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A BILL TO BE ENTITLED
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AN ACT
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relating to the motor fuel tax on compressed natural gas and |
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liquefied natural gas; providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The legislature finds that: |
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(1) this Act does not impose a new tax; |
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(2) compressed natural gas and liquefied natural gas |
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are currently taxed and this Act leaves the tax rate effectively |
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unchanged; |
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(3) this Act provides a new collection mechanism for |
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an existing tax; and |
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(4) this Act provides a more efficient method of tax |
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administration for taxpayers and for this state. |
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SECTION 2. Section 162.001, Tax Code, is amended by |
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amending Subdivisions (4), (16), (19), (29), (38), (39), (42), and |
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(43) and adding Subdivisions (19-a), (24-a), (29-a), and (40-a) to |
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read as follows: |
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(4) "Aviation fuel dealer" means a person who: |
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(A) is the operator of an aircraft servicing |
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facility; |
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(B) delivers gasoline, [or] diesel fuel, |
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compressed natural gas, or liquefied natural gas exclusively into |
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the fuel supply tanks of aircraft or into equipment used solely for |
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servicing aircraft and used exclusively off-highway; and |
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(C) does not use, sell, or distribute gasoline, |
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[or] diesel fuel, compressed natural gas, or liquefied natural gas |
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on which a fuel tax is required to be collected or paid to this |
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state. |
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(16) "Compressed natural gas" means natural gas that |
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has been compressed [and dispensed into motor fuel storage
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containers] and is advertised, offered for sale, sold, suitable for |
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use, or used as an engine motor fuel. |
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(19) "Diesel fuel" means kerosene or another liquid, |
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or a combination of liquids blended together, offered for sale, |
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sold, used, or capable of use as fuel for the propulsion of a |
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diesel-powered engine. The term includes products commonly |
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referred to as kerosene, light cycle oil, #1 diesel fuel, #2 diesel |
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fuel, dyed or undyed diesel fuel, aviation jet fuel, renewable |
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diesel, biodiesel, distillate fuel, cutter stock, or heating oil, |
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but does not include compressed natural gas, liquefied natural gas, |
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gasoline, aviation gasoline, or liquefied gas. |
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(19-a) "Diesel gallon equivalent" means: |
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(A) 6.310 pounds of compressed natural gas; or |
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(B) 6.060 pounds of liquefied natural gas. |
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(24-a) "Fleet user" means a person who produces |
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compressed natural gas or liquefied natural gas or maintains |
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storage facilities for compressed natural gas or liquefied natural |
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gas and who delivers all or part of the fuel produced or stored into |
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the fuel supply tank of two or more motor vehicles owned or leased |
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by that person. |
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(29) "Gasoline" means any liquid or combination of |
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liquids blended together, offered for sale, sold, used, or capable |
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of use as fuel for a gasoline-powered engine. The term includes |
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gasohol, aviation gasoline, and blending agents, but does not |
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include compressed natural gas, liquefied natural gas, racing |
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gasoline, diesel fuel, aviation jet fuel, or liquefied gas. |
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(29-a) "Gasoline gallon equivalent" means |
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(A) 5.660 pounds of compressed natural gas; or, |
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(B) 5.370 pounds of liquefied natural gas. |
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(38) "License holder" means a person licensed by the |
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comptroller under Section 162.105, 162.205, 162.304, 162.305, [or] |
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162.306, 162.357, or 162.358. |
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(39) "Liquefied gas" means all combustible gases that |
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exist in the gaseous state at 60 degrees Fahrenheit and at a |
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pressure of 14.7 pounds per square inch absolute, but does not |
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include compressed natural gas, liquefied natural gas, gasoline, or |
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diesel fuel. |
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(40-a) "Liquefied natural gas" mean natural gas that |
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has been cooled to a liquid state and is advertised, offered for |
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sale, sold, suitable for use, or used as an engine motor fuel. |
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(42) "Motor fuel" means gasoline, diesel fuel, |
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liquefied gas, gasoline blended fuel, compressed natural gas, |
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liquefied natural gas, and other products that are offered for |
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sale, sold, used, or capable of use as fuel for a gasoline-powered |
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engine or a diesel-powered engine. |
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(43) "Motor fuel transporter" means a person who |
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transports gasoline, diesel fuel, gasoline blended fuel, aviation |
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fuel, or any other motor fuel, except liquefied gas, compressed |
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natural gas, or liquefied natural gas, outside the bulk |
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transfer/terminal system by means of a transport vehicle, a |
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railroad tank car, or a marine vessel. The term does not include a |
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person who: |
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(A) is licensed under this chapter as a supplier, |
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permissive supplier, or distributor; and |
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(B) exclusively transports gasoline, diesel |
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fuel, gasoline blended fuel, aviation fuel, or any other motor fuel |
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to which the person retains ownership while the fuel is being |
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transported by the person. |
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SECTION 3. Chapter 162, Tax Code, is amended by adding |
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Subchapter D-1 to read as follows: |
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SUBCHAPTER D-1. COMPRESSED NATURAL GAS AND LIQUEFIED NATURAL GAS |
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TAX |
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Sec. 162.351. TAX IMPOSED; SALE OF FUEL DELIVERED INTO FUEL |
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SUPPLY TANK OF MOTOR VEHICLE. (a) A tax is imposed on the sale of |
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compressed natural gas or liquefied natural gas that is delivered |
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into the fuel supply tank of a motor vehicle in connection with a |
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sale of the compressed natural gas or liquefied natural gas. |
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(b) The dealer is liable for the tax imposed under this |
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section, including a delivery of compressed natural gas or |
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liquefied natural gas delivered into the fuel supply tank of a motor |
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vehicle at no cost to the motor vehicle owner unless a documented |
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exemption pursuant to this sub-chapter applies. |
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(c) The dealer shall add the amount of the tax to the selling |
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price so that the tax is paid by the purchaser. When the amount of |
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the tax is added: |
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(1) it becomes a part of the sales price; |
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(2) it is a debt of the purchaser to the dealer; and |
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(3) if unpaid, it is recoverable at law in the same |
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manner as the original sales price. |
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(d) The dealer shall provide to the purchaser an invoice or |
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receipt that states the rate and amount of tax added to the selling |
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price or indicates that no tax was added to the selling price. |
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Sec. 162.352. TAX IMPOSED; DELIVERY OF FUEL INTO FUEL |
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SUPPLY TANK OF MOTOR VEHICLE NOT IN CONNECTION WITH SALE. (a) A tax |
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is imposed on the delivery of compressed natural gas or liquefied |
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natural gas into the fuel supply tank of a motor vehicle by a fleet |
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user or other dealer not in connection with a sale of the compressed |
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natural gas or liquefied natural gas. |
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(b) The fleet user or other dealer is liable for the tax |
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imposed under this section. |
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Sec. 162.353. TAX RATE. The rate of the tax under Sections |
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162.351 and 162.352 is 15 cents for each: |
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(1) gasoline gallon equivalent or fractional part of |
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compressed natural gas; or |
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(2) diesel gallon equivalent or fractional part of |
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liquefied natural gas. |
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Sec. 162.354. BACKUP TAX; LIABILITY. (a) A backup tax is |
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imposed at the rate prescribed by Section 162.353 on: |
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(1) a person who obtains a refund of tax on compressed |
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natural gas or liquefied natural gas by claiming the fuel was used |
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for an exempt purpose, but actually uses the fuel for a taxable |
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purpose; |
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(2) a person who operates a motor vehicle on a public |
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highway using compressed natural gas or liquefied natural gas on |
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which tax has not been paid; |
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(3) a person who sells compressed natural gas or |
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liquefied natural gas that is delivered into the fuel supply tank of |
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a motor vehicle, on which tax was not paid, and who knew or had |
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reason to know that the fuel would be used for a taxable purpose; |
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and |
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(4) a person who delivers into the fuel supply tank of |
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a motor vehicle compressed natural gas or liquefied natural gas on |
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which tax was not paid and who knew or had reason to know that the |
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fuel would be used for a taxable purpose. |
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(b) If the person who operates a motor vehicle described by |
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Subsection (a)(2) is not the owner or lessee of the motor vehicle, |
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both the owner or lessee and the operator are liable for the tax. |
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(c) The tax imposed under Subsection (a)(3) is also imposed |
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on the ultimate consumer. |
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(d) The tax imposed under Subsection (a)(4) is also imposed |
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on the operator of the motor vehicle or the motor vehicle's owner or |
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lessee. |
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(e) The tax liability imposed by this section is in addition |
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to any penalty imposed under this chapter. |
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Sec. 162.355. FUEL PRESUMED SUBJECT TO TAX. (a) All |
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compressed natural gas and liquefied natural gas sold by a dealer |
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and delivered into the fuel supply tank of a motor vehicle is |
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presumed to be subject to tax, and the dealer is liable for the tax |
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under Section 162.351(b)and in accordance with Section 162.012 |
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unless the dealer maintains adequate records to establish that the |
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fuel was exempt from tax under Section 162.356. |
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(b) All compressed natural gas and liquefied natural gas |
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delivered into the fuel supply tank of a motor vehicle by a fleet |
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user or other dealer not in connection with a sale is presumed to be |
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subject to tax, and the fleet user or other dealer is liable for the |
