By: Armbrister S.B. No. 1188
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the collection of motor fuel tax; providing penalties
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 153.001, Tax Code, is amended to read as
1-4 follows:
1-5 (19) "Motor fuel" includes gasoline, diesel fuel, liquefied gas,
1-6 and other products that are offered for sale, sold, or used
1-7 [usable] as propellants of a motor vehicle.
1-8 (28) "Export" means to deliver motor fuel to a point outside this
1-9 state. Motor fuel delivered outside this state by or for the
1-10 seller constitutes an export by the seller. Motor fuel delivered
1-11 outside this state by or for the purchaser constitutes an export by
1-12 the purchaser.
1-13 (29) "Import" means to deliver motor fuel to a point inside this
1-14 state from a point outside this state. Motor fuel delivered into
1-15 this state from outside this state by or for the seller constitutes
1-16 an import by the seller. Motor fuel delivered into this state from
1-17 outside this state by or for the purchaser constitutes an import by
1-18 the purchaser.
1-19 (30) "Bulk lot vehicle" means transport tank trucks, and tank
1-20 wagons with a capacity of at least 1,000 gallons.
1-21 (31) "Dyed diesel fuel" means any diesel fuel dyed pursuant to
1-22 regulations issued by the Internal Revenue Service or a rule
2-1 promulgated by the comptroller.
2-2 (33) "Undyed diesel fuel" means any diesel fuel that has no
2-3 detectable presence of dye.
2-4 (34) "Blended fuel" is a product produced by a blending process
2-5 other than a de minimis amount of a product such as a carburetor
2-6 detergent or oxidation inhibitor that can be used as a fuel in a
2-7 highway vehicle.
2-8 (35) "Blending" means to mix together one or more products with
2-9 other products to produce a resultant product offered for use as a
2-10 motor fuel, except such blending as may occur during the refining
2-11 process by the original refiner of crude petroleum. The
2-12 commingling of products during transportation in a pipeline is not
2-13 considered blending.
2-14 (36) "Shipping document" means a delivery document issued by a
2-15 terminal or bulk plant operator in conjunction with the sale of
2-16 motor fuel from a terminal or bulk plant.
2-17 SECTION 2. Section 153.010, Tax Code, is amended to read as
2-18 follows:
2-19 In order to enforce the provisions of this chapter, the
2-20 comptroller or a peace officer may stop a motor vehicle that
2-21 appears to be operating with or transporting motor fuel in order to
2-22 examine the shipping document, cargo manifest or invoices required
2-23 to be carried, examine a permit or copy of a permit that may be
2-24 required to be carried, take samples from the fuel supply or cargo
2-25 tanks, and make any other investigation that could reasonably be
2-26 made to determine whether the taxes have been paid or accounted for
3-1 by a distributor, supplier, dealer, user, jobber, or any person to
3-2 be so permitted. The comptroller, a peace officer, an employee of
3-3 the attorney general's office, an employee of the Texas Natural
3-4 Resource Conservation Commission, or an employee of the Department
3-5 of Agriculture may take samples of motor fuel from any storage tank
3-6 or container to determine whether the taxes have been paid or
3-7 accounted for.
3-8 SECTION 3. Section 153.403, Tax Code, is amended to read as
3-9 follows:
3-10 (19) transports motor fuel for which a cargo manifest or shipping
3-11 document is required to be carried without possessing or exhibiting
3-12 on demand by an officer authorized to make the demand a cargo
3-13 manifest or shipping document containing the information required
3-14 to be shown on the manifest;
3-15 (21) is a distributor, supplier, user, dealer, interstate trucker,
3-16 aviation fuel dealer, or other person required to hold a permit
3-17 under this chapter, or the agent or employee of one of those
3-18 persons and makes a false entry or fails to make an entry in the
3-19 books and records under this chapter to be made by the person, or
3-20 fails to retain a document as required under this chapter;
3-21 (22) transports in any manner motor fuel under a false cargo
3-22 manifest or shipping document, or transports in any manner motor
3-23 fuel to any location and does not at the same time deliver at that
3-24 location a shipping document relating to that shipment;
3-25 (32) is a dealer who purchases any motor fuel tax free when not
3-26 authorized to make a tax-free purchase under this chapter, or who
4-1 accepts a delivery of motor fuel by any means and does not at the
4-2 same time accept or receive shipping documents relating to that
4-3 delivery;
4-4 (34) imports, sells, uses, distributes, or stores motor fuel
4-5 within this state upon which the taxes imposed by this chapter are
4-6 owed but have not been first paid to or reported by the holder of a
4-7 valid, un-revoked distributor's permit, supplier's permit, jobber's
4-8 permit, or aviation fuel dealer's permit.
