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A BILL TO BE ENTITLED
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AN ACT
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relating to taxes wholly or partly deposited to the credit of the |
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state highway fund; increasing the rates of the gasoline and diesel |
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fuel taxes and authorizing the increase or decrease of those rates |
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in subsequent years. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) Section 152.122, Tax Code, is amended to read |
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as follows: |
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Sec. 152.122. ALLOCATION OF TAX. Subject to Section |
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152.1222, the [The] comptroller shall deposit the funds received |
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under Section 152.121 [of this code] as follows: |
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(1) in the state fiscal year beginning September 1, |
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2016, 25 percent to the credit of the state highway fund and 75 |
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percent [1/4 to the credit of the foundation school fund; and
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[(2) the remaining funds] to the credit of the general |
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revenue fund; |
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(2) in the state fiscal year beginning September 1, |
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2017, 30 percent to the credit of the state highway fund and 70 |
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percent to the credit of the general revenue fund; |
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(3) in the state fiscal year beginning September 1, |
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2018, 35 percent to the credit of the state highway fund and 65 |
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percent to the credit of the general revenue fund; |
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(4) in the state fiscal year beginning September 1, |
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2019, 40 percent to the credit of the state highway fund and 60 |
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percent to the credit of the general revenue fund; |
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(5) in the state fiscal year beginning September 1, |
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2020, 45 percent to the credit of the state highway fund and 55 |
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percent to the credit of the general revenue fund; and |
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(6) in state fiscal years beginning on or after |
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September 1, 2021, 50 percent to the credit of the state highway |
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fund and 50 percent to the credit of the general revenue fund. |
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(b) In addition to the substantive changes made by this |
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section, this section conforms Section 152.122, Tax Code, to the |
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method of allocating motor vehicle sales and use taxes in effect |
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before the effective date of this section. Section 11.04, Chapter 4 |
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(S.B. 3), Acts of the 72nd Legislature, 1st Called Session, 1991, |
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enacted former Section 403.094(h), Government Code, which |
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abolished certain state fund dedications and resulted in the |
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abolition of the allocation to the foundation school fund effective |
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August 31, 1995. |
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SECTION 2. (a) Section 162.102, Tax Code, is amended to |
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read as follows: |
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Sec. 162.102. TAX RATE. The gasoline tax rate is 25 [20] |
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cents for each net gallon or fractional part on which the tax is |
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imposed under Section 162.101. |
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(b) Effective January 1, 2018, Section 162.102, Tax Code, is |
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amended to read as follows: |
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Sec. 162.102. TAX RATE. The gasoline tax rate is 30 [20] |
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cents for each net gallon or fractional part on which the tax is |
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imposed under Section 162.101. |
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SECTION 3. (a) Effective September 1, 2018, Subchapter B, |
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Chapter 162, Tax Code, is amended by adding Section 162.1021 to read |
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as follows: |
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Sec. 162.1021. ANNUAL RATE CHANGE ACCORDING TO HIGHWAY COST |
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INDEX. (a) In this section: |
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(1) "Highway cost index" means the 12-month moving |
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average of the price of materials and labor compiled by the Texas |
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Department of Transportation and incorporated into state highway |
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projects. |
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(2) "Highway cost index percentage change" means the |
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percentage increase or decrease in the highway cost index of a given |
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state fiscal year from the highway cost index of the preceding state |
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fiscal year. |
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(b) Notwithstanding Section 162.102, on January 1 of each |
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year, the rate of the gasoline tax imposed under this subchapter is |
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increased or decreased by a percentage equal to the highway cost |
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index percentage change for the preceding state fiscal year. |
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(c) Notwithstanding Subsection (b), the percentage increase |
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or decrease may not result in an increase or decrease in the rate |
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that exceeds one cent for each net gallon or fractional gallon of |
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gasoline on which the tax is imposed under Section 162.101. |
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(d) Not later than December 1 of each year, the comptroller |
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shall: |
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(1) compute the new tax rate as provided by this |
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section; |
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(2) give the new tax rate to the secretary of state for |
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publication in the Texas Register; and |
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(3) notify each license holder under this subchapter |
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of the applicable new tax rate. |
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(b) The comptroller shall compute the initial adjusted tax |
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rate as required by Section 162.1021(d), Tax Code, as added by this |
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section, not later than December 1, 2018. The initial adjusted rate |
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takes effect January 1, 2019. |
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SECTION 4. Effective January 1, 2019, Section 162.103(a), |
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Tax Code, is amended to read as follows: |
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(a) A backup tax is imposed at the rate prescribed by |
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Section 162.102 or 162.1021 on: |
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(1) a person who obtains a refund of tax on gasoline by |
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claiming the gasoline was used for an off-highway purpose, but |
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actually uses the gasoline to operate a motor vehicle on a public |
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highway; |
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(2) a person who operates a motor vehicle on a public |
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highway using gasoline on which tax has not been paid; |
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(3) a person who sells to the ultimate consumer |
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gasoline on which tax has not been paid and who knew or had reason to |
