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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption of rural transit districts from motor |
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fuel taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 162.104(a), Tax Code, is amended to read |
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as follows: |
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(a) The tax imposed by this subchapter does not apply to |
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gasoline: |
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(1) sold to the United States for its exclusive use, |
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provided that the exemption does not apply with respect to fuel sold |
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or delivered to a person operating under a contract with the United |
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States; |
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(2) sold to a public school district in this state for |
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the district's exclusive use; |
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(3) sold to a commercial transportation company or a |
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metropolitan rapid transit authority operating under Chapter 451, |
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Transportation Code, 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 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 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 gasoline in a situation described by |
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Subsection (e), the bill of lading indicates the destination state, |
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the gasoline is subsequently exported, and the exporter is licensed |
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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 a |
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licensed aviation fuel dealer from which gasoline will be delivered |
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solely into the fuel supply tanks of aircraft or aircraft servicing |
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equipment, or sold from one licensed aviation fuel dealer to |
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another licensed aviation fuel dealer who will deliver the aviation |
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fuel exclusively into the fuel supply tanks of aircraft or aircraft |
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servicing equipment; |
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(7) exported to a foreign country if the bill of lading |
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indicates the foreign destination and the fuel is actually exported |
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to the foreign country; [or] |
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(8) sold to a volunteer fire department in this state |
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for the department's exclusive use; or |
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(9) sold to a rural transit district created under |
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Chapter 458, Transportation Code, that uses the gasoline |
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exclusively to provide public transportation. |
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SECTION 2. Sections 162.125(a) and (g), Tax Code, are |
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amended to read as follows: |
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(a) A license holder may take a credit on a return for the |
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period in which the sale occurred if the license holder paid tax on |
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the purchase of gasoline and subsequently resells the gasoline |
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without collecting the tax to: |
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(1) the United States government for its exclusive |
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use, provided that a credit is not allowed for gasoline used by a |
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person operating under contract with the United States; |
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(2) a public school district in this state for the |
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district's exclusive use; |
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(3) an exporter licensed under this subchapter if the |
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seller is a licensed supplier or distributor and the exporter |
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subsequently exports the gasoline to another state; |
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(4) a licensed aviation fuel dealer if the seller is a |
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licensed distributor; [or] |
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(5) a commercial transportation company or a |
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metropolitan rapid transit authority operating under Chapter 451, |
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Transportation Code, 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 gasoline exclusively to provide those services; |
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or |
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(6) a rural transit district created under Chapter |
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458, Transportation Code, that uses the gasoline exclusively to |
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provide public transportation. |
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(g) A transit company that paid tax on the purchase of |
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gasoline, and is not otherwise entitled to a refund of that tax |
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under this subchapter, may seek a refund with the comptroller in an |
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amount equal to one cent per gallon for gasoline used in transit |
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vehicles. |
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SECTION 3. Subchapter B, Chapter 162, Tax Code, is amended |
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by adding Section 162.1276 to read as follows: |
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Sec. 162.1276. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS. |
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(a) A rural transit district created under Chapter 458, |
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Transportation Code, is entitled to a refund of taxes paid under |
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this subchapter for gasoline used to provide public transportation |
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and may file a refund claim with the comptroller for the amount of |
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those taxes. |
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(b) The refund claim under Subsection (a) must contain |
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information regarding: |
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(1) vehicle mileage; |
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(2) hours of service provided; and |
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(3) fuel consumed. |
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(c) A rural transit district that requests a refund under |
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this section shall maintain all supporting documentation relating |
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to the refund until the sixth anniversary of the date of the |
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request. |
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SECTION 4. Section 162.204(a), Tax Code, is amended to read |
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as follows: |
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(a) The tax imposed by this subchapter does not 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 in |
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this state for the district's exclusive use; |
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(3) diesel fuel sold to a commercial transportation |
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company or a metropolitan rapid transit authority operating under |
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Chapter 451, Transportation Code, that provides public school |
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transportation services to a school district under Section 34.008, |
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Education Code, and that uses the diesel fuel only to provide those |
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services; |
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(4) diesel fuel exported by either a licensed supplier |
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or a licensed exporter from this state to any other state, provided |
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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 the |
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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 supplier to |
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another supplier and dyed diesel fuel sold or delivered by a |
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supplier or distributor into the bulk storage facility of a dyed |
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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, renewable |
