Bill Text: TX HB916 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to the exemption of rural transit districts from motor fuel taxes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-01-18 - Filed [HB916 Detail]

Download: Texas-2019-HB916-Introduced.html
  86R5272 SRA-D
 
  By: Guillen H.B. No. 916
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption of rural transit districts from motor
  fuel taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 162.104(a), Tax Code, is 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
  the bill of lading indicates the destination state and the supplier
  collects the destination state tax;
               (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; or
               (10)  sold to a rural transit district created under
  Chapter 458, Transportation Code, that uses the gasoline
  exclusively to provide public transportation.
         SECTION 2.  Sections 162.125(a) and (g), Tax Code, are
  amended to read as follows:
         (a)  A license holder may take a credit on a return for the
  period in which the sale occurred if the license holder paid tax on
  the purchase of gasoline and subsequently resells the gasoline
  without collecting the tax to:
               (1)  the United States government for its exclusive
  use, provided that a credit is not allowed for gasoline used by a
  person operating under contract with the United States;
               (2)  a public school district in this state for the
  district's exclusive use;
               (3)  an exporter licensed under this subchapter if the
  seller is a licensed supplier or distributor and the exporter
  subsequently exports the gasoline to another state;
               (4)  a licensed aviation fuel dealer if the seller is a
  licensed distributor; [or]
               (5)  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 exclusively to provide those services;
  or
               (6)  a rural transit district created under Chapter
  458, Transportation Code, that uses the gasoline exclusively to
  provide public transportation.
         (g)  A transit company that paid tax on the purchase of
  gasoline, and is not otherwise entitled to a refund of that tax
  under this subchapter, may seek a refund with the comptroller in an
  amount equal to one cent per gallon for gasoline used in transit
  vehicles.
         SECTION 3.  Subchapter B, Chapter 162, Tax Code, is amended
  by adding Section 162.1276 to read as follows:
         Sec. 162.1276.  REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS.
  (a) A rural transit district created under Chapter 458,
  Transportation Code, is entitled to a refund of taxes paid under
  this subchapter for gasoline used to provide public transportation
  and may file a refund claim with the comptroller for the amount of
  those taxes.
         (b)  The refund claim under Subsection (a) must contain
  information regarding:
               (1)  vehicle mileage;
               (2)  hours of service provided; and
               (3)  fuel consumed.
         (c)  A rural transit district that requests a refund under
  this section shall maintain all supporting documentation relating
  to the refund until the sixth anniversary of the date of the
  request.
         SECTION 4.  Section 162.204(a), Tax Code, is 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 the bill of lading indicates the destination state and the
  supplier collects the destination state tax;
               (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; or
               (16)  diesel fuel sold to a rural transit district
  created under Chapter 458, Transportation Code, that uses the
  diesel fuel exclusively to provide public transportation.
         SECTION 5.  Sections 162.227(a) and (f), Tax Code, are
  amended to read as follows:
         (a)  A license holder may take a credit on a return for the
  period in which the sale occurred if the license holder paid tax on
  the purchase of diesel fuel and subsequently resells the diesel
  fuel without collecting the tax to:
               (1)  the United States government for its exclusive
  use, provided that a credit is not allowed for gasoline used by a
  person operating under a contract with the United States;
               (2)  a public school district in this state for the
  district's exclusive use;
               (3)  an exporter licensed under this subchapter if the
  seller is a licensed supplier or distributor and the exporter
  subsequently exports the diesel fuel to another state;
               (4)  a licensed aviation fuel dealer if the seller is a
  licensed distributor; [or]
               (5)  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 exclusively to provide those
  services; or
               (6)  a rural transit district created under Chapter
  458, Transportation Code, that uses the diesel fuel exclusively to
  provide public transportation.
         (f)  A transit company who paid tax on the purchase of diesel
  fuel, and is not otherwise entitled to a refund of that tax under
  this subchapter, may seek a refund with the comptroller of one-half
  of one cent per gallon for diesel fuel used in transit vehicles.
