Bill Text: TX HB2925 | 2017-2018 | 85th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the administration of gasoline and diesel fuel motor fuels taxes and the fee on the delivery of certain petroleum products.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2017-05-16 - Referred to Finance [HB2925 Detail]

Download: Texas-2017-HB2925-Introduced.html
  85R10288 CBH-F
 
  By: Shine H.B. No. 2925
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the administration of gasoline and diesel fuel motor
  fuels taxes and the fee on the delivery of certain petroleum
  products.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 162.012(a), Tax Code, is amended to read
  as follows:
         (a)  A person licensed under this chapter or required to be
  licensed under this chapter, or other user, who fails to keep a
  record, issue an invoice, or file a return or report required by
  this chapter is presumed to have sold or used for taxable purposes
  all motor fuel shown by an audit by the comptroller to have been
  sold to the license holder or other user. Motor fuel unaccounted
  for is presumed to have been sold or used for taxable purposes. If
  an exporter claims an exemption under Section 162.104(a)(4)
  [162.104(a)(4)(B)] or 162.204(a)(4) [162.204(a)(4)(B)] and fails
  to report subsequent tax-free sales in this state of the motor fuel
  for which the exemption was claimed as required by Section 162.1155
  or 162.2165, or to produce proof of payment of tax to the
  destination state or proof that the transaction was exempt in the
  destination state, the exporter is presumed to have not paid the
  destination state's tax or this state's tax on the [exported] motor
  fuel and the comptroller shall assess the tax imposed by this
  chapter on the [exported] motor fuel against the exporter. The
  comptroller may fix or establish the amount of taxes, penalties,
  and interest due this state from the records of deliveries or from
  any records or information available. If a tax claim, as developed
  from this procedure, is not paid, after the opportunity to request a
  redetermination, the claim and any audit made by the comptroller or
  any report filed by the license holder or other user is evidence in
  any suit or judicial proceedings filed by the attorney general and
  is prima facie evidence of the correctness of the claim or audit. A
  prima facie presumption of the correctness of the claim may be
  overcome at the trial by evidence adduced by the license holder or
  other user.
         SECTION 2.  Section 162.101, Tax Code, is amended by adding
  Subsection (e-1) to read as follows:
         (e-1)  If gasoline exempt from taxation under Section
  162.104(a)(4) or (7) is sold in this state to a person who does not
  hold a license under Section 162.105(1), (2), (3), (4), or (6):
               (1)  the gasoline loses its tax-exempt status and a tax
  is imposed on the gasoline at the time of sale; and
               (2)  the person selling the gasoline is liable for and
  shall collect the tax.
         SECTION 3.  Sections 162.104(a), (d), and (f), Tax Code, are
  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[:
                     [(A)     for gasoline in a situation described by
  Subsection (d),] the bill of lading indicates the destination state
  and the supplier collects the destination state tax[; or
                     [(B)     for gasoline in a situation described by
  Subsection (e), the bill of lading indicates the destination state,
  the gasoline is subsequently exported, and the exporter is licensed
  in the destination state to pay that state's tax and has an
  exporter's license issued under this subchapter];
               (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
  indicates 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.
         (d)  Subsection (a)(4) [(a)(4)(A)] applies only if the
  destination state recognizes, by agreement with this state or by
  statute or rule, a supplier in this state as a valid taxpayer for
  the motor fuel being exported to that state from this state. The
  comptroller shall publish a list that specifies for each state,
  other than this state, whether that state does or does not qualify
  under this subsection.
         (f)  The exemption provided by Subsection (a)(4) [(a)(4)(A)]
  does not apply to a sale by a distributor.
         SECTION 4.  Section 162.115(d), Tax Code, is amended to read
  as follows:
         (d)  An exporter shall keep:
               (1)  a record showing the number of gallons of:
                     (A)  all gasoline inventories on hand at the first
  of each month;
                     (B)  all gasoline compounded or blended;
                     (C)  all gasoline purchased or received, showing
  the name of the seller and the date of each purchase or receipt;
                     (D)  all gasoline sold, distributed, or used,
  showing the name of the purchaser and the date of the sale or use;
  and
                     (E)  all gasoline lost by fire, theft, or
  accident;
               (2)  an itemized statement showing by load the number
  of gallons of all gasoline:
                     (A)  received during the preceding calendar month
  for export and the location of the loading; and
                     (B)  exported from this state by destination state
  or country;
               (3)  proof of payment of tax to the destination state in
  a form acceptable to the comptroller; and
               (4)  if an exemption under Section 162.104(a)(4)
  [162.104(a)(4)(B)] is claimed, proof of payment of tax to the
  destination state or proof that the transaction was exempt in the
  destination state, in a form acceptable to the comptroller.
         SECTION 5.  Subchapter B, Chapter 162, Tax Code, is amended
  by adding Section 162.1155 to read as follows:
         Sec. 162.1155.  DUTY TO REPORT SUBSEQUENT SALES OF TAX-FREE
  GASOLINE PURCHASED FOR EXPORT. (a) A person who purchases or
  removes gasoline tax-free under Section 162.104(a)(4) or (7) and
  before export sells the gasoline in this state tax-free to a person
  who holds a license under Section 162.105(1), (2), (3), (4), or (6),
  shall report that transaction to the comptroller as required by
  this section. If the gasoline is subsequently sold one or more
  times in this state before export and tax-free to a person who holds
  a license under Section 162.105(1), (2), (3), (4), or (6), each
  seller shall report the transaction to the comptroller as required
  by this section.
         (b)  Each person who sells tax-free gasoline in this state in
  a transaction described by Subsection (a) must provide to the
  comptroller:
               (1)  the bill of lading number issued at the terminal;
               (2)  the terminal control number;
               (3)  the date the gasoline was removed from the
  terminal;
               (4)  the number of gallons invoiced; and
               (5)  any other information required by the comptroller.
         (c)  The sales invoice for each transaction described by
  Subsection (a) must include:
               (1)  the name of the seller and purchaser; and
               (2)  the original bill of lading number.
         (d)  A person required to report a transaction under
  Subsection (a) shall report the transaction on a form prescribed by
  the comptroller and with the return required by Section 162.114.
         SECTION 6.  Section 162.201, Tax Code, is amended by adding
  Subsection (e-1) to read as follows:
         (e-1)  If diesel fuel exempt from taxation under Section
  162.204(a)(4) or (7) is sold in this state to a person who does not
  hold a license under Section 162.205(1), (2), (3), (4), or (6):
               (1)  the diesel fuel loses its tax-exempt status and a
  tax is imposed on the diesel fuel at the time of sale; and
               (2)  the person selling the diesel fuel is liable for
  and shall collect the tax.
         SECTION 7.  Sections 162.204(a), (d), and (f), Tax Code, are
  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[:
                     [(A)     for diesel fuel in a situation described by
  Subsection (d),] the bill of lading indicates the destination state
  and the supplier collects the destination state tax [; or
                     [(B)     for diesel fuel in a situation described by
  Subsection (e), the bill of lading indicates the destination state,
  the diesel fuel is subsequently exported, and the exporter is
  licensed in the destination state to pay that state's tax and has an
  exporter's license issued under this subchapter];
               (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 indicates 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.
         (d)  Subsection (a)(4) [(a)(4)(A)] applies only if the
  destination state recognizes, by agreement with this state or by
  statute or rule, a supplier in this state as a valid taxpayer for
  the motor fuel being exported to that state from this state. The
  comptroller shall publish a list that specifies for each state,
  other than this state, whether that state does or does not qualify
  under this subsection.
         (f)  The exemption provided by Subsection (a)(4) [(a)(4)(A)]
  does not apply to a sale by a distributor.
         SECTION 8.  Section 162.216(d), Tax Code, is amended to read
  as follows:
         (d)  An exporter shall keep:
               (1)  a record showing the number of gallons of:
                     (A)  all diesel fuel inventories on hand at the
  first of each month;
                     (B)  all diesel fuel compounded or blended;
                     (C)  all diesel fuel purchased or received,
  showing the name of the seller and the date of each purchase or
  receipt;
                     (D)  all diesel fuel sold, distributed, or used,
  showing the name of the purchaser and the date of the sale or use;
  and
                     (E)  all diesel fuel lost by fire, theft, or
  accident;
               (2)  an itemized statement showing by load the number
  of gallons of all diesel fuel:
                     (A)  received during the preceding calendar month
  for export and the location of the loading; and
                     (B)  exported from this state, by destination
  state or country;
               (3)  proof of payment of tax to the destination state in
  a form acceptable to the comptroller; and
               (4)  if an exemption under Section 162.204(a)(4)
  [162.204(a)(4)(B)] is claimed, proof of payment of tax to the
  destination state or proof that the transaction was exempt in the
  destination state, in a form acceptable to the comptroller.
         SECTION 9.  Subchapter C, Chapter 162, Tax Code, is amended
  by adding Section 162.2165 to read as follows:
         Sec. 162.2165.  DUTY TO REPORT SUBSEQUENT SALES OF TAX-FREE
  DIESEL FUEL PURCHASED FOR EXPORT. (a) A person who purchases or
  removes diesel fuel tax-free under Section 162.204(a)(4) or (7) and
  before export sells the diesel fuel in this state tax-free to a
  person who holds a license under Section 162.205(1), (2), (3), (4),
  or (6), shall report that transaction to the comptroller as
  required by this section. If the diesel fuel is subsequently sold
  one or more times in this state before export and tax-free to a
  person who holds a license under Section 162.205(1), (2), (3), (4),
  or (6), each seller shall report the transaction to the comptroller
  as required by this section.
         (b)  Each person who sells tax-free diesel fuel in this state
  in a transaction described by Subsection (a) must provide to the
  comptroller:
               (1)  the bill of lading number issued at the terminal;
               (2)  the terminal control number;
               (3)  the date the diesel fuel was removed from the
  terminal;
               (4)  the number of gallons invoiced; and
               (5)  any other information required by the comptroller.
         (c)  The sales invoice for each transaction described by
  Subsection (a) must include:
               (1)  the name of the seller and purchaser; and
               (2)  the original bill of lading number.
         (d)  A person required to report a transaction under
  Subsection (a) shall report the transaction on a form prescribed by
  the comptroller and with the return required by Section 162.215.
         SECTION 10.  Section 162.401, Tax Code, is amended by adding
  Subsection (e) to read as follows:
         (e)  In addition to any other penalty authorized by this
  section, a person who fails to report a subsequent sale in this
  state of tax-free motor fuel purchased for export as required by
  Section 162.1155 or 162.2165 shall pay for each sale that is not
  reported a penalty equal to the greater of $2,000 or five times the
  amount of the tax due on the fuel. The penalty provided by this
  subsection in relation to a sale is not assessed if the taxpayer
  files an amended report that includes the sale not later than the
  180th day after the due date of the original report of the sale.
         SECTION 11.  Section 26.3574(a), Water Code, is amended by
  amending Subdivision (1) and adding Subdivision (2-a) to read as
  follows:
               (1)  "Bulk facility" means a facility in this state,
  including pipeline terminals, refinery terminals, rail and barge
  terminals, and associated underground and aboveground tanks,
  connected or separate, from which petroleum products are withdrawn
  from bulk and delivered into a cargo tank or a barge used to
  transport those products. This term does not include petroleum
  products consumed at an electric generating facility.
               (2-a) "Supplier" has the meaning assigned by Section
  162.001, Tax Code.
