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A BILL TO BE ENTITLED
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AN ACT
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relating to a credit or refund for diesel fuel taxes paid on diesel |
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fuel used in this state by auxiliary power units or power take-off |
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equipment. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 162.227, Tax Code, is amended by adding |
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Subsections (d-1), (d-2), and (d-3) to read as follows: |
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(d-1) A license holder may take a credit on a return for the |
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period in which the purchase occurred, and a person who does not |
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hold a license may file a refund claim with the comptroller, if the |
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license holder or person paid tax on diesel fuel and the diesel fuel |
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is used in this state by auxiliary power units or power take-off |
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equipment on any motor vehicle. If the quantity of that diesel fuel |
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can be accurately measured while the motor vehicle is stationary by |
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any metering or other measuring device or method designed to |
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measure the fuel separately from fuel used to propel the motor |
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vehicle, the comptroller may approve and adopt the use of the device |
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as a basis for determining the quantity of diesel fuel consumed in |
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those operations for a tax credit or tax refund. If there is no |
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separate metering device or other approved measuring method, the |
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license holder may take the credit and the person who does not hold |
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a license may claim the refund on a percentage of the diesel fuel |
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consumed by each motor vehicle equipped with an auxiliary power |
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unit or power take-off equipment. The comptroller shall determine |
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the percentage of diesel fuel for which the credit or refund may be |
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claimed. The climate-control air conditioning or heating system of |
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a motor vehicle that has a primary purpose of providing for the |
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convenience or comfort of the operator or passengers is not a power |
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take-off system, and a credit or refund may not be allowed for the |
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tax paid on any portion of the diesel fuel that is used for that |
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purpose. A credit or refund may not be allowed for the diesel fuel |
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tax paid on that portion of the diesel fuel that is used for idling. |
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(d-2) The comptroller shall reduce the amount of the credit |
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or refund to which a person is otherwise entitled under Subsection |
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(d-1) according to the following schedule: |
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(1) for fuel purchased on or after September 1, 2023, |
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but before January 1, 2024, the comptroller shall reduce the credit |
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or refund amount by 80 percent; |
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(2) for fuel purchased on or after January 1, 2024, but |
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before January 1, 2025, the comptroller shall reduce the credit or |
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refund amount by 60 percent; |
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(3) for fuel purchased on or after January 1, 2025, but |
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before January 1, 2026, the comptroller shall reduce the credit or |
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refund amount by 40 percent; and |
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(4) for fuel purchased on or after January 1, 2026, but |
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before January 1, 2027, the comptroller shall reduce the credit or |
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refund amount by 20 percent. |
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(d-3) Subsection (d-2) and this subsection expire January |
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1, 2027. |
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SECTION 2. This Act takes effect September 1, 2023. |