TAX CODE
CHAPTER 162. MOTOR FUEL TAXES
SUBCHAPTER A. GENERAL PROVISIONS
§ 162.001. DEFINITIONS.
In this chapter:
(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 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.
(2) "Alcohol" means motor fuel grade ethanol or a
mixture of motor fuel grade ethanol and methanol, excluding
denaturant and water, that is a minimum of 98 percent ethanol or
methanol by volume.
(3) "Aviation fuel" means aviation gasoline or
aviation jet fuel.
(4) "Aviation fuel dealer" means a person who:
(A) is the operator of an aircraft servicing
facility;
(B) delivers gasoline or diesel fuel exclusively
into the fuel supply tanks of aircraft or into equipment used solely
for servicing aircraft and used exclusively off-highway; and
(C) does not use, sell, or distribute gasoline or
diesel fuel on which a fuel tax is required to be collected or paid
to this state.
(5) "Aviation gasoline" means motor fuel designed for
use in the operation of aircraft other than jet aircraft and sold or
used for that purpose.
(6) "Aviation jet fuel" means motor fuel designed for
use in the operation of jet or turboprop aircraft and sold or used
for that purpose.
(7) "Biodiesel fuel" means any motor fuel or mixture
of motor fuels that is:
(A) derived wholly or partly from agricultural
products, vegetable oils, recycled greases, or animal fats, or the
wastes of those products or fats; and
(B) advertised, offered for sale, suitable for
use, or used as a motor fuel in an internal combustion engine.
(8) "Blender" means a person who produces blended
motor fuel outside the bulk transfer/terminal system.
(9) "Blending" means the mixing of one or more
petroleum products with another product, regardless of the original
character of the product blended, if the product obtained by the
blending is capable of use in the generation of power for the
propulsion of a motor vehicle. The term does not include mixing
that occurs in the process of refining by the original refiner of
crude petroleum or the commingling of products during
transportation in a pipeline.
(10) "Bulk plant" means a motor fuel storage and
distribution facility that:
(A) is not an IRS-approved terminal; and
(B) from which motor fuel may be removed at a
rack.
(11) "Bulk transfer" means a transfer of motor fuel
from one location to another by pipeline tender or marine delivery
within a bulk transfer/terminal system, including:
(A) a marine vessel movement of motor fuel from a
refinery or terminal to a terminal;
(B) a pipeline movement of motor fuel from a
refinery or terminal to a terminal;
(C) a book transfer of motor fuel within a
terminal between licensed suppliers before completion of removal
across the rack; and
(D) a two-party exchange between licensed
suppliers or between licensed suppliers and permissive suppliers.
(12) "Bulk transfer/terminal system" means the motor
fuel distribution system consisting of refineries, pipelines,
marine vessels, and IRS-approved terminals. Motor fuel is in the
bulk transfer/terminal system if the motor fuel is in a refinery, a
pipeline, a terminal, or a marine vessel transporting motor fuel to
a refinery or terminal. Motor fuel is not in the bulk
transfer/terminal system if the motor fuel is in a motor fuel
storage facility, including:
(A) a bulk plant that is not part of a refinery or
terminal;
(B) the motor fuel supply tank of an engine or a
motor vehicle;
(C) a marine vessel transporting motor fuel to a
motor fuel storage facility that is not in the bulk
transfer/terminal system; or
(D) a tank car, railcar, trailer, truck, or other
equipment suitable for ground transportation.
(13) "Bulk user" means a person who maintains storage
facilities for motor fuel and uses all or part of the stored motor
fuel to operate a motor vehicle, vessel, or aircraft and for other
uses.
(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.
(15) "Carrier" means an operator of a pipeline or
marine vessel engaged in the business of transporting motor fuel
above the terminal rack.
(16) "Compressed natural gas" means natural gas that
has been compressed and dispensed into motor fuel storage
containers and is advertised, offered for sale, suitable for use,
or used as an engine motor fuel.
(17) "Dealer" means a person who sells motor fuel at
retail or dispenses motor fuel at a retail location.
(18) "Destination state" means the state, territory,
or foreign country to which motor fuel is directed for delivery into
a storage facility, a receptacle, a container, or a type of
transportation equipment for resale or use.
(19) "Diesel fuel" means kerosene or another liquid,
or a combination of liquids blended together, that is suitable for
or used for the propulsion of diesel-powered motor vehicles. The
term includes products commonly referred to as kerosene, light
cycle oil, #1 diesel fuel, #2 diesel fuel, dyed or undyed diesel
fuel, aviation jet fuel, biodiesel, distillate fuel, cutter stock,
or heating oil, but does not include gasoline, aviation gasoline,
or liquefied gas.
(20) "Distributor" means a person who acquires motor
fuel from a licensed supplier, permissive supplier, or another
licensed distributor and who makes sales at wholesale and whose
activities may also include sales at retail.
(21) "Diversion number" means the number assigned by
the comptroller, or by a person to whom the comptroller delegates or
appoints the authority to assign the number, that relates to a
single cargo tank delivery of motor fuel that is diverted from the
original destination state printed on the shipping document.
(22) "Dyed diesel fuel" means diesel fuel that:
(A) meets the dyeing and marking requirements of
26 U.S.C. Section 4082, regardless of how the diesel fuel was dyed;
and
(B) is intended for off-highway use only.
(23) "Export" means to obtain motor fuel in this state
for sale or use in another state, territory, or foreign country.
(24) "Exporter" means a person that exports motor fuel
from this state. The seller is the exporter of motor fuel delivered
out of this state by or for the seller, and the purchaser is the
exporter of motor fuel delivered out of this state by or for the
purchaser.
(25) "Fuel grade ethanol" means the ASTM standard in
effect on the effective date of this chapter as the D-4806
specification for denatured motor fuel grade ethanol for blending
with motor fuel.
(26) "Fuel supply tank" means a receptacle on a motor
vehicle, nonhighway equipment, or a stationary engine from which
motor fuel is supplied for the operation of its engine.
(27) "Gallon" means a unit of liquid measurement as
customarily used in the United States and that contains 231 cubic
inches by volume.
(28) "Gasohol" means a blended motor fuel composed of
gasoline and motor fuel alcohol.
(29) "Gasoline" means any liquid or combination of
liquids blended together, offered for sale, sold, or used as the
fuel for a gasoline-powered engine. The term includes gasohol,
aviation gasoline, and blending agents, but does not include racing
gasoline, diesel fuel, aviation jet fuel, or liquefied gas.
(30) "Gasoline blend stocks" includes any petroleum
product component of gasoline, such as naphtha, reformate, or
toluene, listed in Treasury Regulation Section 48.4081-1(c)(3),
that can be blended for use in a motor fuel. The term does not
include a substance that will be ultimately used for consumer
nonmotor fuel use and is sold or removed in drum quantities of 55
gallons or less at the time of the removal or sale.
(31) "Gasoline blended fuel" means a mixture composed
of gasoline and other liquids, including gasoline blend stocks,
gasohol, ethanol, methanol, fuel grade alcohol, and resulting
blends, other than a de minimus amount of a product such as
carburetor detergent or oxidation inhibitor, that can be used as
gasoline in a motor vehicle.
(32) "Gross gallons" means the total measured product,
exclusive of any temperature or pressure adjustments,
considerations, or deductions, in U.S. gallons.
(33) "Import" means to bring motor fuel into this
state by motor vehicle, marine vessel, pipeline, or any other
means. The term does not include bringing motor fuel into this
state in the motor fuel supply tank of a motor vehicle if the motor
fuel is used to power that motor vehicle.
(34) "Import verification number" means the number
assigned by the comptroller, or by a person to whom the comptroller
delegates or appoints the authority to assign the number, that
relates to a single cargo tank delivery into this state from another
state after a request for an assigned number by an importer or by
the motor fuel transporter carrying taxable motor fuel into this
state for the account of an importer.
(35) "Importer" means a person that imports motor fuel
into this state. The seller is the importer for motor fuel
delivered into this state from outside of this state by or for the
seller, and the purchaser is the importer for motor fuel delivered
into this state from outside of this state by or for the purchaser.
(36) "Interstate trucker" means a person who for
commercial purposes operates in this state, other states, or other
countries a motor vehicle that:
(A) has two axles and a registered gross weight
in excess of 26,000 pounds;
(B) has three or more axles; or
(C) is used in combination and the registered
gross weight of the combination exceeds 26,000 pounds.
(37) "Lessor" means a person:
(A) whose principal business is the leasing or
renting of motor vehicles for compensation to the general public;
(B) who maintains established places of
business; and
(C) whose lease or rental contracts require the
motor vehicles to be returned to the established places of business
at the termination of the lease.
(38) "License holder" means a person licensed by the
comptroller under Section 162.105, 162.205, 162.304, 162.305, or
162.306.
(39) "Liquefied gas" means all combustible gases that
exist in the gaseous state at 60 degrees Fahrenheit and at a
pressure of 14.7 pounds per square inch absolute, but does not
include gasoline or diesel fuel.
(40) "Liquefied gas tax decal user" means a person who
owns or operates on the public highways of this state a motor
vehicle capable of using liquefied gas for propulsion.
