| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the exemption of rural transit districts from motor |
|
|
fuel taxes. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 162.104(a), Tax Code, is amended to read |
|
|
as follows: |
|
|
(a) The tax imposed by this subchapter does not apply to |
|
|
gasoline: |
|
|
(1) sold to the United States for its exclusive use, |
|
|
provided that the exemption does not apply with respect to fuel sold |
|
|
or delivered to a person operating under a contract with the United |
|
|
States; |
|
|
(2) sold to a public school district in this state for |
|
|
the district's exclusive use; |
|
|
(3) sold to a commercial transportation company or a |
|
|
metropolitan rapid transit authority operating under Chapter 451, |
|
|
Transportation Code, that provides public school transportation |
|
|
services to a school district under Section 34.008, Education Code, |
|
|
and that uses the gasoline only to provide those services; |
|
|
(4) exported by either a licensed supplier or a |
|
|
licensed exporter from this state to any other state, provided that |
|
|
the bill of lading indicates the destination state and the supplier |
|
|
collects the destination state tax; |
|
|
(5) moved by truck or railcar between licensed |
|
|
suppliers or licensed permissive suppliers and in which the |
|
|
gasoline removed from the first terminal comes to rest in the second |
|
|
terminal, provided that the removal from the second terminal rack |
|
|
is subject to the tax imposed by this subchapter; |
|
|
(6) delivered or sold into a storage facility of a |
|
|
licensed aviation fuel dealer from which gasoline will be delivered |
|
|
solely into the fuel supply tanks of aircraft or aircraft servicing |
|
|
equipment, or sold from one licensed aviation fuel dealer to |
|
|
another licensed aviation fuel dealer who will deliver the aviation |
|
|
fuel exclusively into the fuel supply tanks of aircraft or aircraft |
|
|
servicing equipment; |
|
|
(7) exported to a foreign country if the bill of lading |
|
|
or shipping documents indicate the foreign destination and the fuel |
|
|
is actually exported to the foreign country; |
|
|
(8) sold to a volunteer fire department in this state |
|
|
for the department's exclusive use; [or] |
|
|
(9) sold to a nonprofit entity that is organized for |
|
|
the sole purpose of and engages exclusively in providing emergency |
|
|
medical services and that uses the gasoline exclusively to provide |
|
|
emergency medical services, including rescue and ambulance |
|
|
services; or |
|
|
(10) sold to a rural transit district created under |
|
|
Chapter 458, Transportation Code, that uses the gasoline |
|
|
exclusively to provide public transportation. |
|
|
SECTION 2. Sections 162.125(a) and (g), Tax Code, are |
|
|
amended to read as follows: |
|
|
(a) A license holder may take a credit on a return for the |
|
|
period in which the sale occurred if the license holder paid tax on |
|
|
the purchase of gasoline and subsequently resells the gasoline |
|
|
without collecting the tax to: |
|
|
(1) the United States government for its exclusive |
|
|
use, provided that a credit is not allowed for gasoline used by a |
|
|
person operating under contract with the United States; |
|
|
(2) a public school district in this state for the |
|
|
district's exclusive use; |
|
|
(3) an exporter licensed under this subchapter if the |
|
|
seller is a licensed supplier or distributor and the exporter |
|
|
subsequently exports the gasoline to another state; |
|
|
(4) a licensed aviation fuel dealer if the seller is a |
|
|
licensed distributor; [or] |
|
|
(5) a commercial transportation company or a |
|
|
metropolitan rapid transit authority operating under Chapter 451, |
|
|
Transportation Code, that provides public school transportation |
|
|
services to a school district under Section 34.008, Education Code, |
|
|
and that uses the gasoline exclusively to provide those services; |
|
|
or |
|
|
(6) a rural transit district created under Chapter |
|
|
458, Transportation Code, that uses the gasoline exclusively to |
|
|
provide public transportation. |
|
|
(g) A transit company that paid tax on the purchase of |
|
|
gasoline, and is not otherwise entitled to a refund of that tax |
|
|
under this subchapter, may seek a refund with the comptroller in an |
|
|
amount equal to one cent per gallon for gasoline used in transit |
|
|
vehicles. |
|
|
SECTION 3. Subchapter B, Chapter 162, Tax Code, is amended |
|
|
by adding Section 162.1276 to read as follows: |
|
|
Sec. 162.1276. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS. |
|
|
