate fuels tax agreement
110-14 decal;
110-15 (4) transports gasoline or diesel fuel in any tank,
110-16 except the fuel supply tank, that has a connection by pipe, tube,
110-17 valve, or otherwise with the fuel injector or carburetor or with
110-18 the fuel supply tank feeding the fuel injector or carburetor of the
110-19 motor vehicle transporting the product;
110-20 (5) sells or delivers gasoline or diesel fuel from a
110-21 fuel supply tank that is connected with the fuel injector or
110-22 carburetor of a motor vehicle;
110-23 (6) owns or operates a motor vehicle for which reports
110-24 or mileage records are required by this chapter without an
110-25 operating odometer or other device in good working condition to
110-26 record accurately the miles traveled;
110-27 (7) makes a tax-free sale or delivery of liquefied gas
111-1 into the fuel supply tank of a motor vehicle that does not display
111-2 a current liquefied gas tax decal from this state;
111-3 (8) makes a sale or delivery of liquefied gas on which
111-4 the person knows the tax is required to be collected, if at the
111-5 time the sale is made the person does not hold a valid dealer's
111-6 license;
111-7 (9) makes a tax-free sale or delivery of liquefied gas
111-8 into the fuel supply tank of a motor vehicle that has out-of-state
111-9 license plates;
111-10 (10) makes a delivery of liquefied gas into the fuel
111-11 supply tank of a motor vehicle that has license plates from this
111-12 state but does not have a liquefied gas tax decal from this state,
111-13 unless the motor vehicle is licensed under a multistate fuels tax
111-14 agreement;
111-15 (11) refuses to permit the comptroller or the attorney
111-16 general to inspect, examine, or audit a book or record required to
111-17 be kept by a person required to hold a license under this chapter;
111-18 (12) refuses to permit the comptroller or the attorney
111-19 general to inspect or examine a plant, equipment, materials, or
111-20 premises at which motor fuel is produced, processed, stored, sold,
111-21 delivered, or used;
111-22 (13) refuses to permit the comptroller or the attorney
111-23 general to measure or gauge the contents of or take samples from a
111-24 storage tank or container on premises at which motor fuel is
111-25 produced, processed, stored, sold, delivered, or used;
111-26 (14) is a license holder under this chapter and fails
111-27 or refuses to make or deliver to the comptroller a report required
112-1 by this chapter to be made and delivered to the comptroller;
112-2 (15) conceals motor fuel with the intent of engaging
112-3 in conduct prohibited by this chapter or acts to avoid or evade
112-4 motor fuel taxes or engages in fraud with regard to motor fuel
112-5 taxes;
112-6 (16) refuses, while transporting motor fuel, to stop
112-7 the motor vehicle the person is operating on demand by a person
112-8 authorized to stop the motor vehicle;
112-9 (17) refuses to surrender a motor vehicle and cargo
112-10 for impoundment on demand by a person authorized to impound the
112-11 motor vehicle and cargo;
112-12 (18) transports motor fuel for which a shipping paper
112-13 is required to be carried without possessing or exhibiting on
112-14 demand by an officer authorized to make the demand a shipping paper
112-15 containing the information required to be shown on the document;
112-16 (19) mutilates, destroys, or secretes a book or record
112-17 required by this chapter to be kept by a person required to hold a
112-18 license under this chapter;
112-19 (20) is a person required to hold a license under this
112-20 chapter, or is the agent or employee of such a person, and makes a
112-21 false entry or fails to make an entry in the books and records
112-22 required by this chapter to be made by the person or fails to
112-23 retain a record as required by this chapter;
112-24 (21) is a transporter of motor fuel and fails to
112-25 provide as required to the operator of the retail outlet, bulk
112-26 plant, or end user bulk storage facility, to which delivery of the
