79S30025 CBH-D

By:  Bohac                                                        H.B. No. 16 



A BILL TO BE ENTITLED

AN ACT

relating to the imposition of the motor vehicle sales tax on certain 
motor vehicles using alternative fuels.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter E, Chapter 152, Tax Code, is amended 
by adding Section 152.090 to read as follows:
	Sec. 152.090.  CERTAIN MOTOR VEHICLES USING ALTERNATIVE 
FUELS.  (a)  In this section:
		(1)  "Alternative fuel" means a fuel other than 
gasoline or conventional diesel fuel that can be used to propel a 
motor vehicle.  The term includes:
			(A)  natural gas and liquid fuels domestically 
produced from natural gas;
			(B)  liquefied petroleum gas;                                         
			(C)  methanol, ethanol, or other alcohols;                            
			(D)  blends of 85 percent or more of methanol, 
ethanol, or other alcohols with gasoline;
			(E)  coal-derived liquid fuels;                                       
			(F)  hydrogen;                                                        
			(G)  electricity; and                                                 
			(H)  P-Series fuels.                                                  
		(2)  "Hybrid motor vehicle" means a motor vehicle that 
draws propulsion energy from both gasoline or conventional diesel 
fuel and from a rechargeable energy storage system.
	(b)  The taxes imposed by this chapter do not apply to the 
sale or use of a motor vehicle that is propelled by the use of an 
alternative fuel or that is a hybrid motor vehicle.
	SECTION 2.  The change in law made by this Act does not 
affect tax liability accruing before the effective date of this 
Act.  That liability continues in effect as if this Act had not been 
enacted, and the former law is continued in effect for the 
collection of taxes due and for civil and criminal enforcement of 
the liability for those taxes.
	SECTION 3.  This Act takes effect on the first day of the 
first month that begins on or after the 91st day after the last day 
of the legislative session.