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tax under Section 162.352(b) unless the fleet user or other dealer |
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maintains adequate records to establish that the fuel was exempt |
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from tax under Section 162.356. |
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Sec. 162.356. EXEMPTIONS. The tax imposed by this |
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subchapter does not apply to compressed natural gas or liquefied |
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natural gas delivered into the fuel supply tank of: |
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(1) a motor vehicle operated exclusively by the United |
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States, provided that the exemption does not apply with respect to |
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fuel delivered into the fuel supply tank of a motor vehicle of a |
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person operating under a contract with the United States; |
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(2) a motor vehicle operated exclusively by a public |
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school district in this state; |
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(3) a motor vehicle operated exclusively by a |
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commercial transportation company or a metropolitan rapid transit |
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authority operating under Chapter 451, Transportation Code, that |
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provides public school transportation services to a school district |
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under Section 34.008, Education Code, and that uses the fuel only to |
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provide those services; |
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(4) a motor vehicle operated exclusively by a |
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volunteer fire department in this state; |
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(5) a motor vehicle operated exclusively by a county |
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in this state; |
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(6) a motor vehicle operated exclusively by a |
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nonprofit electric cooperative corporation organized under Chapter |
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161, Utilities Code; |
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(7) a motor vehicle operated exclusively by a |
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nonprofit telephone cooperative corporation organized under |
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Chapter 162, Utilities Code; |
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(8) a motor vehicle that is not registered for use on |
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the public highways of this state and that is used exclusively |
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off-highway; or |
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(9) off-highway equipment, a stationary engine, a |
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motorboat, an aircraft, equipment used solely for servicing |
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aircraft and used exclusively off-highway, a locomotive, or any |
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device other than a motor vehicle operated or intended to be |
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operated on the public highways. |
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Sec. 162.357. DEALER'S LICENSE. (a) A person may not sell |
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compressed natural gas or liquefied natural gas that is delivered |
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into the fuel supply tank of a motor vehicle and on which tax is |
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imposed under Section 162.351 unless the person holds a compressed |
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natural gas and liquefied natural gas dealer's license issued by |
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the comptroller. |
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(b) A person may not deliver compressed natural gas or |
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liquefied natural gas into the fuel supply tank of a motor vehicle |
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not in connection with a sale and on which tax is imposed under |
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Section 162.352, or otherwise conduct the activities of a fleet |
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user, unless the person holds a compressed natural gas and |
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liquefied natural gas dealer's license issued by the comptroller. |
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(c) A person may not conduct the activities of an aviation |
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fuel dealer who delivers compressed natural gas or liquefied |
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natural gas unless the person holds a compressed natural gas and |
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liquefied natural gas dealer's license issued by the comptroller. |
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(d) A compressed natural gas and liquefied natural gas |
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dealer's license is permanent and is valid during the period the |
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license holder has in force and effect the required bond or security |
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and furnishes timely reports and supplements as required, or until |
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the license is surrendered by the license holder or canceled by the |
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comptroller. The comptroller shall cancel a license under this |
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subsection if the license holder has not reported a delivery of |
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compressed natural gas or liquefied natural gas during the previous |
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nine months. |
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(e) A compressed natural gas and liquefied natural gas |
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dealer's license is not transferable. |
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Sec. 162.358. INTERSTATE TRUCKER'S LICENSE. (a) An |
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interstate trucker's license authorizes a person who operates a |
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motor vehicle described by Section 162.001(36) and fueled by |
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compressed natural gas or liquefied natural gas to report and pay |
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the tax and take a credit or claim a refund as provided by this |
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subchapter. |
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(b) An interstate trucker's license is valid from the date |
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of issuance until December 31 of each calendar year or until the |
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license is surrendered by the license holder or canceled by the |
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comptroller. The comptroller may renew an interstate trucker's |
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license each calendar year if the license holder furnishes timely |
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reports as required. |
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(c) An interstate trucker's license is not transferable. |
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Sec. 162.359. LICENSE APPLICATION PROCEDURE. An applicant |
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for a license under this subchapter must file an application using a |
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form adopted by the comptroller that contains: |
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(1) the name under which the applicant transacts or |
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intends to transact business; |
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(2) the applicant's principal office, residence, or |
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place of business in this state, or other location of the applicant; |
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(3) if the applicant is not an individual, the names of |
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the principal officers of an applicant corporation, or the names of |
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the members of an applicant partnership, and the office, street, or |
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post office addresses of each; and |
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(4) other information required by the comptroller. |
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Sec. 162.360. ISSUANCE AND DISPLAY OF LICENSE. (a) If the |
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comptroller approves a license application, the comptroller shall |
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issue a license to the applicant. A license holder shall post the |
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license in a conspicuous place or keep the license available for |
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inspection at the license holder's principal place of business. A |
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license holder shall keep a copy of the license at each place of |
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business or other place of storage from which compressed natural |
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gas or liquefied natural gas is sold or delivered. |
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(b) An interstate trucker's license holder shall reproduce |
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the license and carry a photocopy with each motor vehicle being |
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operated in or traveling to or from this state. |
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Sec. 162.361. BOND AND OTHER SECURITY FOR TAXES. (a) The |
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comptroller shall determine the amount of security required of a |
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dealer, taking into consideration the amount of tax that has or is |
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expected to become due from the person, any past history of the |
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person as a license holder under this chapter or its predecessor, |
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and the necessity to protect this state against the failure to pay |
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the tax as the tax becomes due. |
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(b) The comptroller may require a license holder to post a |
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bond if the comptroller determines it is necessary for the license |
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holder to post security to protect the revenues of this state. A |
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license holder must post a bond equal to two times the maximum |
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amount of tax that could accrue on compressed natural gas or |
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liquefied natural gas produced, purchased, acquired, sold, or |
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delivered during a reporting period. The minimum bond for a person |
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described by Section 162.357(a) is $30,000. The comptroller shall |
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prescribe the minimum bond for a person described by Section |
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162.357(b) or (c) who is not described by Section 162.357(a). The |
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maximum bond is $600,000 unless the comptroller believes there is |
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undue risk of loss of tax revenues, in which event the comptroller |
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may require one or more bonds or securities in a total amount |
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exceeding $600,000. |
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(c) A license holder who has filed a bond or other security |
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under this subchapter is entitled, on request, to have the |
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comptroller return, refund, or release the bond or security if in |
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the judgment of the comptroller the person has for four consecutive |
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years continuously complied with the conditions of the bond or |
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other security filed under this subchapter. However, if the |
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comptroller determines that the revenues of this state would be |
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jeopardized by the return, refund, or release of the bond or |
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security, the comptroller may elect not to return, refund, or |
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release the bond or security and may reimpose a requirement of a |
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bond or other security as the comptroller determines necessary to |
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protect the revenues of this state. |
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(d) A bond must be a continuing instrument, must constitute |
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a new and separate obligation in the penal sum named in the bond for |
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each calendar year or portion of a year while the bond is in force, |
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and must remain in effect until the surety on the bond is released |
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and discharged. |
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(e) Instead of filing a surety bond, an applicant for a |
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license may substitute the following security: |
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(1) cash in the form of United States currency in an |
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amount equal to the required bond to be deposited in a suspense |
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account of the state treasury; |
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(2) an assignment to the comptroller of a certificate |
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of deposit in any bank or savings and loan association in this state |
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that is a member of the Federal Deposit Insurance Corporation in an |
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amount at least equal to the bond amount required; or |
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(3) an irrevocable letter of credit to the comptroller |
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from any bank or savings and loan association in this state that is |
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a member of the Federal Deposit Insurance Corporation in an amount |
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of credit at least equal to the bond amount required. |
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(f) If the amount of an existing bond becomes insufficient |
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or a security becomes unsatisfactory or unacceptable, the |
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comptroller may require the license holder to file a new or an |
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additional bond or security. |
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(g) A surety bond or other form of security may not be |
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released until the comptroller determines by examination or audit |
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that a tax, penalty, or interest liability does not exist. The |
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comptroller shall release the cash or securities not later than the |
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60th day after the date the comptroller determines that liability |
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does not exist. |
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(h) The comptroller may use the cash or certificate of |
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deposit security to satisfy a final determination of delinquent |
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liability or a judgment secured in any action by this state to |
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recover compressed natural gas or liquefied natural gas taxes, |
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costs, penalties, and interest found to be due to this state by a |
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person on whose behalf the cash or certificate of deposit security |
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was deposited. |
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(i) The comptroller shall release and discharge from |
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liability to this state a surety on a bond furnished by a license |
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holder on the 31st day after the date on which the surety files with |
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the comptroller a written request to be released and discharged. |
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The request does not relieve, release, or discharge the surety from |
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a liability that already accrued or that accrues before the |
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expiration of the 30-day period. The comptroller, promptly on |
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receipt of the request, shall notify the license holder who |
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furnished the bond, and unless the license holder, before the |
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expiration date of the existing security, files with the |
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comptroller a new bond with a surety company authorized to do |
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business under the laws of this state, or other authorized |
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security, in the amount required by this section, the comptroller |
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shall cancel the license in the manner provided by this chapter. |
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(j) The comptroller shall immediately notify the issuer of a |
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letter of credit of a final determination of the license holder's |
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delinquent liability or a judgment secured in any action by this |
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state to recover compressed natural gas or liquefied natural gas |
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taxes, costs, penalties, and interest found to be due this state by |
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a license holder on whose behalf the letter of credit was issued. |
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The letter of credit allowed as security under this section must |
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contain a statement that the issuer agrees to respond to the |
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comptroller's notice of liability with amounts to satisfy the |
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comptroller's delinquency claim against the license holder. |
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(k) A license holder may request an examination or audit to |
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obtain release of the security when the license holder relinquishes |
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the license or when the license holder wants to substitute one form |
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of security for an existing one. |
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Sec. 162.362. RETURNS AND PAYMENTS; ALLOWANCES. (a) A |
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licensed dealer, on or before the 25th day of the month following |
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the end of each calendar quarter, shall file a report and remit the |
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amount of tax due. A licensed dealer who has not made taxable |
|
deliveries during the reporting period shall file with the |
|
comptroller a report that includes those facts or that information. |
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(b) If a licensed dealer files a report and remits the tax |
|
due on or before the due date under Subsection (a), one percent of |
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the tax due is allocated to the licensed dealer for the expense of |
|
collecting, accounting for, reporting, and timely remitting the |
|
taxes collected and for keeping the records. The licensed dealer |
|
shall deduct the allocated amount from the tax due when paying the |
|
tax to this state. |
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(c) A licensed interstate trucker, on or before the 25th day |
|
of the month following the end of each calendar quarter, shall file |
|
a report and remit the amount of tax due. A report shall be filed |
|
with the comptroller on forms provided for that purpose and must |
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contain the number of miles traveled in this state, the number of |
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miles traveled outside this state, and other information required |
|
by the comptroller. An interstate trucker who is required to file a |
|
report under this section and who has not made interstate trips or |
|
used compressed natural gas or liquefied natural gas in motor |
|
vehicles in this state during the reporting period shall file with |
|
the comptroller a report that includes those facts or that |
|
information. |
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(d) If a licensed interstate trucker files a report and |
|
remits the tax due on or before the due date under Subsection (c), |
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one-half of one percent of the tax paid on compressed natural gas |
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and liquefied natural gas used in this state by the interstate |
|
trucker is allocated to the interstate trucker for the expense of |
|
accounting for, reporting, and timely remitting the taxes due and |
|
for keeping the records. The licensed interstate trucker shall |
|
deduct the allocated amount from the tax due when paying the tax to |
|
this state. If the allocated amount exceeds the amount of tax due, |
|
the interstate trucker may file a refund claim with the |
|
comptroller. |
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Sec. 162.363. RECORDS. (a) A dealer shall keep a record |
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showing: |
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(1) compressed natural gas and liquefied natural gas |
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inventories at the first of each month; |
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(2) the amount of natural gas compressed by the dealer |
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and the amount of natural gas liquefied by the dealer; |
|
(3) all compressed natural gas and liquefied natural |
|
gas purchased or received, showing the name of the seller and the |
|
date of each purchase or receipt; |
|
(4) all compressed natural gas and liquefied natural |
|
gas sold and delivered into the fuel supply tank of a motor vehicle, |
|
showing the date of the sale; |
|
(5) all compressed natural gas and liquefied natural |
|
gas sold but not delivered into the fuel supply tank of a motor |
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vehicle, showing the date of the sale; |
|
(6) all compressed natural gas and liquefied natural |
|
gas delivered into the fuel supply tank of a motor vehicle not in |
|
connection with a sale, showing the date of the delivery; |
|
(7) all compressed natural gas and liquefied natural |
|
gas sold or delivered into the fuel supply tank of a motor vehicle |
|
or other equipment exempt from tax under Section 162.356, showing |
|
the name of the operator of the vehicle or the owner of the |
|
equipment and the date of the delivery; and |
|
(8) all compressed natural gas and liquefied natural |
|
gas lost by fire, theft, or accident. |
