BILL ANALYSIS

 

 

                                                                                                                                             H.B. 688

                                                                                                                                          By: Krusee

                                                                                                                                    Ways & Means

                                                                                                       Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

Historically, a motor fuels tax credit or rebate was allowed on all diesel fuel consumed to operate on auxiliary power unit or power take-off equipment.  However, with the passage of HB 2458 during the 78th Regular Session, the tax credit in association with diesel powered auxiliary equipment was inadvertently eliminated.  Conversely, tax rebates for gasoline powered units was retained.  HB 688 corrects this oversight and reinstates the tax credit or rebate for diesel powered auxiliary or power take-off equipment.

 

HB 688 would amend Chapter 162 of the Tax Code to allow a credit or refund of diesel fuel tax paid on diesel fuel used for auxiliary power units or power take-off equipment on any motor vehicle. 

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. 

 

ANALYSIS

 

SECTION 1.  Amends Section 162.227 of the Tax Code by adding Subsection (d-1). Subsection (d-1) allows for license holders to take a credit or seek a refund for applicable state motor fuel taxes on all diesel fuel used to operate an auxiliary power unity or power take-off equipment.  No credit or refund on power take-off equipment or auxiliary power units in association with climate control air conditioning or heating system of a motor vehicle is allowed by this section.

 

SECTION 2. Effective Date. This act takes effect September 1, 2007.

 

EFFECTIVE DATE

 

September 1, 2007.