4-9 (35) blends products together to produce a blended product which
4-10 expands the volume of the original product in order to evade paying
4-11 applicable motor fuel taxes.
4-12 (36) evades or attempts to evade in any manner a tax imposed upon
4-13 motor fuel by this chapter.
4-14 SECTION 4. Tax Code, Title 2, Subtitle E. Sales, Excise and
4-15 Use Taxes, Chapter 153. Motor Fuel Taxes, Subchapter A is amended
4-16 to read as follows:
4-17 Section 153.018 Importation and Exportation of Motor Fuel
4-18 (a) No person or business entity shall import motor fuel into this
4-19 state or export motor fuel from this state in a bulk lot vehicle to
4-20 a destination unless the person or business entity possesses a
4-21 shipping document created by a terminal or bulk plant where the
4-22 bulk lot vehicle received the fuel. The terminal or bulk plant
4-23 shall provide the shipping document to the operator of the bulk lot
4-24 vehicle and the document must contain all of the following:
4-25 (1) The name and physical address of the terminal or
4-26 bulk plant from which the motor fuel was received for import or
5-1 export;
5-2 (2) The name of the carrier transporting the motor
5-3 fuel;
5-4 (3) The date the motor fuel was loaded;
5-5 (4) The type of motor fuel and the number of gallons
5-6 in temperature adjusted gallons if purchased from a terminal for
5-7 export or import. If fuel is purchased from a bulk plant for
5-8 export or import the number of gallons exported or imported may be
5-9 expressed in gross gallons;
5-10 (5) If delivery is to only one state, the destination
5-11 of the motor fuel as represented by the purchaser of the motor fuel
5-12 and the number of gallons of the fuel to be delivered. If delivery
5-13 is to more than one state, the split loads delivered to each state
5-14 from the bulk lot vehicle shall be documented by the terminal by
5-15 issuing shipping documents that list the destination state of each
5-16 portion of the motor fuel;
5-17 (6) The name, federal employee identification number,
5-18 permit number, and physical address of the purchaser of the motor
5-19 fuel;
5-20 (7) The name of the person or business entity
5-21 responsible for the payment of motor fuel excise tax, as given to
5-22 the terminal by the purchaser if different from the permitted
5-23 supplier or distributor; and
5-24 (8) Any other information that, in the opinion of the
5-25 comptroller, is necessary for the proper administration of this
5-26 chapter.
6-1 (b) A terminal, a bulk plant, the carrier, the permitted
6-2 distributor or supplier, and the person that received the motor
6-3 fuel shall retain a copy of the shipping document for a period of
6-4 four years after the date of receipt of the fuel and shall provide
6-5 within 10 working days after receiving a request, a copy of the
6-6 document to the comptroller or any other law enforcement officer.
6-7 (c) While transporting motor fuel imported into this state or
6-8 exported from this state, each operator of a bulk lot vehicle shall
6-9 have in its possession the shipping document issued by the terminal
6-10 or bulk plant. The operator shall show the document to the
6-11 comptroller or a peace officer upon request. The comptroller may
6-12 delegate authority to inspect the document to other governmental
6-13 agencies. The operator shall provide a copy of the shipping
6-14 document to the person that receives the fuel when it is delivered.
6-15 (d) The operator of the bulk lot vehicle shall deliver motor fuel
6-16 only to the destination state or states as indicated on the
6-17 shipping document
6-18 (e) Each terminal shall post a notice describing the duties of
6-19 operators of bulk lot vehicles under this section. The notice
6-20 shall be posted in a conspicuous location proximate to the point of
6-21 receipt of shipping papers by operators of bulk lot vehicles. The
6-22 comptroller may prescribe the language, type, style, and format of
6-23 the notice.
