|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to motor fuel tax credits for certain metropolitan rapid |
|
|
transit authorities providing public school transportation |
|
|
services to a school district. |
|
|
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 or a |
|
|
metropolitan rapid transit authority operating under Chapter 451, |
|
|
Transportation Code, 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. |
|
|
SECTION 2. Section 162.125(a), Tax Code, is 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 or a |
|
|
metropolitan rapid transit authority operating under Chapter 451, |
|
|
Transportation Code, 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. |
|
|
SECTION 3. Subchapter B, Chapter 162, Tax Code, is amended |
|
|
by adding Section 162.1275 to read as follows: |
|
|
Sec. 162.1275. REFUND FOR CERTAIN METROPOLITAN RAPID |
|
|
TRANSIT AUTHORITIES. (a) Except as otherwise provided by this |
|
|
section, a metropolitan rapid transit authority operating under |
|
|
Chapter 451, Transportation Code, that is a party to a contract |
|
|
governed by Section 34.008, Education Code, is entitled to a refund |
|
|
of taxes paid under this subchapter for gasoline used to provide |
|
|
services under the contract and may file a refund claim with the |
|
|
comptroller for the amount of those taxes. |
|
|
(b) The refund claim under Subsection (a) must contain |
|
|
information regarding: |
|
|
(1) vehicle mileage; |
|
|
(2) hours of service provided; |
|
|
(3) fuel consumed; |
|
|
(4) the total number of student passengers per route; |
|
|
and |
|
|
(5) the total number of non-student passengers per |
|
|
route. |
|
|
(c) If in any month of a school year the number of |
|
|
non-student passengers is greater than five percent of the total |
|
|
passengers for any single route under a contract governed by |
|
|
Section 34.008, Education Code, the metropolitan rapid transit |
|
|
authority is not entitled to a refund of taxes paid under this |
|
|
subchapter for the route for that month. |
|
|
(d) A metropolitan rapid transit authority that requests a |
|
|
refund under this section shall maintain all supporting |
|
|
documentation relating to the refund until the sixth anniversary of |
|
|
the date of the request. |
|
|
SECTION 4. Section 162.204(a), Tax Code, is amended to read |
|
|
as follows: |
|
|
(a) The tax imposed by this subchapter does not apply to: |
|
|
(1) diesel fuel sold to the United States for its |
|
|
exclusive use, provided that the exemption does not apply to diesel |
|
|
fuel sold or delivered to a person operating under a contract with |
|
|
the United States; |
|
|
(2) diesel fuel sold to a public school district in |
|
|
this state for the district's exclusive use; |
|
|
(3) diesel fuel sold to a commercial transportation |
|
|
company or a metropolitan rapid transit authority operating under |
|
|
Chapter 451, Transportation Code, that provides public school |
|
|
transportation services to a school district under Section 34.008, |
|
|
Education Code, and that uses the diesel fuel only to provide those |
|
|
services; |
|
|
(4) diesel fuel exported by either a licensed supplier |
|
|
or a licensed exporter from this state to any other state, provided |
|
|
that: |
|
|
(A) for diesel fuel 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 diesel fuel in a situation described by |
|
|
Subsection (e), the bill of lading indicates the destination state, |
|
|
the diesel fuel 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) diesel fuel moved by truck or railcar between |
|
|
licensed suppliers or licensed permissive suppliers and in which |
|
|
the diesel fuel 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) diesel fuel delivered or sold into a storage |
|
|
facility of a licensed aviation fuel dealer from which the diesel |
|
|
fuel 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 diesel fuel exclusively into the fuel supply tanks of |
|
|
aircraft or aircraft servicing equipment; |
|
|
(7) diesel fuel exported to a foreign country if the |
|
|
bill of lading indicates the foreign destination and the fuel is |
|
|
actually exported to the foreign country; |
|
|
(8) dyed diesel fuel sold or delivered by a supplier to |
|
|
another supplier and dyed diesel fuel sold or delivered by a |
|
|
supplier or distributor into the bulk storage facility of a dyed |
|
|
diesel fuel bonded user or to a purchaser who provides a signed |
|
|
statement as provided by Section 162.206; |
|
|
(9) the volume of water, fuel ethanol, biodiesel, or |
|
|
mixtures thereof that are blended together with taxable diesel fuel |
|
|
when the finished product sold or used is clearly identified on the |
|
|
retail pump, storage tank, and sales invoice as a combination of |
|
|
diesel fuel and water, fuel ethanol, biodiesel, or mixtures |
|
|
thereof; |
|
|
(10) dyed diesel fuel sold by a supplier or permissive |
|
|
supplier to a distributor, or by a distributor to another |
|
|
distributor; |
|
|
(11) dyed diesel fuel delivered by a license holder |
|
|
into the fuel supply tanks of railway engines, motorboats, or |
|
|
refrigeration units or other stationary equipment powered by a |
|
|
separate motor from a separate fuel supply tank; |
|
|
(12) dyed kerosene when delivered by a supplier, |
|
|
distributor, or importer into a storage facility at a retail |
|
|
business from which all deliveries are exclusively for heating, |
|
|
cooking, lighting, or similar nonhighway use; or |
|
|
(13) diesel fuel used by a person, other than a |
|
|
