Bill Text: TX HB207 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to the rates of the state gasoline and diesel fuel taxes; increasing tax rates; authorizing a change in tax rates.

Sponsorship: Partisan Bill (Democrat 3)

Status: (Introduced - Dead) 2021-02-25 - Referred to Ways & Means [HB207 Detail]

Download: Texas-2021-HB207-Introduced.html

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87R2173 SMT-D
By: Lopez H.B. No. 207

A BILL TO BE ENTITLED
AN ACT
relating to the rates of the state gasoline and diesel fuel taxes;
increasing tax rates; authorizing a change in tax rates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 162.102, Tax Code, is amended to read as
follows:
Sec. 162.102. TAX RATE. Except as provided by Section
162.1026, the [The] gasoline tax rate is 22 [20] cents for each net
gallon or fractional part on which the tax is imposed under Section
162.101.
SECTION 2. Subchapter B, Chapter 162, Tax Code, is amended
by adding Section 162.1026 to read as follows:
Sec. 162.1026. ANNUAL RATE CHANGE ACCORDING TO CONSUMER
PRICE INDEX. (a) In this section:
(1) "Consumer price index" means the consumer price
index for all urban consumers for all items and for all regions of
the United States combined, as determined by the United States
Department of Labor, Bureau of Labor Statistics, or, if that index
is discontinued or superseded, a similar index selected or
calculated by the comptroller.
(2) "Consumer price index percentage change" means the
percentage increase or decrease in the consumer price index of a
given state fiscal year from the consumer price index of the
preceding state fiscal year.
(b) On January 1 of each year, the rate of the gasoline tax
imposed under this subchapter is increased or decreased by a
percentage that is equal to the consumer price index percentage
change for the preceding fiscal year.
(c) Not later than November 1 of each year, the comptroller
shall:
(1) compute the new tax rate as provided by this
section;
(2) give the new tax rate to the secretary of state for
publication in the Texas Register; and
(3) notify each license holder under this subchapter
of the applicable new tax rate.
SECTION 3. Section 162.103(a), Tax Code, is amended to read
as follows:
(a) A backup tax is imposed at the rate prescribed by
Sections [Section] 162.102 and 162.1026 on:
(1) a person who obtains a refund of tax on gasoline by
claiming the gasoline was used for an off-highway purpose, but
actually uses the gasoline to operate a motor vehicle on a public
highway;
(2) a person who operates a motor vehicle on a public
highway using gasoline on which tax has not been paid;
(3) a person who sells to the ultimate consumer
gasoline on which tax has not been paid and who knew or had reason to
know that the gasoline would be used for a taxable purpose; and
(4) a person, other than a person exempted under
Section 162.104, who acquires gasoline on which tax has not been
paid from any source in this state.
SECTION 4. Section 162.202, Tax Code, is amended to read as
follows:
Sec. 162.202. TAX RATE. Except as provided by Section
162.2026, the [The] diesel fuel tax rate is 22 [20] cents for each
net gallon or fractional part on which the tax is imposed under
Section 162.201.
SECTION 5. Subchapter C, Chapter 162, Tax Code, is amended
by adding Section 162.2026 to read as follows:
Sec. 162.2026. ANNUAL RATE CHANGE ACCORDING TO CONSUMER
PRICE INDEX. (a) In this section:
(1) "Consumer price index" means the consumer price
index for all urban consumers for all items and for all regions of
the United States combined, as determined by the United States
Department of Labor, Bureau of Labor Statistics, or, if that index
is discontinued or superseded, a similar index selected or
calculated by the comptroller.
(2) "Consumer price index percentage change" means the
percentage increase or decrease in the consumer price index of a
given state fiscal year from the consumer price index of the
preceding state fiscal year.
(b) On January 1 of each year, the rate of the diesel fuel
tax imposed under this subchapter is increased or decreased by a
percentage that is equal to the consumer price index percentage
change for the preceding fiscal year.
(c) Not later than November 1 of each year, the comptroller
shall:
(1) compute the new tax rate as provided by this
section;
(2) give the new tax rate to the secretary of state for
publication in the Texas Register; and
(3) notify each license holder under this subchapter
of the applicable new tax rate.
SECTION 6. Section 162.203(a), Tax Code, is amended to read
as follows:
(a) A backup tax is imposed at the rate prescribed by
Sections [Section] 162.202 and 162.2026 on:
(1) a person who obtains a refund of tax on diesel fuel
by claiming the diesel fuel was used for an off-highway purpose, but
actually uses the diesel fuel to operate a motor vehicle on a public
highway;
(2) a person who operates a motor vehicle on a public
highway using diesel fuel on which tax has not been paid;
(3) a person who sells to the ultimate consumer diesel
fuel on which a tax has not been paid and who knew or had reason to
know that the diesel fuel would be used for a taxable purpose; and
(4) a person, other than a person exempted under
Section 162.204, who acquires diesel fuel on which tax has not been
paid from any source in this state.
SECTION 7. The comptroller shall compute the initial
adjusted tax rates as required by Sections 162.1026(c) and
162.2026(c), Tax Code, as added by this Act, not later than November
1, 2022. The initial adjusted rates take effect January 1, 2023.
SECTION 8. 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 9. This Act takes effect January 1, 2022.