6-24 (f) (1) Any operator of a bulk lot vehicle that violates any
6-25 requirement of this section is subject to a penalty of two
6-26 thousand dollars or five times the amount of the unpaid tax,
7-1 whichever is greater, for each violation.
7-2 (2) Any person or business entity receiving motor fuel
7-3 who accepts a shipping document that does not conform with
7-4 subsection (a) of this section is subject to a penalty of two
7-5 thousand dollars or five times the amount of the unpaid tax,
7-6 whichever is greater, for each occurrence.
7-7 (3) Any person or business entity operating a bulk
7-8 plant or terminal who issues a shipping document that does not
7-9 conform with subsection (a) of this section is subject to a penalty
7-10 of two thousand dollars or five times the amount of the unpaid tax,
7-11 whichever is greater, for each occurrence.
7-12 (4) Any person operating a terminal or bulk plant who
7-13 does not post notice as required under subsection (f) of this
7-14 section is subject to a penalty of one hundred dollars for each day
7-15 the notice is not posted as required by that division.
7-16 SECTION 5. Section 153.006, Tax Code, is amended by adding a
7-17 new subsection (e) to read as follows:
7-18 (e) The comptroller may revoke a distributor or supplier permit in
7-19 the following circumstances:
7-20 (1) A distributor or supplier purchases, for export,
7-21 motor fuel in this state exclusive of the motor fuel tax, and
7-22 subsequently diverts or causes the motor fuel to be diverted to a
7-23 destination in this state or any other state other than the
7-24 originally designated state.
7-25 SECTION 6. Section 153.117 (a), Tax Code is amended to read
7-26 as follows:
8-1 (a) A distributor shall keep a record showing the number of
8-2 gallons of:
8-3 (1) all gasoline inventories on hand at the first of each month;
8-4 (2) all gasoline refined, compounded, or blended;
8-5 (3) all gasoline purchased or received, showing the name of the
8-6 seller and date of each purchase or receipt;
8-7 (4) all gasoline sold, distributed, or used, showing the name of
8-8 the purchaser and the date of the sale or use; [and]
8-9 (5) all gasoline lost by fire or accident;
8-10 (6) an itemized statement showing by load the number of gallons of
8-11 all gasoline received during the preceding calendar month for
8-12 export, the location of the loading, and the destination of each
8-13 load;
8-14 (7) an itemized statement showing by load the number of gallons of
8-15 all gasoline exported from the state; and
8-16 (8) an itemized statement showing by load the number of gallons of
8-17 all gasoline imported during the preceding calendar month;
8-18 SECTION 7, Section 153.219 (a), Tax Code, is amended to read
8-19 as follows:
8-20 (a) A supplier shall keep a record showing the number of gallons
8-21 of:
8-22 (1) all diesel fuel inventories on hand at the first
8-23 of each month;
8-24 (2) all diesel fuel refined, compounded, or blended;
8-25 (3) all diesel fuel purchased or received, showing the
8-26 name of the seller and the date of each purchase or receipt;
9-1 (4) all diesel fuel sold, distributed, or used for
9-2 which tax was paid, showing the name of each [the] purchaser and
9-3 the date of the sale or use; [and]
9-4 (5) all diesel fuel lost by fire or accident;
9-5 (6) an itemized statement showing by load the number
9-6 of gallons of all diesel fuel received during the preceding
9-7 calendar month for export;
9-8 (7) an itemized statement showing by load the number
9-9 of gallons of all diesel fuel exported from the state;
9-10 (8) an itemized statement showing by load the number
9-11 of gallons of all diesel fuel imported during the preceding
9-12 calendar month;
9-13 (9) an itemized statement showing by purchaser,
9-14 end-user number, or agricultural user exemption number, the number
9-15 of gallons of dyed and undyed diesel fuel sold tax-free to a
9-16 purchaser utilizing a signed statement in accordance with Section
9-17 153.205, Tax Code. The statement shall differentiate between dyed
9-18 and undyed fuel.
9-19 (10) an itemized statement showing by purchaser, end
9-20 user number, or agricultural user exemption number the number of
9-21 gallons of dyed diesel fuel sold tax free to bonded purchasers.
