1-1 By: Bivins, Armbrister, Wentworth S.B. No. 1547
1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Finance; April 22, 1999,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 11, Nays 0; April 22, 1999, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1547 By: Moncrief
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the collection of the tax on motor fuels; providing
1-10 penalties.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 153.001, Tax Code, is amended by amending
1-13 Subdivisions (8) and (19) and adding Subdivisions (28) through (36)
1-14 to read as follows:
1-15 (8) "Diesel tax prepaid user" means a person:
1-16 (A) whose purchases of diesel fuel are
1-17 predominantly for agricultural nonhighway use;
1-18 (B) whose only diesel-powered motor vehicles are
1-19 passenger cars or light trucks; and
1-20 (C) who elects to prepay an annual diesel fuel
1-21 tax to the comptroller on each diesel-powered motor vehicle.
1-22 (19) "Motor fuel" includes gasoline, diesel fuel,
1-23 liquefied gas, and other products that are offered for sale, sold,
1-24 or used [usable] as propellants of a motor vehicle.
1-25 (28) "Blended fuel" means a mixture composed of
1-26 gasoline or diesel fuel and another liquid produced by a blending
1-27 process, other than a de minimis amount of a product such as
1-28 carburetor detergent or oxidation inhibitor, that can be offered
1-29 for sale, sold, or used as a fuel in a motor vehicle.
1-30 (29) "Blending" means the mixing together of one or
1-31 more products with other products to produce a product that is
1-32 offered for sale, sold, or used as a motor fuel. The term does not
1-33 include the blending that may occur during the refining process by
1-34 the original refiner of crude petroleum or the commingling of
1-35 products during transportation in a pipeline.
1-36 (30) "Diversion number" means the number assigned by
1-37 the comptroller, or by a person to whom the comptroller delegates
1-38 or appoints the authority to assign the number, that relates to a
1-39 single cargo tank delivery of motor fuel that is diverted from the
1-40 original destination state printed on the shipping document.
1-41 (31) "Dyed diesel fuel" means diesel fuel that is
1-42 required to be dyed under United States Environmental Protection
1-43 Agency and Internal Revenue Service rules or in accordance with
1-44 other subsequent requirements prescribed by the agency or service,
1-45 including any invisible marker requirements.
1-46 (32) "Export" means to deliver motor fuel to a point
1-47 outside this state. For purposes of this definition, motor fuel
1-48 delivered outside this state:
1-49 (A) by or for the seller constitutes an export
1-50 by the seller; and
1-51 (B) by or for the purchaser constitutes an
1-52 export by the purchaser.
1-53 (33) "Import" means to deliver motor fuel to a point
1-54 inside this state from a point outside this state. For purposes of
1-55 this definition, motor fuel delivered into this state from outside
1-56 this state:
1-57 (A) by or for the seller constitutes an import
1-58 by the seller; and
1-59 (B) by or for the purchaser constitutes an
1-60 import by the purchaser.
1-61 (34) "Import verification number" means the number
1-62 assigned by the comptroller, or by a person to whom the comptroller
1-63 delegates or appoints the authority to assign the number, that
1-64 relates to a single cargo tank delivery into this state from
2-1 another state after a request for an assigned number by an importer
2-2 or by the common or contract carrier carrying taxable motor fuel
2-3 into this state for the account of an importer.
2-4 (35) "Shipping document" means a delivery document
2-5 issued by a terminal or bulk plant operator in conjunction with the
2-6 sale, transfer, or removal of motor fuel from the terminal or bulk
2-7 plant.
2-8 (36) "Undyed diesel fuel" means diesel fuel that is
2-9 not subject to the United States Environmental Protection Agency
2-10 requirements or has not been dyed in accordance with the Internal
2-11 Revenue Service fuel dying provisions.
2-12 SECTION 2. Subsection (a), Section 153.003, Tax Code, is
2-13 amended to read as follows:
2-14 (a) All common and contract carriers operating in this state
2-15 shall keep for four years, open to inspection by the comptroller, a
2-16 complete and separate record of each intrastate and interstate
2-17 transportation of motor fuel. The records of each intrastate and
2-18 interstate transportation of motor fuel required under Subsection
2-19 (b) shall be compiled into a report and supplements in a form or
2-20 manner determined by the comptroller. On or before the 25th day of
2-21 the month following the end of each calendar quarter, a common or
2-22 contract carrier shall file a report showing complete and detailed
2-23 information on the transportation of motor fuel during the
2-24 preceding quarter. The report must be executed by the common or
2-25 contract carrier or a representative of the carrier, and the
2-26 penalties provided by this chapter apply to any violation relating
2-27 to the report. The comptroller by rule shall determine the
2-28 registration requirements for common or contract carriers
2-29 transporting motor fuel.
2-30 SECTION 3. Subsection (d), Section 153.004, Tax Code, is
2-31 amended to read as follows:
2-32 (d) Each person, other than a common carrier transporting
2-33 motor fuel under this chapter, shall also carry a copy of the
2-34 supplier, distributor, jobber, dyed diesel fuel bonded user, or
2-35 agricultural bonded user permit, or proof of tax payment on the
2-36 motor fuel being transported, unless the person is an end user
2-37 transporting the person's own motor fuel purchased under a signed
2-38 statement as provided by Section 153.205.
2-39 SECTION 4. Section 153.006, Tax Code, is amended by adding
2-40 Subsection (e) to read as follows:
2-41 (e) The comptroller may revoke a distributor's or supplier's
2-42 permit if the distributor or supplier purchases, for export, motor
2-43 fuel in this state on which the tax imposed by this chapter has not
2-44 been paid and subsequently diverts or causes the fuel to be
2-45 diverted to a destination in this state or to a destination in
2-46 another state or country other than the originally designated state
2-47 or country without first obtaining a diversion number.
2-48 SECTION 5. Section 153.010, Tax Code, is amended to read as
2-49 follows:
2-50 Sec. 153.010. AUTHORITY TO STOP AND EXAMINE. In order to
2-51 enforce the provisions of this chapter, the comptroller or a peace
2-52 officer may stop a motor vehicle that appears to be operating with
2-53 or transporting motor fuel in order to examine the shipping
2-54 document, cargo manifest, or invoices required to be carried,
2-55 examine a permit or copy of a permit that may be required to be
2-56 carried, take samples from the fuel supply or cargo tanks, and make
2-57 any other investigation that could reasonably be made to determine
2-58 whether the taxes have been paid or accounted for by a distributor,
2-59 supplier, dealer, dyed diesel fuel bonded user, agricultural bonded
2-60 user, jobber, or any person required to be so permitted. The
2-61 comptroller, a peace officer, an employee of the attorney general's
2-62 office, an employee of the Texas Natural Resource Conservation
2-63 Commission, or an employee of the Department of Agriculture may
2-64 take samples of motor fuel from any storage tank or container to:
2-65 (1) determine if the fuel contains hazardous waste or
2-66 is adulterated; or
2-67 (2) allow the comptroller to determine whether taxes
2-68 on the fuel have been paid or accounted for to this state.
2-69 SECTION 6. Subsection (a), Section 153.013, Tax Code, is
3-1 amended to read as follows:
3-2 (a) A distributor, supplier, dealer, interstate trucker,
3-3 jobber, dyed diesel fuel bonded user, or agricultural bonded user
3-4 who fails to keep a record, issue an invoice, or file a report
3-5 required by this chapter, is presumed to have sold or used for
3-6 taxable purposes all motor fuel shown by an audit by the
3-7 comptroller to have been sold to the distributor, supplier, dealer,
3-8 interstate trucker, jobber, or user. Motor fuel unaccounted for is
3-9 presumed to have been sold or used for taxable purposes. The
3-10 comptroller may fix or establish the amount of taxes, penalties,
3-11 and interest due the state from the records of deliveries or from
3-12 any records or information available to him. If a tax claim, as
3-13 developed from this procedure, is not paid, after the opportunity
3-14 to request a redetermination, the claim and any audit made by the
3-15 comptroller or any report filed by the distributor, supplier,
3-16 dealer, interstate trucker, jobber, dyed diesel fuel bonded user,
3-17 or agricultural bonded user, are evidence in any suit or judicial
3-18 proceedings filed by the attorney general, and are prima facie
3-19 evidence of the correctness of the claim or audit. A prima facie
3-20 presumption of the correctness of the claim may be overcome at the
3-21 trial by evidence adduced by the distributor, supplier, dealer,
3-22 interstate trucker, jobber, or user.
3-23 SECTION 7. Subchapter A, Chapter 153, Tax Code, is amended
3-24 by adding Section 153.018 to read as follows:
3-25 Sec. 153.018. IMPORTATION AND EXPORTATION OF MOTOR FUEL.
3-26 (a) A person may not import motor fuel to a destination in this
3-27 state or export motor fuel to a destination outside this state by
3-28 any means unless the person possesses a shipping document for that
3-29 fuel created by the terminal or bulk plant at which the fuel was
3-30 received. The shipping document must include:
3-31 (1) the name and physical address of the terminal or
3-32 bulk plant from which the motor fuel was received for import or
3-33 export;
3-34 (2) the name of the carrier transporting the motor
3-35 fuel;
3-36 (3) the date the motor fuel was loaded;
3-37 (4) the type of motor fuel;
3-38 (5) the number of gallons:
3-39 (A) in temperature-adjusted gallons if purchased
3-40 from a terminal for export or import; or
3-41 (B) in temperature-adjusted gallons or in gross
3-42 gallons if purchased from a bulk plant;
3-43 (6) the destination of the motor fuel as represented
3-44 by the purchaser of the motor fuel and the number of gallons of the
3-45 fuel to be delivered, if delivery is to only one state;
3-46 (7) the name, federal employer identification number,
3-47 permit number, and physical address of the purchaser of the motor
3-48 fuel;
3-49 (8) the name of the person responsible for paying the
3-50 tax imposed by this chapter, as given to the terminal by the
3-51 purchaser if different from the permitted supplier or distributor;
3-52 and
3-53 (9) any other information that, in the opinion of the
3-54 comptroller, is necessary for the proper administration of this
3-55 chapter.
3-56 (b) The terminal or bulk plant shall provide the shipping
3-57 documents to the importer or exporter.
3-58 (c) If motor fuel is to be delivered to more than one state,
3-59 the terminal shall document the split loads by issuing shipping
3-60 documents that list the destination state of each portion of the
3-61 motor fuel.
3-62 (d) A terminal, a bulk plant, the carrier, the permitted
3-63 distributor or supplier, and the person that received the motor
3-64 fuel shall:
3-65 (1) retain a copy of the shipping document until at
3-66 least the fourth anniversary of the date the fuel is received; and
3-67 (2) provide a copy of the document to the comptroller
3-68 or any law enforcement officer not later than the 10th working day
3-69 after the date a request for the copy is received.
4-1 (e) An importer or exporter shall keep in the person's
4-2 possession the shipping document issued by the terminal or bulk
4-3 plant when transporting motor fuel imported into this state or for
4-4 export from this state. The importer or exporter shall show the
4-5 document to the comptroller or a peace officer on request. The
4-6 comptroller may delegate authority to inspect the document to other
4-7 governmental agencies. The importer or exporter shall provide a
4-8 copy of the shipping document to the person that receives the fuel
4-9 when it is delivered.
4-10 (f) The importer or exporter may deliver motor fuel only to
4-11 the destination state or states indicated on the shipping document.
4-12 (g) An importer or exporter who wants to divert the delivery
4-13 of a single cargo tank of motor fuel from the destination state
4-14 printed on the shipping document must obtain a diversion number
4-15 from the comptroller before diverting the delivery. The importer,
4-16 exporter, or common or contract carrier must write the diversion
4-17 number on the shipping document issued for the fuel. A diversion
4-18 number is required for each diverted delivery. The comptroller may
4-19 appoint a person to assign diversion numbers or may delegate that
4-20 authority to another person.
4-21 (h) An importer that acquires motor fuel for import by cargo
4-22 tank must obtain an import verification number from the comptroller
4-23 before importing the motor fuel. The importer must write the
4-24 import verification number on the shipping document issued for the
4-25 fuel. The importer must obtain a separate import confirmation
4-26 number for each cargo tank delivery of motor fuel into this state.
4-27 The comptroller may appoint a person to assign import verification
4-28 numbers or may delegate that authority to another person.
4-29 (i) Each terminal shall post a notice in a conspicuous
4-30 location proximate to the point of receipt of shipping papers that
4-31 describes the duties of importers and exporters under this section.
4-32 The comptroller may prescribe the language, type, style, and format
4-33 of the notice.
4-34 SECTION 8. Subsection (a), Section 153.112, Tax Code, is
4-35 amended to read as follows:
4-36 (a) A distributor's permit is permanent and is valid so long
4-37 as the permittee has in force and effect the required bond or
4-38 security and furnishes timely reports and supplements as required,
4-39 or until the permit is surrendered by the holder or canceled by the
4-40 comptroller. The comptroller shall [may] cancel a distributor's
4-41 permit if no purchase, sale, or use of gasoline has been reported
4-42 by the distributor for the prior nine [12] months.
4-43 SECTION 9. Subsection (a), Section 153.117, Tax Code, is
4-44 amended to read as follows:
4-45 (a) A distributor shall keep:
4-46 (1) a record showing the number of gallons of:
4-47 (A) [(1)] all gasoline inventories on hand at
4-48 the first of each month;
4-49 (B) [(2)] all gasoline refined, compounded, or
4-50 blended;
4-51 (C) [(3)] all gasoline purchased or received,
4-52 showing the name of the seller and date of each purchase or
4-53 receipt;
4-54 (D) [(4)] all gasoline sold, distributed, or
4-55 used, showing the name of the purchaser and the date of the sale or
4-56 use; and
4-57 (E) [(5)] all gasoline lost by fire or other
4-58 accident; and
4-59 (2) an itemized statement showing by load the number
4-60 of gallons of all gasoline:
4-61 (A) received during the preceding calendar month
4-62 for export and the location of the loading;
4-63 (B) exported from this state by destination
4-64 state or country; and
4-65 (C) imported during the preceding calendar month
4-66 by destination state or country.