(41) "Motor carrier" means a person who operates a
commercial vehicle used, designated, or maintained to transport
persons or property.
(42) "Motor fuel" means gasoline, diesel fuel,
liquefied gas, and other products that can be used to propel a motor
vehicle.
(43) "Motor fuel transporter" means a person who
transports gasoline, diesel fuel, or gasoline blended fuel outside
the bulk transfer/terminal system by means of a transport vehicle,
a railroad tank car, or a marine vessel.
(44) "Motor vehicle" means a self-propelled vehicle,
trailer, or semitrailer that is designed or used to transport
persons or property over a public highway.
(45) "Net gallons" means the amount of motor fuel
measured in gallons when adjusted to a temperature of 60 degrees
Fahrenheit and a pressure of 14.7 pounds per square inch.
(46) "Permissive supplier" means a person who elects,
but is not required, to have a supplier's license and who:
(A) is registered under Section 4101, Internal
Revenue Code, for transactions in motor fuel in the bulk
transfer/terminal system; and
(B) is a position holder in motor fuel located
only in another state or a person who receives motor fuel only in
another state under a two-party exchange.
(47) "Position holder" means the person who holds the
inventory position in motor fuel in a terminal, as reflected on the
records of the terminal operator. A person holds the inventory
position in motor fuel when that person has a contract with the
terminal operator for the use of storage facilities and terminaling
services for motor fuel at the terminal. The term includes a
terminal operator who owns motor fuel in the terminal.
(48) "Public highway" means every way or place of
whatever nature open to the use of the public for purposes of
vehicular travel in this state, including the streets and alleys in
towns and cities.
(49) "Racing gasoline" means gasoline that contains
lead, has an octane rating of 110 or higher, does not have detergent
additives, and is not suitable for use as a motor fuel in a motor
vehicle used on a public highway.
(50) "Rack" means a mechanism for delivering motor
fuel from a refinery, terminal, marine vessel, or bulk plant into a
transport vehicle, railroad tank car, or other means of transfer
that is outside the bulk transfer/terminal system.
(51) "Refinery" means a facility for the manufacture
or reprocessing of finished or unfinished petroleum products usable
as motor fuel and from which motor fuel may be removed by pipeline
or marine vessel or at a rack.
(52) "Registered gross weight" means the total weight
of the vehicle and carrying capacity shown on the registration
certificate issued by the Texas Department of Transportation.
(53) "Removal" means a physical transfer other than by
evaporation, loss, or destruction. A physical transfer to a
transport vehicle or other means of conveyance outside the bulk
transfer/terminal system is complete on delivery into the means of
conveyance.
(54) "Sale" means a transfer of title, exchange, or
barter of motor fuel, but does not include transfer of possession of
motor fuel on consignment.
(55) "Shipping document" means a delivery document
issued by a terminal or bulk plant operator in conjunction with the
sale, transfer, or removal of motor fuel from the terminal or bulk
plant. A shipping document issued by a terminal operator shall be
machine printed. A shipping document issued by a bulk plant shall
be typed or handwritten on a preprinted form or machine printed.
(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 container
before ejection, and eject the compacted refuse.
(57) "Supplier" means a person that:
(A) is subject to the general taxing jurisdiction
of this state;
(B) is registered under Section 4101, Internal
Revenue Code, for transactions in motor fuel in the bulk
transfer/terminal distribution system, and is:
(i) a position holder in motor fuel in a
terminal or refinery in this state and may concurrently also be a
position holder in motor fuel in another state; or
(ii) a person who receives motor fuel in
this state under a two-party exchange; and
(C) may also be a terminal operator, provided
that a terminal operator is not considered to also be a "supplier"
based solely on the fact that the terminal operator handles motor
fuel consigned to it within a terminal.
(58) "Terminal" means a motor fuel storage and
distribution facility to which a terminal control number has been
assigned by the Internal Revenue Service, to which motor fuel is
supplied by pipeline or marine vessel, and from which motor fuel may
be removed at a rack.
(59) "Terminal operator" means a person who owns,
operates, or otherwise controls a terminal.
(60) "Transit company" means a business that:
(A) transports in a political subdivision
persons in carriers designed for 12 or more passengers;
(B) holds a franchise from a political
subdivision; and
(C) has its rates regulated by the political
subdivision or is owned or operated by the political subdivision.
(61) "Transport vehicle" means a vehicle designed or
used to carry motor fuel over a public highway and includes a
straight truck, straight truck/trailer combination, and
semitrailer combination rig.
(62) "Two-party exchange" means a transaction in which
motor fuel is transferred from one licensed supplier or permissive
supplier to another licensed supplier or permissive supplier under
an exchange agreement, including a transfer from the person who
holds the inventory position in taxable motor fuel in the terminal
as reflected on the records of the terminal operator, and that is:
(A) completed before removal of the product from
the terminal by the receiving exchange partner; and
(B) recorded on the terminal operator's books and
records with the receiving exchange partner as the supplier that
removes the motor fuel across the terminal rack for purposes of
reporting the transaction to this state.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.002. TAX LIABILITY ON LEASED VEHICLES.
(a) A user or interstate trucker is liable for the tax on
motor fuel imported into this state in fuel supply tanks of leased
motor vehicles and used on the public highways of this state to the
same extent and in the same manner as motor fuel imported in the
user's or interstate trucker's own motor vehicles and used on the
public highways of this state, unless the person who owns the leased
motor vehicles is liable under Subsection (b). If the owner of the
leased motor vehicles is liable, the user or interstate trucker may
exclude the leased motor vehicles from the person's return.
(b) A person who, in the regular course of business and for
consideration, leases motor vehicles and equipment to motor
carriers or others for interstate operation may be considered to be
the user or interstate trucker under this chapter if the person
supplies or pays for the motor fuel consumed in those leased motor
vehicles or equipment, and the person may be issued a license as an
interstate trucker by the comptroller. An application for an
interstate trucker license may be accompanied by one copy of the
form-lease or service contract entered into with various lessees.
On receipt of the interstate trucker license, the person may assign
to each motor vehicle leased for interstate operation a photocopy
of the license to be carried in the cab compartment of the motor
vehicle. The photocopy of the license must have typed or printed on
the back the unit or motor number of the motor vehicle to which it is
assigned and the name of the lessee. The lessor is responsible for
the proper use of the photocopy of the license issued to the lessor
and for its return with the motor vehicle to which it is assigned.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.003. COOPERATIVE AGREEMENTS WITH OTHER STATES.
(a) The comptroller may enter into a cooperative agreement
with another state for the collection of motor fuel taxes, the
exchange of information, the auditing of users of motor fuel used in
fleets of motor vehicles operated or intended for interstate
operation, and the auditing of importers and exporters. An
agreement or amendment of an agreement takes effect according to
its terms, except that an agreement or amendment may not take effect
until the proposed agreement or amendment is published in the Texas
Register.
(b) An agreement may provide for:
(1) determining the base state for motor fuel users;
(2) user, importer, and exporter records
requirements;
(3) audit procedures;
(4) exchange of information;
(5) persons eligible for tax licensing;
(6) licensing and license revocation procedures,
permits, penalties, and fees;
(7) defining qualified motor vehicles;
(8) determining bonding procedures, types, and
amounts;
(9) specifying reporting requirements and periods;
(10) defining refund procedures and limitations,
including the payment of interest;
(11) defining uniform penalties, fees, and interest
rates;
(12) determining methods for collecting motor fuel
taxes and for collecting and forwarding motor fuel taxes, other
than penalties, due to another jurisdiction;
(13) the temporary remittal of funds equal to the
amount of the taxes and interest due to another jurisdiction but not
otherwise collected, subject to appropriation of funds for that
purpose; and
(14) other provisions to facilitate the
administration of the agreement.
(c) The comptroller may, as required by the terms of an
agreement, forward to an officer of another state any information
in the comptroller's possession relating to the manufacture,
receipts, sale, use, transportation, or shipment of motor fuel by
any person. The comptroller may disclose to an officer of another
state the location of officers, motor vehicles, and other real and
personal property of users, importers, and exporters of motor fuel.
(d) An agreement may provide for each state to audit the
records of a person based in this state to determine if the motor
fuel taxes due each state that is a party to the agreement are
properly reported and paid. An agreement may provide for each state
to forward the findings of an audit performed on a person based in
this state to each other state in which the person has taxable use
of motor fuel, from which the person imports motor fuel into this
state, or to which the person exports motor fuel from this state.
For a person who is not based in this state and who has taxable use
of motor fuel in this state or an import into or export out of this
state, the comptroller may use an audit performed by another state
that is a party to an agreement with this state to make an
assessment of motor fuel taxes against the person.
(e) An agreement entered into under this section does not
affect the authority of the comptroller to audit any person under
any other law.
(f) An agreement entered into under this section prevails
over an inconsistent rule of the comptroller. Except as otherwise
provided by this section, a statute of this state prevails over an
inconsistent provision of an agreement entered into under this
section.
(g) The comptroller may segregate in a separate fund or
account the amount of motor fuel taxes, other than penalties,
estimated to be due to other jurisdictions, motor fuel taxes
subject to refund during the fiscal year, licensing fees, and other
costs collected under the agreement. On a determination of an
amount held that is due to be remitted to another jurisdiction, the
comptroller may issue a warrant or make an electronic transfer of
the amount as necessary to carry out the purposes of the agreement.
An auditing cost, membership fee, and other cost associated with
the agreement may be paid from interest earned on funds segregated
under this subsection. Any interest earnings in excess of the costs
associated with the agreement shall be credited to general revenue.
(h) The legislature finds that it is in the public interest
to enter into motor fuel tax agreements with other jurisdictions
that may provide for the temporary remittal of amounts due other
jurisdictions that exceed the amounts collected and for cooperation
with other jurisdictions for the collection of taxes imposed by
this state and other jurisdictions on motor fuel that is imported
into or exported out of this state. The comptroller shall ensure
that reasonable measures are developed to recover motor fuel taxes
and other amounts due this state during each biennium.
(i) The comptroller shall attempt to enter into a
cooperative agreement with each state that borders this state to
provide for the collection of taxes imposed by this state and the
bordering state on motor fuel that is imported into this state from
or exported from this state to the bordering state. The comptroller
is encouraged to attempt to enter into similar cooperative
agreements with states that do not border this state.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.004. MOTOR FUEL TRANSPORTATION: REQUIRED
DOCUMENTS.
(a) A person may not transport in this state any motor fuel
by barge, vessel, railroad tank car, or transport vehicle unless
the person has a shipping document for the motor fuel that complies
with this section. A terminal operator or operator of a bulk plant
shall give a shipping document to the person who operates the barge,
vessel, railroad tank car, or transport vehicle into which motor
fuel is loaded at the terminal rack or bulk plant rack.
(b) The shipping document issued by the terminal operator or
operator of a bulk plant shall contain the following information
and any other information required by the comptroller:
(1) the terminal control number of the terminal or
physical address of the bulk plant from which the motor fuel was
received;
(2) the name and license number of the purchaser;
(3) the date the motor fuel was loaded;
(4) the net gallons loaded, or the gross gallons
loaded if the fuel was purchased from a bulk plant;
(5) the destination state of the motor fuel, as
represented by the purchaser of the motor fuel or the purchaser's
agent; and
(6) a description of the product being transported.
(c) In the event of an extraordinary circumstance,
including an act of God, that temporarily interferes with the
ability to issue an automated machine-generated shipping document,
a manually prepared shipping document that contains all of the
information required by Subsection (b) shall be substituted for the
machine-generated shipping document.
(d) A terminal operator or bulk plant operator may rely on
the representation made by the purchaser of motor fuel or the
purchaser's agent concerning the destination state of the motor
fuel. A purchaser is liable for any tax due as a result of the
purchaser's diversion of motor fuel from the represented
destination state.
(e) A person to whom a shipping document was issued shall:
(1) carry the shipping document in the barge, vessel,
railroad tank car, or other transport vehicle for which the
document was issued when transporting the motor fuel described in
the document;
(2) show the shipping document on request to any law
enforcement officer, representative of the comptroller, or other
authorized individual, when transporting the motor fuel described;
(3) deliver the motor fuel to the destination state
printed on the shipping document unless the person:
(A) notifies the comptroller and the destination
state, if a diversion program is in place, before transporting the
motor fuel into a state other than the printed destination state,
that the person has received instructions after the shipping
document was issued to deliver the motor fuel to a different
destination state;
(B) receives from the comptroller and
destination state, if a diversion program is in place, a diversion
number authorizing the diversion; and
(C) writes on the shipping document the change in
destination state and the diversion number; and
(4) give a copy of the shipping document to the person
to whom the motor fuel is delivered.
(f) The purchaser is responsible for paying the applicable
destination state taxes along with filing a refund with the origin
state. The supplier may not refund any taxes due to the diversion
of a product.
(g) The person to whom motor fuel is delivered by barge,
vessel, railroad tank car, or transport vehicle may not accept
delivery of the motor fuel if the destination state shown on the
shipping document for the motor fuel is a state other than this
state, except that the person may accept that delivery if the
document contains a diversion number authorized by the comptroller
and destination state, if applicable. The person to whom the motor
fuel is delivered shall examine the shipping document to determine
that the destination state is this state, and shall retain a copy of
the shipping document at the delivery location or another place
until the fourth anniversary of the date of delivery.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.005. CANCELLATION OR REFUSAL OF LICENSE.
(a) The comptroller may cancel or refuse to issue or reissue
a motor fuel license to any person who has violated or has failed to
comply with a provision of this chapter or a rule of the
comptroller.
(b) Before a license may be canceled, or the issuance or
reissuance refused, the comptroller shall give the license holder
or license applicant not less than 10 days' notice of a hearing at
the office of the comptroller in Austin or at a specified
comptroller's field office, granting the license holder or
applicant an opportunity to show cause before the comptroller why
the proposed action should not be taken. If a license is in effect,
the license remains in force pending the determination of the
show-cause hearing. Notice must be in writing and may be mailed by
United States registered mail or certified mail to the license
holder or applicant at the person's last known address, or may be
delivered by the comptroller to the license holder or applicant,
and no other notice is necessary. In case of service by mail of a
notice required by this chapter, the service is complete at the time
of deposit in the United States Post Office.
(c) The comptroller may prescribe rules of procedure and
evidence for the hearings in accordance with Chapter 2001,
Government Code.
(d) If, after the hearing or the opportunity to be heard,
the license is canceled or the issuance or reissuance refused by the
comptroller, all taxes that have been collected or that have
accrued, although the taxes are not then due and payable to the
state, except by the provisions of this chapter, shall become due
and payable concurrently with the notice of cancellation of the
license. The license holder shall within five days make a report
covering the period not covered by preceding reports filed by the
license holder and ending with the date of cancellation, and shall
remit and pay to the comptroller all taxes that have been collected
and that have accrued from the sale, use, or distribution of motor
fuel in this state.
(e) The comptroller may revoke a license if the license
holder purchases for export motor fuel on which the tax was not paid
under this chapter and subsequently diverts or causes the motor
fuel to be diverted to a destination in this state or to any
destination other than the originally designated state or country
without first obtaining a diversion number.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.006. SUMMARY SUSPENSION OF LICENSE.
(a) The comptroller may suspend a person's license without
notice or a hearing for the person's failure to comply with this
chapter or a rule adopted under this chapter if the person's
continued operation constitutes an immediate and substantial
threat to the collection of taxes imposed by this chapter and
attributable to the person's operation.
(b) If the comptroller summarily suspends a person's
license, proceedings for a preliminary hearing before the
comptroller or the comptroller's representative must be initiated
simultaneously with the summary suspension. The preliminary
hearing shall be set for a date that is not later than the 10th day
after the date of the summary suspension, unless the parties agree
to a later date.
(c) At the preliminary hearing, the license holder must show
cause why the license should not remain suspended pending a final
hearing on suspension or revocation.
(d) Chapter 2001, Government Code, does not apply to a
summary suspension under this section.
(e) To initiate a proceeding to suspend summarily a person's
license, the comptroller shall serve notice on the license holder
informing the license holder of the right to a preliminary hearing
before the comptroller or the comptroller's representative and of
the time and place of the preliminary hearing. The notice must be
personally served on the license holder or an officer, employee, or
agent of the license holder, or sent by certified or registered
mail, return receipt requested, to the license holder's mailing
address as it appears on the comptroller's records. The notice must
state the alleged violations that constitute the grounds for
summary suspension. The suspension is effective at the time the
notice is served. If the notice is served in person, the license
holder shall immediately surrender the license to the comptroller
or to the comptroller's representative. If notice is served by
mail, the license holder shall immediately return the license to
the comptroller.
(f) Section 162.005, governing hearings for license
cancellation or refusal to issue a license under this chapter,
governs a final administrative hearing under this section.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.007. ENFORCEMENT OF LICENSE CANCELLATION,
SUSPENSION, OR REFUSAL.
(a) The comptroller may examine any books and records
incident to the conduct of the business of a person whose license
has been canceled or suspended on the person's failure to file the
reports required by this chapter or to remit all taxes due. If
necessary, the comptroller shall issue an audit deficiency
determination for any tax amount due. If the amount is not paid on
or before the 15th day after the deficiency determination becomes
final, the bond or other security required under this chapter shall
be forfeited. The demand for payment shall be addressed to both the
surety or sureties and the person who owes the delinquency.
(b) If the forfeiture of the bond or other security does not
satisfy the delinquency, the comptroller shall certify the taxes,
penalty, and interest delinquent to the attorney general, who may
file suit against the person or the person's surety, or both, to
collect the amount due. After being given notice of an order of
cancellation or summary suspension, it shall be unlawful for any
person to continue to operate the person's business under a
canceled or suspended license. The attorney general may file suit
to enjoin the person from operating under the canceled or suspended
license until the comptroller reissues a license.
