79R5564 CBH-F
By: Krusee H.B. No. 2657
A BILL TO BE ENTITLED
AN ACT
relating to the collection of motor fuels taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 162.001(20) and (43), Tax Code, are
amended to read as follows:
(20) "Distributor" means a person who acquires motor
fuel from a licensed supplier, permissive supplier, or another
licensed distributor and who makes sales at wholesale and whose
activities may also include sales at retail. The term includes a
person engaged in the tax-free sale of dyed diesel fuel to marine
vessels.
(43) "Motor fuel transporter" means a person who
transports gasoline, diesel fuel, or gasoline blended fuel outside
the bulk transfer/terminal system by means of a transport vehicle,
a railroad tank car, or a marine vessel for hire.
SECTION 2. Section 162.116(d), Tax Code, is amended to read
as follows:
(d) For purposes of Subsection (c), all payments or credits
in reduction of a customer's account must be applied ratably
between motor fuels and other goods sold to the customer, and the
credit allowed will be the tax on the number of gallons represented
by the motor fuel portion of the credit. The comptroller may not
require a supplier or permissive supplier to remit from a payment or
credit in reduction of a customer's account any tax for which the
supplier or permissive supplier was allowed to take a credit.
SECTION 3. Section 162.118, Tax Code, is amended to read as
follows:
Sec. 162.118. INFORMATION REQUIRED ON DISTRIBUTOR'S
RETURN. The monthly return and supplements of each distributor
shall contain for the period covered by the return:
(1) the number of net gallons of gasoline received by
the distributor during the month, sorted by product code and[,]
seller[, point of origin, destination state, carrier, and receipt
date];
(2) the number of net gallons of gasoline removed at a
terminal rack by the distributor during the month, sorted by
product code, seller, and terminal code[, and carrier];
(3) the number of net gallons of gasoline removed by
the distributor during the month for export, sorted by product
code, terminal code, bulk plant address, destination state, and
carrier;
(4) the number of net gallons of gasoline removed by
the distributor during the month from a terminal located in another
state for conveyance to this state, as indicated on the shipping
document for the gasoline, sorted by product code, seller, terminal
code, bulk plant address, and carrier;
(5) the number of net gallons of gasoline the
distributor sold during the month in transactions exempt under
Section 162.104, sorted by product code and purchaser; and
(6) any other information required by the comptroller.
SECTION 4. Section 162.126(d), Tax Code, is amended to read
as follows:
(d) If, after a refund is received under Subsection (a) or a
credit is taken under Subsection (b), the account on which the
refund [or credit] was based is paid[,] or [if] the comptroller
[otherwise] determines that the refund or credit was not authorized
by Subsection (a) or (b), the unpaid taxes shall be paid by the
distributor receiving the refund or the supplier or permissive
supplier taking the credit, plus a penalty of 10 percent of the
amount of the unpaid taxes and interest at the rate provided by
Section 111.060 beginning on the day the refund was issued.
SECTION 5. Section 162.127, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) The comptroller shall issue a refund warrant to a
distributor not later than the 30th day after the date the
comptroller receives a valid refund claim from the distributor. If
the comptroller does not issue the refund warrant by that date, the
amount of the refund draws interest at the rate provided by Section
111.060 beginning on the 31st day after the date the comptroller
receives the valid refund claim and ending on the date the
comptroller issues the refund warrant.
SECTION 6. Section 162.128(a), Tax Code, is amended to read
as follows:
(a) Except as otherwise provided by this section, a claim
for a refund must be filed with the comptroller before the fourth
[first] anniversary of the first day of the calendar month
following the purchase, use, delivery, or export, or loss by fire,
theft, or accident of gasoline, whichever period expires latest.
SECTION 7. Section 162.206, Tax Code, is amended by
amending Subsection (c) and adding Subsection (h-1) to read as
follows:
(c) A person may not make a tax-free purchase and a licensed
supplier or distributor may not make a tax-free sale to a purchaser
of any dyed diesel fuel under this section using a signed
statement[:
[(1) for the purchase or the sale of more than 7,400
gallons of dyed diesel fuel in a single delivery; or
[(2)] in a calendar month in which the person has
previously purchased from all sources or in which the licensed
supplier has previously sold to that purchaser more than:
(1) [(A)] 10,000 gallons of dyed diesel fuel;
(2) [(B)] 25,000 gallons of dyed diesel fuel if the
purchaser stipulates in the signed statement that all of the fuel
will be consumed by the purchaser in the original production of, or
to increase the production of, oil or gas and furnishes the supplier
with a letter of exception issued by the comptroller; or
(3) [(C)] 25,000 gallons of dyed diesel fuel if the
purchaser stipulates in the signed statement that all of the fuel
will be consumed by the purchaser in agricultural off-highway
equipment.