political subdivision, who owns, controls, operates, or manages a |
|
|
commercial motor vehicle as defined by Section 548.001, |
|
|
Transportation Code, if the fuel: |
|
|
(A) is delivered exclusively into the fuel supply |
|
|
tank of the commercial motor vehicle; and |
|
|
(B) is used exclusively to transport passengers |
|
|
for compensation or hire between points in this state on a fixed |
|
|
route or schedule. |
|
|
SECTION 5. Section 162.227(a), Tax Code, is 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 diesel fuel and subsequently resells the diesel |
|
|
fuel 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 a 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 diesel fuel to another state; |
|
|
(4) a licensed aviation fuel dealer if the seller is a |
|
|
licensed distributor; or |
|
|
(5) a commercial transportation company or a |
|
|
metropolitan rapid transit authority operating under Chapter 451, |
|
|
Transportation Code, that provides public school transportation |
|
|
services to a school district under Section 34.008, Education Code, |
|
|
and that uses the diesel fuel exclusively to provide those |
|
|
services. |
|
|
SECTION 6. Subchapter C, Chapter 162, Tax Code, is amended |
|
|
by adding Section 162.2275 to read as follows: |
|
|
Sec. 162.2275. REFUND FOR CERTAIN METROPOLITAN RAPID |
|
|
TRANSIT AUTHORITIES. (a) Except as otherwise provided by this |
|
|
section, a metropolitan rapid transit authority operating under |
|
|
Chapter 451, Transportation Code, that is a party to a contract |
|
|
governed by Section 34.008, Education Code, is entitled to a refund |
|
|
of taxes paid under this subchapter for diesel fuel used to provide |
|
|
services under the contract and may file a refund claim with the |
|
|
comptroller for the amount of those taxes. |
|
|
(b) The refund claim under Subsection (a) must contain |
|
|
information regarding: |
|
|
(1) vehicle mileage; |
|
|
(2) hours of service provided; |
|
|
(3) fuel consumed; |
|
|
(4) the total number of student passengers per route; |
|
|
and |
|
|
(5) the total number of non-student passengers per |
|
|
route. |
|
|
(c) If in any month of a school year the number of |
|
|
non-student passengers is greater than five percent of the total |
|
|
passengers for any single route under a contract governed by |
|
|
Section 34.008, Education Code, the metropolitan rapid transit |
|
|
authority is not entitled to a refund of taxes paid under this |
|
|
subchapter for the route for that month. |
|
|
(d) A metropolitan rapid transit authority that requests a |
|
|
refund under this section shall maintain all supporting |
|
|
documentation relating to the refund until the sixth anniversary of |
|
|
the date of the request. |
|
|
SECTION 7. Section 162.3021(b), Tax Code, is amended to |
|
|
read as follows: |
|
|
(b) Subject to Section 162.3022, the [The] tax imposed by |
|
|
this subchapter does not apply to the sale of liquefied petroleum |
|
|
gas to a commercial transportation company or a metropolitan rapid |
|
|
transit authority operating under Chapter 451, Transportation |
|
|
Code, that uses the gas exclusively to provide public school |
|
|
transportation services to a school district under Section 34.008, |
|
|
Education Code, or to the use of liquefied petroleum gas by that |
|
|
company for that purpose. A motor vehicle that uses liquefied |
|
|
petroleum gas and that is owned by a commercial transportation |
|
|
company or a metropolitan rapid transit authority operating under |
|
|
Chapter 451, Transportation Code, and used exclusively to provide |
|
|
public school transportation services to a school district under |
|
|
Section 34.008, Education Code, is not required to have a liquefied |
|
|
gas tax decal or a special use liquefied gas tax decal. |
|
|
SECTION 8. Subchapter D, Chapter 162, Tax Code, is amended |
|
|
by adding Section 162.3022 to read as follows: |
|
|
Sec. 162.3022. EXCLUSIVE USE FOR CERTAIN METROPOLITAN RAPID |
|
|
TRANSIT AUTHORITIES. (a) This section applies to a metropolitan |
|
|
rapid transit authority operating under Chapter 451, |
|
|
Transportation Code, that is a party to a contract governed by |
|
|
Section 34.008, Education Code, that is not required under Section |
|
|
162.3021 to have a liquefied gas tax decal or a special use |
|
|
liquefied gas tax decal for liquefied gas used to provide services |
|
|
under the contract. |
|
|
(b) If in any month of a school year the number of |
|
|
non-student passengers is greater than five percent of the total |
|
|
passengers for any single route under a contract governed by |
|
|
Section 34.008, Education Code, the metropolitan rapid transit |
|
|
authority is liable for the tax under this subchapter in an amount |
|
|
that is prorated for that month. |
|
|
(c) The metropolitan rapid transit authority shall maintain |
|
|
the following supporting documentation relating to the services |
|
|
provided under the contract until the sixth anniversary of the date |
|
|
of the services provided: |
|
|
(1) vehicle mileage; |
|
|
(2) hours of service provided; |
|
|
(3) fuel consumed; |
|
|
(4) the total number of student passengers per route; |
|
|
and |
|
|
(5) the total number of non-student passengers per |
|
|
route. |
|
|
(d) The comptroller may adopt rules to implement this |
|
|
section. |
|
|
SECTION 9. 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 10. This Act takes effect July 1, 2007, 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 effect on that |
|
|
date, this Act takes effect October 1, 2007. |