         SECTION 6.  Subchapter C, Chapter 162, Tax Code, is amended
  by adding Section 162.2276 to read as follows:
         Sec. 162.2276.  REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS.
  (a) A rural transit district created under Chapter 458,
  Transportation Code, is entitled to a refund of taxes paid under
  this subchapter for diesel fuel used to provide public
  transportation and may file a refund claim with the comptroller for
  the amount of those taxes.
         (b)  The refund claim under Subsection (a) must contain
  information regarding:
               (1)  vehicle mileage;
               (2)  hours of service provided; and
               (3)  fuel consumed.
         (c)  A rural transit district that requests a refund under
  this section shall maintain all supporting documentation relating
  to the refund until the sixth anniversary of the date of the
  request.
         SECTION 7.  Section 162.356(a), Tax Code, is amended to read
  as follows:
         (a)  The tax imposed by this subchapter does not apply to
  compressed natural gas or liquefied natural gas delivered into the
  fuel supply tank of:
               (1)  a motor vehicle operated exclusively by the United
  States, provided that the exemption does not apply with respect to
  fuel delivered into the fuel supply tank of a motor vehicle of a
  person operating under a contract with the United States;
               (2)  a motor vehicle operated exclusively by a public
  school district in this state;
               (3)  a motor vehicle operated exclusively by 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 fuel only to
  provide those services;
               (4)  a motor vehicle operated exclusively by a
  volunteer fire department in this state;
               (5)  a motor vehicle operated exclusively by a
  municipality or county in this state;
               (6)  a motor vehicle operated exclusively by a
  nonprofit electric cooperative corporation organized under Chapter
  161, Utilities Code;
               (7)  a motor vehicle operated exclusively by a
  nonprofit telephone cooperative corporation organized under
  Chapter 162, Utilities Code;
               (8)  a motor vehicle that is not registered for use on
  the public highways of this state and that is used exclusively
  off-highway;
               (9)  a motor vehicle operated exclusively by a
  nonprofit entity that is organized for the sole purpose of and
  engages exclusively in providing emergency medical services and
  that uses the fuel exclusively to provide emergency medical
  services, including rescue and ambulance services;
               (9-a)  a motor vehicle operated exclusively by a rural
  transit district created under Chapter 458, Transportation Code,
  that uses the fuel exclusively to provide public transportation;
               (10)  off-highway equipment, a stationary engine, a
  motorboat, an aircraft, equipment used solely for servicing
  aircraft and used exclusively off-highway, a locomotive, or any
  device other than a motor vehicle operated or intended to be
  operated on the public highways; or
               (11)  except as provided by Subsection (b), a motor
  vehicle:
                     (A)  used to provide the services of a transit
  company, including a metropolitan rapid transit authority under
  Chapter 451, Transportation Code, or a regional transportation
  authority under Chapter 452, Transportation Code; and
                     (B)  operated by a person who on January 1, 2015,
  paid tax on compressed natural gas or liquefied natural gas as
  provided by Section 162.312, as that section existed on that date.
         SECTION 8.  Subchapter D-1, Chapter 162, Tax Code, is
  amended by adding Section 162.3685 to read as follows:
         Sec. 162.3685.  REFUND FOR CERTAIN RURAL TRANSIT DISTRICTS.
  (a)  A rural transit district created under Chapter 458,
  Transportation Code, is entitled to a refund of taxes paid under
  this subchapter for compressed natural gas or liquefied natural gas
  delivered into the fuel supply tank of a motor vehicle used to
  provide public transportation and may file a refund claim with the
  comptroller for the amount of those taxes.
         (b)  The refund claim under Subsection (a) must contain
  information regarding:
               (1)  vehicle mileage;
               (2)  hours of service provided; and
               (3)  fuel consumed.
         (c)  A rural transit district that requests a refund under
  this section shall maintain all supporting documentation relating
  to the refund until the sixth anniversary of the date of the
  request.
         SECTION 9.  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 10.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2019.
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