4-67 SECTION 10. Subsection (a), Section 153.118(a), Tax Code, is
4-68 amended to read as follows:
4-69 (a) On or before the 25th day of each month, a distributor
5-1 or other person liable to this state for payment of the tax imposed
5-2 under this chapter shall file all reports and supplements as
5-3 required by the comptroller, and remit the amount of tax required
5-4 to be collected during the preceding month. The report shall be
5-5 executed by the distributor, the distributor's [or his]
5-6 representative, or any other person required to report and shall be
5-7 filed with the comptroller in a manner or on a form provided or
5-8 approved by the comptroller, containing complete and detailed
5-9 information not inconsistent with the requirements of this chapter
5-10 of gasoline transactions. A distributor required to file a report
5-11 under this section who has not sold or used any gasoline during the
5-12 reporting period shall file with the comptroller the report setting
5-13 forth the facts or information. The failure of a distributor or
5-14 other person to obtain forms or software from the comptroller is no
5-15 excuse for the failure to file a report containing all the
5-16 information required to be reported.
5-17 SECTION 11. Section 153.203, Tax Code, is amended to read as
5-18 follows:
5-19 Sec. 153.203. EXCEPTIONS. The tax imposed by this
5-20 subchapter does not apply to:
5-21 (1) diesel fuel delivered by a permitted supplier to a
5-22 common or contract carrier, oceangoing vessel (including ship,
5-23 tanker, or boat), or barge for export from this state, if the
5-24 diesel fuel is moved forthwith outside this state;
5-25 (2) diesel fuel sold by a permitted supplier to the
5-26 federal government for its exclusive use;
5-27 (3) diesel fuel sold or delivered by a permitted
5-28 supplier to another permitted supplier or to the bulk storage
5-29 facility of an agricultural bonded user, or dyed diesel fuel sold
5-30 or delivered by a permitted supplier to the bulk storage facility
5-31 of a dyed diesel fuel bonded user, to the bulk storage facility of
5-32 a diesel tax prepaid user, or to a purchaser who provides a signed
5-33 statement as provided by Section 153.205 of this code, but not
5-34 including a delivery of tax-free diesel fuel into the fuel supply
5-35 tanks of a motor vehicle, except for a motor vehicle owned by the
5-36 federal government;
5-37 (4) diesel fuel sold or delivered by a permitted
5-38 supplier into the storage facility of a permitted aviation fuel
5-39 dealer, from which diesel fuel will be sold or delivered solely
5-40 into the fuel supply tanks of aircraft or aircraft servicing
5-41 equipment;
5-42 (5) diesel fuel sold or delivered by a permitted
5-43 supplier into fuel supply tanks of railway engines, motorboats, or
5-44 refrigeration units or other stationary equipment powered by a
5-45 separate motor from a separate fuel supply tank;
5-46 (6) kerosene when delivered by a permitted supplier
5-47 into a storage facility at a retail business from which all
5-48 deliveries are exclusively for heating, cooking, lighting, or
5-49 similar nonhighway use;
5-50 (7) diesel fuel sold or delivered by one aviation fuel
5-51 dealer to another aviation fuel dealer who will deliver the diesel
5-52 fuel exclusively into the supply tanks of aircraft or aircraft
5-53 servicing equipment;
5-54 (8) diesel fuel sold by a permitted supplier to a
5-55 public school district in this state for its exclusive use; or
5-56 (9) diesel fuel sold by a permitted supplier to a
5-57 commercial transportation company that provides public school
5-58 transportation services to a school district under Section 34.008,
5-59 Education Code, and used by the company exclusively to provide
5-60 those services.
5-61 SECTION 12. Section 153.205, Tax Code, is amended by
5-62 amending Subsections (a), (b), (c), (e), (i), and (j) and adding
5-63 Subsection (k) to read as follows:
5-64 (a) The first sale or use of diesel fuel in this state is
5-65 taxable, except that sales [the sale] of dyed diesel fuel, or of
5-66 undyed diesel fuel if the fuel will be used for an agricultural
5-67 purpose, may be made without collecting the tax if the purchaser
5-68 furnishes to a permitted supplier a signed statement, including an
5-69 end user number or agricultural user exemption number issued by the
6-1 comptroller that stipulates that:
6-2 (1) the purchaser does not operate any diesel-powered
6-3 motor vehicles on the public highway;
6-4 (2) all of the diesel fuel will be consumed by the
6-5 purchaser and no diesel fuel purchased on a signed statement will
6-6 be resold; and
6-7 (3) none of the diesel fuel purchased in this state
6-8 will be delivered or permitted by the purchaser to be delivered
6-9 into fuel supply tanks of motor vehicles.
6-10 (b) A person may not make a tax-free purchase of any diesel
6-11 fuel under this section using a signed statement:
6-12 (1) for the purchase of more than 3,000 gallons of
6-13 dyed or undyed diesel fuel in a single transaction; or
6-14 (2) in a calendar month in which the person has
6-15 previously purchased more than 10,000 gallons of dyed or undyed
6-16 diesel fuel from all sources.
6-17 (c) The signed statement and end user number or agricultural
6-18 user exemption number from the purchaser relieves the permitted
6-19 supplier from the burden of proof that the sale of diesel fuel was
6-20 not taxable to the purchaser and remains in effect unless:
6-21 (1) the statement is revoked in writing by the
6-22 purchaser or supplier;
6-23 (2) the comptroller notifies the supplier in writing
6-24 that the purchaser may no longer make tax-free purchases; or
6-25 (3) the supplier is put on notice by making taxable
6-26 sales of diesel fuel to a purchaser who has previously submitted a
6-27 signed statement to this supplier.
6-28 (e) A taxable use of any part of the dyed or undyed diesel
6-29 fuel purchased under a signed statement shall, in addition to any
6-30 criminal penalty, forfeit the right of the person to purchase dyed
6-31 or undyed diesel fuel tax free for a period of one year from the
6-32 date of the offense, and any tax, interest, and penalty found to be
6-33 due through false or erroneous execution or continuance of a
6-34 promissory statement by the purchaser, if assessed to the supplier,
6-35 is a debt of the purchaser to the supplier until paid, and is
6-36 recoverable at law in the same manner as the purchase price of the
6-37 fuel. The person may, however, claim a refund of the tax paid on
6-38 any undyed diesel fuel used for nonhighway purposes under Section
6-39 153.222 [of this code].
6-40 (i) A permitted supplier may not make a tax-free sale of
6-41 dyed diesel fuel, or undyed diesel fuel for agricultural purposes,
6-42 to a purchaser using a signed statement:
6-43 (1) for the sale of more than 3,000 gallons of dyed or
6-44 undyed diesel fuel in a single transaction; or
6-45 (2) in a calendar month in which the supplier has
6-46 previously sold more than 10,000 gallons of dyed or undyed diesel
6-47 fuel to the purchaser.
6-48 (j)(1) A sale of dyed diesel fuel, or undyed diesel fuel for
6-49 agricultural purposes, may be made without collecting tax from [to]
6-50 a purchaser who operates one or more motor vehicles on the public
6-51 highway and who furnishes to a permitted supplier a signed
6-52 statement and end user number or agricultural user exemption number
6-53 only as provided in this subsection.
6-54 (2) The statement must stipulate that all the dyed or
6-55 undyed diesel fuel will be consumed by the purchaser for purposes
6-56 other than operating a motor vehicle on the public highway and that
6-57 no dyed or undyed diesel fuel purchased on a signed statement will
6-58 be resold or delivered into the fuel supply tanks of a motor
6-59 vehicle.
6-60 (3) Diesel fuel which may be sold without collection
6-61 of tax under this subsection must be of a type that may not be
6-62 legally used by the purchaser for the operation of a motor vehicle
6-63 on the public highway under state or federal law.
6-64 (4) Subsections (a), (c)(3), and (d) of this section
6-65 do not apply to sales of fuel under this subsection.
6-66 (k) A person who wants to use a signed statement to purchase
6-67 dyed diesel fuel must apply to the comptroller for an end user
6-68 number to be used in conjunction with a signed statement. A person
6-69 who wants to use a signed statement to purchase dyed or undyed
7-1 diesel fuel for agricultural purposes must apply to the comptroller
7-2 for an agricultural user exemption number to be used in conjunction
7-3 with a signed statement. A person may not make a tax-free sale of
7-4 any diesel fuel to a purchaser using a signed statement unless the
7-5 purchaser has an end user number or agricultural user exemption
7-6 number issued by the comptroller under this subsection.
7-7 SECTION 13. Subsection (i), Section 153.206, Tax Code, is
7-8 amended to read as follows:
7-9 (i) A dyed diesel fuel bonded user, an agricultural bonded
7-10 user, or a permitted interstate trucker is entitled to deduct
7-11 one-half of one percent of the taxable gallons of diesel fuel on
7-12 payment of the taxes to this state for the expense of
7-13 recordkeeping, reporting, and remitting the tax.
7-14 SECTION 14. Subsection (a), Section 153.207, Tax Code, is
7-15 amended to read as follows:
7-16 (a) A supplier, dyed diesel fuel bonded user, agricultural
7-17 bonded user, interstate trucker, diesel tax prepaid user, aviation
7-18 fuel dealer, or diesel fuel jobber shall file an application with
7-19 the comptroller for one of the nonassignable permits provided for
7-20 in this subchapter.
7-21 SECTION 15. Subsection (b), Section 153.208, Tax Code, is
7-22 amended to read as follows:
7-23 (b) A supplier's permit authorizes a person to sell tax-free
7-24 diesel fuel to:
7-25 (1) another supplier;
7-26 (2) a dyed diesel fuel bonded user or agricultural
7-27 bonded user;
7-28 (3) an aviation fuel dealer;
7-29 (4) a diesel prepaid user if delivered into his bulk
7-30 storage facilities only; and
7-31 (5) a person issuing a signed statement.
7-32 SECTION 16. Section 153.209, Tax Code, is amended to read as
7-33 follows:
7-34 Sec. 153.209. DYED DIESEL FUEL BONDED USER AND AGRICULTURAL
7-35 BONDED USER PERMITS [PERMIT]. (a) A dyed diesel fuel bonded user
7-36 permit authorizes a user to purchase more than 10,000 gallons a
7-37 month of dyed diesel fuel for the user's own use [whose purchases
7-38 of diesel fuel are predominantly for nonhighway use to purchase
7-39 diesel fuel tax free from permitted suppliers and to report and pay
7-40 taxes to this state on that part of the diesel fuel that is
7-41 delivered into the fuel supply tanks of motor vehicles owned or
7-42 operated by him].
7-43 (b) An agricultural bonded user permit authorizes a user to
7-44 purchase more than 10,000 gallons of dyed and undyed diesel fuel
7-45 for the user's own use for agricultural purposes only.
7-46 SECTION 17. Subsection (a), Section 153.210, Tax Code, is
7-47 amended to read as follows:
7-48 (a) A diesel tax prepaid user permit authorizes a person
7-49 whose use of diesel fuel is predominantly for agricultural
7-50 nonhighway use, but who owns or operates one or more passenger cars
7-51 or light trucks only in the weight class shown in this section to
7-52 elect to prepay an annual tax on the fuel delivered from his own
7-53 tax-free storage rather than obtain an agricultural [a] bonded user
7-54 permit. If he elects to obtain a diesel tax prepaid user permit,
7-55 he must prepay the tax at the rate prescribed for each motor
7-56 vehicle based on the class of registered gross weight. A person
7-57 whose purchases of diesel fuel are predominantly for highway use
7-58 does not qualify for a diesel tax prepaid user permit.
7-59 SECTION 18. Section 153.214, Tax Code, is amended to read as
7-60 follows:
7-61 Sec. 153.214. SUPPLIER MAY PERFORM OTHER FUNCTIONS. A
7-62 supplier may operate under the supplier's permit as a dyed diesel
7-63 fuel bonded user, agricultural bonded user, dealer, or aviation
7-64 fuel dealer without securing a separate permit, but is subject to
7-65 all other conditions, requirements, and liabilities imposed on
7-66 those permittees.
7-67 SECTION 19. Subsection (a), Section 153.215, Tax Code, is
7-68 amended to read as follows:
7-69 (a) A supplier's permit, a dyed diesel fuel bonded user
8-1 permit, and an agricultural bonded user permit are [is] permanent
8-2 and valid as long as the permittee has in force and effect the
8-3 required bond or security and furnishes timely reports and
8-4 supplements as required, or until the permit is surrendered by the
8-5 holder or canceled by the comptroller. The comptroller shall [may]
8-6 cancel a [supplier's or bonded user's] permit if no purchase, sale,
8-7 or use of diesel fuel has been reported by the permittee [supplier
8-8 or bonded user] for the prior nine [12] months.
8-9 SECTION 20. Subsection (a), Section 153.217, Tax Code, is
8-10 amended to read as follows:
8-11 (a) The comptroller, on or before December 20 of each
8-12 calendar year, shall mail or distribute to each supplier a printed
8-13 alphabetical list of permitted suppliers, dyed diesel fuel bonded
8-14 users, agricultural bonded users, aviation fuel dealers, and diesel
8-15 fuel jobbers. A permitted supplier, an agricultural [a] bonded
8-16 user, and an aviation fuel dealer on the list are qualified to
8-17 purchase dyed or undyed diesel fuel tax free during the following
8-18 calendar year. A dyed diesel fuel bonded user on the list is
8-19 qualified to purchase dyed diesel fuel tax free during the
8-20 following calendar year. A diesel fuel jobber on the list is
8-21 qualified to purchase diesel fuel tax-paid during the following
8-22 calendar year. A supplemental list of additions and deletions
8-23 shall be delivered to each supplier each month.
8-24 SECTION 21. Subsections (a), (b), (c), and (j), Section
8-25 153.218, Tax Code, are amended to read as follows:
8-26 (a) The comptroller shall determine the amount of security
8-27 required of a supplier, dyed diesel fuel bonded user, agricultural
8-28 bonded user, or diesel fuel jobber taking into consideration the
8-29 amount of the tax that has or is expected to become due from the
8-30 person, any past history of the person as a supplier, dyed diesel
8-31 fuel bonded user, agricultural bonded user, or diesel fuel jobber,
8-32 and the necessity to protect the state against the failure to pay
8-33 the tax as it becomes due.
8-34 (b) If it is determined that the posting of security is
8-35 necessary to protect the state, the comptroller may require a
8-36 supplier, dyed diesel fuel bonded user, or agricultural bonded user
8-37 to post a surety bond equal to two times the most amount of tax
8-38 that could accrue on tax-free diesel fuel purchased or acquired
8-39 during a reporting period. A diesel fuel jobber shall post a bond
8-40 in an amount determined by the comptroller according to the past
8-41 payment history of the jobber. The minimum bond for a supplier or
8-42 diesel fuel jobber is $30,000, and the maximum bond is $600,000.