(c) An appeal from an order of the comptroller canceling or
suspending or refusing the issuance or reissuance of a license may
be taken to a district court of Travis County by the aggrieved
license holder or applicant. The trial shall be de novo under the
same rules as ordinary civil suits, except that:
(1) an appeal must be perfected and filed within 30
days after the effective date of the order, decision, or ruling of
the comptroller;
(2) the trial of the case shall begin within 10 days
after its filing; and
(3) the order, decision, or ruling of the comptroller
may be suspended or modified by the court pending a trial on the
merits.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.008. INSPECTION OF PREMISES AND RECORDS.
For the purpose of determining the amount of tax collected
and payable to this state, the amount of tax accruing and due, and
whether a tax liability has been incurred under this chapter, the
comptroller may:
(1) inspect any premises where motor fuel, crude
petroleum, natural gas, derivatives or condensates of crude
petroleum, natural gas, or their products, methyl alcohol, ethyl
alcohol, or other blending agents are produced, made, prepared,
stored, transported, sold, or offered for sale or exchange;
(2) examine the books and records required to be kept
and records incident to the business of any license holder or person
required to be licensed, or any person receiving, possessing,
delivering, or selling motor fuel, crude oil, derivatives or
condensates of crude petroleum, natural gas, or their products, or
any blending agents;
(3) examine and either gauge or measure the contents
of all storage tanks, containers, and other property or equipment;
and
(4) take samples of any and all of these products
stored on the premises.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.009. AUTHORITY TO STOP AND EXAMINE.
To enforce this chapter, the comptroller or a peace officer
may stop a motor vehicle that appears to be operating with or
transporting motor fuel to examine the shipping document, cargo
manifest, or invoices required to be carried, examine a license or
copy of a license that may be required to be carried, take samples
from the fuel supply or cargo tanks, and make any other
investigation that could reasonably be made to determine whether
the taxes have been paid or accounted for by a license holder or a
person required to be licensed. The comptroller, a peace officer,
an employee of the attorney general's office, an employee of the
Texas Commission on Environmental Quality, or an employee of the
Department of Agriculture may take samples of motor fuel from a
storage tank or container to:
(1) determine if the fuel contains hazardous waste or
is adulterated; or
(2) allow the comptroller to determine whether taxes
on the fuel have been paid or accounted for to this state.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.010. IMPOUNDMENT AND SEIZURE.
(a) If after examination or other investigation, the
comptroller believes that the owner or operator of a motor vehicle
or cargo tank, or a person receiving, possessing, delivering, or
selling gasoline or diesel fuel, has not paid all motor fuel taxes
due, or does not have a valid license entitling that person to
possess or transport tax-free motor fuel, the comptroller or peace
officer may impound the fuel, the motor vehicle, cargo tank,
storage tank, equipment, paraphernalia, or other tangible personal
property used for or incident to the storage, sale, or
transportation of that motor fuel. Unless proof is produced within
three working days after the beginning of impoundment that the
owner, operator, or other person has paid the taxes established by
the comptroller to be due on the gasoline or diesel fuel stored,
sold, used, or transported and any other taxes due to this state, or
that the owner, operator, or other person holds a valid license to
possess or transport tax-free motor fuel, the comptroller may
demand payment of all taxes, penalties, and interest due to this
state, and all costs of impoundment.
(b) If the owner or operator does not produce the required
documentation or required license or pay the taxes, penalties,
interest, and costs due within three working days after the
beginning of the impoundment, the comptroller may seize the
impounded property to satisfy the tax liability.
(c) The comptroller may seize:
(1) all motor fuel on which taxes are imposed by this
chapter that is found in the possession, custody, or control of any
person for the purpose of being sold, transported, removed, or used
by the person in violation of this chapter;
(2) all motor fuel that is removed or is deposited,
stored, or concealed in any place with intent to avoid payment of
taxes;
(3) any automobile, truck, tank truck, boat, trailer
conveyance, or other vehicle used in the removal or transportation
of the motor fuel to avoid payment of taxes; and
(4) all equipment, paraphernalia, storage tanks, or
tangible personal property incident to and used for avoiding the
payment of taxes and found in the place, building, or vehicle where
the motor fuel is found.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.011. SALE OF SEIZED PROPERTY.
(a) The comptroller may sell property seized under Section
162.010.
(b) Notice of the time and place of a sale shall be given to
the delinquent person in writing by certified mail at least 20 days
before the date set for the sale. The notice shall be enclosed in an
envelope addressed to the person at the person's last known address
or place of business. It shall be deposited in the United States
mail, postage prepaid. The notice shall also be published once a
week for two consecutive weeks before the date of the sale in a
newspaper of general circulation published in the county in which
the property seized is to be sold. If there is no newspaper of
general circulation in the county, notice shall be posted in three
public places in the county 14 days before the date set for the
sale. The notice must contain a description of the property to be
sold, a statement of the amount due, including interest, penalties,
and costs, the name of the delinquent, and the further statement
that unless the amount due, interest, penalties, and costs are paid
on or before the time fixed in the notice for the sale, the
property, or as much of it as may be necessary, will be sold at
public auction in accordance with the law and the notice.
(c) At the sale, the comptroller shall sell the property and
shall deliver to the purchaser a bill of sale for personal property
and a deed for real property sold. The bill of sale or deed vests
the interest or title of the person liable for the amount in the
purchaser. The unsold portion of any property seized may be left at
the place of sale at the risk of the person liable for the amount.
(d) The proceeds of a sale shall be allocated according to
the following priorities:
(1) the payment of expenses of seizure, appraisal,
custody, advertising, auction, and any other expenses incident to
the seizure and sale;
(2) the payment of the tax, penalty, and interest; and
(3) the repayment of the remaining balance to the
person liable for the amount unless a claim is presented before the
sale by any other person who has an ownership interest evidenced by
a financing statement or lien, in which case the comptroller shall
withhold the remaining balance pending a determination of the
rights of the respective parties.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.012. PRESUMPTIONS.
(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)(B) or
162.204(a)(4)(B) and fails 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.
(b) In the absence of records showing the number of miles
actually operated per gallon of motor fuel consumed, it is presumed
that not less than one gallon of motor fuel was consumed for every
four miles traveled. An interstate trucker may produce evidence of
motor fuel consumption to establish another mileage factor. If an
examination or audit made by the comptroller from the records of an
interstate trucker shows that a greater amount of motor fuel was
consumed than was reported by the interstate trucker for tax
purposes, the interstate trucker is liable for the tax, penalties,
and interest on the additional amount shown or the trucker is
entitled to a credit or refund on overpayments of tax established by
the audit.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.013. VENUE OF TAX COLLECTION SUITS.
The venue of a suit, injunction, or other proceeding at law
available for the establishment or collection of a claim for
delinquent taxes, penalties, or interest accruing under this
chapter and the enforcement of the terms and provisions of this
chapter is in Travis County or in any other county having venue
under existing venue statutes.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.014. OTHER MOTOR FUEL TAXES PROHIBITED.
The taxes imposed by this chapter are in lieu of any other
excise or occupation tax imposed by a political subdivision of this
state on the sale, use, or distribution of gasoline, diesel fuel, or
liquefied gas.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.015. ADDITIONAL TAX APPLIES TO INVENTORIES.
(a) On the effective date of an increase in the rates of the
taxes imposed by this chapter, a distributor or dealer that
possesses for the purpose of sale 2,000 or more gallons of gasoline
or diesel fuel at each business location on which the taxes imposed
by this chapter at a previous rate have been paid shall report to
the comptroller the volume of that gasoline and diesel fuel, and at
the time of the report shall pay a tax on that gasoline and diesel
fuel at a rate equal to the rate of the tax increase.
(b) On the effective date of a reduction of the rates of
taxes imposed by this chapter, a distributor or dealer that
possesses for the purpose of sale 2,000 or more gallons of gasoline
or diesel fuel at each business location on which the taxes imposed
by this chapter at the previous rate have been paid becomes entitled
to a refund in an amount equal to the difference in the amount of
taxes paid on that gasoline or diesel fuel at the previous rate and
at the rate in effect on the effective date of the reduction in the
tax rates. The rules of the comptroller shall provide for the
method of claiming a refund under this chapter and may require that
the refund for the dealer be paid through the distributor or
supplier from whom the dealer received the fuel.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.016. IMPORTATION AND EXPORTATION OF MOTOR FUEL.
(a) A person may not import motor fuel to a destination in
this state or export motor fuel to a destination outside this state
by any means unless the person possesses a shipping document for
that fuel created by the terminal or bulk plant at which the fuel
was received. The shipping document must include:
(1) the name and physical address of the terminal or
bulk plant from which the motor fuel was received for import or
export;
(2) the name and federal employer identification
number, or the social security number if the employer
identification number is not available, of the carrier transporting
the motor fuel;
(3) the date the motor fuel was loaded;
(4) the type of motor fuel;
(5) the number of gallons:
(A) in temperature-adjusted gallons if purchased
from a terminal for export or import; or
(B) in temperature-adjusted gallons or in gross
gallons if purchased from a bulk plant;
(6) the destination of the motor fuel as represented
by the purchaser of the motor fuel and the number of gallons of the
fuel to be delivered, if delivery is to only one state;
(7) the name, federal employer identification number,
license number, and physical address of the purchaser of the motor
fuel;
(8) the name of the person responsible for paying the
tax imposed by this chapter, as given to the terminal by the
purchaser if different from the licensed supplier or distributor;
and
(9) any other information that, in the opinion of the
comptroller, is necessary for the proper administration of this
chapter.