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diesel, biodiesel, or mixtures thereof that are blended together |
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with taxable diesel fuel when the finished product sold or used is |
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clearly identified on the retail pump, storage tank, and sales |
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invoice as a combination of diesel fuel and water, fuel ethanol, |
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renewable diesel, biodiesel, or mixtures thereof; |
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(10) dyed diesel fuel sold by a supplier or permissive |
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supplier to a distributor, or by a distributor to another |
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distributor; |
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(11) dyed diesel fuel delivered by a license holder |
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into the fuel supply tanks of railway engines, motorboats, or |
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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; |
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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 supply |
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tank of the commercial motor vehicle; and |
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(B) is used exclusively to transport passengers |
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for compensation or hire between points in this state on a fixed |
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route or schedule; [or] |
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(14) diesel fuel sold to a volunteer fire department |
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in this state for the department's exclusive use; or |
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(15) diesel fuel sold to a rural transit district |
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created under Chapter 458, Transportation Code, that uses the |
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diesel fuel exclusively to provide public transportation. |
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SECTION 5. Sections 162.227(a) and (f), Tax Code, are |
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amended to read as follows: |
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(a) A license holder may take a credit on a return for the |
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period in which the sale occurred if the license holder paid tax on |
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the purchase of diesel fuel and subsequently resells the diesel |
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fuel without collecting the tax to: |
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(1) the United States government for its exclusive |
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use, provided that a credit is not allowed for gasoline used by a |
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person operating under a contract with the United States; |
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(2) a public school district in this state for the |
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district's exclusive use; |
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(3) an exporter licensed under this subchapter if the |
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seller is a licensed supplier or distributor and the exporter |
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subsequently exports the diesel fuel to another state; |
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(4) a licensed aviation fuel dealer if the seller is a |
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licensed distributor; [or] |
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(5) a commercial transportation company or a |
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metropolitan rapid transit authority operating under Chapter 451, |
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Transportation Code, 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 exclusively to provide those |
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services; or |
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(6) a rural transit district created under Chapter |
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458, Transportation Code, that uses the diesel fuel exclusively to |
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provide public transportation. |
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(f) A transit company who paid tax on the purchase of diesel |
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fuel, and is not otherwise entitled to a refund of that tax under |
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this subchapter, may seek a refund with the comptroller of one-half |
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of one cent per gallon for diesel fuel used in transit vehicles. |
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SECTION 6. Subchapter C, Chapter 162, Tax Code, is amended |
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by adding Section 162.2276 to read as follows: |
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Sec. 162.2276. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS. |
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(a) A rural transit district created under Chapter 458, |
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Transportation Code, is entitled to a refund of taxes paid under |
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this subchapter for diesel fuel used to provide public |
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transportation and may file a refund claim with the comptroller for |
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the amount of those taxes. |
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(b) The refund claim under Subsection (a) must contain |
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information regarding: |
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(1) vehicle mileage; |
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(2) hours of service provided; and |
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(3) fuel consumed. |
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(c) A rural transit district that requests a refund under |
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this section shall maintain all supporting documentation relating |
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to the refund until the sixth anniversary of the date of the |
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request. |
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SECTION 7. Subchapter D, Chapter 162, Tax Code, is amended |
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by adding Sections 162.3023 and 162.3024 to read as follows: |
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Sec. 162.3023. RURAL TRANSIT DISTRICT EXEMPTION. (a) |
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Subject to Section 162.3024, the tax imposed by this subchapter |
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does not apply to the sale of liquefied petroleum gas to a rural |
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transit district created under Chapter 458, Transportation Code, |
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that uses the gas exclusively to provide public transportation, or |
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to the use of liquefied petroleum gas by that district for that |
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purpose. |
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(b) A motor vehicle that uses liquefied petroleum gas, that |
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is owned by a rural transit district created under Chapter 458, |
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Transportation Code, and that is used exclusively to provide public |
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transportation is not required to have a liquefied gas tax decal or |
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a special use liquefied gas tax decal. |
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Sec. 162.3024. EXCLUSIVE USE FOR RURAL TRANSIT DISTRICTS. |
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(a) This section applies to a rural transit district created under |
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Chapter 458, Transportation Code, that is not required under |
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Section 162.3023 to have a liquefied gas tax decal or a special use |
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liquefied gas tax decal for liquefied gas used to provide public |
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transportation. |
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(b) The rural transit district shall maintain the following |
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supporting documentation relating to the services provided under |
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the contract until the sixth anniversary of the date of the services |
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provided: |
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(1) vehicle mileage; |
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(2) hours of service provided; and |
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(3) fuel consumed. |
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(c) The comptroller may adopt rules to implement this |
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section. |
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SECTION 8. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 9. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |