By Counts H.B. No. 1241
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the purchase of diesel fuel by certain persons using a
1-3 signed statement.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 153.205(a), (b), and (i), Tax Code, are
1-6 amended to read as follows:
1-7 (a) The first sale or use of diesel fuel in this state is
1-8 taxable, except that sales of dyed diesel fuel, or of undyed diesel
1-9 fuel if the fuel will be used for an agricultural purpose, may be
1-10 made without collecting the tax if the purchaser furnishes to a
1-11 permitted supplier a signed statement, including an end user number
1-12 or agricultural user exemption number issued by the comptroller
1-13 that stipulates that:
1-14 (1) the purchaser does not operate any diesel-powered
1-15 motor vehicles on the public highway;
1-16 (2) all of the diesel fuel will be consumed by the
1-17 purchaser, or all of the diesel fuel will be consumed by the
1-18 purchaser in oil or gas production, as applicable, and no diesel
1-19 fuel purchased on a signed statement will be resold; and
1-20 (3) none of the diesel fuel purchased in this state
1-21 will be delivered or permitted by the purchaser to be delivered
1-22 into fuel supply tanks of motor vehicles.
1-23 (b) A person may not make a tax-free purchase of any diesel
1-24 fuel under this section using a signed statement:
2-1 (1) for the purchase of more than 7,400 [3,000]
2-2 gallons of dyed or undyed diesel fuel in a single transaction; or
2-3 (2) in a calendar month in which the person has
2-4 previously purchased more than:
2-5 (A) 10,000 gallons of dyed [or undyed] diesel
2-6 fuel from all sources;
2-7 (B) 25,000 gallons of dyed diesel fuel from all
2-8 sources if the purchaser stipulates in the signed statement that
2-9 all of the fuel will be consumed by the purchaser in oil or gas
2-10 production; or
2-11 (C) 25,000 gallons of dyed or undyed diesel fuel
2-12 from all sources if purchased for agricultural purposes by a person
2-13 who furnishes to the permitted supplier, in conjunction with the
2-14 signed statement, an agricultural exemption number issued by the
2-15 comptroller.
2-16 (i) A permitted supplier may not make a tax-free sale of
2-17 dyed diesel fuel, or undyed diesel fuel for agricultural purposes,
2-18 to a purchaser using a signed statement:
2-19 (1) for the sale of more than 7,400 [3,000] gallons of
2-20 dyed or undyed diesel fuel in a single transaction; or
2-21 (2) in a calendar month in which the supplier has
2-22 previously sold more than:
2-23 (A) 10,000 gallons of dyed [or undyed] diesel
2-24 fuel to the purchaser;
2-25 (B) 25,000 gallons of dyed diesel fuel to the
2-26 purchaser if the purchaser stipulates in the signed statement that
2-27 all of the fuel will be consumed by the purchaser in oil or gas
3-1 production; or
3-2 (C) 25,000 gallons of dyed or undyed diesel fuel
3-3 to the purchaser if the purchaser furnishes to the permitted
3-4 supplier, in conjunction with the signed statement, an agricultural
3-5 exemption number issued by the comptroller.
3-6 SECTION 2. Section 153.209, Tax Code, is amended by adding
3-7 Subsection (c) to read as follows:
3-8 (c) This section does not affect the right of a purchaser to
3-9 purchase not more than 25,000 gallons of dyed diesel fuel for the
3-10 purchaser's own use in oil or gas production, or of dyed or undyed
3-11 diesel fuel for the purchaser's own use for agricultural purposes
3-12 only, using a signed statement under Section 153.205.
3-13 SECTION 3. This Act takes effect September 1, 2001, and
3-14 applies to diesel fuel purchased on or after that date. Diesel
3-15 fuel purchased before that date is governed by the law in effect
3-16 when the fuel was purchased, and that law is continued in effect
3-17 for that purpose.