Bill Text: TX HB2737 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2023-03-13 - Referred to Ways & Means [HB2737 Detail]
Download: Texas-2023-HB2737-Introduced.html
88R10726 SRA-F | ||
By: Ashby | H.B. No. 2737 |
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relating to a credit or refund for diesel fuel taxes paid on diesel | ||
fuel used in this state by auxiliary power units or power take-off | ||
equipment. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 162.227, Tax Code, is amended by adding | ||
Subsections (d-1), (d-2), and (d-3) to read as follows: | ||
(d-1) 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 may file a refund claim with the comptroller, if the | ||
license holder or person paid tax on diesel fuel and the diesel fuel | ||
is used in this state by auxiliary power units or power take-off | ||
equipment on any motor vehicle. If the quantity of that diesel fuel | ||
can be accurately measured while the motor vehicle is stationary by | ||
any metering or other measuring device or method designed to | ||
measure the fuel separately from fuel used to propel the motor | ||
vehicle, the comptroller may approve and adopt the use of the device | ||
as a basis for determining the quantity of diesel fuel consumed in | ||
those operations for a tax credit or tax refund. If there is no | ||
separate metering device or other approved measuring method, the | ||
license holder may take the credit and the person who does not hold | ||
a license may claim the refund on a percentage of the diesel fuel | ||
consumed by each motor vehicle equipped with an auxiliary power | ||
unit or power take-off equipment. The comptroller shall determine | ||
the percentage of diesel fuel for which the credit or refund may be | ||
claimed. The climate-control air conditioning or heating system of | ||
a motor vehicle that has a primary purpose of providing for the | ||
convenience or comfort of the operator or passengers is not a power | ||
take-off system, and a credit or refund may not be allowed for the | ||
tax paid on any portion of the diesel fuel that is used for that | ||
purpose. A credit or refund may not be allowed for the diesel fuel | ||
tax paid on that portion of the diesel fuel that is used for idling. | ||
(d-2) The comptroller shall reduce the amount of the credit | ||
or refund to which a person is otherwise entitled under Subsection | ||
(d-1) according to the following schedule: | ||
(1) for fuel purchased on or after September 1, 2023, | ||
but before January 1, 2024, the comptroller shall reduce the credit | ||
or refund amount by 80 percent; | ||
(2) for fuel purchased on or after January 1, 2024, but | ||
before January 1, 2025, the comptroller shall reduce the credit or | ||
refund amount by 60 percent; | ||
(3) for fuel purchased on or after January 1, 2025, but | ||
before January 1, 2026, the comptroller shall reduce the credit or | ||
refund amount by 40 percent; and | ||
(4) for fuel purchased on or after January 1, 2026, but | ||
before January 1, 2027, the comptroller shall reduce the credit or | ||
refund amount by 20 percent. | ||
(d-3) Subsection (d-2) and this subsection expire January | ||
1, 2027. | ||
SECTION 2. This Act takes effect September 1, 2023. |