| (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(C) use, if withdrawn from one's own storage for one's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 that is equipped with an automatic switching
device must be invoiced as taxable. Separate invoices must be issued
for deliveries of fuel into each tank. A notation that indicates that
fuel was delivered into the tank designated not-for-highway use must
be made on invoices;
(5) fixed 5.0% method. In lieu of the use of one of
the previously mentioned methods, the owner or operator of a gasoline-powered
motor vehicle that is equipped with a power take-off or auxiliary
power unit that is mounted on the vehicle may claim a credit or refund
of the state fuel tax paid on 5.0% of the total taxable gasoline used
in this state by each vehicle so equipped; or
(6) proposed alternate methods. Proposals for the use
of methods that this section does not specifically cover to determine
the amount of gasoline used in power take-off operations or auxiliary
power units may be submitted to the comptroller for approval; and
(7) accurate mileage records must be kept regardless
of the method used.
(h) Refund or credit for state fuel tax on gasoline
or diesel fuel sold to or used by an exempt entity.
(1) A license holder, other than an aviation fuel dealer,
may take a credit on a return for state fuel tax paid on the purchase
of gasoline or diesel fuel that is resold tax-free if the purchaser
was one of the following entities:
(A) the United States or federal government and the
purchase is for its exclusive use. The federal government means any
department, board, bureau, agency, corporation, or commission that
the United States government has created or wholly owns. Exclusive
use by the federal government means use of fuel only in motor vehicles
or other equipment that the federal government operates. A person
operating under a contract with the federal government is not an exempt
entity. Evidence that sales were made to the federal government must
be maintained and consist of:
(i) a United States tax exemption certificate--Standard
Form 1094 or similar certificate that includes the same information
as the Standard Form 1094;
(ii) copies of the invoice(s) when a United States
National credit card--Standard Form 149, was used for the purchase,
which invoice must include the license plate number or official vehicle
designation, if fuel is delivered into the fuel supply tank of a motor
vehicle; or
(iii) a copy of a contract between the seller and the
federal government supporting the sales invoices or purchase vouchers;
(B) a Texas public school district and the purchase
is for its exclusive use. Exclusive use by a public school district
means use of fuel only in motor vehicles or other equipment that the
public school district operates;
(C) a commercial transportation company with a contract
to provide public school transportation services to a Texas public
school district under Education Code, §34.008, and the gasoline
or diesel fuel is used exclusively to provide those services;
(D) a Texas non-profit electric cooperative organized
under Utilities Code, Chapter 161, and telephone cooperative organized
under Utilities Code, Chapter 162, and the purchase is for its exclusive
use. Exclusive use by an electric or telephone cooperative means use
of fuel only in motor vehicles or other equipment that the electric
or telephone cooperative operates;
(E) a Texas volunteer fire department when the purchase
is for its exclusive use. A directory of fire departments is available
at: https://fireconnect.tfs.tamu.edu/. For purposes of this subparagraph:
(i) for sales made before May 24, 2019, a qualifying
Texas volunteer fire department is a fire department identified on
the Texas A&M Forest Service's website as a volunteer fire department
having no paid members; and
(ii) for sales made on or after May 24, 2019, a qualifying
Texas volunteer fire department is a fire department that is operated
by its members on a not-for-profit basis, including a part-paid fire
department composed of at least 50% volunteer firefighters, and including
a fire department that is exempt from federal income tax under Section
501(a), Internal Revenue Code of 1986, by being listed as an exempt
organization in Section 501(c)(3) or (4) of that code; or
Cont'd... |
