79(R) HB 5 - House Committee Report version

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79R10087 CBH-D


By:  Krusee, Hill                                                 H.B. No. 5  

Substitute the following for H.B. No. 5:                                      

By:  Grusendorf                                               C.S.H.B. No. 5  



A BILL TO BE ENTITLED

AN ACT

relating to the rate of the state gasoline and diesel fuel taxes.             
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 162.102, Tax Code, is amended to read as 
follows:        
	Sec. 162.102.  TAX RATE.  Except as provided by Section 
162.1025, the [The] gasoline tax rate is 20 cents for each net 
gallon or fractional part on which the tax is imposed under Section 
162.101.
	SECTION 2.  Subchapter B, Chapter 162, Tax Code, is amended 
by adding Section 162.1025 to read as follows:
	Sec. 162.1025.  ANNUAL RATE CHANGE ACCORDING TO CONSUMER 
PRICE INDEX.  (a)  In this section:
		(1)  "Consumer price index" means the consumer price 
index, as published by the Bureau of Labor Statistics of the United 
States Department of Labor, that measures the average changes in 
prices of goods and services purchased by urban wage earners and 
clerical workers' families and single workers living alone (CPI-W:  
Seasonally Adjusted U.S. City Average--All Items).
		(2)  "Consumer price index percentage change" means the 
percentage increase or decrease in the consumer price index of a 
given state fiscal year from the consumer price index of the 
preceding state fiscal year.
	(b)  On October 1 of each year, the rate of the gasoline tax 
imposed under this subchapter is increased or decreased by a 
percentage that is equal to the consumer price index percentage 
change for the preceding fiscal year.
	(c)  Not later than September 1 of each year, the Legislative 
Budget Board shall:
		(1)  compute the new tax rate as provided by this 
section;           
		(2)  give the new tax rate to the secretary of state for 
publication in the Texas Register; and
		(3)  notify each license holder under this subchapter 
of the applicable new tax rate.
	SECTION 3.  Section 162.103(a), Tax Code, is amended to read 
as follows:     
	(a)  A backup tax is imposed at the rate prescribed by 
Sections [Section] 162.102 and 162.1025 on:
		(1)  a person who obtains a refund of tax on gasoline by 
claiming the gasoline was used for an off-highway purpose, but 
actually uses the gasoline to operate a motor vehicle on a public 
highway;
		(2)  a person who operates a motor vehicle on a public 
highway using gasoline on which tax has not been paid; and
		(3)  a person who sells to the ultimate consumer 
gasoline on which tax has not been paid and who knew or had reason to 
know that the gasoline would be used for a taxable purpose.
	SECTION 4.  Section 162.202, Tax Code, is amended to read as 
follows:        
	Sec. 162.202.  TAX RATE.  Except as provided by Section 
162.2025, the [The] diesel fuel tax rate is 20 cents for each net 
gallon or fractional part on which the tax is imposed under  Section 
162.201.
	SECTION 5.  Subchapter C, Chapter 162, Tax Code, is amended 
by adding Section 162.2025 to read as follows:
	Sec. 162.2025.  ANNUAL RATE CHANGE ACCORDING TO CONSUMER 
PRICE INDEX.  (a)  In this section:
		(1)  "Consumer price index" means the consumer price 
index, as published by the Bureau of Labor Statistics of the United 
States Department of Labor, that measures the average changes in 
prices of goods and services purchased by urban wage earners and 
clerical workers' families and single workers living alone (CPI-W:  
Seasonally Adjusted U.S. City Average--All Items).
		(2)  "Consumer price index percentage change" means the 
percentage increase or decrease in the consumer price index of a 
given state fiscal year from the consumer price index of the 
preceding state fiscal year.
	(b)  On October 1 of each year, the rate of the diesel fuel 
tax imposed under this subchapter is increased or decreased by a 
percentage that is equal to the consumer price index percentage 
change for the preceding fiscal year.
	(c)  Not later than September 1 of each year, the Legislative 
Budget Board shall:
		(1)  compute the new tax rate as provided by this 
section;           
		(2)  give the new tax rate to the secretary of state for 
publication in the Texas Register; and
		(3)  notify each license holder under this subchapter 
of the applicable new tax rate.
	SECTION 6.  Section 162.203(a), Tax Code, is amended to read 
as follows:     
	(a)  A backup tax is imposed at the rate prescribed by 
Sections [Section] 162.202 and 162.2025 on:
		(1)  a person who obtains a refund of tax on diesel fuel 
by claiming the diesel fuel was used for an off-highway purpose, but 
actually uses the diesel fuel to operate a motor vehicle on a public 
highway;
		(2)  a person who operates a motor vehicle on a public 
highway using diesel fuel on which tax has not been paid; and
		(3)  a person who sells to the ultimate consumer diesel 
fuel on which a tax has not been paid and who knew or had reason to 
know that the diesel fuel would be used for a taxable purpose.
	SECTION 7.  If this Act takes effect September 1, 2005, the 
Legislative Budget Board shall determine the new tax rate, give the 
rate to the secretary of state, and notify each license holder, as 
required by this Act, on September 1, 2005.  The Legislative Budget 
Board may adopt rules and procedures in anticipation of this Act 
taking effect.
	SECTION 8.  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 September 1, 2005.