81R1992 JE-D
 
  By: King of Parker H.B. No. 794
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption of volunteer fire departments from
  certain motor fuel taxes.
         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; or
               (8)  sold to a volunteer fire department in this state
  for the department's exclusive use.
         SECTION 2.  Section 162.125, Tax Code, is amended by adding
  Subsection (g-1) to read as follows:
         (g-1)  A volunteer fire department exempt from the tax
  imposed under this subchapter that paid tax on the purchase of
  gasoline is entitled to a refund of the tax paid, and the volunteer
  fire department may file a refund claim with the comptroller for
  that amount.
         SECTION 3.  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; or
               (14)  diesel fuel sold to a volunteer fire department
  in this state for the department's exclusive use.
         SECTION 4.  Section 162.227, Tax Code, is amended by adding
  Subsection (f-1) to read as follows:
         (f-1)  A volunteer fire department exempt from the tax
  imposed under this subchapter that paid tax on the purchase of
  diesel fuel is entitled to a refund of the tax paid, and the
  volunteer fire department may file a refund claim with the
  comptroller for that amount.
         SECTION 5.  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 6.  This Act takes effect July 1, 2009, 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 September 1, 2009.