112-27 shipment is made, a shipping paper issued by the refinery or bulk
113-1 plant from which the fuel was removed by the transporter;
113-2 (22) is an operator of a retail outlet, bulk plant, or
113-3 end user bulk storage facility to which delivery of a shipment of
113-4 motor fuel is made and accepts that shipment without also receiving
113-5 from the transporter at the time of delivery a shipping paper
113-6 issued by the refinery, terminal, or bulk plant from which the fuel
113-7 was removed by the transporter;
113-8 (23) transports in any manner motor fuel under a false
113-9 shipping paper;
113-10 (24) engages in a motor fuel transaction that requires
113-11 that the person have a license under this chapter if the person
113-12 does not hold the required license;
113-13 (25) makes and delivers to the comptroller a report
113-14 required by this chapter to be made and delivered to the
113-15 comptroller that contains false information;
113-16 (26) forges, falsifies, or alters an invoice
113-17 prescribed by law;
113-18 (27) makes any statement that the person knows is
113-19 false in a claim for a tax refund filed with the comptroller;
113-20 (28) provides to a supplier a signed statement for
113-21 purchasing diesel fuel of a type that may be legally used by the
113-22 purchaser for the operation of a motor vehicle on the public
113-23 highways under state or federal law tax-free if the person owns,
113-24 operates, or acquires a diesel-powered motor vehicle;
113-25 (29) holds an aviation fuel dealer's license and makes
113-26 a taxable sale or use of any gasoline or diesel fuel;
113-27 (30) fails to remit any tax funds collected by a
114-1 person required to hold a license under this chapter and to pay the
114-2 tax;
114-3 (31) makes a sale of diesel fuel tax-free into a
114-4 storage facility of a person who is not licensed as a supplier or
114-5 as an aviation fuel dealer;
114-6 (32) makes a sale of gasoline tax-free to a person who
114-7 is not licensed as an aviation fuel dealer;
114-8 (33) is a dealer who purchases any motor fuel tax-free
114-9 when not authorized to make a tax-free purchase under this chapter;
114-10 or
114-11 (34) is a dealer who purchases motor fuel with the
114-12 intent to evade a tax imposed by this chapter.
114-13 Sec. 161.359. CRIMINAL OFFENSES: SPECIAL PROVISIONS AND
114-14 EXCEPTIONS. (a) A person does not commit an offense under Section
114-15 161.358 unless the person intentionally or knowingly engages in
114-16 conduct that is prohibited under Section 161.358, except that a
114-17 culpable mental state is not required for an offense described by
114-18 Section 161.358(6).
114-19 (b) Each day that a refusal prohibited under Section
114-20 161.358(11), (12), or (13) continues is a separate offense.
114-21 (c) The prohibition prescribed by Section 161.358(31) does
114-22 not apply to the tax-free sale or distribution of diesel fuel
114-23 authorized by Section 161.161.
114-24 (d) The prohibition under Section 161.358(32) does not apply
114-25 to the tax-free sale or distribution of gasoline authorized by
114-26 Section 161.161.
114-27 Sec. 161.360. CRIMINAL PENALTIES. (a) An offense under
115-1 Section 161.358(1), (2), (3), (4), (5), or (6) is a Class C
115-2 misdemeanor.
115-3 (b) An offense under Section 161.358(7), (8), (9), (10),
115-4 (11), (12), (13), or (14) is a Class B misdemeanor.
115-5 (c) An offense under Section 161.358(15), (16), (17), or
115-6 (18) is a Class A misdemeanor.
115-7 (d) An offense under Section 161.358(19), (20), (21), (22),
115-8 (23), (24), (25), (26), (27), or (28) is a felony of the third
115-9 degree.
115-10 (e) An offense under Section 161.358(29), (30), (31), (32),
115-11 (33), or (34) is a felony of the second degree.
115-12 (f) Violations of three or more separate offenses under
115-13 Sections 161.358(19)-(28) committed under one scheme or continuous
115-14 course of conduct may be considered as one offense and punished as
115-15 a felony of the second degree.
