(a) Refunds and credits. A person may file a claim
for refund or a license holder may take a credit on a return for state
fuel tax paid on gasoline, diesel fuel, compressed natural gas, or
liquefied natural gas used off the highway, for certain resale, for
export from Texas, for loss caused by fire, theft, or accident, or
other use if authorized by law. The claim for refund or credit must
be filed in accordance with this section.
(b) Time limitation. A claim for refund or credit must
be filed before the expiration of the following time limitations,
as provided by Tax Code, §§162.128, 162.230, and 162.369:
(1) one year from the first day of the calendar month
that follows:
(A) purchase;
(B) tax exempt sale;
(C) use, if withdrawn from one's own storage for one's
own use;
(D) export from Texas; or
(E) loss by fire, theft, or accident; or
(2) four years from the due and payable date for a
tax return on which an overpayment of state fuel tax was made by a
licensed supplier, permissive supplier, distributor, importer, exporter,
blender, or compressed natural gas and liquefied natural gas dealer
who determines that taxes were erroneously reported or that more taxes
were paid than were due because of a mistake of fact or law. The licensed
supplier, permissive supplier, distributor, importer, exporter, blender,
or compressed natural gas and liquefied natural gas dealer must establish
the credit by filing an amended state fuel tax return for the period
in which the error occurred and tax payment was made to the comptroller.
(c) Filing forms and documentation. A claim for refund
or credit must be on a form prescribed by the comptroller and must
be submitted within the applicable limitations period provided by
subsection (b) of this section. A person or license holder is required
to maintain and have available for inspection the following documentation
and information to substantiate a claim for refund or credit:
(1) an original purchase invoice with the name and
address of the seller or name of the purchaser, whichever is applicable.
For refund or credit purposes, the original invoice may be a copy
of the original impression if the copy has been stamped "Customer
Original Invoice," "Original for Tax Purposes," or similar wording.
If a copy is so stamped, the original and all other copies must then
be stamped "Not Good for Tax Purposes" or similar wording. Invoices
of original impression submitted in support of refund claims must
be without the above wording stamped or imprinted;
(2) evidence as to who paid the tax. A purchaser claiming
a refund or credit must have an invoice that either separately states
the state fuel tax amount paid or a written statement that the price
included state fuel tax. A seller claiming a refund or credit must
have issued an invoice, signed by the purchaser, that contains a statement
that no state fuel tax was collected or that it was a tax-free sale;
(3) if refund or credit is claimed on fuel purchased
at retail the purchase invoice must note the identification of each
vehicle or type of equipment (e.g., including railway engines, motor
boats, refrigeration units, stationary engines, off-highway equipment,
or nonhighway farm equipment that has traveled between multiple farms
or ranches as allowed in §3.440 of this title (relating to On-Highway
Travel of Farm Machinery)) in which the fuel was delivered and used;
and
(4) if refund or credit is claimed on fuel removed
from the claimant's own bulk storage, then a distribution log as provided
by Tax Code, §162.127 and §162.229. The distribution log
must contain the name and address of the user and, for each individual
removal from the bulk storage the following information:
(A) the date the fuel was removed;
(B) the number of gallons removed;
(C) the type of fuel removed;
(D) the identity of the person removing the fuel; and
(E) the type or description of the off-highway equipment
into which the fuel was delivered, or the identification of both on-highway
and off-highway motor vehicles into which the fuel was delivered,
including the state highway license number or vehicle identification
number and odometer or hubometer reading, or description of other
off-highway use.
(d) Refund or credit for state fuel tax on gasoline
used solely for off-highway purposes. A claim for refund or credit
for state fuel tax on gasoline used solely for off-highway purposes
must list each off-highway vehicle or piece of equipment or document
other nonhighway use and the total number of gallons used by way of
a distribution log as described in subsection (c)(4) of this section.
(e) Refund or credit for state fuel tax on gasoline
used by a lessor of off-highway equipment. The lessor of off-highway
equipment who claims a refund or credit of state fuel tax must maintain
documentation that shows that the state fuel tax was assessed and
paid, a list of each piece of off-highway equipment, and a distribution
log as described in subsection (c)(4) of this section of the number
of gallons of gasoline used in both on-highway and off-highway vehicles
and equipment. A lessor who claims a refund of state fuel tax may
include a separate refueling, fuel reimbursement, or fuel service
charge on the invoice, if the invoice contains a statement that the
fuel charge does not include state fuel tax.
(f) Refund or credit for state fuel tax on gasoline,
compressed natural gas, or liquefied natural gas used in a motor vehicle
operated exclusively off-highway, except for incidental highway use.
A claim for refund or credit may be filed by a person who used gasoline,
compressed natural gas, or liquefied natural gas in motor vehicles
incidentally on the highway, when the incidental travel on the highway
was infrequent, unscheduled, and insignificant to the total operation
of the motor vehicle, and only for the purpose of transferring the
base of operation or to travel to and from required maintenance and
repair.
(1) A record that shows the date and miles traveled
during each highway trip must be maintained.
(2) 1/4 gallon for each mile of incidental highway
travel shall be deducted from the number of gallons claimed.
(g) Refund or credit for state fuel tax on gasoline
used in gasoline-powered motor vehicles equipped with power take-off
or auxiliary power units. A person who files a claim for refund or
a license holder who takes a credit on a tax return for state fuel
tax on gasoline used in the operation of power take-off or auxiliary
power units must use one of the following methods in determining the
amount of gasoline used:
(1) direct measurement method. The use of a metering
device, as defined by §3.435 of this title (relating to Metering
Devices Used to Claim Refund of Tax on Gasoline Used in Power Take-Off
and Auxiliary Power Units) is an acceptable method for determination
of fuel usage. A person who claims a refund or credit for state fuel
tax on gasoline used to propel motor vehicles with approved measuring
or metering devices that measure or meter the fuel used in stationary
operations must maintain records on each vehicle so equipped, and
the records must reflect:
(A) the miles driven as shown by any type of odometer
or hubometer;
(B) the gallons delivered to each vehicle; and
(C) the gallons used as recorded by the meter or other
measuring device;
(2) fixed 30% method for gasoline-powered ready mix
concrete trucks and solid waste refuse trucks. Operators of gasoline-powered
ready mix concrete trucks and solid waste refuse trucks that are equipped
with power take-off or auxiliary power units that are mounted on the
motor vehicle and use the fuel supply tank of the motor vehicle may
claim refund on 30% of the total gasoline used in this state by each
vehicle. A solid waste refuse truck means a motor vehicle equipped
with a power take-off or auxiliary power unit that provides power
to compact the refuse, open the back of the container before ejection,
and eject the compacted refuse;
(3) mileage factor method. The nontaxable use may be
determined by computing the taxable use at 1/4 gallon for each mile
traveled, as recorded by the odometer or hubometer and subtracting
that amount from the total quantity of gasoline delivered into the
motor vehicle fuel supply tanks. The remainder will be considered
nontaxable, and a tax refund or tax credit may be claimed on that
quantity of fuel;
(4) two tank method. A motor vehicle may be equipped
with two fuel tanks and an automatic switching device that a spring-activated
air release parking brake operates, and that switches from one tank
that is designated for highway use to another tank that is not so
designated when the vehicle is stationary. The highway tank and the
not-for-highway tank may not be connected by crossover line or equalizer
line of any kind. The state fuel tax paid on the gasoline delivered
to the tank designated not-for-highway use may be claimed as a tax
refund or taken as a tax credit. All gasoline delivered into the fuel
supply tanks of a vehicle Cont'd... |