(a) A rural transit district created under Chapter 458, |
|
|
Transportation Code, is entitled to a refund of taxes paid under |
|
|
this subchapter for gasoline used to provide public transportation |
|
|
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; and |
|
|
(3) fuel consumed. |
|
|
(c) A rural transit district 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. |
|
|
SECTION 4. Section 162.204(a), Tax Code, is amended to read |
|
|
as follows: |
|
|
(a) The tax imposed by this subchapter does not apply to: |
|
|
(1) diesel fuel sold to the United States for its |
|
|
exclusive use, provided that the exemption does not apply to diesel |
|
|
fuel sold or delivered to a person operating under a contract with |
|
|
the United States; |
|
|
(2) diesel fuel sold to a public school district in |
|
|
this state for the district's exclusive use; |
|
|
(3) diesel fuel sold to a commercial transportation |
|
|
company or a metropolitan rapid transit authority operating under |
|
|
Chapter 451, Transportation Code, that provides public school |
|
|
transportation services to a school district under Section 34.008, |
|
|
Education Code, and that uses the diesel fuel only to provide those |
|
|
services; |
|
|
(4) diesel fuel exported by either a licensed supplier |
|
|
or a licensed exporter from this state to any other state, provided |
|
|
that the bill of lading indicates the destination state and the |
|
|
supplier collects the destination state tax; |
|
|
(5) diesel fuel moved by truck or railcar between |
|
|
licensed suppliers or licensed permissive suppliers and in which |
|
|
the diesel fuel removed from the first terminal comes to rest in the |
|
|
second terminal, provided that the removal from the second terminal |
|
|
rack is subject to the tax imposed by this subchapter; |
|
|
(6) diesel fuel delivered or sold into a storage |
|
|
facility of a licensed aviation fuel dealer from which the diesel |
|
|
fuel will be delivered solely into the fuel supply tanks of aircraft |
|
|
or aircraft servicing equipment, or sold from one licensed aviation |
|
|
fuel dealer to another licensed aviation fuel dealer who will |
|
|
deliver the diesel fuel exclusively into the fuel supply tanks of |
|
|
aircraft or aircraft servicing equipment; |
|
|
(7) diesel fuel exported to a foreign country if the |
|
|
bill of lading or shipping documents indicate the foreign |
|
|
destination and the fuel is actually exported to the foreign |
|
|
country; |
|
|
(8) dyed diesel fuel sold or delivered by a supplier to |
|
|
another supplier and dyed diesel fuel sold or delivered by a |
|
|
supplier or distributor into the bulk storage facility of a dyed |
|
|
diesel fuel bonded user or to a purchaser who provides a signed |
|
|
statement as provided by Section 162.206; |
|
|
(9) the volume of water, fuel ethanol, renewable |
|
|
diesel, biodiesel, or mixtures thereof that are blended together |
|
|
with taxable diesel fuel when the finished product sold or used is |
|
|
clearly identified on the retail pump, storage tank, and sales |
|
|
invoice as a combination of diesel fuel and water, fuel ethanol, |
|
|
renewable diesel, biodiesel, or mixtures thereof; |
|
|
(10) dyed diesel fuel sold by a supplier or permissive |
|
|
supplier to a distributor, or by a distributor to another |
|
|
distributor; |
|
|
(11) dyed diesel fuel delivered by a license holder |
|
|
into the fuel supply tanks of railway engines, motorboats, or |
|
|
refrigeration units or other stationary equipment powered by a |
|
|
separate motor from a separate fuel supply tank; |
|
|
(12) dyed kerosene when delivered by a supplier, |
|
|
distributor, or importer into a storage facility at a retail |
|
|
business from which all deliveries are exclusively for heating, |
|
|
cooking, lighting, or similar nonhighway use; |
|
|
(13) diesel fuel used by a person, other than a |
|
|
political subdivision, who owns, controls, operates, or manages a |
|
|
commercial motor vehicle as defined by Section 548.001, |
|
|
Transportation Code, if the fuel: |
|
|
(A) is delivered exclusively into the fuel supply |
|
|
tank of the commercial motor vehicle; and |
|
|
(B) is used exclusively to transport passengers |
|
|
for compensation or hire between points in this state on a fixed |
|
|
route or schedule; |
|
|
(14) diesel fuel sold to a volunteer fire department |
|
|
in this state for the department's exclusive use; [or] |
|
|
(15) diesel fuel sold to a nonprofit entity that is |
|
|
organized for the sole purpose of and engages exclusively in |
|
|
providing emergency medical services and that uses the diesel fuel |
|
|
