84R14787 GRM-D
 
  By: Zaffirini S.B. No. 1380
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption of municipalities, certain metropolitan
  rapid transit authorities, and regional transit authorities from
  certain motor fuel taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 162.356, Tax Code, is amended to read as
  follows:
         Sec. 162.356.  EXEMPTIONS.  The tax imposed by this
  subchapter does not apply to compressed natural gas or liquefied
  natural gas delivered into the fuel supply tank of:
               (1)  a motor vehicle operated exclusively by the United
  States, provided that the exemption does not apply with respect to
  fuel delivered into the fuel supply tank of a motor vehicle of a
  person operating under a contract with the United States;
               (2)  a motor vehicle operated exclusively by a public
  school district in this state;
               (3)  a motor vehicle operated exclusively by a
  commercial transportation company [or a metropolitan rapid transit
  authority operating under Chapter 451, Transportation Code,] that
  provides public school transportation services to a school district
  under Section 34.008, Education Code, and that uses the fuel only to
  provide those services;
               (4)  a motor vehicle operated exclusively by a
  volunteer fire department in this state;
               (5)  a motor vehicle operated exclusively by a county
  in this state;
               (6)  a motor vehicle operated exclusively by a
  nonprofit electric cooperative corporation organized under Chapter
  161, Utilities Code;
               (7)  a motor vehicle operated exclusively by a
  nonprofit telephone cooperative corporation organized under
  Chapter 162, Utilities Code;
               (8)  a motor vehicle that is not registered for use on
  the public highways of this state and that is used exclusively
  off-highway; [or]
               (9)  off-highway equipment, a stationary engine, a
  motorboat, an aircraft, equipment used solely for servicing
  aircraft and used exclusively off-highway, a locomotive, or any
  device other than a motor vehicle operated or intended to be
  operated on the public highways;
               (10)  a motor vehicle operated exclusively by a
  metropolitan rapid transit authority operating under Chapter 451,
  Transportation Code, or a regional transportation authority
  operating under Chapter 452, Transportation Code; or
               (11)  a motor vehicle operated exclusively by a
  municipality in this state.
         SECTION 2.  Section 162.365(a), Tax Code, is amended to read
  as follows:
         (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;
               (10)  is a metropolitan rapid transit authority
  operating under Chapter 451, Transportation Code, or a regional
  transportation authority operating under Chapter 452,
  Transportation Code, and the fuel was delivered into the fuel
  supply tank of a motor vehicle operated exclusively by the
  authority; or
               (11)  is a municipality in this state and the fuel was
  delivered into the fuel supply tank of a motor vehicle operated
  exclusively by the municipality.
         SECTION 3.  Section 162.368, Tax Code, is repealed.
         SECTION 4.  The change in law made by this Act does 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 5.  This Act takes effect September 1, 2015.