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. Section 153.001, Tax Code, is amended by adding
1-6 Subdivision (37) to read as follows:
1-7 (37) "Agricultural purpose" means a purpose associated
1-8 with the following activities: cultivating the soil; producing
1-9 crops for human food, animal feed, or planting seed or for the
1-10 production of fibers; floriculture, viticulture, silviculture, and
1-11 horticulture, including the cultivation of plants in containers or
1-12 non-soil media; raising, feeding, or keeping livestock or other
1-13 animals for the production of food or fiber, leather, pelts, or
1-14 other tangible products having a commercial value; wildlife
1-15 management; and planting cover crops, including cover crops
1-16 cultivated for transplantation, or leaving land idle for the
1-17 purpose of participating in any governmental program or normal crop
1-18 or livestock rotation procedure.
1-19 SECTION 2. Sections 153.205(a), (b), and (i), Tax Code, are
1-20 amended to read as follows:
1-21 (a) The first sale or use of diesel fuel in this state is
1-22 taxable, except that sales of dyed diesel fuel, or of undyed diesel
1-23 fuel if the fuel will be used for an agricultural purpose, may be
1-24 made without collecting the tax if the purchaser furnishes to a
2-1 permitted supplier a signed statement, including an end user number
2-2 or agricultural user exemption number issued by the comptroller
2-3 that stipulates that:
2-4 (1) the purchaser does not operate any diesel-powered
2-5 motor vehicles on the public highway;
2-6 (2) all of the diesel fuel will be consumed by the
2-7 purchaser, or all of the diesel fuel will be consumed by the
2-8 purchaser in oil or gas production, as applicable, and no diesel
2-9 fuel purchased on a signed statement will be resold; and
2-10 (3) none of the diesel fuel purchased in this state
2-11 will be delivered or permitted by the purchaser to be delivered
2-12 into fuel supply tanks of motor vehicles.
2-13 (b) A person may not make a tax-free purchase of any diesel
2-14 fuel under this section using a signed statement:
2-15 (1) for the purchase of more than 7,400 [3,000]
2-16 gallons of dyed or undyed diesel fuel in a single transaction; or
2-17 (2) in a calendar month in which the person has
2-18 previously purchased more than:
2-19 (A) 10,000 gallons of dyed [or undyed] diesel
2-20 fuel from all sources;
2-21 (B) 25,000 gallons of dyed diesel fuel from all
2-22 sources if the purchaser stipulates in the signed statement that
2-23 all of the fuel will be consumed by the purchaser in oil or gas
2-24 production; or
2-25 (C) 25,000 gallons of dyed or undyed diesel fuel
2-26 from all sources if purchased for agricultural purposes by a person
2-27 who furnishes to the permitted supplier, in conjunction with the
3-1 signed statement, an agricultural exemption number issued by the
3-2 comptroller.
3-3 (i) A permitted supplier may not make a tax-free sale of
3-4 dyed diesel fuel, or undyed diesel fuel for agricultural purposes,
3-5 to a purchaser using a signed statement:
3-6 (1) for the sale of more than 7,400 [3,000] gallons of
3-7 dyed or undyed diesel fuel in a single transaction; or
3-8 (2) in a calendar month in which the supplier has
3-9 previously sold more than:
3-10 (A) 10,000 gallons of dyed [or undyed] diesel
3-11 fuel to the purchaser;
3-12 (B) 25,000 gallons of dyed diesel fuel to the
3-13 purchaser if the purchaser stipulates in the signed statement that
3-14 all of the fuel will be consumed by the purchaser in oil or gas
3-15 production; or
3-16 (C) 25,000 gallons of dyed or undyed diesel fuel
3-17 to the purchaser if the purchaser furnishes to the permitted
3-18 supplier, in conjunction with the signed statement, an agricultural
3-19 exemption number issued by the comptroller.
3-20 SECTION 3. Section 153.209, Tax Code, is amended by adding
3-21 Subsection (c) to read as follows:
3-22 (c) This section does not affect the right of a purchaser to
3-23 purchase not more than 25,000 gallons of dyed diesel fuel for the
3-24 purchaser's own use in oil or gas production, or of dyed or undyed
3-25 diesel fuel for the purchaser's own use for agricultural purposes
3-26 only, using a signed statement under Section 153.205.
3-27 SECTION 4. This Act takes effect September 1, 2001, and
4-1 applies to diesel fuel purchased on or after that date. Diesel
4-2 fuel purchased before that date is governed by the law in effect
4-3 when the fuel was purchased, and that law is continued in effect
4-4 for that purpose.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1241 was passed by the House on April
4, 2001, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 1241 on May 24, 2001, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1241 was passed by the Senate, with
amendments, on May 23, 2001, by the following vote: Yeas 30, Nays
0, 1 present, not voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor