Bill Text: TX HB3634 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the authority of a municipality to impose a local tax on the sale of certain motor fuel and to the use of the tax revenue by the municipality; authorizing penalties.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-04-23 - Left pending in committee [HB3634 Detail]
Download: Texas-2015-HB3634-Introduced.html
84R7745 GRM-F | ||
By: Reynolds | H.B. No. 3634 |
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relating to the authority of a municipality to impose a local tax on | ||
the sale of certain motor fuel and to the use of the tax revenue by | ||
the municipality; authorizing penalties. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle C, Title 3, Tax Code, is amended by adding Chapter 329 to read as follows: | ||
CHAPTER 329. MUNICIPAL MOTOR FUEL SALES TAX FOR TRANSPORTATION | ||
PURPOSES | ||
Sec. 329.001. DEFINITIONS. In this chapter: | ||
(1) "Compressed natural gas" has the meaning assigned | ||
by Section 162.001. | ||
(2) "Dealer" has the meaning assigned by Section | ||
162.001. | ||
(3) "Diesel fuel" has the meaning assigned by Section | ||
162.001. | ||
(4) "Diesel gallon equivalent" has the meaning | ||
assigned by Section 162.001. | ||
(5) "Gasoline" has the meaning assigned by Section | ||
162.001. | ||
(6) "Gasoline gallon equivalent" has the meaning | ||
assigned by Section 162.001. | ||
(7) "Liquefied natural gas" has the meaning assigned | ||
by Section 162.001. | ||
(8) "Motor fuel" means gasoline, diesel fuel, | ||
compressed natural gas, or liquefied natural gas. | ||
(9) "Motor vehicle" has the meaning assigned by | ||
Section 162.001. | ||
(10) "Net gallon" has the meaning assigned by Section | ||
162.001. | ||
(11) "Public highway" has the meaning assigned by | ||
Section 162.001. | ||
(12) "Sale" has the meaning assigned by Section | ||
162.001. | ||
Sec. 329.002. TAX ON SALE OF MOTOR FUEL AUTHORIZED. | ||
Notwithstanding Section 162.014, Tax Code, a municipality, by | ||
ordinance adopted by the governing body of the municipality, may | ||
impose a tax on the sale of motor fuel sold in the municipality to | ||
propel a motor vehicle on the public highways of this state if | ||
imposition of the tax is approved at an election called for that | ||
purpose and held in the municipality. | ||
Sec. 329.003. RATE OF TAX. The tax authorized by this | ||
chapter may be imposed in increments of one cent for each net gallon | ||
of gasoline or diesel fuel or each gasoline gallon equivalent or | ||
diesel gallon equivalent of compressed natural gas or liquefied | ||
natural gas sold in the municipality to propel a motor vehicle on | ||
the public highways of this state, with a maximum rate of five cents | ||
for each net gallon, gasoline gallon equivalent, or diesel gallon | ||
equivalent. | ||
Sec. 329.004. ADOPTION ELECTION PROCEDURE. (a) An | ||
election to adopt the tax authorized by this chapter is called by an | ||
ordinance adopted by the governing body of the municipality. | ||
(b) At an election to adopt the tax, the ballot shall be | ||
prepared to permit voting for or against the proposition: "The | ||
adoption of a local tax on the sale of motor fuel in (insert name of | ||
municipality) at the maximum rate of five cents per gallon." | ||
Sec. 329.005. COMPUTATION OF TAX. (a) A person, including | ||
a dealer, who makes a sale of motor fuel in a municipality | ||
authorized to impose the tax to a person who uses the motor fuel to | ||
propel a motor vehicle on the public highways of this state shall | ||
collect the tax authorized by this chapter for the benefit of the | ||
municipality. | ||
(b) The seller shall add the amount of the tax authorized by | ||
this chapter to the selling price of motor fuel, and the tax is a | ||
part of the motor fuel price, is a debt owed to the seller, and is | ||
recoverable at law in the same manner as the fuel charge for motor | ||
fuel. | ||
(c) The tax authorized by this chapter is in addition to the | ||
tax imposed by Chapter 162. | ||
Sec. 329.006. EXEMPTIONS APPLICABLE. The exemptions | ||
provided by Sections 162.104, 162.204, and 162.356 apply to the tax | ||
authorized by this chapter. | ||
Sec. 329.007. EFFECTIVE DATE OF TAX. After the imposition | ||
of the tax has been approved in a municipality, the governing body | ||
of the municipality shall issue an ordinance prescribing the date | ||
the adoption of the tax will take effect. The tax may not be | ||
collected before the 90th day after the date the election results | ||
are canvassed. | ||
Sec. 329.008. COLLECTION AND ENFORCEMENT OF TAX. (a) A | ||
person, including a dealer, required to collect the tax authorized | ||
by this chapter shall report and send the taxes to the comptroller | ||
as provided by the comptroller. | ||
(b) The comptroller or municipality, as appropriate, may | ||
prescribe monetary penalties, including interest charges, for | ||
failure to keep records required by this chapter, to report when | ||
required, or to pay the tax when due. | ||
Sec. 329.009. REFUND. (a) A person who has paid the tax | ||
authorized by this chapter on motor fuel used by the person for a | ||
purpose other than to propel a motor vehicle on the public highways | ||
of this state or for a use exempted under Section 329.006 may file a | ||
claim for a refund. | ||
(b) The comptroller shall prescribe the procedures a person | ||
must use to obtain a refund under this section. | ||
Sec. 329.010. ALLOCATION OF TAXES. (a) Not later than the | ||
last day of the first month following each calendar quarter, the | ||
comptroller shall send to the municipality an amount equal to | ||
three-fourths of the taxes collected during that calendar quarter | ||
after payment of all refunds allowed by law and expenses of | ||
collection. | ||
(b) The comptroller shall deposit one-fourth of the taxes | ||
collected to the credit of the available school fund. | ||
Sec. 329.011. USE OF TAX PROCEEDS. Except as provided by | ||
Section 329.010, a municipality may use net tax revenue received | ||
under this chapter only for: | ||
(1) the construction, maintenance, repair, and | ||
rehabilitation of streets, roads, intersections, thoroughfares, | ||
and bridges located in the municipality; and | ||
(2) the purchase, installation, maintenance, and | ||
operation of traffic improvements, including signs, signals, and | ||
other mechanical, digital, or electronic traffic control devices, | ||
located in the municipality. | ||
SECTION 2. This Act takes effect September 1, 2015. |