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know that the gasoline would be used for a taxable purpose; and |
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(4) a person, other than a person exempted under |
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Section 162.104, who acquires gasoline on which tax has not been |
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paid from any source in this state. |
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SECTION 5. (a) Section 162.202, Tax Code, is amended to read |
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as follows: |
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Sec. 162.202. TAX RATE. The diesel fuel tax rate is 25 [20] |
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cents for each net gallon or fractional part on which the tax is |
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imposed under Section 162.201. |
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(b) Effective January 1, 2018, Section 162.202, Tax Code, is |
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amended to read as follows: |
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Sec. 162.202. TAX RATE. The diesel fuel tax rate is 30 [20] |
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cents for each net gallon or fractional part on which the tax is |
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imposed under Section 162.201. |
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SECTION 6. (a) Effective September 1, 2018, Subchapter C, |
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Chapter 162, Tax Code, is amended by adding Section 162.2021 to read |
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as follows: |
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Sec. 162.2021. ANNUAL RATE CHANGE ACCORDING TO HIGHWAY COST |
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INDEX. (a) In this section: |
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(1) "Highway cost index" means the 12-month moving |
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average of the price of materials and labor compiled by the Texas |
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Department of Transportation and incorporated into state highway |
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projects. |
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(2) "Highway cost index percentage change" means the |
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percentage increase or decrease in the highway cost index of a given |
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state fiscal year from the highway cost index of the preceding state |
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fiscal year. |
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(b) Notwithstanding Section 162.202, on January 1 of each |
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year, the rate of the diesel fuel tax imposed under this subchapter |
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is increased or decreased by a percentage equal to the highway cost |
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index percentage change for the preceding state fiscal year. |
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(c) Notwithstanding Subsection (b), the percentage increase |
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or decrease may not result in an increase or decrease in the rate |
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that exceeds one cent for each net gallon or fractional gallon of |
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diesel fuel on which the tax is imposed under Section 162.201. |
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(d) Not later than December 1 of each year, the comptroller |
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shall: |
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(1) compute the new tax rate as provided by this |
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section; |
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(2) give the new tax rate to the secretary of state for |
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publication in the Texas Register; and |
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(3) notify each license holder under this subchapter |
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of the applicable new tax rate. |
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(b) The comptroller shall compute the initial adjusted tax |
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rate as required by Section 162.2021(d), Tax Code, as added by this |
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section, not later than December 1, 2018. The initial adjusted rate |
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takes effect January 1, 2019. |
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SECTION 7. Effective January 1, 2019, Section 162.203(a), |
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Tax Code, is amended to read as follows: |
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(a) A backup tax is imposed at the rate prescribed by |
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Section 162.202 or 162.2021 on: |
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(1) a person who obtains a refund of tax on diesel fuel |
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by claiming the diesel fuel was used for an off-highway purpose, but |
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actually uses the diesel fuel to operate a motor vehicle on a public |
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highway; |
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(2) a person who operates a motor vehicle on a public |
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highway using diesel fuel on which tax has not been paid; |
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(3) a person who sells to the ultimate consumer diesel |
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fuel on which a tax has not been paid and who knew or had reason to |
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know that the diesel fuel would be used for a taxable purpose; and |
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(4) a person, other than a person exempted under |
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Section 162.204, who acquires diesel fuel on which tax has not been |
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paid from any source in this state. |
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SECTION 8. Subchapter A, Chapter 222, Transportation Code, |
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is amended by adding Section 222.0015 to read as follows: |
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Sec. 222.0015. USE OF CERTAIN MONEY IN STATE HIGHWAY FUND. |
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(a) This section applies only to the following money deposited to |
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the credit of the state highway fund: |
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(1) all money deposited under Section 152.122, Tax |
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Code; |
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(2) all proceeds from the collection of taxes imposed |
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by Subchapter B, Chapter 162, Tax Code, attributable to the portion |
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of the tax rate in excess of 20 cents for each net gallon or |
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fractional part of gasoline on which the tax is imposed under |
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Section 162.101, Tax Code; and |
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(3) all proceeds from the collection of taxes imposed |
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by Subchapter C, Chapter 162, Tax Code, attributable to the portion |
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of the tax rate in excess of 20 cents for each net gallon or |
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fractional part of diesel fuel on which the tax is imposed under |
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Section 162.201, Tax Code. |
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(b) Notwithstanding other law, including Sections 201.115, |
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222.001, and 222.003, money described by Subsection (a): |
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(1) may not be pledged for the repayment of bonds; and |
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(2) may be used only for acquiring rights-of-way and |
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planning, designing, constructing, and maintaining nontolled |
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public roadways. |
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SECTION 9. This Act takes effect January 1, 2016, but only |
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if the constitutional amendment proposed by the 84th Legislature, |
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Regular Session, 2015, limiting the permissible uses of the state |
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highway fund, including further limiting the use of additional tax |
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and fee revenue attributable to changes to certain state taxes and |
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fees, to increase revenue for nontolled public highway purposes is |
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approved by the voters. If that amendment is not approved by the |
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voters, this Act has no effect. |