115-16 Sec. 161.361. CRIMINAL PENALTIES: CORPORATIONS AND
115-17 ASSOCIATIONS. (a) Except as provided by Subsection (b),
115-18 Subchapter E, Chapter 12, Penal Code, applies to an offense under
115-19 this chapter committed by a corporation or association.
115-20 (b) The court may not fine a corporation or association
115-21 under Section 12.51(c), Penal Code, unless the amount of the fine
115-22 under that subsection is greater than the amount that could be
115-23 assessed by the court under Section 12.51(b), Penal Code.
115-24 (c) In addition to a sentence imposed on a corporation, the
115-25 court shall give notice of the conviction to the attorney general
115-26 as required by Article 17A.09, Code of Criminal Procedure.
115-27 Sec. 161.362. VENUE OF TAX COLLECTION SUITS. The venue of a
116-1 suit, injunction, or other proceeding at law available for the
116-2 establishment or collection of a claim for delinquent taxes,
116-3 penalties, or interest accruing under this chapter and the
116-4 enforcement of the terms and provisions of this chapter is in
116-5 Travis County or in any other county having venue under applicable
116-6 venue statutes.
116-7 Sec. 161.363. ASSESSED PENALTIES ARE NOT ASSIGNABLE.
116-8 Penalties assessed as a result of this subchapter are not
116-9 assignable or transferable.
116-10 Sec. 161.364. NEGATION OF EXCEPTION: INFORMATION, COMPLAINT,
116-11 OR INDICTMENT. An information, complaint, or indictment charging a
116-12 violation of this chapter need not negate an exception to an act
116-13 prohibited by this chapter, but the exception may be urged by the
116-14 defendant as a defense to the offense charged.
116-15 Sec. 161.365. ISSUANCE OF BAD CHECK TO LICENSED SUPPLIER OR
116-16 BONDED IMPORTER. (a) A person commits an offense if:
116-17 (1) the person issues or passes a check or similar
116-18 sight order for the payment of money knowing that the issuer does
116-19 not have sufficient funds in or on deposit with the bank or other
116-20 drawee for the payment in full of the check or order as well as all
116-21 other checks or orders outstanding at the time of issuance;
116-22 (2) the payee on the check or order is a licensed
116-23 supplier or bonded importer; and
116-24 (3) the payment is for an obligation or debt that
116-25 includes a tax under this chapter to be collected by the licensed
116-26 supplier or bonded importer.
116-27 (b) Sections 32.41(b), (c), (d), (e), and (g), Penal Code,
117-1 apply to an offense under this section in the same manner as those
117-2 provisions are applicable to the offense under Section 32.41(a),
117-3 Penal Code.
117-4 (c) An offense under this section is a Class C misdemeanor.
117-5 (d) A person who makes payment on an obligation or debt that
117-6 includes a tax under this chapter and pays with an insufficient
117-7 funds check issued to a licensed supplier or bonded importer may be
117-8 held liable for a penalty equal to the total amount of tax not paid
117-9 to the licensed supplier or bonded importer.
117-10 (Sections 161.366-161.400 reserved for expansion
117-11 SUBCHAPTER J. DEPOSITS AND DISTRIBUTIONS
117-12 Sec. 161.401. TAX ADMINISTRATION FUND. (a) Before any
117-13 other allocation of the taxes collected under this chapter is made,
117-14 one percent of the gross amount of the taxes shall be deposited in
117-15 the state treasury in a special fund, subject to the use of the
117-16 comptroller in the administration and enforcement of this chapter.
117-17 (b) The unexpended portion of the special fund shall revert,
117-18 at the end of the fiscal year, to the other funds to which revenue
117-19 is allocated by this subchapter in proportion to the amounts
117-20 originally derived from the respective sources.
