Bill Text: TX HB3651 | 2023-2024 | 88th Legislature | Enrolled


Bill Title: Relating to motor fuel taxes.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2023-05-24 - Effective on 9/1/23 [HB3651 Detail]

Download: Texas-2023-HB3651-Enrolled.html
 
 
  H.B. No. 3651
 
 
 
 
AN ACT
  relating to motor fuel taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 162.001, Tax Code, is amended by
  amending Subdivisions (1), (14), (42), (43), (56), and (61) and
  adding Subdivisions (16-a) and (17-a) to read as follows:
               (1)  "Agricultural purpose" means a purpose associated
  with the following activities:
                     (A)  cultivating the soil;
                     (B)  producing crops for human food, animal feed,
  or planting seed or for the production of fibers;
                     (C)  floriculture, viticulture, silviculture, and
  horticulture, including the cultivation of plants in potting
  containers or nonsoil media;
                     (D)  raising, feeding, or keeping livestock or
  other animals for the production of food or fiber, leather, pelts,
  or other tangible products having a commercial value;
                     (E)  wildlife management; and
                     (F)  planting cover crops, including cover crops
  cultivated for transplantation, or leaving land idle for the
  purpose of participating in any governmental program or normal crop
  or livestock rotation procedure.
               (14)  "Cargo tank" means an assembly that is used to
  transport, haul, or deliver liquids and that consists of a tank
  having one or more compartments [mounted] on a wagon, automobile,
  truck, trailer, or wheels. The term includes accessory piping,
  valves, and meters, but does not include a fuel supply tank
  connected to the carburetor or fuel injector of a motor vehicle.
               (16-a)  "Container" means any receptacle used to store
  motor fuel.
               (17-a)  "Delivery" means any transfer of motor fuel:
                     (A)  into a fuel supply tank, cargo tank, or
  container; or
                     (B)  to a location or into a receptacle, as
  specified by this chapter in connection with the term.
               (42)  "Motor fuel" means gasoline, diesel fuel,
  gasoline blended fuel, compressed natural gas, liquefied natural
  gas, and other products that are offered for sale, sold, used, or
  capable of use as fuel for a motor vehicle licensed for use on a
  public highway [gasoline-powered engine or a diesel-powered
  engine].
               (43)  "Motor fuel transporter" means a person who
  transports gasoline, diesel fuel, gasoline blended fuel, aviation
  fuel, or any other motor fuel, except liquefied gas, compressed
  natural gas, or liquefied natural gas, outside the bulk
  transfer/terminal system by means of a transport vehicle, a
  railroad tank car, or a marine vessel. The term does not include a
  person who[:
                     [(A)]  is licensed under this chapter as a
  supplier, permissive supplier, or distributor [;] and:
                     (A) [(B)]  exclusively transports gasoline,
  diesel fuel, gasoline blended fuel, aviation fuel, or any other
  motor fuel to which the person retains ownership while the fuel is
  being transported by the person; or
                     (B)  lawfully acquires motor fuel and retains
  ownership of the fuel while the fuel is being transported.
               (56)  "Solid waste refuse vehicle" means a motor
  vehicle equipped with a power takeoff or auxiliary power unit that
  provides power to compact the refuse, open the back of the refuse
  container before ejection, and eject the compacted refuse.
               (61)  "Transport vehicle" means any [a] vehicle
  [designed or] used to carry motor fuel over a public highway and
  includes a motor vehicle, straight truck, straight truck/trailer
  combination, [and] semitrailer combination rig, and motor
  vehicle/trailer combination.
         SECTION 2.  Section 162.101, Tax Code, is amended by
  amending Subsection (g) and adding Subsection (h) to read as
  follows:
         (g)  In each subsequent sale of gasoline on which the tax has
  been paid, the amount of the tax shall be added to the selling price
  so that the tax is paid by each person receiving the gasoline until
  it is paid ultimately by the person using or consuming the gasoline.
         (h)  Gasoline is considered to be used when it is delivered
  into a fuel supply tank.
         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
  Section 162.102 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:
                     (A)  in an original or subsequent sale; or
                     (B)  from any source in this state; and
               (5)  a person who acquires gasoline by any unlawful
  means, including by purchase through the unauthorized use of a
  credit card, a debit card, or other money, regardless of whether tax
  was previously paid on the gasoline or was added to the selling
  price of the gasoline.
         SECTION 4.  Section 162.201, Tax Code, is amended by
  amending Subsection (g) and adding Subsection (h) to read as
  follows:
         (g)  In each subsequent sale of diesel fuel on which the tax
  has been paid, the amount of the tax shall be added to the selling
  price so that the tax is paid by each person receiving the diesel
  fuel until it is paid ultimately by the person using or consuming
  the diesel fuel.
         (h)  Diesel fuel is considered to be used when it is
  delivered into a fuel supply tank.
         SECTION 5.  Section 162.203(a), Tax Code, is amended to read
  as follows:
         (a)  A backup tax is imposed at the rate prescribed by
  Section 162.202 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:
                     (A)  in an original or subsequent sale; or
                     (B)  from any source in this state; and
               (5)  a person who acquires diesel fuel by any unlawful
  means, including by purchase through the unauthorized use of a
  credit card, a debit card, or other money, regardless of whether tax
  was previously paid on the diesel fuel or was added to the selling
  price of the diesel fuel.
         SECTION 6.  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 the collection of
  taxes due and for civil and criminal enforcement of the liability
  for those taxes.
         SECTION 7.  This Act takes effect September 1, 2023.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3651 was passed by the House on April
  27, 2023, by the following vote:  Yeas 147, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 3651 was passed by the Senate on May
  11, 2023, by the following vote:  Yeas 30, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor       
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