By Counts H.B. No. 1241
77R4340 CBH-D
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 fuel
2-6 from all sources; or
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.
2-11 (i) A permitted supplier may not make a tax-free sale of
2-12 dyed diesel fuel, or undyed diesel fuel for agricultural purposes,
2-13 to a purchaser using a signed statement:
2-14 (1) for the sale of more than 7,400 [3,000] gallons of
2-15 dyed or undyed diesel fuel in a single transaction; or
2-16 (2) in a calendar month in which the supplier has
2-17 previously sold more than:
2-18 (A) 10,000 gallons of dyed or undyed diesel fuel
2-19 to the purchaser; or
2-20 (B) 25,000 gallons of dyed diesel fuel to the
2-21 purchaser if the purchaser stipulates in the signed statement that
2-22 all of the fuel will be consumed by the purchaser in oil or gas
2-23 production.
2-24 SECTION 2. Section 153.209, Tax Code, is amended by adding
2-25 Subsection (c) to read as follows:
2-26 (c) This section does not affect the right of a purchaser to
2-27 purchase not more than 25,000 gallons of dyed diesel fuel for the
3-1 purchaser's own use in oil or gas production using a signed
3-2 statement under Section 153.205.
3-3 SECTION 3. This Act takes effect September 1, 2001, and
3-4 applies to diesel fuel purchased on or after that date. Diesel
3-5 fuel purchased before that date is governed by the law in effect
3-6 when the fuel was purchased, and that law is continued in effect
3-7 for that purpose.