117-21 Sec. 161.402. ALLOCATION OF UNCLAIMED REFUNDABLE GASOLINE
117-22 TAXES. (a) On or before the fifth workday after the end of each
117-23 month, the comptroller, after making the deductions for refund
117-24 purposes, shall determine as accurately as possible, for the period
117-25 since the latest determination under this subsection, the number of
117-26 gallons of fuel used in motorboats on which the gasoline tax has
117-27 been paid to this state, and on which refund of the tax has not
118-1 been made and against which limitation has run for filing claim for
118-2 refund of the tax. From the number of gallons so determined the
118-3 comptroller shall compute the amount of taxes that would have been
118-4 refunded under the law had refund claims been filed in accordance
118-5 with the law.
118-6 (b) The comptroller shall allocate and deposit these
118-7 unclaimed refunds as follows:
118-8 (1) 25 percent of the revenue based on unclaimed
118-9 refunds of taxes paid on motor fuel used in motorboats shall be
118-10 deposited to the credit of the available school fund; and
118-11 (2) the remaining 75 percent of the revenue shall be
118-12 deposited to the credit of the general revenue fund.
118-13 (c) Money deposited to the credit of the general revenue
118-14 fund under Subsection (b)(2) may be appropriated only to the Parks
118-15 and Wildlife Department for any lawful purpose.
118-16 Sec. 161.403. ALLOCATION OF OTHER UNCLAIMED REFUNDABLE
118-17 NONDEDICATED TAXES. (a) The comptroller by rule shall devise a
118-18 method of determining as accurately as possible the:
118-19 (1) number of gallons of fuel that is not used to
118-20 propel a motor vehicle on the public highways; and
118-21 (2) amount of taxes collected under this chapter from
118-22 fuel that is not used to propel a motor vehicle on the public
118-23 highways that would have been refunded under this chapter if refund
118-24 claims had been filed in accordance with this chapter and that is
118-25 not subject to allocation under Section 161.402.
118-26 (b) The comptroller shall allocate to the general revenue
118-27 fund the amount determined under Subsection (a)(2).
119-1 (c) The determination and allocation shall be made
119-2 periodically as prescribed by rule.
119-3 Sec. 161.404. ALLOCATION OF GASOLINE TAX. On or before the
119-4 fifth workday after the end of each month, the comptroller, after
119-5 making all deductions for refund purposes and for the amounts
119-6 allocated under Sections 161.402 and 161.403, shall allocate the
119-7 net remainder of the taxes collected on gasoline as follows:
119-8 (1) 25 percent of the tax shall be deposited to the
119-9 credit of the available school fund;
119-10 (2) 50 percent of the tax shall be deposited to the
119-11 credit of the state highway fund for the construction and
119-12 maintenance of the state road system under existing law; and
119-13 (3) from the remaining 25 percent of the tax the
119-14 comptroller shall:
119-15 (A) deposit to the credit of the county and road
119-16 district highway fund all the remaining tax receipts until a total
119-17 of $7,300,000 has been credited to the fund each fiscal year; and
119-18 (B) after the amount required to be deposited to
119-19 the county and road district highway fund has been deposited,
119-20 deposit to the credit of the state highway fund the remainder of
119-21 the 25 percent of the tax, the amount to be provided on the basis
119-22 of allocations made each month of the fiscal year, which sum shall
119-23 be used by the Texas Department of Transportation for the
119-24 construction, improvement, and maintenance of farm-to-market roads.
119-25 Sec. 161.405. ALLOCATION OF DIESEL FUEL TAX. On or before
119-26 the fifth workday after the end of each month, the comptroller,
119-27 after making deductions for refund purposes, for the administration
120-1 and enforcement of this chapter, and for the amounts allocated
120-2 under Section 161.403, shall allocate the remainder of the taxes
120-3 collected on diesel fuel as follows:
120-4 (1) 25 percent of the taxes shall be deposited to the
120-5 credit of the available school fund; and
120-6 (2) 75 percent of the taxes shall be deposited to the
120-7 credit of the state highway fund.