9-22 SECTION 8. Section 153.112 (a), Tax Code, is amended to read
9-23 as follows:
9-24 (a) A distributor's permit is permanent and is valid so long as
9-25 the permittee has in force and effect the required bond or security
9-26 and furnishes timely reports and supplements as required, or until
10-1 the permit is surrendered by the holder or canceled by the
10-2 comptroller. The comptroller shall [may] cancel a distributor's
10-3 permit if no purchase, sale, or use of gasoline has been reported
10-4 by the distributor for the prior 9 [12] months.
10-5 SECTION 9. Section 153.118, Tax Code, is amended to read as
10-6 follows:
10-7 (a) On or before the 25th day of each month, a distributor or
10-8 other person liable to the state for payment of tax under Section
10-9 153.105 (a) shall file all reports and supplements as required by
10-10 the comptroller, and remit the amount of tax required to be
10-11 collected during the preceding month. The report shall be executed
10-12 by the distributor, his representative, or any other person
10-13 required to report and shall be filed with the comptroller in a
10-14 manner or on a form provided or approved by the comptroller,
10-15 containing complete and detailed information not inconsistent with
10-16 the requirements of this chapter of gasoline transactions. A
10-17 distributor required to file a report under this section who has
10-18 not sold or used any gasoline during the reporting period shall
10-19 file with the comptroller the report setting forth the facts or
10-20 information. The failure of a distributor or other person to
10-21 obtain forms or software from the comptroller is no excuse for the
10-22 failure to file a report containing all the information required to
10-23 be reported.
10-24 SECTION 10. Section 153.125 (a), Tax Code, is amended to
10-25 read as follows:
10-26 (a) A supplier's permit, a (and) dyed diesel bonded user permit,
11-1 and an agricultural bonded user permit are [is] permanent and [is]
11-2 valid so long as the permittee has in force and effect the required
11-3 bond or security and furnished timely reports and supplements as
11-4 required, or until the permit is surrendered by the holder or
11-5 canceled by the comptroller. The comptroller shall [may] cancel a
11-6 supplier's permit if no purchase, sale, or use of diesel fuel has
11-7 been reported by the supplier for the prior 9 [12] months.
11-8 SECTION 11. Section 153.221 (a), Tax Code, is amended to
11-9 read as follows:
11-10 (a) On or before the 25th day of each month, a supplier or a
11-11 dealer required to collect tax under Section 153.206(b) of this
11-12 code or a user required to pay tax under Section 153.206(c) of this
11-13 code shall file a report of diesel fuel transactions or of diesel
11-14 fuel delivered by a user into the fuel tank of a motor vehicle
11-15 owned or operated by him and such supplements as the comptroller
11-16 may require and remit the amount of tax required to be collected or
11-17 to be paid during the preceding month. A report must be filed on a
11-18 form or in a manner provided by the comptroller and contain
11-19 information required by the comptroller, showing complete and
11-20 detailed information of diesel fuel transactions or use during the
11-21 preceding month. A supplier required to file a report under this
11-22 section who has not sold, used, or distributed any diesel fuel
11-23 during the reporting period shall file with the comptroller the
11-24 report setting forth the information. The failure of a supplier,
11-25 dealer, or user to obtain forms or software from the comptroller is
11-26 no excuse for the failure to file a report. The report must be
12-1 executed by the supplier, dealer, or user, or his representative
12-2 and is the subject of penalties provided in this chapter.
12-3 SECTION 12, Section 153.201 (a), Tax Code, is amended to read
12-4 as follows:
12-5 (a) A tax is imposed on the first sale of undyed diesel fuel in
12-6 this state.