         SECTION 12.  Sections 26.3574(b), (d), (e), (f), (g), (i),
  and (j), Water Code, are amended to read as follows:
         (b)  A fee is imposed on the delivery of a petroleum product
  on withdrawal from bulk of that product as provided by this
  subsection. Each supplier [operator of a bulk facility] on
  withdrawal from bulk of a petroleum product shall collect from the
  person who orders the withdrawal a fee in an amount determined as
  follows:
               (1)  not more than $3.75 for each delivery into a cargo
  tank having a capacity of less than 2,500 gallons;
               (2)  not more than $7.50 for each delivery into a cargo
  tank having a capacity of 2,500 gallons or more but less than 5,000
  gallons;
               (3)  not more than $11.75 for each delivery into a cargo
  tank having a capacity of 5,000 gallons or more but less than 8,000
  gallons;
               (4)  not more than $15.00 for each delivery into a cargo
  tank having a capacity of 8,000 gallons or more but less than 10,000
  gallons; and
               (5)  not more than $7.50 for each increment of 5,000
  gallons or any part thereof delivered into a cargo tank having a
  capacity of 10,000 gallons or more.
         (d)  A person who imports a petroleum product in a cargo tank
  or a barge destined for delivery into an underground or aboveground
  storage tank, regardless of whether or not the tank is exempt from
  regulation under Section 26.344 [of this code], other than a
  storage tank connected to or part of a bulk facility in this state,
  shall pay to the comptroller a fee on the number of gallons
  imported, computed as provided by Subsections (b) and (c) [of this
  section]. If a supplier [bulk facility operator] imports a
  petroleum product in a cargo tank or a barge, the supplier [bulk
  facility operator] is not required to pay the fee on that imported
  petroleum product if the petroleum product is delivered to a bulk
  facility from which the petroleum product will be withdrawn from
  bulk.
         (e)  A supplier [bulk facility operator] who receives
  petroleum products on which the fee has been paid may take credit
  for the fee paid on monthly reports.
         (f)  Subsection (b) [of this section] does not apply to a
  delivery of a petroleum product destined for export from this state
  if the petroleum product is in continuous movement to a destination
  outside this state. For purposes of this subsection, a petroleum
  product ceases to be in continuous movement to a destination
  outside this state if the product is delivered to a destination in
  this state. The person that directs the delivery of the product to
  a destination in this state shall pay the fee imposed by this
  section on that product.
         (g)  Each supplier [operator of a bulk facility] and each
  person covered by Subsection (d) [of this section] shall file an
  application with the comptroller for a permit to deliver a
  petroleum product into a cargo tank destined for delivery to an
  underground or aboveground storage tank, regardless of whether or
  not the tank is exempt from regulation under Section 26.344 [of this
  code]. A permit issued by the comptroller under this subsection is
  valid on and after the date of its issuance and until the permit is
  surrendered by the holder or canceled by the comptroller. An
  applicant for a permit issued under this subsection must use a form
  adopted or approved by the comptroller that contains:
               (1)  the name under which the applicant transacts or
  intends to transact business;
               (2)  the principal office, residence, or place of
  business in this state of the applicant;
               (3)  if the applicant is not an individual, the names of
  the principal officers of an applicant corporation, or the name of
  the member of an applicant partnership, and the office, street, or
  post office address of each; and
               (4)  any other information required by the comptroller.
         (i)  Each supplier [operator of a bulk facility] and each
  person covered by Subsection (d) [of this section] shall:
               (1)  list, as a separate line item on an invoice or
  cargo manifest required under this section, the amount of the
  delivery fee due under this section; and
               (2)  on or before the 25th day of the month following
  the end of each calendar month, file a report with the comptroller
  and remit the amount of fees required to be collected or paid during
  the preceding month.
         (j)  Each supplier [operator of a bulk facility] or the
  supplier's [his] representative and each person covered by
  Subsection (d) [of this section] shall prepare the report required
  under Subsection (i) [of this section] on a form provided or
  approved by the comptroller.
         SECTION 13.  The following provisions of the Tax Code are
  repealed:
               (1)  Sections 162.104(c) and (e); and
               (2)  Sections 162.204(c) and (e).
         SECTION 14.  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 that purpose.
         SECTION 15.  This Act takes effect January 1, 2018.
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