79S10334 CBH-D
By: Anderson H.B. No. 53
A BILL TO BE ENTITLED
AN ACT
relating to the exemption of counties from the diesel fuel tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 162.204(a), Tax Code, is amended to read
as follows:
(a) The tax imposed by this subchapter does not apply to:
(1) diesel fuel sold to the United States for its
exclusive use, provided that the exemption does not apply to diesel
fuel sold or delivered to a person operating under a contract with
the United States;
(2) diesel fuel sold to a public school district in
this state for the district's exclusive use;
(3) diesel fuel sold to a commercial transportation
company that provides public school transportation services to a
school district under Section 34.008, Education Code, and that uses
the diesel fuel only to provide those services;
(4) diesel fuel exported by either a licensed supplier
or a licensed exporter from this state to any other state, provided
that:
(A) for diesel fuel in a situation described by
Subsection (d), the bill of lading indicates the destination state
and the supplier collects the destination state tax; or
(B) for diesel fuel in a situation described by
Subsection (e), the bill of lading indicates the destination state,
the diesel fuel is subsequently exported, and the exporter is
licensed in the destination state to pay that state's tax and has an
exporter's license issued under this subchapter;
(5) diesel fuel moved by truck or railcar between
licensed suppliers or licensed permissive suppliers and in which
the diesel fuel removed from the first terminal comes to rest in the
second terminal, provided that the removal from the second terminal
rack is subject to the tax imposed by this subchapter;
(6) diesel fuel delivered or sold into a storage
facility of a licensed aviation fuel dealer from which the diesel
fuel will be delivered solely into the fuel supply tanks of aircraft
or aircraft servicing equipment, or sold from one licensed aviation
fuel dealer to another licensed aviation fuel dealer who will
deliver the diesel fuel exclusively into the fuel supply tanks of
aircraft or aircraft servicing equipment;
(7) diesel fuel exported to a foreign country if the
bill of lading indicates the foreign destination and the fuel is
actually exported to the foreign country;
(8) dyed diesel fuel sold or delivered by a supplier to
another supplier and dyed diesel fuel sold or delivered by a
supplier or distributor into the bulk storage facility of a dyed
diesel fuel bonded user or to a purchaser who provides a signed
statement as provided by Section 162.206;
(9) the volume of water, fuel ethanol, biodiesel, or
mixtures thereof that are blended together with taxable diesel fuel
when the finished product sold or used is clearly identified on the
retail pump, storage tank, and sales invoice as a combination of
diesel fuel and water, fuel ethanol, biodiesel, or mixtures
thereof;
(10) dyed diesel fuel sold by a supplier or permissive
supplier to a distributor, or by a distributor to another
distributor;
(11) dyed diesel fuel delivered by a license holder
into the fuel supply tanks of railway engines, motorboats, or
refrigeration units or other stationary equipment powered by a
separate motor from a separate fuel supply tank;
(12) dyed kerosene when delivered by a supplier,
distributor, or importer into a storage facility at a retail
business from which all deliveries are exclusively for heating,
cooking, lighting, or similar nonhighway use; [or]
(13) diesel fuel used by a person, other than a
political subdivision, who owns, controls, operates, or manages a
commercial motor vehicle as defined by Section 548.001,
Transportation Code, if the fuel:
(A) is delivered exclusively into the fuel supply
tank of the commercial motor vehicle; and
(B) is used exclusively to transport passengers
for compensation or hire between points in this state on a fixed
route or schedule; or
(14) diesel fuel sold to a county in this state for the
county's exclusive use.
SECTION 2. Sections 162.227(a) and (c), Tax Code, are
amended to read as follows:
(a) A license holder may take a credit on a return for the
period in which the sale occurred if the license holder paid tax on
the purchase of diesel fuel and subsequently resells the diesel
fuel without collecting the tax to:
(1) the United States government for its exclusive
use, provided that a credit is not allowed for gasoline used by a
person operating under a contract with the United States;
(2) a public school district in this state for the
district's exclusive use;
(3) an exporter licensed under this subchapter if the
seller is a licensed supplier or distributor and the exporter
subsequently exports the diesel fuel to another state;
(4) a licensed aviation fuel dealer if the seller is a
licensed distributor; [or]
(5) a commercial transportation company that provides
public school transportation services to a school district under
Section 34.008, Education Code, and that uses the diesel fuel
exclusively to provide those services; or
(6) a county in this state for the county's exclusive
use.
(c) A license holder may take a credit on a return for the
period in which the purchase occurred, and a person who does not
hold a license under this subchapter, other than a license as an
aviation fuel dealer, may file a refund claim with the comptroller
if the license holder or person paid tax on diesel fuel and the
license holder or person:
(1) is the United States government and the diesel
fuel is for its exclusive use, provided that a credit or refund is
not allowed for diesel fuel used by a license holder or person
operating under a contract with the United States;
(2) is a public school district in this state and the
diesel fuel is for the district's exclusive use;
(3) is a commercial transportation company that
provides public school transportation services to a school district
under Section 34.008, Education Code, and the diesel fuel is used
exclusively to provide those services; [or]
(4) is a licensed aviation fuel dealer who delivers
the diesel fuel into the fuel supply tanks of aircraft or aircraft
servicing equipment; or
(5) is a county in this state and the diesel fuel is
for the county's exclusive use.
SECTION 3. The change in law made by this Act does not
affect taxes imposed before the effective date of this Act, and the
law in effect before the effective date of this Act is continued in
effect for purposes of the liability for and collection of those
taxes.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect November 1, 2005.