(a) Affidavit. To purchase gasoline or diesel fuel
less the state tax, a commercial transportation company that provides
transportation services to a public school district in Texas must
submit to the comptroller an affidavit stating:
(1) that the company has contracted with a specific
public school district to provide transportation services (other than
charter trips) for the school district; and
(2) that motor fuel purchased tax-free will be used
exclusively by the company to provide the transportation services
for the school district.
(b) Exception letter. After review and approval of
the affidavit required by subsection (a) of this section, the comptroller
shall issue to the company a letter of exception specifying that the
company may purchase tax-free gasoline and/or diesel fuel used to
provide transportation services to a public school district in Texas.
The letter of exception may be reproduced for licensed suppliers and
licensed distributors. An exception letter shall be issued to the
company for specific vehicles operated using compressed natural gas
or liquefied natural gas. The letter may be furnished to inspectors
when a compressed natural gas or liquefied natural gas powered bus
is undergoing a safety inspection and to compressed natural gas and
liquefied natural gas dealers when the company purchases compressed
natural gas or liquefied natural gas tax free to be placed into the
fuel supply tank of the bus. Compressed natural gas and liquefied
natural gas dealers may not accept an exception letter for compressed
natural gas or liquefied natural gas delivered into a motor vehicle
at an unmanned compressed natural gas or liquefied natural gas retail
location. An unmanned compressed natural gas or liquefied natural
gas retail location is a location where compressed natural gas or
liquefied natural gas is sold to the public and which is completely
unstaffed, meaning that there are no personnel routinely working at
the site. An unmanned compressed natural gas and liquefied natural
gas retail location does not include self-service filling stations
at which customers pump their own fuel and have the option of paying
an attendant or paying at the pump. A company who pays tax on compressed
natural gas and liquefied natural gas delivered into the fuel supply
tank of a vehicle issued an exception letter may request refund under §3.432
of this title (relating to Refunds on Gasoline, Diesel Fuel, Compressed
Natural Gas, and Liquefied Natural Gas Taxes).
(c) Records required. A commercial transportation company
providing transportation services to a Texas public school district
shall keep separate records for tax-free and tax-paid fuels. Both
sets of records must show:
(1) the number of gallons of gasoline, diesel fuel,
compressed natural gas, or liquefied natural gas on hand on the first
day of each month;
(2) the number of gallons of gasoline, diesel fuel,
compressed natural gas, or liquefied natural gas purchased or received,
showing the name of the seller and the date of each purchase;
(3) the date and number of gallons of gasoline, diesel
fuel, compressed natural gas, or liquefied natural gas delivered into
the fuel supply tanks of vehicles used to furnish transportation services
to public school districts;
(4) the date and number of gallons of gasoline, diesel
fuel, compressed natural gas, or liquefied natural gas delivered into
the fuel supply tanks of vehicles used to furnish transportation services
other than to public school districts;
(5) the date and number of miles traveled to provide
transportation services for the public school district, including
starting point, destination, purpose of trip, beginning and ending
odometer readings, vehicle identification number, and the vehicle
license plate number; and
(6) the date and number of miles traveled to provide
transportation services for customers other than public school district(s),
including the beginning and ending odometer readings, vehicle identification
number, and vehicle license plate number of the vehicle so used.
(d) Taxable use.
(1) A commercial transportation company forfeits its
right to purchase gasoline or diesel fuel tax-free if:
(A) the gasoline or diesel fuel is sold, other than
to a Texas public school district for which the commercial transportation
company provides transportation services; or
(B) the gasoline or diesel fuel is used in a vehicle
for any purpose other than providing transportation services for a
Texas public school district.
(2) A commercial transportation company that forfeits
its right to purchase gasoline or diesel fuel tax-free under paragraph
(1) of this subsection must return to the comptroller the original
and all copies of the letter of exception issued to the company under
subsection (b) of this section.
(e) Cancellation or completion of contract. A commercial
transportation company shall report the total number of gallons of
tax-free gasoline and/or diesel fuel on hand in storage tanks and
in the fuel supply tanks of motor vehicles, and remit the tax due
on the ending tax-free inventory to the comptroller within five days
of the cancellation or completion of a contract with a Texas public
school district.
(f) Charter trips. A commercial transportation company
that charters round-trip transportation to special events for a Texas
public school district may claim a refund for the gasoline, diesel
fuel, compressed natural gas, or liquefied natural gas used in the
charter vehicle.
(1) The refund shall be computed by starting the trip
with a full fuel supply tank or tanks, maintaining records of the
fuel delivered into the fuel supply tank or tanks of the vehicle during
the trip, and filling the fuel supply tank or tanks upon arrival back
at the origination point. The number of gallons delivered into the
fuel supply tank or tanks after the start of the trip will be the
number of gallons upon which the charter company may claim a tax refund.
(2) The records required by subsection (c)(5) of this
section shall also be maintained for each charter trip.
(3) The commercial transportation company shall keep
a copy of the billing to the school district for the trip.
(g) Refunds.
(1) A commercial transportation company providing transportation
services to a Texas public school district may file a claim for refund
of state taxes paid on gasoline, diesel fuel, compressed natural gas,
or liquefied natural gas used exclusively for such transportation
purposes.
(2) A metropolitan rapid transit authority operating
under Transportation Code, Chapter 451, that is party to a contract
governed by Education Code, §34.008, and that is providing transportation
services to a Texas public school district may file a claim for refund
of state taxes paid on gasoline, diesel fuel, compressed natural gas,
or liquefied natural gas used for such transportation services.
(A) A claim for refund must contain the following information
by month for each vehicle used to provide public student transportation:
(i) total miles traveled, evidenced by odometer or
hubometer readings and total miles traveled on public school transportation
routes;
(ii) hours of service;
(iii) total fuel consumed;
(iv) total number of student passengers per route;
(v) total number of non-student passengers per route;
and
(vi) records required by Tax Code, §§162.127,
162.229, and 162.367.
(B) A claim for refund cannot be made for a single
route in any month of a school year in which the number of non-student
passengers for that single route is greater than 5.0% of the total
passengers for that single route.
(C) The gallons of gasoline, diesel fuel, compressed
natural gas, or liquefied natural gas eligible for refund in a qualifying
month for each vehicle is determined by multiplying the vehicle's
average miles-per-gallon for that month by the miles traveled for
public school transportation during that month.
Attached Graphic
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Source Note: The provisions of this §3.448 adopted to be effective September 2, 2004, 29 TexReg 8374; amended to be effective November 27, 2007, 32 TexReg 8521; amended to be effective November 19, 2014, 39 TexReg 9051; amended to be effective January 27, 2016, 41 TexReg 684 |