120-8 Sec. 161.406. ALLOCATION OF LIQUEFIED GAS TAX. On or before
120-9 the fifth workday after the end of each month, the comptroller,
120-10 after making deductions for refund purposes and for the
120-11 administration and enforcement of this chapter, shall allocate the
120-12 remainder of the taxes collected on liquefied gas as follows:
120-13 (1) 25 percent of the taxes shall be deposited to the
120-14 credit of the available school fund; and
120-15 (2) 75 percent of the taxes shall be deposited to the
120-16 credit of the state highway fund.
120-17 SECTION 2. (a) Chapter 153, Tax Code, is repealed.
120-18 (b) A reference in law to Chapter 153, Tax Code, or to a
120-19 motor fuel tax imposed under Chapter 153, Tax Code, means Chapter
120-20 161, Tax Code, as added by this Act, and the motor fuels tax
120-21 imposed under Chapter 161, Tax Code.
120-22 SECTION 3. (a) This Act takes effect January 1, 2001.
120-23 (b) Not later than January 25, 2001, each person who
120-24 possessed a permit as a distributor to sell taxable motor fuel at
120-25 wholesale or had a permit requiring the remittance of taxes to this
120-26 state under Chapter 153, Tax Code, as it existed immediately before
120-27 the effective date of this Act, shall file a report with the
121-1 comptroller in accordance with the final report requirements
121-2 prescribed by Section 161.263, Tax Code, as added by this Act. The
121-3 person shall compute any remaining taxes due and remit the taxes
121-4 with the report.
121-5 (c) As part of the final report required under Subsection
121-6 (b) of this section, the person making the report shall compute the
121-7 tax on all inventory held outside of the bulk transfer system, as
121-8 that term is defined by Section 161.001, Tax Code, as added by this
121-9 Act, on the effective date of this Act and subject to reporting
121-10 under Subsection (a) of this section. The person is not required
121-11 to pay the tax on the inventory but is required to list the
121-12 computation of the tax as a separate line item on the report.
121-13 (d) A vendor, as that term is defined by Section 161.001,
121-14 Tax Code, as added by this Act, who possessed a permit to sell
121-15 taxable motor fuel at wholesale or at retail under Chapter 153, Tax
121-16 Code, as it existed immediately before the effective date of this
121-17 Act, shall compute all remaining taxes due as provided by
121-18 Subsection (a) of this section. On or before January 25, 2001, the
121-19 vendor shall pay the tax in not more than 24 equal monthly
121-20 installments.
121-21 SECTION 4. (a) Beginning on the effective date of this Act,
121-22 and ending on December 31, 2002, each person who possessed a
121-23 permit as a distributor to sell taxable motor fuel at wholesale
121-24 under Chapter 153, Tax Code, as it existed immediately before the
121-25 effective date of this Act, shall receive a credit from the
121-26 supplier for a terminal transfer under Section 161.067, Tax Code,
121-27 as added by this Act, of two percent instead of one-half of one
122-1 percent if the person:
122-2 (1) obtains a license before January 1, 2001, to
122-3 operate under Chapter 161, Tax Code, as added by this Act, as an
122-4 eligible purchaser; and
122-5 (2) submits the final report required by Section 3(b)
122-6 of this Act not later than January 10, 2001.
122-7 (b) A supplier who pays a credit under Subsection (a) of
122-8 this section shall receive a credit for remitting taxes under
122-9 Section 161.066, Tax Code, as added by this Act, of 2.25 percent,
122-10 instead of three-fourths of one percent.
122-11 SECTION 5. The comptroller shall immediately allow a person
122-12 who held a permit under Chapter 153, Tax Code, as it existed
122-13 immediately before the effective date of this Act, to apply for
122-14 eligible purchaser status under Sections 161.061 and 161.062, Tax
122-15 Code, as added by this Act. The comptroller may allow a person to
122-16 act as an eligible purchaser until the date the person receives
122-17 approval of that status or is rejected.
122-18 SECTION 6. The importance of this legislation and the
122-19 crowded condition of the calendars in both houses create an
122-20 emergency and an imperative public necessity that the
122-21 constitutional rule requiring bills to be read on three several
122-22 days in each house be suspended, and this rule is hereby suspended.