12-7 SECTION 13, Section 153.203 (3), Tax Code, is amended and a
12-8 new subsection (10) is added to read as follows:
12-9 (3) undyed diesel fuel sold or delivered by a permitted supplier
12-10 to another permitted supplier or agricultural bonded user, to the
12-11 bulk storage facility of a diesel tax prepaid user, or to a
12-12 purchaser for an agricultural purpose [purchaser] who provides a
12-13 signed statement and end user number as provided by Section 153.205
12-14 of this code, but not including a delivery of tax-free diesel fuel
12-15 into the fuel supply tanks of a motor vehicle, except for a motor
12-16 vehicle owned by the federal government;
12-17 (10) dyed diesel fuel;
12-18 SECTION 14, Section 153.205 (a), (b), (c), (d), (I), (j) Tax
12-19 Code, is amended and a new subsection (k) is added to read as
12-20 follows:
12-21 (a) The first sale or use of diesel fuel in this state is taxable,
12-22 except that [the] sales of dyed diesel fuel, or undyed diesel fuel
12-23 if the fuel will be used for an agricultural purpose, may be made
12-24 without collecting the tax if the purchaser furnishes to a
12-25 permitted supplier a signed statement, including an end user number
12-26 or agricultural user exemption number issued by the comptroller's
13-1 office, that stipulates that:
13-2 (1) the purchaser does not operate any diesel powered
13-3 motor vehicles on the public highway;
13-4 (2) all of the diesel fuel will be consumed by the
13-5 purchaser and no diesel fuel purchased on a signed statement will
13-6 be resold; and
13-7 (3) none of the diesel fuel purchased in this state
13-8 will be delivered or permitted by the purchaser to be delivered
13-9 into fuel supply tanks of motor vehicles.
13-10 (b) A person may not make a tax-free purchase of any diesel fuel
13-11 under this section using a signed statement:
13-12 (1) for the purchase of more than 3,000 gallons of
13-13 dyed or undyed diesel fuel in a single transaction; or (2) in a
13-14 calendar month in which the person has previously purchased more
13-15 than 10,000 gallons of dyed or undyed diesel fuel from all sources.
13-16 (c) The signed statement and end user number from the
13-17 purchaser relieves the permitted supplier from the burden of proof
13-18 that the sale of diesel fuel was not taxable to the purchaser and
13-19 remains in effect unless:
13-20 (1) the statement is revoked in writing by the
13-21 purchaser or supplier;
13-22 (2) the comptroller notifies the supplier in writing
13-23 that the purchaser may no longer make tax-free purchases; or
13-24 (3) the supplier is put on notice by making taxable
13-25 sales of diesel fuel to a purchaser who has previously submitted a
13-26 signed statement to this supplier.
14-1 (d) A taxable use of any part of the dyed or undyed diesel
14-2 fuel purchased under a signed statement shall, in addition to any
14-3 criminal penalty, forfeit the right of the person to purchase dyed
14-4 or undyed diesel fuel tax-free for a period of one year from the
14-5 date of the offense, and any tax, interest, and penalty found to be
14-6 due through false or erroneous execution or continuance of a
14-7 promissory statement by the purchaser, if assessed to the supplier,
14-8 is a debt of the purchaser to the supplier until paid, and is
14-9 recoverable at law in the same manner as the purchase price of the
14-10 fuel. The person may, however, claim a refund of the tax paid on
14-11 any undyed diesel fuel used for non-highway purposes under Section
14-12 153.222 of this code.
14-13 (i) A permitted supplier may not make a tax-free sale of
14-14 dyed fuel, or undyed diesel fuel for agricultural purposes, to a
14-15 purchaser using a signed statement;
14-16 (1) for the sale of more than 3,000 gallons of dyed or
14-17 undyed diesel fuel in a single transaction; or
14-18 (2) in a calendar month in which the supplier has
14-19 previously sold more than 10,000 gallons of dyed or undyed diesel
14-20 fuel to the purchaser.
14-21 (j) (1) A sale of dyed diesel, or undyed diesel fuel for
14-22 agricultural purposes, may be made without collecting tax from [to]
14-23 a purchaser who operates one or more motor vehicles on the public
14-24 highway and who furnishes to a permitted supplier a signed
14-25 statement and end user number only as provided in this subsection:
14-26 (2) The statement must stipulate that all the dyed or
15-1 undyed diesel fuel will be consumed by the purchaser for purposes
15-2 other than operating a motor vehicle on the public highway and that
15-3 no dyed or undyed diesel fuel purchased on a signed statement will
15-4 be resold or delivered into the fuel supply tanks of a motor
15-5 vehicle.