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(b) An interstate trucker shall keep a record of: |
|
(1) the total miles traveled in all states by all |
|
vehicles traveling to or from this state and the total quantity of |
|
compressed natural gas and liquefied natural gas consumed in those |
|
vehicles; and |
|
(2) the total miles traveled in this state and the |
|
total quantity of compressed natural gas or liquefied natural gas |
|
purchased and delivered into the fuel supply tanks of motor |
|
vehicles in this state. |
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(c) The records required by this section must be kept until |
|
the fourth anniversary of the date they are created and are open to |
|
inspection at all times by the comptroller and the attorney |
|
general. |
|
(d) In addition to the records specifically required by this |
|
subchapter, a license holder or a person required to hold a license |
|
shall keep any other records required by the comptroller. |
|
Sec. 162.364. DUTIES OF PERSONS HOLDING TAX PAYMENTS. (a) |
|
A person who receives or collects tax under this subchapter holds |
|
the amount received or collected in trust for the benefit of this |
|
state and has a fiduciary duty to remit to the comptroller the |
|
amount of tax received or collected. |
|
(b) A dealer who receives a payment of tax under this |
|
subchapter may not apply the payment of tax to a debt that the |
|
person making the payment owes for compressed natural gas or |
|
liquefied natural gas purchased from the dealer. |
|
(c) A person required to receive or collect a tax under this |
|
subchapter is liable for and shall pay the tax in the manner |
|
provided by this subchapter. |
|
Sec. 162.365. REFUND OR CREDIT FOR CERTAIN TAXES PAID. |
|
(a) A license holder may take a credit on a return for the period |
|
in which the purchase occurred, and a person who does not hold a |
|
license under this subchapter may file a refund claim with the |
|
comptroller if the license holder or person paid tax on compressed |
|
natural gas or liquefied natural gas and the license holder or |
|
person: |
|
(1) is the United States government and the fuel was |
|
delivered into the fuel supply tank of a motor vehicle operated |
|
exclusively by the United States, provided that a credit or refund |
|
is not allowed for fuel delivered into the fuel supply tank of a |
|
motor vehicle operated by a person operating under a contract with |
|
the United States; |
|
(2) is a public school district in this state and the |
|
fuel was delivered into the fuel supply tank of a motor vehicle |
|
operated exclusively by the district; |
|
(3) is a commercial transportation company that |
|
provides public school transportation services to a school district |
|
under Section 34.008, Education Code, and the fuel was delivered |
|
into the fuel supply tank of a motor vehicle used to provide those |
|
services; |
|
(4) is a volunteer fire department in this state and |
|
the fuel was delivered into the fuel supply tank of a motor vehicle |
|
operated exclusively by the department; |
|
(5) is a county in this state and the fuel was |
|
delivered into the fuel supply tank of a motor vehicle operated |
|
exclusively by the county; |
|
(6) is a nonprofit electric cooperative corporation |
|
organized under Chapter 161, Utilities Code, and the fuel was |
|
delivered into the fuel supply tank of a motor vehicle operated |
|
exclusively by the electric cooperative; |
|
(7) is a nonprofit telephone cooperative corporation |
|
organized under Chapter 162, Utilities Code, and the fuel was |
|
delivered into the fuel supply tank of a motor vehicle operated |
|
exclusively by the telephone cooperative; |
|
(8) uses the fuel in off-highway equipment, in a |
|
stationary engine, in a motorboat, in an aircraft, in equipment |
|
used solely for servicing aircraft and used exclusively |
|
off-highway, in a locomotive, or for other nonhighway purposes and |
|
not in a motor vehicle operated or intended to be operated on the |
|
public highways; or |
|
(9) uses the fuel in a motor vehicle that is operated |
|
exclusively off-highway, except for incidental travel on the public |
|
highways as determined by the comptroller, provided that a credit |
|
or refund may not be allowed for the portion used in the incidental |
|
highway travel. |
|
(b) A licensed interstate trucker may take a credit on a |
|
return for the period in which the purchase occurred if the licensed |
|
interstate trucker paid tax on compressed natural gas or liquefied |
|
natural gas and uses the fuel outside this state in commercial |
|
vehicles operated under an interstate trucker license, provided |
|
that a credit taken under this subsection must be taken within the |
|
limitation period provided by Section 162.369. |
|
(c) A transit company that paid tax on the purchase of |
|
compressed natural gas or liquefied natural gas may apply to the |
|
comptroller for and obtain a refund in an amount equal to one cent |
|
per gasoline gallon equivalent of compressed natural gas or diesel |
|
gallon equivalent of liquefied natural gas used in transit |
|
vehicles. |
|
(d) The right to receive a refund or take a credit under this |
|
section is not assignable. |
|
(e) The comptroller may adopt rules specifying procedures |
|
and requirements that must be followed to take a credit or receive a |
|
refund under this section. |
|
Sec. 162.366. CREDIT FOR BAD DEBT OR NONPAYMENT. (a) A |
|
licensed dealer may take a credit on a return filed under this |
|
subchapter if: |
|
(1) the dealer paid the taxes imposed by this |
|
subchapter on compressed natural gas or liquefied natural gas sold |
|
on account; |
|
(2) the dealer determines that the account is |
|
uncollectible and worthless; and |
|
(3) the account is written off as a bad debt on the |
|
dealer's accounting books. |
|
(b) The return on which the credit is taken must state, if |
|
applicable, the name of the person whose account has been written |
|
off as a bad debt or who failed to remit the tax and any other |
|
information required by the comptroller. The amount of the credit |
|
that may be taken under Subsection (a) may be equal to but may not |
|
exceed the amount of taxes paid on the compressed natural gas or |
|
liquefied natural gas to which the written-off account applies. |
|
(c) If, after a credit is taken under Subsection (a), the |
|
account on which the credit was based is paid, or if the comptroller |
|
otherwise determines that the credit was not authorized by |
|
Subsection (a), the dealer who took the credit shall pay the unpaid |
|
taxes plus a penalty of 10 percent of the amount of the unpaid taxes |
|
and interest at the rate provided by Section 111.060 beginning on |
|
the day the report showing the credit was filed and ending on the |
|
date the taxes and penalty are paid. |
|
(d) This section does not apply to a sale of compressed |
|
natural gas or liquefied natural gas for which payment is made |
|
through the use and acceptance of a credit card. |
|
(e) A credit under this section must be taken at the time the |
|
account is written off as a bad debt, but may only be taken before |
|
the expiration of the applicable limitation period as provided by |
|
Chapter 111. |
|
(f) The comptroller may take action against a person in |
|
relation to whom a dealer has taken a credit for collection of the |
|
tax owed and for penalty and interest as provided by Chapter 111. |
|
Sec. 162.367. CLAIMS FOR REFUNDS. (a) A refund claim must |
|
be filed on a form provided by the comptroller, be supported by the |
|
original invoice issued by the dealer, and contain: |
|
(1) the stamped or preprinted name and address of the |
|
dealer; |
|
(2) the name of the purchaser or person who received |
|
the delivery of fuel; |
|
(3) the date of delivery of the fuel; |
|
(4) the date the invoice was issued, if different from |
|
the date of fuel delivery; |
|
(5) the number of gasoline gallon equivalents of |
|
compressed natural gas or diesel gallon equivalents of liquefied |
|
natural gas delivered; |
|
(6) the rate and the amount of tax added to the selling |
|
price; and |
|
(7) the type of vehicle or equipment into which the |
|
fuel is delivered. |
|
(b) The purchaser or person who received the delivery of |
|
compressed natural gas or liquefied natural gas must obtain the |
|
original invoice from the dealer not later than the 30th day after |
|
the date the fuel is delivered. If the purchase or delivery of fuel |
|
is made through an automated method in which the purchase or |
|
delivery is automatically applied to the purchaser or recipient's |
|
account, one invoice may be issued at the time of billing that |
|
covers multiple purchases or deliveries made during a 30-day |
|
billing cycle. |
