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79R8813 CBH-D

By:  Anderson                                                     H.B. No. 3313



A BILL TO BE ENTITLED

AN ACT

relating to the exemption of counties from the gasoline tax.                  
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 162.104(a), Tax Code, is amended to read 
as follows:     
	(a)  The tax imposed by this subchapter does not apply to 
gasoline:          
		(1)  sold to the United States for its exclusive use, 
provided that the exemption does not apply with respect to fuel sold 
or delivered to a person operating under a contract with the United 
States;
		(2)  sold to a public school district in this state for 
the district's exclusive use;
		(3)  sold to a commercial transportation company that 
provides public school transportation services to a school district 
under Section 34.008, Education Code, and that uses the gasoline 
only to provide those services;
		(4)  exported by either a licensed supplier or a 
licensed exporter from this state to any other state, provided 
that:
			(A)  for gasoline in a situation described by 
Subsection (d), the bill of lading indicates the destination state 
and the supplier collects the destination state tax; or
			(B)  for gasoline in a situation described by 
Subsection (e), the bill of lading indicates the destination state, 
the gasoline is subsequently exported, and the exporter is licensed 
in the destination state to pay that state's tax and has an 
exporter's license issued under this subchapter;
		(5)  moved by truck or railcar between licensed 
suppliers or licensed permissive suppliers and in which the 
gasoline removed from the first terminal comes to rest in the second 
terminal, provided that the removal from the second terminal rack 
is subject to the tax imposed by this subchapter;
		(6)  delivered or sold into a storage facility of a 
licensed aviation fuel dealer from which gasoline will be delivered 
solely into the fuel supply tanks of aircraft or aircraft servicing 
equipment, or sold from one licensed aviation fuel dealer to 
another licensed aviation fuel dealer who will deliver the aviation 
fuel exclusively into the fuel supply tanks of aircraft or aircraft 
servicing equipment; [or]
		(7)  exported to a foreign country if the bill of lading 
indicates the foreign destination and the fuel is actually exported 
to the foreign country; or
		(8)  sold to a county in this state for the county's 
exclusive use.  
	SECTION 2.  Sections 162.125(a) and (c), Tax Code, are 
amended to read as follows:
	(a)  A license holder may take a credit on a return for the 
period in which the sale occurred if the license holder paid tax on 
the purchase of gasoline and subsequently resells the gasoline 
without collecting the tax to:
		(1)  the United States government for its exclusive 
use, provided that a credit is not allowed for gasoline used by a 
person operating under contract with the United States;
		(2)  a public school district in this state for the 
district's exclusive use;
		(3)  an exporter licensed under this subchapter if the 
seller is a licensed supplier or distributor and the exporter 
subsequently exports the gasoline to another state;
		(4)  a licensed aviation fuel dealer if the seller is a 
licensed distributor; [or]
		(5)  a commercial transportation company that provides 
public school transportation services to a school district under 
Section 34.008, Education Code, and that uses the gasoline 
exclusively to provide those services; or
		(6)  a county in this state for the county's exclusive 
use.          
	(c)  A license holder may take a credit on a return for the 
period in which the purchase occurred, and a person who does not 
hold a license under this subchapter, other than a license as an 
aviation fuel dealer, may file a refund claim with the comptroller 
if the license holder or person paid tax on gasoline and the license 
holder or person:
		(1)  is the United States government and the gasoline 
is for its exclusive use, provided that a credit or refund is not 
allowed for gasoline used by a license holder or person operating 
under a contract with the United States;
		(2)  is a public school district in this state and the 
gasoline is for the district's exclusive use;
		(3)  is a commercial transportation company that 
provides public school transportation services to a school district 
under Section 34.008, Education Code, and the gasoline is used 
exclusively to provide those services;
		(4)  uses the gasoline in off-highway equipment, in 
stationary engines, or for other nonhighway purposes and not in a 
motor vehicle operated or intended to be operated on the public 
highways;
		(5)  uses the gasoline in a motor vehicle that is 
operated exclusively off the public highways, except for incidental 
travel on the public highways as determined by the comptroller, 
provided that a credit or refund may not be allowed for the portion 
used in the incidental highway travel; [or]
		(6)  is a licensed aviation fuel dealer who delivers 
the gasoline into the fuel supply tanks of aircraft or aircraft 
servicing equipment; or
		(7)  is a county in this state and the gasoline is for 
the county's exclusive use.
	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 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.