(h-1) For purposes of this section, the purchaser is
considered to have furnished the signed statement to the licensed
supplier or distributor if the supplier or distributor verifies
that the purchaser has an end user number issued by the comptroller.
The licensed supplier or distributor may use the comptroller's
Internet website to verify this information.
SECTION 8. Section 162.217(d), Tax Code, is amended to read
as follows:
(d) For the purpose of Subsection (c), all payments or
credits in reduction of a customer's account must be applied
ratably between motor fuels and other goods sold to the customer,
and the credit allowed will be the tax on the number of gallons
represented by the motor fuel portion of the credit. The
comptroller may not require a supplier or permissive supplier to
remit from a payment or credit in reduction of a customer's account
any tax for which the supplier or permissive supplier was allowed to
take a credit.
SECTION 9. Section 162.219, Tax Code, is amended to read as
follows:
Sec. 162.219. INFORMATION REQUIRED ON DISTRIBUTOR'S
RETURN. The monthly return and supplements of each distributor
shall contain for the period covered by the return:
(1) the number of net gallons of diesel fuel received
by the distributor during the month, sorted by product code and[,]
seller [, point of origin, destination state, carrier, and receipt
date];
(2) the number of net gallons of diesel fuel removed at
a terminal rack by the distributor during the month, sorted by
product code, seller, and terminal code[, and carrier];
(3) the number of net gallons of diesel fuel removed by
the distributor during the month for export, sorted by product
code, terminal code, bulk plant address, destination state, and
carrier;
(4) the number of net gallons of diesel fuel removed by
the distributor during the month from a terminal located in another
state for conveyance to this state, as indicated on the shipping
document for the diesel fuel, sorted by product code, seller,
terminal code, bulk plant address, and carrier;
(5) the number of net gallons of diesel fuel the
distributor sold during the month in transactions exempt under
Section 162.204;
(6) the number of net gallons of[,] dyed diesel fuel
sold to a purchaser under a signed statement[,] or dyed diesel fuel
sold to a dyed diesel fuel bonded user, sorted by product code and
by the entity receiving the diesel fuel; and
(7) [(6)] any other information required by the
comptroller.
SECTION 10. Section 162.228(d), Tax Code, is amended to
read as follows:
(d) If, after a refund is received under Subsection (a) or a
credit is taken under Subsection (b), the account on which the
refund [or credit] was based is paid[,] or [if] the comptroller
[otherwise] determines that the refund or credit was not authorized
by Subsection (a) or (b), the unpaid taxes shall be paid by the
distributor receiving the refund or the supplier or permissive
supplier taking the credit, plus a penalty of 10 percent of the
amount of the unpaid taxes and interest at the rate provided by
Section 111.060 beginning on the day the refund was issued.
SECTION 11. Section 162.229, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) The comptroller shall issue a refund warrant to a
distributor not later than the 30th day after the date the
comptroller receives a valid refund claim from the distributor. If
the comptroller does not issue the refund warrant by that date, the
amount of the refund draws interest at the rate provided by Section
111.060 beginning on the 31st day after the date the comptroller
receives the valid refund claim and ending on the date the
comptroller issues the refund warrant.
SECTION 12. Section 162.230(a), Tax Code, is amended to
read as follows:
(a) Except as otherwise provided by this section, a claim
for a refund must be filed with the comptroller before the fourth
[first] anniversary of the first day of the calendar month
following the purchase, use, delivery, or export, or loss by fire,
theft, or accident of diesel fuel, whichever period expires latest.
SECTION 13. This Act applies only to taxes imposed on or
after the effective date of this Act. Taxes imposed before the
effective date of this Act are governed by the law in effect on the
date the taxes were imposed, and that law is continued in effect for
that purpose.
SECTION 14. This Act takes effect September 1, 2005.