|
(c) The comptroller shall pay a refund by warrant to a |
|
person who files a valid refund claim. |
|
(d) A person who files a claim for a tax refund on compressed |
|
natural gas or liquefied natural gas used for a purpose for which a |
|
tax refund is not authorized or who files an invoice supporting a |
|
refund claim on which the date, figures, or any material |
|
information has been falsified or altered forfeits the person's |
|
right to the entire amount of the refund claim filed unless the |
|
claimant provides proof satisfactory to the comptroller that the |
|
incorrect refund claim filed was due to a clerical or mathematical |
|
calculation error. |
|
(e) After examining the refund claim and before issuing a |
|
refund warrant, the comptroller shall deduct from the amount of the |
|
refund the one percent originally deducted by the dealer under |
|
Section 162.362(b). |
|
Sec. 162.368. 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 compressed natural gas or liquefied |
|
natural gas delivered into the fuel supply tank of a motor vehicle |
|
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. |
|
Sec. 162.369. WHEN COMPRESSED NATURAL GAS OR LIQUEFIED |
|
NATURAL GAS TAX REFUND OR CREDIT MAY BE FILED. (a) Except as |
|
otherwise provided by this section, a claim for a refund must be |
|
filed with the comptroller before the first anniversary of the |
|
first day of the calendar month following the purchase, use, or |
|
delivery of compressed natural gas or liquefied natural gas, |
|
whichever period expires latest. |
|
(b) If the amount of credit that a licensed interstate |
|
trucker is entitled to take under Section 162.365(b) exceeds the |
|
amount of tax due on that reporting period, the excess credit amount |
|
may be claimed on any of three successive quarterly returns |
|
following the period in which the credit was established, or the |
|
licensed interstate trucker may seek a refund from the comptroller |
|
on or before the due date of the third successive quarterly return |
|
following the period in which the credit was established. A credit |
|
that is not claimed within the period prescribed by this subsection |
|
expires. |
|
(c) If the comptroller assesses a dealer for a tax-free sale |
|
that is taxable, and the dealer subsequently collects the tax from |
|
the purchaser, the purchaser may file a refund claim before the |
|
first anniversary of the date the dealer's deficiency assessment |
|
becomes final if the purchaser used the fuel in an exempt manner. |
|
(d) A dealer who determines taxes were erroneously reported |
|
and remitted or who paid more taxes than were due because of a |
|
mistake of fact or law may take a credit on the quarterly tax report |
|
on which the error occurred and the tax payment was made to the |
|
comptroller. The credit must be taken before the expiration of the |
|
applicable period of limitation as provided by Chapter 111. |
|
SECTION 4. Subchapter F, Chapter 162, Tax Code, is amended |
|
by adding Section 162.506 to read as follows: |
|
Sec. 162.506. ALLOCATION OF COMPRESSED NATURAL GAS AND |
|
LIQUEFIED NATURAL GAS TAX. On or before the fifth workday after the |
|
end of each month, the comptroller, after making deductions for |
|
refund purposes and for the administration and enforcement of this |
|
chapter, shall allocate the remainder of the taxes collected under |
|
Subchapter D-1 as follows: |
|
(1) one-fourth of the taxes shall be deposited to the |
|
credit of the available school fund; and |
|
(2) three-fourths of the taxes shall be deposited to |
|
the credit of the state highway fund. |
|
SECTION 5. Section 162.402(a), Tax Code, is amended to read |
|
as follows: |
|
(a) A person forfeits to the state a civil penalty of not |
|
less than $25 and not more than $200 if the person: |
|
(1) refuses to stop and permit the inspection and |
|
examination of a motor vehicle transporting or using motor fuel on |
|
demand of a peace officer or the comptroller; |
|
(2) operates a motor vehicle in this state without a |
|
valid interstate trucker's license or a trip permit when the person |
|
is required to hold one of those licenses or permits; |
|
(3) operates a liquefied gas-propelled motor vehicle |
|
that is required to be licensed in this state, including motor |
|
vehicles equipped with dual carburetion, and does not display a |
|
current liquefied gas tax decal or multistate fuels tax agreement |
|
decal; |
|
(4) makes a tax-free sale or delivery of liquefied gas |
|
into the fuel supply tank of a motor vehicle that does not display a |
|
current Texas liquefied gas tax decal; |
|
(5) makes a taxable sale or delivery of liquefied gas |
|
without holding a valid dealer's license; |
|
(6) makes a tax-free sale or delivery of liquefied gas |
|
into the fuel supply tank of a motor vehicle bearing out-of-state |
|
license plates; |
|
(7) makes a delivery of liquefied gas into the fuel |
|
supply tank of a motor vehicle bearing Texas license plates and no |
|
Texas liquefied gas tax decal, unless licensed under a multistate |
|
fuels tax agreement; |
|
(8) transports gasoline or diesel fuel in any cargo |
|
tank that has a connection by pipe, tube, valve, or otherwise with |
|
the fuel injector or carburetor of, or with the fuel supply tank |
|
feeding the fuel injector or carburetor of, the motor vehicle |
|
transporting the product; |
|
(9) sells or delivers gasoline or diesel fuel from any |
|
fuel supply tank connected with the fuel injector or carburetor of a |
|
motor vehicle; |
|
(10) owns or operates a motor vehicle for which |
|
reports or mileage records are required by this chapter without an |
|
operating odometer or other device in good working condition to |
|
record accurately the miles traveled; |
|
(11) furnishes to a licensed supplier or distributor a |
|
signed statement for purchasing diesel fuel tax-free and then uses |
|
the tax-free diesel fuel to operate a diesel-powered motor vehicle |
|
on a public highway; |
|
(12) fails or refuses to comply with or violates a |
|
provision of this chapter; |
|
(13) fails or refuses to comply with or violates a |
|
comptroller's rule for administering or enforcing this chapter; |
|
(14) is an importer who does not obtain an import |
|
verification number when required by this chapter; [or] |
|
(15) purchases motor fuel for export, on which the tax |
|
imposed by this chapter has not been paid, and subsequently diverts |
|
or causes the motor fuel to be diverted to a destination in this |
|
state or any other state or country other than the originally |
|
designated state or country without first obtaining a diversion |
|
number; |
|
(16) delivers compressed natural gas or liquefied |
|
natural gas into the fuel supply tank of a motor vehicle and the |
|
person does not hold a valid compressed natural gas and liquefied |
|
natural gas dealer's license; or |
|
(17) makes a tax-free delivery of compressed natural |
|
gas or liquefied natural gas into the fuel supply tank of a motor |
|
vehicle, unless the delivery is exempt from tax under Section |
|
162.356. |
|
SECTION 6. Section 162.403, Tax Code, is amended to read as |
|
follows: |
|
Sec. 162.403. CRIMINAL OFFENSES. Except as provided by |
|
Section 162.404, a person commits an offense if the person: |
|
(1) refuses to stop and permit the inspection and |
|
examination of a motor vehicle transporting or using motor fuel on |
|
the demand of a peace officer or the comptroller; |
|
(2) is required to hold a valid trip permit or |
|
interstate trucker's license, but operates a motor vehicle in this |
|
state without a valid trip permit or interstate trucker's license; |
|
(3) operates a liquefied gas-propelled motor vehicle |
|
that is required to be licensed in this state, including a motor |
|
vehicle equipped with dual carburetion, and does not display a |
|
current liquefied gas tax decal or multistate fuels tax agreement |
|
decal; |
|
(4) transports gasoline or diesel fuel in any cargo |
|
tank that has a connection by pipe, tube, valve, or otherwise with |
|
the fuel injector or carburetor or with the fuel supply tank feeding |
|
the fuel injector or carburetor of the motor vehicle transporting |
|
the product; |
|
(5) sells or delivers gasoline or diesel fuel from a |
|
fuel supply tank that is connected with the fuel injector or |
|
carburetor of a motor vehicle; |
|
(6) owns or operates a motor vehicle for which reports |
|
or mileage records are required by this chapter without an |
|
operating odometer or other device in good working condition to |
|
record accurately the miles traveled; |
|
(7) sells or delivers dyed diesel fuel for the |
|
operation of a motor vehicle on a public highway; |
|
(8) uses dyed diesel fuel for the operation of a motor |
|