8-43 The minimum bond for a dyed diesel fuel bonded user or agricultural
8-44 bonded user is $10,000, and the maximum bond is $600,000. However,
8-45 if the comptroller determines there is undue risk of loss of tax
8-46 revenues, the comptroller may require one or more bonds or
8-47 securities in a total amount exceeding $600,000.
8-48 (c) A supplier, dyed diesel fuel bonded user, agricultural
8-49 bonded user, or diesel fuel jobber who has filed a bond or other
8-50 security under this subchapter is exempted from the bond or other
8-51 security requirements of this subchapter and is entitled, on
8-52 request, to have the comptroller return, refund, or release the
8-53 bond or security if in the judgment of the comptroller the person
8-54 has for four consecutive years continuously complied with the
8-55 conditions of the bond or other security filed under this
8-56 subchapter. However, if the comptroller determines that the
8-57 revenues of the state would be jeopardized by the return, refund,
8-58 or release of the bond or security, the comptroller may elect not
8-59 to return, refund, or release the bond or security, and may
8-60 reimpose a requirement of a bond or other security as the
8-61 comptroller determines is necessary to protect the revenues of the
8-62 state.
8-63 (j) The comptroller shall notify immediately the issuer of a
8-64 letter of credit of a final determination of the supplier's, dyed
8-65 diesel fuel bonded user's, or agricultural bonded user's delinquent
8-66 liability or a judgment secured in any action by this state to
8-67 recover diesel taxes, costs, penalties, and interest found to be
8-68 due this state by a supplier, dyed diesel fuel bonded user, or
8-69 agricultural bonded user in whose behalf the letter of credit was
9-1 issued. The letter of credit allowed as security for the
9-2 remittance of taxes under this subchapter shall contain a statement
9-3 that the issuer agrees to respond to the comptroller's notice of
9-4 liability with amounts to satisfy the comptroller's delinquency
9-5 claim against the supplier, dyed diesel fuel bonded user, or
9-6 agricultural bonded user.
9-7 SECTION 22. Section 153.219, Tax Code, is amended by
9-8 amending Subsections (a) and (c) and adding Subsection (j) to read
9-9 as follows:
9-10 (a) A supplier shall keep a record showing the number of
9-11 gallons of:
9-12 (1) all diesel fuel inventories on hand at the first
9-13 of each month;
9-14 (2) all diesel fuel refined, compounded, or blended;
9-15 (3) all diesel fuel purchased or received, showing the
9-16 name of the seller, and the date of each purchase or receipt;
9-17 (4) all diesel fuel sold, distributed, or used on
9-18 which the tax was paid, showing the name of each [the] purchaser
9-19 and the date of sale, distribution, or use; and
9-20 (5) all diesel fuel lost by fire or other accident.
9-21 (c) A dyed diesel fuel bonded user, an agricultural bonded
9-22 user, or other user with nonhighway equipment uses who files a
9-23 claim for a refund shall keep a record showing the number of
9-24 gallons of:
9-25 (1) inventories of all diesel fuel on hand at the
9-26 first of each month;
9-27 (2) all diesel fuel purchased or received, showing the
9-28 name of the seller and the date of each purchase;
9-29 (3) all diesel fuel deliveries into the fuel supply
9-30 tanks of motor vehicles;
9-31 (4) diesel fuel used for other purposes, showing the
9-32 purpose for which used; and
9-33 (5) all diesel fuel lost by fire or other accident.
9-34 (j) A supplier shall keep:
9-35 (1) an itemized statement showing by load the number
9-36 of gallons of all diesel fuel received during the preceding
9-37 calendar month for export;
9-38 (2) an itemized statement showing by load the number
9-39 of gallons of all diesel fuel exported from this state by
9-40 destination state or country;
9-41 (3) an itemized statement showing by load the number
9-42 of gallons of all diesel fuel imported during the preceding
9-43 calendar month by destination state or country;
9-44 (4) an itemized statement differentiating between dyed
9-45 and undyed diesel fuel and showing by purchaser, end user number,
9-46 or agricultural user exemption number the number of gallons of dyed
9-47 and undyed diesel fuel sold tax free to a purchaser using a signed
9-48 statement in accordance with Section 153.205; and
9-49 (5) an itemized statement showing by purchaser and
9-50 permit number the number of gallons of dyed and undyed diesel fuel
9-51 sold tax free to dyed diesel fuel bonded users and agricultural
9-52 bonded users.
9-53 SECTION 23. Subsection (a), Section 153.220, Tax Code, is
9-54 amended to read as follows:
9-55 (a) A delivery of diesel fuel into the fuel supply tanks of
9-56 a motor vehicle operated for commercial purposes and described by
9-57 Section 153.001(12) shall be evidenced by an invoice issued in
9-58 duplicate by a dealer or an invoice or a distribution log issued by
9-59 a dyed diesel fuel bonded user, an agricultural bonded user, or
9-60 other user.
9-61 SECTION 24. Subsections (a) and (b), Section 153.221, Tax
9-62 Code, are amended to read as follows:
9-63 (a) On or before the 25th day of each month, a supplier, a
9-64 dealer required to collect the tax under Section 153.206(b), or a
9-65 user required to pay the tax under Section 153.206(c) shall file a
9-66 report of diesel fuel transactions or of diesel fuel delivered by a
9-67 user into the fuel tank of a motor vehicle owned or operated by the
9-68 user and such supplements as the comptroller may require and remit
9-69 the amount of tax required to be collected or to be paid during the
10-1 preceding month. A report must be filed on a form or in a manner
10-2 provided by the comptroller and contain information required by the
10-3 comptroller, showing complete and detailed information of diesel
10-4 fuel transactions or use during the preceding month. A supplier
10-5 required to file a report under this section who has not sold,
10-6 used, or distributed any diesel fuel during the reporting period
10-7 shall file with the comptroller the report setting forth the facts
10-8 or information. The failure of a supplier, dealer, or user to
10-9 obtain forms or software from the comptroller is no excuse for the
10-10 failure to file a report. The report must be executed by the
10-11 supplier, dealer, or user, or his representative and is subject to
10-12 the penalties provided in this chapter.
10-13 (b) On or before the 25th day of the month following the end
10-14 of each calendar quarter, a dyed diesel fuel bonded user, an
10-15 agricultural bonded user, or an interstate trucker shall file a
10-16 report and remit the amount of tax due [except as provided by
10-17 Subsection (d) of this section]. A report must be executed and
10-18 filed with the comptroller and contain complete and detailed
10-19 information on diesel fuel transactions during the preceding
10-20 calendar quarter and other information required by the comptroller
10-21 on forms or in a manner provided for that purpose. A dyed diesel
10-22 fuel bonded user, an agricultural bonded user, or an interstate
10-23 trucker required to file a report under this section who has not
10-24 sold, used, or distributed any diesel fuel during the reporting
10-25 period shall file with the comptroller the report setting forth the
10-26 facts or information. The failure of a dyed diesel fuel bonded
10-27 user, an agricultural bonded user, or an interstate trucker to
10-28 obtain forms or software from the comptroller is no excuse for the
10-29 failure to file a report containing all the information required to
10-30 be reported.
10-31 SECTION 25. Subsection (d), Section 153.222, Tax Code, is
10-32 amended to read as follows:
10-33 (d) If the quantity of diesel fuel used in Texas by
10-34 auxiliary power units or power take-off equipment on any motor
10-35 vehicle can be accurately measured while the motor vehicle is
10-36 stationary by any metering or other measuring device or method
10-37 designed to measure the fuel separately from fuel used to propel
10-38 the motor vehicle, the comptroller may approve and adopt the use of
10-39 any device as a basis for determining the quantity of diesel fuel
10-40 consumed in those operations for tax credit or tax refund. If no
10-41 separate metering device or other approved measuring method is
10-42 provided, the following credit or refund procedures are authorized.
10-43 A permitted supplier, a dyed diesel fuel bonded user, or an
10-44 agricultural bonded user who operates diesel-powered motor vehicles
10-45 equipped with a power take-off or a diesel-powered auxiliary power
10-46 unit mounted on the motor vehicle and using the fuel supply tank of
10-47 the motor vehicle may be allowed a deduction from the taxable
10-48 gallons used in this state in each motor vehicle so equipped. The
10-49 comptroller shall determine the percentage of the deduction. A
10-50 user who is required to pay the tax on diesel fuel used in motor
10-51 vehicles so equipped may file a claim for a refund not to exceed
10-52 the percentage allowed by the comptroller of the total taxable fuel
10-53 used in this state in each motor vehicle so equipped.
10-54 SECTION 26. Subsection (a), Section 153.223, Tax Code, is
10-55 amended to read as follows:
10-56 (a) A refund claim must be filed with the comptroller on
10-57 forms provided by the comptroller and show the date of filing, the
10-58 period covered in the claim, the number of gallons of diesel fuel
10-59 subject to refund, and other information required by the
10-60 comptroller. A claim must be supported by one or more original
10-61 invoices issued to or by the claimant, or such other information as
10-62 the comptroller deems necessary. A permitted supplier may not file
10-63 a claim for a refund of taxes paid by a purchaser of undyed diesel
10-64 fuel.
10-65 SECTION 27. Subsection (d), Section 153.224, Tax Code, is
10-66 amended to read as follows:
10-67 (d) A permitted supplier, a dyed diesel fuel bonded user, or
10-68 an agricultural bonded user that determines taxes were erroneously
10-69 reported or that paid more taxes than were due this state because
11-1 of a mistake of fact or law may take a credit on the supplier, dyed
11-2 diesel fuel bonded user, or agricultural bonded user tax report on
11-3 which the error has occurred and tax payment made to the
11-4 comptroller. The credit must be taken before the expiration of the
11-5 applicable period of limitation as provided by Chapter 111.
11-6 SECTION 28. Subchapter C, Chapter 153, Tax Code, is amended
11-7 by adding Sections 153.226 through 153.230 to read as follows:
11-8 Sec. 153.226. NOTICE REGARDING DYED DIESEL FUEL. A notice
11-9 stating "DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE
11-10 USE" must be:
11-11 (1) provided by a permitted supplier to a person who
11-12 receives dyed diesel fuel;
11-13 (2) provided by a seller of dyed diesel fuel to the
11-14 person's buyer; and
11-15 (3) posted by a seller on a retail pump or bulk plant
11-16 at which the person sells dyed diesel fuel for use by the person's
11-17 buyers.
11-18 Sec. 153.227. DYED DIESEL FUEL NOTICE REQUIRED ON SHIPPING
11-19 DOCUMENTS, BILLS OF LADING, AND INVOICES. The form of notice
11-20 required by Sections 153.226(1) and (2) must be provided when the
11-21 dyed diesel fuel is removed or sold and must appear on each
11-22 shipping document, bill of lading, cargo manifest, and invoice
11-23 accompanying the sale or removal of the dyed diesel fuel.
11-24 Sec. 153.228. UNAUTHORIZED SALE OR USE OF DYED DIESEL FUEL.
11-25 (a) A person may not sell or hold for sale dyed diesel fuel for
11-26 any use that the person knows or has reason to know is a taxable
11-27 use of the diesel fuel.
11-28 (b) A person may not use or hold for use dyed diesel fuel
11-29 for a use other than a nontaxable use if the person knows or has
11-30 reason to know that the diesel fuel is dyed diesel fuel.
11-31 Sec. 153.229. ALTERATION OF DYE OR MARKER IN DYED DIESEL
11-32 FUEL PROHIBITED. A person, with the intent to evade payment of
11-33 tax, may not alter or attempt to alter the strength or composition
11-34 of a dye or marker in dyed diesel fuel.
11-35 Sec. 153.230. USE OF DYED FUEL PROHIBITED. (a) A person
11-36 may not operate a motor vehicle on a public highway in this state
11-37 with taxable motor fuel that contains dye in the fuel supply tank
11-38 of the motor vehicle.
11-39 (b) This section does not apply to a use of dyed fuel that
11-40 is lawful under the Internal Revenue Code and implementing
11-41 regulations, including use in state and local government vehicles
11-42 or buses, unless otherwise prohibited by this chapter.
11-43 SECTION 29. Subsection (a), Section 153.401, Tax Code, is
11-44 amended to read as follows:
11-45 (a) If a person having a permit as a distributor, supplier,
11-46 dyed diesel fuel bonded user, agricultural bonded user, dealer, or
11-47 interstate trucker fails to file a report as required by this
11-48 chapter or fails to pay a tax imposed by this chapter when due, the
11-49 person forfeits five percent of the amount due as a penalty, and if
11-50 the person fails to file the report or pay the tax within 30 days
11-51 after the day on which the tax or report is due, the person
11-52 forfeits an additional five percent.
11-53 SECTION 30. Section 153.402, Tax Code, is amended to read as
11-54 follows:
11-55 Sec. 153.402. PROHIBITED ACTS; CIVIL PENALTIES. (a) A
11-56 person forfeits to the state a civil penalty of not less than $25
11-57 nor more than $200 if the person:
11-58 (1) refuses to stop and permit the inspection and
11-59 examination of a motor vehicle transporting or using motor fuel on
11-60 demand of a peace officer or the comptroller;
11-61 (2) operates a motor vehicle in this state without a
11-62 valid interstate trucker's or a trip permit when the person is
11-63 required to hold one of those permits;
11-64 (3) operates a liquefied gas-propelled motor vehicle
11-65 that is required to be licensed in Texas, including motor vehicles
11-66 equipped with dual carburetion, and does not display a current
11-67 liquefied gas tax decal or multistate fuels tax agreement decal;
11-68 (4) makes a tax-free sale or delivery of liquefied gas
11-69 into the fuel supply tank of a motor vehicle that does not display
12-1 a current Texas liquefied gas tax decal;
12-2 (5) makes a taxable sale or delivery of liquefied gas
12-3 without holding a valid dealer's permit;
12-4 (6) makes a tax-free sale or delivery of liquefied gas
12-5 into the fuel supply tank of a motor vehicle bearing out-of-state
12-6 license plates;
12-7 (7) makes a delivery of liquefied gas into the fuel
12-8 supply tank of a motor vehicle bearing Texas license plates and no
12-9 Texas liquefied gas tax decal, unless licensed under a multistate
12-10 fuels tax agreement;
12-11 (8) transports gasoline or diesel fuel in any cargo
12-12 tank that has a connection by pipe, tube, valve, or otherwise with
12-13 the fuel injector or carburetor or with the fuel supply tank
12-14 feeding the fuel injector or carburetor of the motor vehicle
12-15 transporting the product;
12-16 (9) sells or delivers gasoline or diesel fuel from any
12-17 fuel supply tank connected with the fuel injector or carburetor of
12-18 a motor vehicle;
12-19 (10) owns or operates a motor vehicle for which
12-20 reports or mileage records are required by this chapter without an
12-21 operating odometer or other device in good working condition to
12-22 record accurately the miles traveled;
12-23 (11) furnishes a signed statement to a supplier for
12-24 purchasing diesel fuel of a type that may be legally used by the
12-25 purchaser for the operation of a motor vehicle on the public
12-26 highway under state or federal law tax free when he owns, operates,
12-27 or acquires a diesel-powered motor vehicle;
12-28 (12) fails or refuses to comply with or violates a
12-29 provision of this chapter; [or]
12-30 (13) fails or refuses to comply with or violates a
12-31 comptroller's rule for administering or enforcing this chapter;
12-32 (14) is an importer who does not obtain an import
12-33 verification number when required by this chapter; or
12-34 (15) purchases motor fuel for export, on which the tax
12-35 imposed by this chapter has not been paid, and subsequently diverts
12-36 or causes the motor fuel to be diverted to a destination in this
12-37 state or any other state or country other than the originally
12-38 designated state or country without first obtaining a diversion
12-39 number.