15-6 (k) Each person wishing to utilize a signed statement for the
15-7 purchase of dyed fuel, or undyed tax-free diesel fuel for
15-8 agricultural purposes shall apply to the comptroller for an
15-9 agricultural user exemption number to be used in conjunction with a
15-10 signed statement. No tax-free sales of any diesel fuel may be made
15-11 to a purchaser who does not have a valid end user number or
15-12 agricultural user exemption number issued by the comptroller's
15-13 office.
15-14 SECTION 15, Chapter 153, Tax Code, Subchapter C, is amended
15-15 by adding the following sections:
15-16 Section 153.226. Notice Regarding Dyed Diesel Fuel, A notice
15-17 stating "DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE
15-18 USE" must be:
15-19 (1) provided by a permitted supplier to a person who
15-20 receives dyed diesel fuel;
15-21 (2) provided by a seller of dyed diesel fuel to its
15-22 buyer if the diesel fuel is located outside the bulk
15-23 transfer/terminal system and is not sold from a retail pump or bulk
15-24 plant posted in accordance with requirements of subsection (3); and
15-25 (3) posted by a seller on a retail pump or bulk plant
15-26 where it sells dyed diesel fuel for use by its buyers.
16-1 Section 153.227, Dyed Diesel Fuel Notice Required on Shipping
16-2 Documents, Bills of Lading, and Invoices.
16-3 The form of notice required by Section 153.226 (1) and (2) must be
16-4 provided at the time of the removal or sale, and must appear on
16-5 shipping documents, bills of lading, cargo manifests, and invoices
16-6 accompanying the sale or removal of the dyed diesel fuel.
16-7 Section 153.228, Unauthorized Sale or Use of Dyed Diesel Fuel.
16-8 (a) No person may sell or hold for sale dyed diesel fuel for any
16-9 use that the person knows or has reason to know is a taxable use of
16-10 the diesel fuel.
16-11 (b) No person may use or hold for use dyed diesel fuel for a use
16-12 other than a non-taxable use if the person knew or had reason to
16-13 know that the diesel fuel was so dyed.
16-14 Section 153.229, Alteration of Dye or Marker in Dyed Diesel Fuel
16-15 Prohibited.
16-16 No person, with the intent to evade payment of tax, may alter or
16-17 attempt to alter the strength or composition of a dye or marker in
16-18 dyed diesel fuel.
16-19 Section 153.330, Use of Dyed Fuel Prohibited.
16-20 (a) No person may operate a motor vehicle on a public highway in
16-21 this state with taxable motor fuel that contains dye in the fuel
16-22 supply tank of the motor vehicle.
16-23 (b) This section does not apply to:
16-24 (1) persons operating motor vehicles who have received
16-25 fuel into their fuel tanks outside of this state, in a jurisdiction
16-26 that licenses the introduction of dyed taxable motor fuel of that
17-1 color and type into the motor fuel tank of vehicles operated on
17-2 highways; or
17-3 (2) uses of dyed fuel that are lawful under the
17-4 Internal Revenue Code and implementing regulations including state
17-5 and local government vehicles and buses, unless otherwise
17-6 prohibited by this chapter.
17-7 (c) a person who violates this section is subject to a criminal
17-8 penalty.
17-9 SECTION 16. Section 153.209, Tax Code, is amended to read as
17-10 follows:
17-11 (a) A dyed diesel bonded user permit authorizes a user to purchase
17-12 dyed diesel fuel in excess of 10,000 gallons per month. [whose
17-13 purchases of diesel fuel are predominantly for nonhighway use to
17-14 purchase diesel fuel tax free from permitted suppliers and to
17-15 report and pay taxes to this state on that part of the diesel fuel
17-16 that is delivered into the fuel supply tank of motor vehicles owned
17-17 or operated by him.]
17-18 (b) An agricultural bonded user permit authorizes a user to
17-19 purchase undyed diesel fuel in excess of 10,000 gallons per month
17-20 for agricultural purposes only.
17-21 SECTION 17. Section 153.217 (a), Tax Code, is amended to
17-22 read as follows:
17-23 (a) The comptroller, on or before December 20 of each
17-24 calendar year, shall mail or distribute to each supplier a printed
17-25 alphabetical list of permitted suppliers, dyed diesel bonded users,
17-26 agricultural bonded users, aviation fuel dealers, and diesel fuel
18-1 jobbers. A permitted supplier, an agricultural bonded user, and an
18-2 aviation fuel dealer on the list are qualified to purchase dyed or
18-3 undyed diesel fuel tax free during the following calendar year. A
18-4 diesel fuel jobber on the list is qualified to purchase diesel fuel
18-5 tax-paid during the following calendar year. A supplemental list
18-6 of additions and deletions shall be delivered to each supplier each
18-7 month.
