79(R) HB3540 - 2nd reading 44 (H)



	Amend CSHB 3540 by adding the following appropriately 
numbered article to read as follows and renumbering subsequent 
article accordingly:

ARTICLE      .  LOCAL OPTION GAS TAX
	SECTION     .01.  Title 3, Tax Code, is amended by adding 
Subtitle E to read as follows:

SUBTITLE E. LOCAL FUEL TAXES

CHAPTER 401.  LOCAL FUEL SALES TAX
	Sec. 401.001.  DEFINITIONS.  In this chapter:                           
		(1)  "Dealer" has the meaning assigned by Section 
162.001.           
		(2)  "Diesel fuel" has the meaning assigned by Section 
162.001.      
		(3)  "Gasoline" has the meaning assigned by Section 
162.001.         
		(4)  "Jobber" means a person who:                                      
			(A)  purchases tax-paid diesel fuel or gasoline 
from a person who holds a license under Chapter 162; and
			(B)  makes a sale with the tax included to a person 
who maintains storage facilities for motor fuel and uses all or part 
of stored motor fuel to operate a motor vehicle. 
		(5)  "Motor vehicle" has the meaning assigned by Section 
162.001.    
		(6)  "Public highway" has the meaning assigned by 
Section 162.001.   
		(7)  "Sale" has the meaning assigned by Section 162.001.               
	Sec. 401.002.  FUEL SALES TAX AUTHORIZED.  (a)  A municipality 
by ordinance or a county, by order of the commissioners court, may 
impose a sales tax on gasoline and diesel fuel sold in the territory 
of the municipality or county to propel a motor vehicle on the 
public highways of this state.
	(b)  The municipality or county may impose a tax under this 
chapter only if the tax is approved at an election held under 
Section 401.004.
	Sec. 401.003. RATE OF TAX.  The tax authorized by this chapter 
may be imposed in increments of one-eighth of one percent, not to 
exceed one percent, on the sale in the territory of the municipality 
or county of gasoline and diesel fuel used to propel a motor vehicle 
on the public highways of this state.
	Sec. 401.004. ADOPTION ELECTION PROCEDURE.  (a)  An election 
to adopt the tax authorized by this chapter is called by adoption of 
an ordinance by the municipality or by order of the commissioners 
court.
	(b)  At an election to adopt the tax, the ballot shall be 
prepared to permit voting for or against the proposition:  "The 
adoption of a local fuel sales tax (name of municipality or county) 
at the rate of (insert proposed rate)."
	Sec. 401.005. ELECTION TO ABOLISH TAX OR CHANGE RATE. (a)  The 
governing body of a municipality by ordinance or the commissioners 
court of a county by order may call an election on the question of 
abolishing or changing the rate of the tax authorized by this 
chapter.
	(b)  The governing body or commissioners court shall call an 
election on the question of abolishing or changing the rate of the 
tax if the municipality or county receives a petition requesting 
the election signed by a number of registered voters of the 
municipality or county, as appropriate, equal to at least five 
percent of the total vote received in the territory of the 
municipality or county by all candidates for governor in the most 
recent gubernatorial general election.
	(c)  The ballot at an election to change the rate of the tax 
must be printed to permit voting for or against the proposition: 
"Authorizing (name of municipality or county) to impose a local 
fuel tax at the rate of (insert proposed rate)."
	(d)  The ballot at an election to abolish the tax must be 
printed to permit voting for or against the proposition: 
"Abolishing the local fuel sales tax in (name of municipality or 
county)."
	Sec. 401.006. COMPUTATION OF TAX.  (a)  A person, including a 
dealer or jobber, who makes a sale of gasoline or diesel in the 
municipality or county to a person who uses the gasoline or diesel 
fuel to propel a motor vehicle on the public highways of this state 
shall collect the tax authorized by this chapter for the benefit of 
the municipality or county.
	(b)  The seller shall add the tax authorized by this chapter 
to the selling price of gasoline or diesel fuel, and the tax is a 
part of the gasoline or diesel fuel price, a debt owed to the 
seller, and recoverable at law in the same manner as the gasoline or 
diesel fuel charge.
	(c)  The tax authorized by this chapter is in addition to the 
tax imposed by Chapter 162.
	Sec. 401.007. EXEMPTIONS APPLICABLE.  The exemptions 
provided by Sections 162.104 and 162.204 apply to the tax 
authorized by this chapter.
	Sec. 401.008. EFFECTIVE DATE OF TAX OR TAX CHANGE.  The 
adoption or abolition of the tax authorized by this chapter or a 
change in a tax rate takes effect on the date prescribed by the 
ordinance or order imposing or abolishing the tax or changing the 
rate.
	Sec. 401.009. COLLECTION AND ENFORCEMENT OF TAX.  (a)  A 
person required to collect the tax authorized by this chapter shall 
report and send the taxes to the municipality or county as provided 
by the municipality or county.
	(b)  The municipality or county may prescribe monetary 
penalties, including interest charges, for failure to keep records 
required by this chapter, to report when required, or to pay the tax 
when due.
	(c)  The municipality or county may permit a person who is 
required to collect the tax authorized by this chapter to retain a 
percentage of the amount collected and required to be reported as 
reimbursement to the person for the costs of collecting the tax.  
The municipality or county may provide that the person may retain 
the amount only if the person pays the tax and files reports as 
required by the municipality or county.
	(d)  The attorney acting for the municipality or county may 
bring suit against a person who violates this chapter.
	Sec. 401.010. REFUND.  (a)  A person who has paid the tax 
authorized by this chapter on gasoline or diesel fuel used by the 
person for a purpose other than to propel a motor vehicle on the 
public highways of this state or for a use exempted under Section 
401.007 may file a claim for a refund.
	(b)  The municipality or county shall prescribe the 
procedures a person must use to obtain a refund under this section.
	Sec. 401.011.  REQUIRED PERMIT.  The municipality or county 
may require a dealer, jobber, or other person required to collect, 
report, and pay the tax authorized by this chapter to obtain a 
permit from the municipality or county.
	Sec. 401.012. TRANSFER TO COMPTROLLER. (a) Not later than the 
last day of the first month following each calendar quarter, the 
custodian of the municipality or county treasury shall send to the 
comptroller an amount equal to one-fourth of the taxes collected 
during that calendar quarter after payment of all refunds allowed 
by law and expenses of collection.
	(b)  The comptroller shall deposit money received under this 
section to the credit of the available school fund.
	Sec. 401.013. USE OF TAX PROCEEDS. Except as provided by 
Section 401.012, the municipality or county may use net tax revenue 
received under this chapter only for a purpose authorized by 
Section 7-a, Article VIII, Texas Constitution.