(b) The terminal or bulk plant shall provide the shipping
documents to the importer or exporter.
(c) If motor fuel is to be delivered to more than one state,
the terminal shall document the split loads by issuing shipping
documents that list the destination state of each portion of the
motor fuel.
(d) A terminal, a bulk plant, the carrier, the licensed
distributor or supplier, and the person that received the motor
fuel shall:
(1) retain a copy of the shipping document until at
least the fourth anniversary of the date the fuel is received; and
(2) provide a copy of the document to the comptroller
or any law enforcement officer not later than the 10th working day
after the date a request for the copy is received.
(e) An importer or exporter shall keep in the person's
possession the shipping document issued by the terminal or bulk
plant when transporting motor fuel imported into this state or for
export from this state. The importer or exporter shall show the
document to the comptroller or a peace officer on request. The
comptroller may delegate authority to inspect the document to other
governmental agencies. The importer or exporter shall provide a
copy of the shipping document to the person that receives the fuel
when it is delivered.
(f) The importer or exporter may deliver motor fuel only to
the destination state or states indicated on the shipping document.
(g) An importer or exporter who wants to divert the delivery
of a single cargo tank of motor fuel from the destination state
printed on the shipping document must obtain a diversion number
from the comptroller before diverting the delivery. The importer,
exporter, or motor fuel transporter must write the diversion number
on the shipping document issued for the fuel. A diversion number is
required for each diverted delivery. The comptroller may appoint a
person to assign diversion numbers or may delegate that authority
to another person.
(h) An importer that acquires motor fuel for import by cargo
tank must obtain an import verification number from the comptroller
before importing the motor fuel. The importer must write the import
verification number on the shipping document issued for the fuel.
The importer must obtain a separate import confirmation number for
each cargo tank delivery of motor fuel into this state. The
comptroller may appoint a person to assign import verification
numbers or may delegate that authority to another person.
(i) Each terminal or bulk plant shall post a notice in a
conspicuous location proximate to the point of receipt of shipping
papers that describes the duties of importers and exporters under
this section. The comptroller may prescribe the language, type,
style, and format of the notice.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
SUBCHAPTER B. GASOLINE TAX
§ 162.101. POINT OF IMPOSITION OF GASOLINE TAX.
(a) A tax is imposed on the removal of gasoline from the
terminal using the terminal rack, other than by bulk transfer. The
supplier or permissive supplier shall collect the tax imposed by
this subchapter from the person who orders the withdrawal at the
terminal rack.
(b) A tax is imposed at the time gasoline is imported into
this state, other than by a bulk transfer, for delivery to a
destination in this state. The permissive supplier shall collect
the tax imposed by this subchapter from the person who imports the
gasoline into this state. If the seller is not a permissive
supplier, then the person who imports the gasoline into this state
shall pay the tax.
(c) A tax is imposed on the sale or transfer of gasoline in
the bulk transfer/terminal system in this state by a supplier to a
person who does not hold a supplier's license. The supplier shall
collect the tax imposed by this subchapter from the person who
orders the sale or transfer in the bulk transfer terminal system.
(d) A tax is imposed on gasoline brought into this state in a
motor fuel supply tank or tanks of a motor vehicle operated by a
person required to be licensed as an interstate trucker.
(e) A tax is imposed on the blending of gasoline at the point
gasoline blended fuel is made in this state outside the bulk
transfer/terminal system. The blender shall pay the tax. The
number of gallons of gasoline blended fuel on which the tax is
imposed is equal to the difference between the number of gallons of
blended fuel made and the number of gallons of previously taxed
gasoline used to make the blended fuel.
(f) A terminal operator in this state is considered a
supplier for the purpose of the tax imposed under this subchapter
unless at the time of removal:
(1) the terminal operator has a terminal operator's
license issued for the facility from which the gasoline is
withdrawn;
(2) the terminal operator verifies that the person who
removes the gasoline has a supplier's license; and
(3) the terminal operator does not have a reason to
believe that the supplier's license is not valid.
(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 ultimately by the person using or consuming
the gasoline. Gasoline is considered to be used when it is
delivered into a fuel supply tank.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.102. TAX RATE.
The gasoline tax rate is 20 cents for each net gallon or
fractional part on which the tax is imposed under Section 162.101.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.103. BACKUP TAX; LIABILITY.
(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; and
(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.
(b) If the motor vehicle described by Subsection (a)(2) is
owned or leased by a person other than the operator, the tax shall
be paid by either the operator or the motor vehicle's owner or
lessee.
(c) The tax imposed under Subsection (a)(3) is also imposed
on the ultimate consumer.
(d) A person who sells gasoline in this state on which tax
has not been paid for any purpose other than a purpose exempt under
Section 162.104 shall at the time of sale collect the tax from the
purchaser or recipient of gasoline in addition to the selling price
and is liable to this state for the taxes collected at the time and
in the manner provided by this chapter.
(e) The tax liability imposed by this section is in addition
to any penalty imposed under this chapter.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.104. EXEMPTIONS.
(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 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; or
(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.
(b) The exemption provided by Subsection (a)(4) does not
apply to gasoline that is transported and delivered outside this
state in the motor fuel supply tank of a motor vehicle other than an
interstate trucker.
(c) If an exporter described by Subsection (a)(4)(B) does
not have an exporter's license issued under this subchapter, the
supplier must collect the tax imposed under this subchapter.
(d) Subsection (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.
(e) Subsection (a)(4)(B) applies only until the date the
destination state recognizes, by agreement with this state or by
statute, the out-of-state supplier as a valid taxpayer for the
motor fuel being exported to that state from this state, or until
January 1, 2006, whichever date is earlier.
(f) The exemption provided by Subsection (a)(4)(A) does not
apply to a sale by a distributor.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.105. PERSONS REQUIRED TO BE LICENSED.
A person shall obtain the appropriate license or licenses
issued by the comptroller before conducting the activities of:
(1) a supplier, who may also act as a distributor,
importer, exporter, blender, motor fuel transporter, or aviation
fuel dealer without securing a separate license, but who is subject
to all other conditions, requirements, and liabilities imposed on
those license holders;
(2) a permissive supplier, who may also act as a
distributor, importer, exporter, blender, motor fuel transporter,
or aviation fuel dealer without securing a separate license, but
who is subject to all other conditions, requirements, and
liabilities imposed on those license holders;
(3) a distributor, who may also act as an importer,
exporter, blender, or motor fuel transporter without securing a
separate license, but who is subject to all other conditions,
requirements, and liabilities imposed on those license holders;
(4) an importer, who may also act as an exporter,
blender, or motor fuel transporter without securing a separate
license, but who is subject to all other conditions, requirements,
and liabilities imposed on those license holders;
(5) a terminal operator;
(6) an exporter;
(7) a blender;
(8) a motor fuel transporter;
(9) an aviation fuel dealer; or
(10) an interstate trucker.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.106. TRIP PERMITS.
(a) Instead of an annual interstate trucker's license, a
person bringing a motor vehicle described by Section 162.001(36)
into this state for commercial purposes may obtain a trip permit.
The trip permit must be obtained before or at the time of entry into
this state.
(b) Not more than five trip permits for each person may be
issued during a calendar year.
(c) A fee for each trip permit shall be collected from the
applicant and shall be in the amount of $50 for each vehicle for
each trip.
(d) A report is not required with respect to the vehicle.
(e) Operating a motor vehicle without a valid interstate
trucker's license or trip permit may subject the operator to a
penalty under Section 162.402.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.107. PERMISSIVE SUPPLIER REQUIREMENTS ON
OUT-OF-STATE REMOVALS.
(a) A person may elect to obtain a permissive supplier
license to collect the tax imposed under this subchapter for
gasoline that is removed at a terminal in another state and has this
state as the destination state.
(b) With respect to gasoline that is removed by the licensed
permissive supplier at a terminal located in another state and that
has this state as the destination state, a licensed permissive
supplier shall:
(1) collect the tax due to this state on the gasoline;
(2) waive any defense that this state lacks
jurisdiction to require the supplier to collect the tax due to this
state on the gasoline under this subchapter;
(3) report and pay the tax due on the gasoline in the
same manner as if the removal had occurred at a terminal located in
this state;
(4) keep records of the removal of the gasoline and
submit to audits concerning the gasoline as if the removal had
occurred at a terminal located in this state; and
(5) report sales by the permissive supplier to a
person who is not licensed in this state.
(c) A permissive supplier must acknowledge in the person's
license application that this state imposes the requirements listed
in Subsection (b) under this state's general police power and that
the permissive supplier submits to the jurisdiction of this state
only for purposes related to the administration of this chapter.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.108. LICENSE APPLICATION PROCEDURE.
(a) To obtain a license under this subchapter, an applicant
shall file an application using a form adopted by the comptroller.
The application must contain:
(1) the name under which the applicant transacts or
intends to transact business;
(2) the applicant's principal office, residence, or
place of business in this state, or other location of the applicant;
(3) if the applicant is not an individual, the names of
the principal officers of an applicant corporation, or the names of
the members of an applicant partnership, and the office, street, or
post office addresses of each; and
(4) other information required by the comptroller.
(b) An applicant for a license as a supplier, permissive
supplier, or terminal operator must have a federal certificate of
registry issued under 26 U.S.C. Section 4101 that authorizes the
applicant to enter into federal tax-free transactions of gasoline
in the bulk terminal/transfer system. An applicant that is
required to have a federal certificate of registry must include the
registration number of the certificate on the application for a
license. An applicant for a license as an importer, an exporter, or
a distributor who has a federal certificate of registry issued
under 26 U.S.C. Section 4101 must include the registration number
of the certificate on the application for a license.
(c) An applicant for a license as an importer or distributor
must list on the application each state from which the applicant
intends to import gasoline and, if required by a listed state, must
be licensed or registered for gasoline tax purposes in that state.
If a listed state requires the applicant to be licensed or
registered, the applicant must provide the applicant's license or
registration number from that state.
(d) An applicant for a license as an exporter must designate
an agent located in this state for service of process and provide
the agent's name and address. An applicant for a license as an
exporter or distributor must list on the application each state to
which the applicant intends to export gasoline received in this
state by means of a transfer that is outside the bulk
transfer/terminal system and must be licensed or registered for
gasoline tax purposes in that state. The applicant must provide the
applicant's license or registration number from that state.
(e) An applicant for a license as a motor fuel transporter
must list on the application each state from which and to which the
applicant intends to transport motor fuel and, if required by a
listed state, must be licensed or registered for gasoline tax
purposes in that state. If a listed state requires the applicant to
be licensed or registered, the applicant must provide the
applicant's license or registration number from that state.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.109. ISSUANCE AND DISPLAY OF LICENSE.
(a) If the comptroller approves a license application, the
comptroller shall issue a license to the applicant. A license must
be posted in a conspicuous place or kept available for inspection at
the principal place of business of the license holder. A copy of
the license must be kept at each place of business or other place of
storage from which gasoline is sold, distributed, or used and in
each motor vehicle used by the license holder to transport gasoline
purchased by the license holder for resale, distribution, or use.
(b) A person holding an interstate trucker's license shall
reproduce the license and carry a photocopy with each motor vehicle
being operated into or from this state.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.110. LICENSES AND TRIP PERMITS; PERIODS OF
VALIDITY.
(a) The license issued to a supplier, permissive supplier,
distributor, importer, exporter, terminal operator, blender, or
motor fuel transporter is permanent and is valid during the period
the license holder has in force and effect the required bond or
security and furnishes timely reports and supplements as required,
or until the license is surrendered by the holder or canceled by the
comptroller. The comptroller shall cancel a license under this
subsection if a purchase, sale, or use of gasoline has not been
reported by the license holder during the previous nine months.
(b) The license issued to an aviation fuel dealer is
permanent and is valid until the license is surrendered by the
holder or canceled by the comptroller.
(c) The license issued to an interstate trucker is valid
from the date of its issuance through December 31 of each calendar
year or until the license is surrendered by the holder or canceled
by the comptroller. The comptroller may renew the license for each
ensuing calendar year if the license holder furnishes timely
reports as required.
(d) A trip permit is valid for the period stated on the
permit as determined by the comptroller.
(e) A license issued under this subchapter is not
transferable.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.111. BOND AND OTHER SECURITY FOR TAXES.
(a) The comptroller shall determine the amount of security
required of a supplier, permissive supplier, distributor,
exporter, importer, or blender, taking into consideration the
amount of tax that has or is expected to become due from the person,
any past history of the person as a license holder under this
chapter or its predecessor, and the necessity to protect this state
against the failure to pay the tax as the tax becomes due.
(b) If it is determined that the posting of security is
necessary to protect this state, the comptroller may require a
license holder to post a bond. A license holder shall post a bond
equal to two times the maximum amount of tax that could accrue on
tax-free gasoline purchased or acquired during a reporting period.
The minimum bond is $30,000. The maximum bond is $600,000 unless the
comptroller believes there is undue risk of loss of tax revenues, in
which event the comptroller may require one or more bonds or
securities in a total amount exceeding $600,000.
(c) A license holder who has filed a bond or other security
under this subchapter is entitled, on request, to have the
comptroller return, refund, or release the bond or security if in
the judgment of the comptroller the person has for four consecutive
years continuously complied with the conditions of the bond or
other security filed under this subchapter. However, if the
comptroller determines that the revenues of this state would be
jeopardized by the return, refund, or release of the bond or
security, the comptroller may elect not to return, refund, or
release the bond or security and may reimpose a requirement of a
bond or other security as the comptroller determines necessary to
protect the revenues of this state.
(d) A bond must be a continuing instrument, must constitute
a new and separate obligation in the penal sum named in the bond for
each calendar year or portion of a year while the bond is in force,
and must remain in effect until the surety on the bond is released
and discharged.
(e) Instead of filing a surety bond, an applicant for a
license may substitute the following security:
(1) cash in the form of United States currency in an
amount equal to the required bond to be deposited in the suspense
account of the state treasury;
(2) an assignment to the comptroller of a certificate
of deposit in any bank or savings and loan association in this state
that is a member of the Federal Deposit Insurance Corporation in an
amount at least equal to the bond amount required; or
(3) an irrevocable letter of credit to the comptroller
from any bank or savings and loan association in this state that is
a member of the Federal Deposit Insurance Corporation in an amount
of credit at least equal to the bond amount required.
(f) If the amount of an existing bond becomes insufficient
or a security becomes unsatisfactory or unacceptable, the
comptroller may require the filing of a new or of an additional bond
or security.
(g) A surety bond or other form of security may not be
released until it is determined by examination or audit that a tax,
penalty, or interest liability does not exist. The cash or
securities shall be released within 60 days after the comptroller
determines that liability does not exist.
(h) The comptroller may use the cash or certificate of
deposit security to satisfy a final determination of delinquent
liability or a judgment secured in any action by this state to
recover gasoline taxes, costs, penalties, and interest found to be
due to this state by a person in whose behalf the cash or
certificate security was deposited.
(i) A surety on a bond furnished by a license holder shall be
released and discharged from liability to this state accruing on
the bond on the 31st day after the date on which the surety files
with the comptroller a written request to be released and
discharged. The request does not relieve, release, or discharge
the surety from a liability that already accrued or that accrues
before the expiration of the 30-day period. The comptroller,
promptly on receipt of the request, shall notify the license holder
who furnished the bond, and unless the license holder, before the
expiration date of the existing security, files with the
comptroller a new bond with a surety company duly authorized to do
business under the laws of this state, or other authorized
security, in the amount required by this section, the comptroller
shall cancel the license in the manner provided by this chapter.
(j) The comptroller shall notify immediately the issuer of a
letter of credit of a final determination of the license holder's
delinquent liability or a judgment secured in any action by this
state to recover gasoline taxes, costs, penalties, and interest
found to be due this state by a license holder in whose behalf the
letter of credit was issued. The letter of credit allowed as
security for the remittance of taxes under this subchapter shall
contain a statement that the issuer agrees to respond to the
comptroller's notice of liability with amounts to satisfy the
comptroller's delinquency claim against the license holder.
(k) A license holder may request an examination or audit to
obtain release of the security when the license holder relinquishes
the license or when the license holder wants to substitute one form
of security for an existing one.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.112. LICENSE HOLDER STATUS LIST.
(a) The comptroller, on or before December 20 of each year,
shall make available to all license holders an alphabetical list of
licensed suppliers, permissive suppliers, distributors, aviation
fuel dealers, importers, exporters, blenders, and terminal
operators. A supplemental list of additions and deletions shall be
made available to the license holders each month. A current and
effective license or the list furnished by the comptroller is
evidence of the validity of the license until the comptroller
notifies license holders of a change in the status of a license
holder.
(b) A licensed supplier or permissive supplier who sells
gasoline tax-free to a person whose supplier's or permissive
supplier's license has been canceled or revoked under this chapter
is liable for any tax due on gasoline sold after receiving notice of
the cancellation or revocation.
(c) The comptroller shall notify all license holders under
this chapter when a canceled or revoked license is subsequently
reinstated and include in the notice the effective date of the
reinstatement. Sales to the supplier or permissive supplier after
the effective date of the reinstatement may be made tax-free.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.113. REMITTANCE OF TAX TO SUPPLIER OR PERMISSIVE
SUPPLIER; ALLOWANCES.
(a) Each licensed distributor and licensed importer shall
remit to the supplier or permissive supplier, as applicable, the
tax imposed by Section 162.101 for gasoline removed at a terminal
rack. A licensed distributor or licensed importer may elect to
defer payment of the tax to the supplier or permissive supplier
until two days before the date the supplier or permissive supplier
is required to remit the tax to this state. The distributor or
importer shall pay the taxes by electronic funds transfer.
(b) A supplier, a permissive supplier, or its
representative that conducts electronic transactions to draft an
account of a licensed distributor or licensed importer for the
payment of taxes due under this section shall provide at least two
days' notice using an electronic means of the amount to be drafted
from the account of the licensed distributor or licensed importer
and the number of the account to be drafted from.
(c) If the supplier or permissive supplier cannot secure
from the licensed distributor or licensed importer payment of taxes
due for gasoline removed from the terminal during the previous
reporting period and the supplier elects to take a credit against a
subsequent payment of gasoline tax to this state for the taxes not
remitted to the supplier or permissive supplier by the licensed
distributor or licensed importer, the supplier or permissive
supplier shall notify the comptroller of the licensed distributor's
or licensed importer's failure to remit tax in conjunction with the
report requesting a credit.
(d) The supplier or permissive supplier has the right, after
notifying the comptroller of the licensed distributor's or licensed
importer's failure to remit taxes under this section, to terminate
the ability of the licensed distributor or licensed importer to
defer the payment of gasoline tax. The supplier or permissive
supplier shall reinstate without delay the right of the licensed
distributor or licensed importer to defer the payment of gasoline
tax after the comptroller provides to the supplier or permissive
supplier notice that the licensed distributor or licensed importer
is in good standing with the comptroller for the purposes of the
gasoline tax imposed under this subchapter.
(e) A licensed distributor or licensed importer who makes
timely payments of the gasoline tax imposed under this subchapter
is entitled to retain an amount equal to 1.75 percent of the total
taxes to be paid to the supplier or permissive supplier to cover
administrative expenses.
(f) The license of a distributor, exporter, or importer who
fails to pay the full amount of tax required by this subchapter is
subject to cancellation as provided by Section 162.005.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.114. RETURNS AND PAYMENTS.
(a) Except as provided by Subsection (b), each person who is
liable for the tax imposed by this subchapter, a terminal operator,
and a licensed distributor shall file a return on or before the 25th
day of the month following the end of each calendar month.
(b) A motor fuel transporter and an interstate trucker shall
file a return on or before the 25th day of the month following the
end of the calendar quarter.
(c) The return required by this section shall be accompanied
by a payment for the amount of tax reported due.
(d) An aviation fuel dealer is not required to file a
return.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.115. RECORDS.
(a) A supplier and permissive supplier 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 refined, 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,
distribution, or use; and
(E) all gasoline lost by fire, theft, or
accident; and
(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;
(B) exported from this state by destination state
or country; and
(C) imported during the preceding calendar month
by state or country of origin.
(b) A distributor 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 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,
distribution, 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;
(B) exported from this state by destination state
or country; and
(C) imported during the preceding calendar month
by state or country of origin; and
(3) for gasoline exported from this state, proof of
payment of tax to the destination state in a form acceptable to the
comptroller.
(c) An importer 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,
distribution, or use; and
(E) all gasoline lost by fire, theft, or
accident; and
(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;
(B) exported from this state by destination state
or country; and
(C) imported during the preceding calendar month
by state or country of origin.
(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)(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.
(e) A blender shall keep a record showing the number of
gallons of:
(1) all gasoline inventories on hand at the first of
each month;
(2) all gasoline compounded or blended;
(3) all gasoline purchased or received, showing the
name of the seller and the date of each purchase or receipt;
(4) all gasoline sold, distributed, or used, showing
the name of the purchaser and the date of the sale or use; and
(5) all gasoline lost by fire, theft, or accident.
(f) A terminal operator shall keep:
(1) a record showing the number of gallons of:
(A) all gasoline inventories on hand at the first
of each month, including the name and license number of each owner
and the amount of gasoline held for each owner;
(B) all gasoline received, showing the name of
the seller and the date of each purchase or receipt;
(C) all gasoline sold, distributed, or used,
showing the name of the purchaser and the date of the sale,
distribution, or use; and
(D) all gasoline lost by fire, theft, or
accident; and
(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;
(B) exported from this state by destination state
or country; and
(C) imported during the preceding calendar month
by state or country of origin.
(g) A motor fuel transporter shall keep a complete and
separate record of each intrastate and interstate transportation of
gasoline, showing:
(1) the date of transportation;
(2) the name of the consignor and consignee;
(3) the means of transportation;
(4) the quantity and kind of gasoline transported;
(5) full data concerning the diversion of shipments,
including the number of gallons diverted from interstate to
intrastate and intrastate to interstate commerce; and
(6) the points of origin and destination, the number
of gallons shipped or transported, the date, the consignee and the
consignor, and the kind of gasoline that has been diverted.
(h) A dealer shall keep a record showing the number of
gallons of:
(1) gasoline inventories on hand at the first of each
month;
(2) all gasoline purchased or received, showing the
name of the seller and the date of each purchase or receipt;
(3) all gasoline sold or used, showing the date of the
sale or use; and
(4) all gasoline lost by fire, theft, or accident.
(i) An interstate trucker shall keep a record of:
(1) the total miles traveled in all states by all
vehicles traveling to or from this state and the total quantity of
gasoline consumed in those vehicles; and
(2) the total miles traveled in this state and the
total quantity of gasoline purchased and delivered into the fuel
supply tanks of motor vehicles in this state.
(j) An aviation fuel dealer shall keep a record showing the
number of gallons of:
(1) all gasoline inventories on hand at the first of
each month;
(2) all gasoline purchased or received, showing the
name of the seller and the date of each purchase or receipt;
(3) all gasoline sold or used in aircraft or aircraft
servicing equipment; and
(4) all gasoline lost by fire, theft, or accident.
(k) The records of an aviation fuel dealer made under
Subsection (j)(3) must show:
(1) the name of the purchaser or user of gasoline;
(2) the date of the sale or use of gasoline; and
(3) the registration or "N" number of the airplane or a
description or number of the aircraft or a description or number of
the aircraft servicing equipment in which gasoline is used.
(l) The comptroller may require selective schedules from a
supplier, permissive supplier, distributor, importer, exporter,
blender, terminal operator, motor fuel transporter, dealer,
aviation fuel dealer, and interstate trucker for any purchase,
sale, or delivery of gasoline if the schedules are not inconsistent
with the requirements of this chapter.
(m) The records required by this section must be kept until
the fourth anniversary of the date they are created and are open to
inspection at all times by the comptroller and the attorney
general.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.116. INFORMATION REQUIRED ON SUPPLIER'S AND
PERMISSIVE SUPPLIER'S RETURN; CREDITS AND ALLOWANCES.
(a) The monthly return and supplements of each supplier and
permissive supplier shall contain for the period covered by the
return:
(1) the number of net gallons of gasoline received by
the supplier or permissive supplier during the month, sorted by
product code, seller, point of origin, destination state, carrier,
and receipt date;
(2) the number of net gallons of gasoline removed at a
terminal rack during the month from the account of the supplier,
sorted by product code, person receiving the gasoline, terminal
code, and carrier;
(3) the number of net gallons of gasoline removed
during the month for export, sorted by product code, person
receiving the gasoline, terminal code, destination state, and
carrier;
(4) the number of net gallons of gasoline removed
during the month from a terminal located in another state for
conveyance to this state, as indicated on the shipping document for
the gasoline, sorted by product code, person receiving the
gasoline, terminal code, and carrier;
(5) the number of net gallons of gasoline the supplier
or permissive supplier sold during the month in transactions exempt
under Section 162.104, sorted by product code, carrier, purchaser,
and terminal code;
(6) the number of net gallons of gasoline sold in the
bulk transfer/terminal system in this state to any person not
holding a supplier's or permissive supplier's license; and
(7) any other information required by the comptroller.
(b) A supplier or permissive supplier that timely pays the
tax to this state may deduct from the amount of tax due a collection
allowance equal to two percent of the amount of tax payable to this
state.
(c) A supplier or permissive supplier may take a credit for
any taxes that were not remitted in a previous period to the
supplier or permissive supplier by a licensed distributor or
licensed importer as required by Section 162.113. The supplier or
permissive supplier is eligible to take the credit if the
comptroller is notified of the default within 60 days after the
default occurs. If a license holder pays to a supplier or
permissive supplier the tax owed, but the payment occurs after the
supplier or permissive supplier has taken a credit on its return,
the supplier or permissive supplier shall remit the payment to the
comptroller with the next monthly return after receipt of the tax,
plus a penalty of 10 percent of the amount of unpaid taxes and
interest at the rate provided by Section 111.060 beginning on the
date the credit was taken.
(d) For purposes of Subsection (c), all payments or credits
in reduction of a customer's account must be applied ratably
between motor fuels and other goods sold to the customer, and the
credit allowed will be the tax on the number of gallons represented
by the motor fuel portion of the credit.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.117. DUTIES OF SUPPLIER OR PERMISSIVE SUPPLIER.
(a) A supplier or permissive supplier who receives or
collects tax holds the amount received or collected in trust for the
benefit of this state and has a fiduciary duty to remit to the
comptroller the amount of tax received or collected.