vehicle on a public highway except as allowed under Section |
|
162.235; |
|
(9) makes a tax-free sale or delivery of liquefied gas |
|
into the fuel supply tank of a motor vehicle that does not display a |
|
current Texas liquefied gas tax decal; |
|
(10) makes a sale or delivery of liquefied gas on which |
|
the person knows the tax is required to be collected, if at the time |
|
the sale is made the person does not hold a valid dealer's license; |
|
(11) makes a tax-free sale or delivery of liquefied |
|
gas into the fuel supply tank of a motor vehicle bearing |
|
out-of-state license plates; |
|
(12) makes a delivery of liquefied gas into the fuel |
|
supply tank of a motor vehicle bearing Texas license plates and no |
|
Texas liquefied gas tax decal, unless licensed under a multistate |
|
fuels tax agreement; |
|
(13) refuses to permit the comptroller or the attorney |
|
general to inspect, examine, or audit a book or record required to |
|
be kept by a license holder, other user, or any person required to |
|
hold a license under this chapter; |
|
(14) refuses to permit the comptroller or the attorney |
|
general to inspect or examine any plant, equipment, materials, or |
|
premises where motor fuel is produced, processed, blended, stored, |
|
sold, delivered, or used; |
|
(15) refuses to permit the comptroller, the attorney |
|
general, an employee of either of those officials, a peace officer, |
|
an employee of the Texas Commission on Environmental Quality, or an |
|
employee of the Department of Agriculture to measure or gauge the |
|
contents of or take samples from a storage tank or container on |
|
premises where motor fuel is produced, processed, blended, stored, |
|
sold, delivered, or used; |
|
(16) is a license holder, a person required to be |
|
licensed, or another user and fails or refuses to make or deliver to |
|
the comptroller a report required by this chapter to be made and |
|
delivered to the comptroller; |
|
(17) is an importer who does not obtain an import |
|
verification number when required by this chapter; |
|
(18) purchases motor fuel for export, on which the tax |
|
imposed by this chapter has not been paid, and subsequently diverts |
|
or causes the motor fuel to be diverted to a destination in this |
|
state or any other state or country other than the originally |
|
designated state or country without first obtaining a diversion |
|
number; |
|
(19) conceals motor fuel with the intent of engaging |
|
in any conduct proscribed by this chapter or refuses to make sales |
|
of motor fuel on the volume-corrected basis prescribed by this |
|
chapter; |
|
(20) refuses, while transporting motor fuel, to stop |
|
the motor vehicle the person is operating when called on to do so by |
|
a person authorized to stop the motor vehicle; |
|
(21) refuses to surrender a motor vehicle and cargo |
|
for impoundment after being ordered to do so by a person authorized |
|
to impound the motor vehicle and cargo; |
|
(22) mutilates, destroys, or secretes a book or record |
|
required by this chapter to be kept by a license holder, other user, |
|
or person required to hold a license under this chapter; |
|
(23) is a license holder, other user, or other person |
|
required to hold a license under this chapter, or the agent or |
|
employee of one of those persons, and makes a false entry or fails |
|
to make an entry in the books and records required under this |
|
chapter to be made by the person or fails to retain a document as |
|
required by this chapter; |
|
(24) transports in any manner motor fuel under a false |
|
cargo manifest or shipping document, or transports in any manner |
|
motor fuel to a location without delivering at the same time a |
|
shipping document relating to that shipment; |
|
(25) engages in a motor fuel transaction that requires |
|
that the person have a license under this chapter without then and |
|
there holding the required license; |
|
(26) makes and delivers to the comptroller a report |
|
required under this chapter to be made and delivered to the |
|
comptroller, if the report contains false information; |
|
(27) forges, falsifies, or alters an invoice or |
|
shipping document prescribed by law; |
|
(28) makes any statement, knowing said statement to be |
|
false, in a claim for a tax refund filed with the comptroller; |
|
(29) furnishes to a licensed supplier or distributor a |
|
signed statement for purchasing diesel fuel tax-free and then uses |
|
the tax-free diesel fuel to operate a diesel-powered motor vehicle |
|
on a public highway; |
|
(30) holds an aviation fuel dealer's license and makes |
|
a taxable sale or use of any gasoline or diesel fuel; |
|
(31) fails to remit any tax funds collected or |
|
required to be collected by a license holder, another user, or any |
|
other person required to hold a license under this chapter; |
|
(32) makes a sale of dyed diesel fuel tax-free into a |
|
storage facility of a person who: |
|
(A) is not licensed as a distributor, as an |
|
aviation fuel dealer, or as a dyed diesel fuel bonded user; or |
|
(B) does not furnish to the licensed supplier or |
|
distributor a signed statement prescribed in Section 162.206; |
|
(33) makes a sale of gasoline tax-free to any person |
|
who is not licensed as an aviation fuel dealer; |
|
(34) purchases any motor fuel tax-free when not |
|
authorized to make a tax-free purchase under this chapter; |
|
(35) purchases motor fuel with the intent to evade any |
|
tax imposed by this chapter or accepts a delivery of motor fuel by |
|
any means and does not at the same time accept or receive a shipping |
|
document relating to the delivery; |
|
(36) transports motor fuel for which a cargo manifest |
|
or shipping document is required to be carried without possessing |
|
or exhibiting on demand by an officer authorized to make the demand |
|
a cargo manifest or shipping document containing the information |
|
required to be shown on the manifest or shipping document; |
|
(37) imports, sells, uses, blends, distributes, or |
|
stores motor fuel within this state on which the taxes imposed by |
|
this chapter are owed but have not been first paid to or reported by |
|
a license holder, another user, or any other person required to hold |
|
a license under this chapter; |
|
(38) blends products together to produce a blended |
|
fuel that is offered for sale, sold, or used and that expands the |
|
volume of the original product to evade paying applicable motor |
|
fuel taxes; [or] |
|
(39) evades or attempts to evade in any manner a tax |
|
imposed on motor fuel by this chapter; |
|
(40) delivers compressed natural gas or liquefied |
|
natural gas into the fuel supply tank of a motor vehicle and the |
|
person does not hold a valid compressed natural gas and liquefied |
|
natural gas dealer's license; or |
|
(41) makes a tax-free delivery of compressed natural |
|
gas or liquefied natural gas into the fuel supply tank of a motor |
|
vehicle, unless the delivery is exempt from tax under Section |
|
162.356. |
|
SECTION 7. Section 162.405(b), Tax Code, is amended to read |
|
as follows: |
|
(b) An offense under Section 162.403(9), (10), (11), (12), |
|
(13), (14), (15), (16), (17), [or] (18), (40), or (41) is a Class B |
|
misdemeanor. |
|
SECTION 8. As soon as practicable before, on, or after the |
|
effective date of this Act, the comptroller of public accounts |
|
shall: |
|
(1) adopt any rules necessary to implement the changes |
|
in law made by this Act; and |
|
(2) begin accepting applications for and issuing |
|
compressed natural gas and liquefied natural gas dealer's licenses |
|
and interstate trucker's licenses under Sections 162.357 and |
|
162.358, Tax Code, as added by this Act, that become effective on or |
|
after the effective date of this Act. |
|
SECTION 9. A person who holds a liquefied gas tax decal |
|
license under Section 162.305, Tax Code, that is valid on or after |
|
the effective date of this Act, for a vehicle fueled by compressed |
|
natural gas or liquefied natural gas may, not later than December |
|
31, 2013, apply to the comptroller of public accounts for and obtain |
|
a pro rata refund of the unused portion of the advanced taxes paid |
|
for the period after the effective date of this Act. The comptroller |
|
shall provide application forms for refunds under this section. |
|
SECTION 10. The changes in law made by this Act do not |
|
affect tax liability accruing before the effective date of this |
|
Act. That liability continues in effect as if this Act had not been |
|
enacted, and the former law is continued in effect for the |
|
collection of taxes due and for civil and criminal enforcement of |
|
the liability for those taxes. |
|
SECTION 11. This Act takes effect July 1, 2013, 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, 2013. |