exclusively to provide emergency medical services, including |
|
|
rescue and ambulance services; or |
|
|
(16) diesel fuel sold to a rural transit district |
|
|
created under Chapter 458, Transportation Code, that uses the |
|
|
diesel fuel exclusively to provide public transportation. |
|
|
SECTION 5. Sections 162.227(a) and (f), Tax Code, are |
|
|
amended to read as follows: |
|
|
(a) A license holder may take a credit on a return for the |
|
|
period in which the sale occurred if the license holder paid tax on |
|
|
the purchase of diesel fuel and subsequently resells the diesel |
|
|
fuel without collecting the tax to: |
|
|
(1) the United States government for its exclusive |
|
|
use, provided that a credit is not allowed for gasoline used by a |
|
|
person operating under a contract with the United States; |
|
|
(2) a public school district in this state for the |
|
|
district's exclusive use; |
|
|
(3) an exporter licensed under this subchapter if the |
|
|
seller is a licensed supplier or distributor and the exporter |
|
|
subsequently exports the diesel fuel to another state; |
|
|
(4) a licensed aviation fuel dealer if the seller is a |
|
|
licensed distributor; [or] |
|
|
(5) a commercial transportation company or a |
|
|
metropolitan rapid transit authority operating under Chapter 451, |
|
|
Transportation Code, that provides public school transportation |
|
|
services to a school district under Section 34.008, Education Code, |
|
|
and that uses the diesel fuel exclusively to provide those |
|
|
services; or |
|
|
(6) a rural transit district created under Chapter |
|
|
458, Transportation Code, that uses the diesel fuel exclusively to |
|
|
provide public transportation. |
|
|
(f) A transit company who paid tax on the purchase of diesel |
|
|
fuel, and is not otherwise entitled to a refund of that tax under |
|
|
this subchapter, may seek a refund with the comptroller of one-half |
|
|
of one cent per gallon for diesel fuel used in transit vehicles. |
|
|
SECTION 6. Subchapter C, Chapter 162, Tax Code, is amended |
|
|
by adding Section 162.2276 to read as follows: |
|
|
Sec. 162.2276. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS. |
|
|
(a) A rural transit district created under Chapter 458, |
|
|
Transportation Code, is entitled to a refund of taxes paid under |
|
|
this subchapter for diesel fuel used to provide public |
|
|
transportation 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; and |
|
|
(3) fuel consumed. |
|
|
(c) A rural transit district 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. |
|
|
SECTION 7. Section 162.356(a), Tax Code, is amended to read |
|
|
as follows: |
|
|
(a) 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 |
|
|
municipality or 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; |
|
|
(9) a motor vehicle operated exclusively by a |
|
|
nonprofit entity that is organized for the sole purpose of and |
|
|
engages exclusively in providing emergency medical services and |
|
|
that uses the fuel exclusively to provide emergency medical |
|
|
services, including rescue and ambulance services; |
|
|
(9-a) a motor vehicle operated exclusively by a rural |
|
|
transit district created under Chapter 458, Transportation Code, |
|
|
that uses the fuel exclusively to provide public transportation; |
|
|
(10) 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; or |
|
|
(11) except as provided by Subsection (b), a motor |
|
|
vehicle: |
|
|
(A) used to provide the services of a transit |
|
|
company, including a metropolitan rapid transit authority under |
|
|
Chapter 451, Transportation Code, or a regional transportation |
|
|
authority under Chapter 452, Transportation Code; and |
|
|
(B) operated by a person who on January 1, 2015, |
|
|
paid tax on compressed natural gas or liquefied natural gas as |
|
|
provided by Section 162.312, as that section existed on that date. |
|
|
SECTION 8. Subchapter D-1, Chapter 162, Tax Code, is |
|
|
amended by adding Section 162.3685 to read as follows: |
|
|
Sec. 162.3685. REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS. |
|
|
(a) A rural transit district created under Chapter 458, |
|
|
Transportation 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 public transportation 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; and |
|
|
(3) fuel consumed. |
|
|
(c) A rural transit district 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. |
|
|
SECTION 9. 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 10. This Act takes effect immediately 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 immediate |
|
|
effect, this Act takes effect September 1, 2021. |