79R1189 DAK-D

By:  Hopson                                                       H.B. No. 520



A BILL TO BE ENTITLED

AN ACT

relating to the tax on gasoline sold to volunteer fire departments 
for their exclusive use.
	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.  (a)  Except as provided by 
Subsection (b), 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.
	(b)  The gasoline tax rate for gasoline sold to a volunteer 
fire department for its exclusive use is 5 cents for each gallon.
	SECTION 2.  Section 162.503, Tax Code, is amended to read as 
follows:        
	Sec. 162.503.  ALLOCATION OF GASOLINE TAX.  (a)  On or before 
the fifth workday after the end of each month, the comptroller, 
after making all deductions for refund purposes and for the amounts 
allocated under Sections 162.502 and 162.5025, shall allocate the 
net remainder of the taxes collected under Subchapter B, except for 
the tax collected for gasoline sold to a volunteer fire department,
as follows:
		(1)  one-fourth of the tax shall be deposited to the 
credit of the available school fund;
		(2)  one-half of the tax shall be deposited to the 
credit of the state highway fund for the construction and 
maintenance of the state road system under existing law; and
		(3)  from the remaining one-fourth of the tax the 
comptroller shall:        
			(A)  deposit to the credit of the county and road 
district highway fund all the remaining tax receipts until a total 
of $7,300,000 has been credited to the fund each fiscal year; and
			(B)  after the amount required to be deposited to 
the county and road district highway fund has been deposited, 
deposit to the credit of the state highway fund the remainder of the 
one-fourth of the tax, the amount to be provided on the basis of 
allocations made each month of the fiscal year, which sum shall be 
used by the Texas Department of Transportation for the 
construction, improvement, and maintenance of farm-to-market 
roads.
	(b)  On or before the fifth workday after the end of each 
month, the comptroller, after making all deductions for refund 
purposes and for the amounts allocated under Sections 162.502 and 
162.5025, shall allocate the net remainder of the taxes collected 
for gasoline sold to a volunteer fire department to the credit of 
the available school fund.
	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 January 1, 2006, but only 
if the constitutional amendment proposed by the 79th Legislature, 
Regular Session, 2005, authorizing the legislature to allocate an 
amount greater than one-fourth of the net revenue from the tax on 
motor fuels sold to volunteer fire departments to the available 
school fund is approved by the voters.  If that amendment is not 
approved by the voters, this Act has no effect.