12-40 (b) An importer or exporter that violates a requirement of
12-41 Section 153.018 is liable to this state for a civil penalty of
12-42 $2,000 or five times the amount of the unpaid tax, whichever is
12-43 greater, for each violation.
12-44 (c) A person receiving motor fuel who accepts a shipping
12-45 document that does not conform with the requirements of Section
12-46 153.018(a) is liable to this state for a civil penalty of $2,000 or
12-47 five times the amount of the unpaid tax, whichever is greater, for
12-48 each occurrence.
12-49 (d) A person operating a bulk plant or terminal who issues a
12-50 shipping document that does not conform with the requirements of
12-51 Section 153.018(a) is liable to this state for a civil penalty of
12-52 $2,000 or five times the amount of the unpaid tax, whichever is
12-53 greater, for each occurrence.
12-54 (e) A person operating a terminal or bulk plant who does not
12-55 post notice as required by Section 153.018(i) is liable to this
12-56 state for a civil penalty of $100 for each day the notice is not
12-57 posted as required by Section 153.018(i).
12-58 SECTION 31. Section 153.403, Tax Code, is amended to read as
12-59 follows:
12-60 Sec. 153.403. CRIMINAL OFFENSES. Except as provided by
12-61 Section 153.404 of this code, a person commits an offense if the
12-62 person:
12-63 (1) refuses to stop and permit the inspection and
12-64 examination of a motor vehicle transporting or using motor fuel on
12-65 the demand of a peace officer or the comptroller;
12-66 (2) is required to hold a valid trip permit or
12-67 interstate trucker's permit, but operates a motor vehicle in this
12-68 state without a valid trip permit or interstate trucker's permit;
12-69 (3) operates a liquefied gas-propelled motor vehicle
13-1 that is required to be licensed in Texas, including a motor vehicle
13-2 equipped with dual carburetion, and does not display a current
13-3 liquefied gas tax decal or multistate fuels tax agreement decal;
13-4 (4) transports gasoline or diesel fuel in any cargo
13-5 tank that has a connection by pipe, tube, valve, or otherwise with
13-6 the fuel injector or carburetor or with the fuel supply tank
13-7 feeding the fuel injector or carburetor of the motor vehicle
13-8 transporting the product;
13-9 (5) sells or delivers gasoline or diesel fuel from a
13-10 fuel supply tank that is connected with the fuel injector or
13-11 carburetor of a motor vehicle;
13-12 (6) owns or operates a motor vehicle for which reports
13-13 or mileage records are required by this chapter without an
13-14 operating odometer or other device in good working condition to
13-15 record accurately the miles traveled;
13-16 (7) as a diesel tax prepaid user fails to prepay the
13-17 tax on every diesel-powered motor vehicle owned or operated by him;
13-18 (8) uses dyed diesel fuel, on which a tax is required
13-19 to be paid, for the operation of a motor vehicle on a public
13-20 highway;
13-21 (9) makes a tax-free sale or delivery of liquefied gas
13-22 into the fuel supply tank of a motor vehicle that does not display
13-23 a current Texas liquefied gas tax decal;
13-24 (10) [(9)] makes a sale or delivery of liquefied gas
13-25 on which the person knows the tax is required to be collected, if
13-26 at the time the sale is made the person does not hold a valid
13-27 dealer's permit;
13-28 (11) [(10)] makes a tax-free sale or delivery of
13-29 liquefied gas into the fuel supply tank of a motor vehicle bearing
13-30 out-of-state license plates;
13-31 (12) [(11)] makes a delivery of liquefied gas into the
13-32 fuel supply tank of a motor vehicle bearing Texas license plates
13-33 and no Texas liquefied gas tax decal, unless licensed under a
13-34 multistate fuels tax agreement;
13-35 (13) [(12)] refuses to permit the comptroller or the
13-36 attorney general to inspect, examine, or audit a book or record
13-37 required to be kept by a distributor, supplier, dyed diesel fuel
13-38 bonded user, agricultural bonded user, dealer, interstate trucker,
13-39 aviation fuel dealer, jobber, common or contract carrier, or any
13-40 person required to hold a permit under this chapter;
13-41 (14) [(13)] refuses to permit the comptroller or the
13-42 attorney general to inspect or examine any plant, equipment,
13-43 materials, or premises where motor fuel is produced, processed,
13-44 stored, sold, delivered, or used;
13-45 (15) [(14)] refuses to permit the comptroller or the
13-46 attorney general to measure or gauge the contents of or take
13-47 samples from a storage tank or container on premises where motor
13-48 fuel is produced, processed, stored, sold, delivered, or used;
13-49 (16) [(15)] is a distributor, dyed diesel fuel bonded
13-50 user, agricultural bonded user, interstate trucker, or supplier and
13-51 fails or refuses to make or deliver to the comptroller a report
13-52 required by this chapter to be made and delivered to the
13-53 comptroller;
13-54 (17) is an importer who does not obtain an import
13-55 verification number when required by this chapter;
13-56 (18) purchases motor fuel for export, on which the tax
13-57 imposed by this chapter has not been paid, and subsequently diverts
13-58 or causes the motor fuel to be diverted to a destination in this
13-59 state or any other state or country other than the originally
13-60 designated state or country without first obtaining a diversion
13-61 number;
13-62 (19) [(16)] conceals motor fuel with the intent of
13-63 engaging in any conduct proscribed by this chapter or refuses to
13-64 make sales of motor fuel on the volume-corrected basis prescribed
13-65 by this chapter;
13-66 (20) [(17)] refuses, while transporting motor fuel, to
13-67 stop the motor vehicle he is operating when called on to do so by a
13-68 person authorized to stop the motor vehicle;
13-69 (21) [(18)] refuses to surrender a motor vehicle and
14-1 cargo for impoundment after being ordered to do so by a person
14-2 authorized to impound the motor vehicle and cargo;
14-3 (22) [(19) transports motor fuel for which a cargo
14-4 manifest is required to be carried without possessing or exhibiting
14-5 on demand by an officer authorized to make the demand a cargo
14-6 manifest containing the information required to be shown on the
14-7 manifest;]
14-8 [(20)] mutilates, destroys, or secretes a book or
14-9 record required by this chapter to be kept by a distributor,
14-10 supplier, dyed diesel fuel bonded user, agricultural bonded user,
14-11 dealer, interstate trucker, aviation fuel dealer, jobber, or person
14-12 required to hold a permit under this chapter;
14-13 (23) [(21)] is a distributor, supplier, dyed diesel
14-14 fuel bonded user, agricultural bonded user, dealer, interstate