18-8 SECTION 18. Section 153.218, Subsections (a), (b), and (c),
18-9 Tax Code, is amended to read as follows:
18-10 (a) The comptroller shall determine the amount security
18-11 required of a supplier, dyed diesel bonded user, agricultural
18-12 bonded user, or diesel fuel jobber taking into consideration the
18-13 amount of the tax that has or is expected to become due from the
18-14 person, any past history of the person as supplier, dyed diesel
18-15 bonded user, agricultural bonded user, or diesel fuel jobber and
18-16 the necessity to protect the state against the failure to pay the
18-17 tax as it becomes due.
18-18 (b) If it is determined that the posting of security is necessary
18-19 to protect the state, the comptroller may require a supplier, [or]
18-20 dyed diesel bonded user, or agricultural bonded user to post a
18-21 surety bond equal to two times the amount of tax that could accrue
18-22 on tax-free diesel fuel purchased or acquired during a reporting
18-23 period. A diesel fuel jobber shall post a bond in an amount
18-24 determined by the comptroller according to the past payment history
18-25 of the jobber. The minimum bond for a supplier or diesel fuel
18-26 jobber is $30,000 and the maximum bond is $600,000. The minimum
19-1 bond for a dyed diesel bonded user or agricultural bonded user is
19-2 $10,000 and the maximum bond is $600,000. However, if the
19-3 comptroller determines there is undue risk of loss of tax revenues,
19-4 the comptroller may require one or more bonds or securities in a
19-5 total amount exceeding $600,000.
19-6 (c) A supplier, dyed diesel bonded user, agricultural bonded user
19-7 or diesel fuel jobber who has filed a bond or other security under
19-8 this subchapter is exempted from the bond or other security
19-9 requirements of this subchapter and is entitled, on request, to
19-10 have the comptroller return, refund, or release the bond or
19-11 security if in the judgment of the comptroller the person has for
19-12 four consecutive years continuously complied with the conditions of
19-13 the bond or other security filed under this subchapter. However,
19-14 if the comptroller determines that the bond or other security filed
19-15 under this subchapter would be jeopardized by the return, refund,
19-16 or release of the bond or security, the comptroller may elect not
19-17 to return, refund, or release the bond or security, and may
19-18 reimpose a requirement of a bond or other security as the
19-19 comptroller determines is necessary to protect the revenues of the
19-20 state.
19-21 SECTION 19: Section 153.223 (a), Tax Code, is amended to
19-22 read as follows:
19-23 (a) A refund claim must be filed with the comptroller on
19-24 forms provided by the comptroller and show the date of filing, the
19-25 period covered in the claim, the number of gallons of diesel fuel
19-26 subject to refund, and other information required by the
20-1 comptroller. A claim must be supported by one or more original
20-2 invoices issued to or by the claimant, or such information as the
20-3 comptroller deems necessary. Permitted distributors are prohibited
20-4 from filing claims for refunds of taxes paid by purchasers of
20-5 undyed diesel fuel.
20-6 SECTION 20. Section 153.224 (a), Tax Code, is amended to
20-7 read as follows:
20-8 (a) Except as provided by this section, a claim for a refund
20-9 must be filed with the comptroller within one year after the first
20-10 day of the calendar month following the purchase, use, delivery,
20-11 export, or loss by fire or other accident of diesel fuel, whichever
20-12 period expires latest. Claims for refunds may be submitted to the
20-13 comptroller's office once a quarter or when the amount of potential
20-14 refund claim equals at least $200.
20-15 SECTION 21. This Act takes effect September 1, 1999.
20-16 SECTION 22. The importance of this legislation and the
20-17 crowded condition of the calendars in both houses create an
20-18 emergency and an imperative public necessity that the
20-19 constitutional rule requiring bills to be read on three several
20-20 days in each house be suspended, and this rule is hereby suspended.