(b) A supplier or permissive supplier shall furnish the
purchaser with an invoice, bill of lading, or other documentation
as evidence of the number of gallons received by the purchaser.
(c) A supplier or permissive supplier who receives a payment
of tax may not apply the payment of tax to a debt that the person
making the payment owes for gasoline purchased from the supplier or
permissive supplier.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.118. INFORMATION REQUIRED ON DISTRIBUTOR'S
RETURN.
The monthly return and supplements of each distributor shall
contain for the period covered by the return:
(1) the number of net gallons of gasoline received by
the distributor during the month, sorted by product code, seller,
point of origin, destination state, carrier, and receipt date;
(2) the number of net gallons of gasoline removed at a
terminal rack by the distributor during the month, sorted by
product code, seller, terminal code, and carrier;
(3) the number of net gallons of gasoline removed by
the distributor during the month for export, sorted by product
code, terminal code, bulk plant address, destination state, and
carrier;
(4) the number of net gallons of gasoline removed by
the distributor during the month from a terminal located in another
state for conveyance to this state, as indicated on the shipping
document for the gasoline, sorted by product code, seller, terminal
code, bulk plant address, and carrier;
(5) the number of net gallons of gasoline the
distributor sold during the month in transactions exempt under
Section 162.104, sorted by product code and purchaser; and
(6) any other information required by the comptroller.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.119. INFORMATION REQUIRED ON IMPORTER'S RETURN;
ALLOWANCES.
(a) The monthly return and supplements of an importer shall
contain for the period covered by the return:
(1) the number of net gallons of imported gasoline
acquired from a supplier or permissive supplier who collected the
tax due to this state on the gasoline;
(2) the number of net gallons of imported gasoline
acquired from a person who did not collect the tax due to this state
on the gasoline, listed by source state, person, and terminal;
(3) the number of net gallons of imported gasoline
acquired from a bulk plant outside this state, listed by bulk plant
name, address, and product code; and
(4) any other information required by the comptroller.
(b) An importer of gasoline that timely files a return and
payment may deduct from the amount of tax payable with the return a
collection allowance equal to two percent of the amount of tax
payable to this state.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.120. INFORMATION REQUIRED ON TERMINAL OPERATOR'S
RETURN.
(a) A terminal operator shall file with the comptroller a
monthly information return and supplement showing the amount of
gasoline received and removed from the terminal during the month.
The return shall also contain the following summary information:
(1) the beginning and ending inventory that relates to
the applicable reporting month;
(2) the number of net gallons of gasoline received in
inventory at the terminal during the month;
(3) the number of net gallons of gasoline removed from
inventory at the terminal during the month; and
(4) any other summary information required by the
comptroller.
(b) The comptroller may accept the Federal ExSTARS terminal
operator report provided to the Internal Revenue Service instead of
the required state terminal operator report.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.121. INFORMATION REQUIRED ON MOTOR FUEL
TRANSPORTER'S RETURN.
The quarterly return and supplements of a motor fuel
transporter shall contain for the period covered by the return:
(1) the name, license number, and terminal control
number of each person or terminal from whom the transporter
received gasoline outside this state for delivery in this state,
the gross gallons of gasoline received, the date the gasoline was
received, the product code, and the name and license number of the
purchaser of the gasoline;
(2) the name, license number, and terminal control
number of each person or terminal from whom the transporter
received gasoline in this state for delivery outside this state,
the gross gallons of gasoline delivered, the date the gasoline was
delivered, the product code, and the destination state of the
gasoline; and
(3) any other information required by the comptroller.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.122. INFORMATION REQUIRED ON EXPORTER'S RETURN AND
PAYMENT OF TAX ON EXPORTS.
The monthly return and supplements of an exporter shall
contain for the period covered by the return:
(1) the number of net gallons of gasoline acquired
from a supplier and exported during the month, including supplier
name, terminal control number, and product code;
(2) the number of net gallons of gasoline acquired
from a bulk plant and exported during the month, including bulk
plant name and product code;
(3) the destination state of the gasoline exported
during the month; and
(4) any other information required by the comptroller.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.123. INFORMATION REQUIRED ON BLENDER'S RETURN.
The monthly return and supplements of each blender shall
contain for the period covered by the return:
(1) the number of net gallons of gasoline received by
the blender during the month, sorted by product code, seller, point
of origin, carrier, and receipt date;
(2) the number of net gallons of product blended with
gasoline during the month, sorted by product code, type of blending
agent if no product code exists, seller, and carrier;
(3) the number of net gallons of blended gasoline sold
during the month and the license number or name and address of the
entity receiving the blended gasoline; and
(4) any other information required by the comptroller.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.124. INFORMATION REQUIRED ON INTERSTATE TRUCKER'S
RETURN.
The quarterly return and supplements of each interstate
trucker shall contain for the period covered by the return:
(1) the total miles traveled in all states by all
vehicles traveling to or from this state and the total quantity of
gasoline consumed in those vehicles;
(2) the total miles traveled in this state and the
total quantity of gasoline purchased and delivered into the fuel
supply tanks of motor vehicles in this state; and
(3) any other information required by the comptroller.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.125. REFUND OR CREDIT FOR CERTAIN TAXES PAID.
(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 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.
(b) For truck or railcar movements between licensed
suppliers or licensed permissive suppliers in which the gasoline
removed from the first terminal comes to rest in the second terminal
and tax was paid on the first removal, the license holder who
receives the gasoline in the second terminal may take the credit.
(c) A license holder may take a credit on a return for the
period in which the purchase occurred, and a person who does not
hold a license under this subchapter, other than a license as an
aviation fuel dealer, may file a refund claim with the comptroller
if the license holder or person paid tax on gasoline and the license
holder or person:
(1) is the United States government and the gasoline
is for its exclusive use, provided that a credit or refund is not
allowed for gasoline used by a license holder or person operating
under a contract with the United States;
(2) is a public school district in this state and the
gasoline is for the district's exclusive use;
(3) is a commercial transportation company that
provides public school transportation services to a school district
under Section 34.008, Education Code, and the gasoline is used
exclusively to provide those services;
(4) uses the gasoline in off-highway equipment, in
stationary engines, or for other nonhighway purposes and not in a
motor vehicle operated or intended to be operated on the public
highways;
(5) uses the gasoline in a motor vehicle that is
operated exclusively off the public highways, except for incidental
travel on the public highways as determined by the comptroller,
provided that a credit or refund may not be allowed for the portion
used in the incidental highway travel; or
(6) is a licensed aviation fuel dealer who delivers
the gasoline into the fuel supply tanks of aircraft or aircraft
servicing equipment.
(d) A license holder may take a credit on a return for the
period in which the purchase occurred if the license holder paid tax
on gasoline and the license holder is a licensed interstate trucker
who uses the gasoline outside this state in commercial vehicles
operated under an interstate trucker license, provided that a
credit or refund claimed under this subsection must be taken or
filed within the limitation period provided by Section 162.128.
(e) A license holder may take credit on a return for the
period in which the purchase occurred, and a person who does not
hold a license may file a refund claim with the comptroller, if the
license holder or person paid tax on gasoline and the gasoline is
used in this state by auxiliary power units or power take-off
equipment on any motor vehicle, if that use can be accurately
measured while the motor vehicle is stationary by any metering or
other measuring device or method designed to measure the fuel
separately from fuel used to propel or idle the motor vehicle. The
comptroller may approve and adopt the use of any device as a basis
for determining the quantity of gasoline consumed in those
operations for tax credit or tax refund. The climate-control air
conditioning or heating system of a motor vehicle that has a primary
purpose of providing for the convenience or comfort of the operator
or passengers is not a power take-off system, and a credit or refund
may not be allowed for the gasoline tax paid on any portion of the
gasoline that is used for that purpose. A credit or refund may not
be allowed for the gasoline tax paid on that portion of the gasoline
used for idling.
(f) A person who paid tax on the purchase of gasoline may
claim a credit or seek a refund with the comptroller if 100 or more
gallons of gasoline is subsequently exported or lost by fire,
theft, or accident. A credit or refund claimed under this
subsection must be taken or filed within the limitation period
provided by Section 162.128.
(g) A transit company that paid tax on the purchase of
gasoline may seek a refund with the comptroller in an amount equal
to one cent per gallon for gasoline used in transit vehicles.
(h) The right to receive a refund or take a credit under this
section is not assignable.
(i) The comptroller may adopt rules specifying procedures
and requirements that must be followed to claim a credit or refund
under this section.
Added by Acts 2003, 78th Leg., ch. 199, § 1, eff. Jan. 1, 2004.
§ 162.126. REFUND FOR BAD DEBTS; CREDIT FOR
NONPAYMENT.
(a) A licensed distributor may file a refund claim with the
comptroller if:
(1) the distributor has paid the taxes imposed by this
subchapter on gasoline sold on account;
(2) the distributor determines that the account is
uncollectible and worthless; and
(3) the account is written off as a bad debt on the
accounting books of the distributor.
(b) A licensed supplier or permissive supplier may take a
credit on the monthly report to be filed with the comptroller i
