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A BILL TO BE ENTITLED
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AN ACT
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relating to certain motor fuel exemptions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Amend Subsection (a), Section 162.104, Tax Code, |
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to read as follows: |
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(a) The tax imposed by this subchapter does not apply |
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to gasoline: |
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(1) sold to the United States for its exclusive |
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use, provided that the exemption does not apply with respect to fuel |
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sold or delivered to a person operating under a contract with the |
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United States; |
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(2) sold to a public school district or Transit |
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Authority created under state law in this state for the district's |
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or Authority's exclusive use; |
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(3) sold to a commercial transportation company |
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that provides public school transportation services to a school |
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district under Section 34.008, Education Code, and that uses the |
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gasoline only to provide those services; |
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(4) exported by either a licensed supplier or a |
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licensed exporter from this state to any other state, provided |
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that: |
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(A) for gasoline in a situation described |
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by Subsection (d), the bill of lading indicates the destination |
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state and the supplier collects the destination state tax; or |
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(B) for gasoline in a situation described |
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by Subsection (e), the bill of lading indicates the destination |
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state, the gasoline is subsequently exported, and the exporter is |
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licensed in the destination state to pay that state's tax and has an |
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exporter's license issued under this subchapter; |
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(5) moved by truck or railcar between licensed |
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suppliers or licensed permissive suppliers and in which the |
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gasoline removed from the first terminal comes to rest in the second |
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terminal, provided that the removal from the second terminal rack |
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is subject to the tax imposed by this subchapter; |
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(6) delivered or sold into a storage facility of |
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a licensed aviation fuel dealer from which gasoline will be |
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delivered solely into the fuel supply tanks of aircraft or aircraft |
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servicing equipment, or sold from one licensed aviation fuel dealer |
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to another licensed aviation fuel dealer who will deliver the |
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aviation fuel exclusively into the fuel supply tanks of aircraft or |
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aircraft servicing equipment; or |
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(7) exported to a foreign country if the bill of |
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lading indicates the foreign destination and the fuel is actually |
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exported to the foreign country. |
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SECTION 2. Amend Subsection (a), Section 162.204, Tax Code, |
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to read as follows: |
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"(a) The tax imposed by this subchapter does not |
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apply to: |
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(1) diesel fuel sold to the United States for its |
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exclusive use, provided that the exemption does not apply to diesel |
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fuel sold or delivered to a person operating under a contract with |
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the United States; |
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(2) diesel fuel sold to a public school district |
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or Transit Authority created under state law in this state for the |
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district's or Authority's exclusive use; |
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(3) diesel fuel sold to a commercial |
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transportation company that provides public school transportation |
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services to a school district under Section 34.008, Education Code, |
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and that uses the diesel fuel only to provide those services; |
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(4) diesel fuel exported by either a licensed |
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supplier or a licensed exporter from this state to any other state, |
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provided that: |
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(A) for diesel fuel in a situation described by |
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Subsection (d), the bill of lading indicates the destination state |
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and the supplier collects the destination state tax; or |
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(B) for diesel fuel in a situation described by |
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Subsection (e), the bill of lading indicates the destination state, |
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the diesel fuel is subsequently exported, and the exporter is |
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licensed in the destination state to pay that state's tax and has an |
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exporter's license issued under this subchapter; |
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(5) diesel fuel moved by truck or railcar between |
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licensed suppliers or licensed permissive suppliers and in which |
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the diesel fuel removed from the first terminal comes to rest in the |
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second terminal, provided that the removal from the second terminal |
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rack is subject to the tax imposed by this subchapter; |
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(6) diesel fuel delivered or sold into a storage |
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facility of a licensed aviation fuel dealer from which the diesel |
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fuel will be delivered solely into the fuel supply tanks of aircraft |
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or aircraft servicing equipment, or sold from one licensed aviation |
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fuel dealer to another licensed aviation fuel dealer who will |
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deliver the diesel fuel exclusively into the fuel supply tanks of |
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aircraft or aircraft servicing equipment; |
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(7) diesel fuel exported to a foreign country if |
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the bill of lading indicates the foreign destination and the fuel is |
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actually exported to the foreign country; |
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(8) dyed diesel fuel sold or delivered by a |
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supplier to another supplier and dyed diesel fuel sold or delivered |
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by a supplier or distributor into the bulk storage facility of a |
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dyed diesel fuel bonded user or to a purchaser who provides a signed |
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statement as provided by Section 162.206; |
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(9) the volume of water, fuel ethanol, biodiesel, |
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or mixtures thereof that are blended together with taxable diesel |
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fuel when the finished product sold or used is clearly identified on |
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the retail pump, storage tank, and sales invoice as a combination of |
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diesel fuel and water, fuel ethanol, biodiesel, or mixtures |
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thereof; |
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(10) dyed diesel fuel sold by a supplier or |
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permissive supplier to a distributor, or by a distributor to |
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another distributor; |
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(11) dyed diesel fuel delivered by a license |
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holder into the fuel supply tanks of railway engines, motorboats, |
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or refrigeration units or other stationary equipment powered by a |
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separate motor from a separate fuel supply tank; |
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(12) dyed kerosene when delivered by a supplier, |
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distributor, or importer into a storage facility at a retail |
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business from which all deliveries are exclusively for heating, |
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cooking, lighting, or similar nonhighway use; or |
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(13) diesel fuel used by a person, other than a |
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political subdivision, who owns, controls, operates, or manages a |
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commercial motor vehicle as defined by Section 548.001, |
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Transportation Code, if the fuel: |
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(A) is delivered exclusively into the fuel |
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supply tank of the commercial motor vehicle; and |
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(B) is used exclusively to transport |
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passengers for compensation or hire between points in this state on |
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a fixed route or schedule. |
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SECTION 3. This Act takes effect September 1, 2007. |