14-15 trucker, aviation fuel dealer, jobber, or other person required to
14-16 hold a permit under this chapter, or the agent or employee of one
14-17 of those persons and makes a false entry or fails to make an entry
14-18 in the books and records required under this chapter to be made by
14-19 the person or fails to retain a document as required by this
14-20 chapter;
14-21 (24) [(22)] transports in any manner motor fuel under
14-22 a false cargo manifest or shipping document, or transports in any
14-23 manner motor fuel to a location without delivering at the same time
14-24 a shipping document relating to that shipment;
14-25 (25) [(23)] engages in a motor fuel transaction that
14-26 requires that the person have a permit under this chapter without
14-27 then and there holding the required permit;
14-28 (26) [(24)] makes and delivers to the comptroller a
14-29 report required under this chapter to be made and delivered to the
14-30 comptroller, if the report contains false information;
14-31 (27) [(25)] forges, falsifies, or alters an invoice
14-32 prescribed by law;
14-33 (28) [(26)] makes any statement, knowing said
14-34 statement to be false, in a claim for a tax refund filed with the
14-35 comptroller;
14-36 (29) [(27)] furnishes to a supplier a signed statement
14-37 for purchasing diesel fuel of a type that may be legally used by
14-38 the purchaser for the operation of a motor vehicle on the public
14-39 highway under state or federal law tax free when he owns, operates,
14-40 or acquires a diesel-powered motor vehicle;
14-41 (30) [(28)] holds an aviation fuel dealer's permit and
14-42 makes a taxable sale or use of any gasoline or diesel fuel;
14-43 (31) [(29)] fails to remit any tax funds collected by
14-44 a distributor, supplier, dyed diesel fuel bonded user, agricultural
14-45 bonded user, dealer, interstate trucker, jobber, or any other
14-46 person required to hold a permit under this chapter;
14-47 (32) [(30)] makes a sale of diesel fuel tax free into
14-48 a storage facility of a person who:
14-49 (A) is not permitted as a supplier, as an
14-50 aviation fuel dealer, as a dyed diesel fuel bonded user, as an
14-51 agricultural bonded user, or as a diesel tax prepaid user of diesel
14-52 fuel; or
14-53 (B) does not furnish to the permitted supplier a
14-54 signed statement prescribed in Section 153.205 of this code;
14-55 (33) [(31)] makes a sale of gasoline tax free to any
14-56 person who is not permitted as either a distributor or an aviation
14-57 fuel dealer;
14-58 (34) [(32)] is a dealer who purchases any motor fuel
14-59 tax free when not authorized to make a tax-free purchase under this
14-60 chapter; [or]
14-61 (35) [(33)] is a dealer who purchases motor fuel with
14-62 the intent to evade any tax imposed by this chapter, or who accepts
14-63 a delivery of motor fuel by any means and does not at the same time
14-64 accept or receive a shipping document relating to the delivery;
14-65 (36) transports motor fuel for which a cargo manifest
14-66 or shipping document is required to be carried without possessing
14-67 or exhibiting on demand by an officer authorized to make the demand
14-68 a cargo manifest or shipping document containing the information
14-69 required to be shown on the manifest or shipping document;
15-1 (37) imports, sells, uses, distributes, or stores
15-2 motor fuel within this state on which the taxes imposed by this
15-3 chapter are owed but have not been first paid to or reported by the
15-4 holder of a distributor, supplier, liquefied gas dealer, interstate
15-5 trucker, diesel tax prepaid user, dyed diesel fuel bonded user, or
15-6 agricultural bonded user permit;
15-7 (38) blends products together to produce a blended
15-8 fuel that is offered for sale, sold, or used that expands the
15-9 volume of the original product to evade paying applicable motor
15-10 fuel taxes; or
15-11 (39) evades or attempts to evade in any manner a tax
15-12 imposed on motor fuel by this chapter.
15-13 SECTION 32. Subsections (b), (c), and (d), Section 153.404,
15-14 Tax Code, are amended to read as follows:
15-15 (b) Each day that a refusal prohibited under Section
15-16 153.403(13), [153.403(12), (13), or] (14), or (15) [of this code]
15-17 continues is a separate offense.
15-18 (c) The prohibition under Section 153.403(32) [153.403(30)
15-19 of this code] does not apply to the tax-free sale or distribution
15-20 of diesel fuel authorized by Section 153.203(1), (2), or (5) [of
15-21 this code].
15-22 (d) The prohibition under Section 153.403(33) [153.403(31)
15-23 of this code] does not apply to the tax-free sale or distribution
15-24 of gasoline under Section 153.104(2) or (4) [of this code].
15-25 SECTION 33. Section 153.405, Tax Code, is amended to read as
15-26 follows:
15-27 Sec. 153.405. CRIMINAL PENALTIES. (a) An offense under
15-28 Section 153.403(1), (2), (3), (4), (5), (6), [or] (7), or (8) [of
15-29 this code] is a Class C misdemeanor.
15-30 (b) An offense under Section 153.403(9) [153.403(8), (9)],
15-31 (10), (11), (12), (13), (14), [or] (15), (16), (17), or (18) [of
15-32 this code] is a Class B misdemeanor.
15-33 (c) An offense under Section 153.403(19), (20), or (21)
15-34 [153.403(16), (17), (18), or (19) of this code] is a Class A
15-35 misdemeanor.
15-36 (d) An offense under Section 153.403(22) [153.403(20), (21),
15-37 (22)], (23), (24), (25), (26), [or] (27), (28), or (29) [of this
15-38 code] is a felony of the third degree.
15-39 (e) An offense under Section 153.403(30) [153.403(28), (29),
15-40 (30)], (31), (32), [or] (33), (34), (35), (36), (37), (38), or (39)
15-41 [of this code] is a felony of the second degree.
15-42 (f) Violations of three or more separate offenses under
15-43 Sections 153.403(22) [153.403(20)] through (29) [(27) of this code]
15-44 committed pursuant to one scheme or continuous course of conduct
15-45 may be considered as one offense and punished as a felony of the
15-46 second degree.
15-47 SECTION 34. This Act takes effect September 1, 1999, and
15-48 applies to motor fuel that is imported or exported on or after that
15-49 date or on which the first sale occurs on or after that date.
15-50 Motor fuel imported or exported before that date or for which the
15-51 first sale occurs before that date is governed by the law in effect
15-52 when the motor fuel was imported, exported, or first sold, and that
15-53 law is continued in effect for that purpose.
15-54 SECTION 35. The importance of this legislation and the
15-55 crowded condition of the calendars in both houses create an
15-56 emergency and an imperative public necessity that the
15-57 constitutional rule requiring bills to be read on three several
15-58 days in each house be suspended, and this rule is hereby suspended.
15-59 * * * * *