| (5) a written statement that no state fuel tax was
collected or that it was a tax-free sale.
(o) Refund of state fuel tax on compressed natural
gas or liquefied natural gas sold on Indian reservations. Tribal entities
and tribal members may claim a refund of state fuel tax paid on compressed
natural gas or liquefied natural gas purchased from a compressed natural
gas and liquefied natural gas dealer located on an Indian reservation
recognized by the United States government. The refund claim must
be supported with original purchase invoices that show the state fuel
tax was paid and that include:
(1) the name and address of the seller;
(2) the name of the purchaser;
(3) the date of the sale;
(4) the number of diesel gallon equivalents or gasoline
gallon equivalents purchased;
(5) the type of fuel purchased; and
(6) the rate and amount of tax, separately stated from
the selling price.
(p) Refund or credit for state fuel tax paid on diesel
fuel used in moveable specialized equipment operated exclusively in
oil field well servicing.
(1) A person may claim a refund or a license holder
may take a credit on a return for state fuel tax paid on diesel fuel
consumed by moveable specialized equipment used exclusively in oil
field well servicing equipment if the person or license holder has
received or is eligible to receive a federal diesel fuel tax refund
under Internal Revenue Code, Title 26, and the moveable specialized
equipment meets the following specific design-base and use-base tests.
(A) Design-base test.
(i) The chassis has permanently mounted to it (by welding,
bolting, riveting, or other means) machinery or equipment to perform
oil well servicing operations if the operation of the machinery or
equipment is unrelated to transportation on or off the highways;
(ii) the chassis has been specially designed to serve
only as a mobile carriage and mount (and power source, if applicable)
for the machinery or equipment, whether or not the machinery or equipment
is in operation; and
(iii) the chassis could not, because of its special
design, be used as part of a vehicle designed to carry any other load
without substantial structural modification. A chassis that can be
used for a variety of uses and body types (such as a dump truck, flat
bed, or box truck) is a highway chassis and would not qualify as a
specially designed chassis.
(B) Use-base test. The use-based test is satisfied
if the vehicle travels less than 7,500 miles on highways during a
calendar year.
(2) Documentation requirements. In addition to the
documentation requirements in Tax Code, §162.229, the person
or license holder must maintain:
(A) a mileage or trip log for each moveable specialized
equipment on an individual-vehicle basis consisting of:
(i) total miles traveled, evidenced by odometer or
hubometer readings;
(ii) date of each trip on the public highways of this
state and out of this state (starting and ending);
(iii) beginning and ending odometer or hubometer readings
of each trip on the public highway;
(iv) odometer or hubometer readings entering Texas,
and odometer or hubometer readings leaving Texas;
(v) power unit number or vehicle identification number
or license plate number; or
(vi) vehicles that are not licensed under the International
Fuel Tax Agreement may use the Texas Department of Transportation
Quarterly Hubometer Permit report in lieu of the records required
in clauses (i) - (v) of this subparagraph to document incidental highway
travel.
(B) Internal Revenue Service form 4136, if refund of
federal excise tax claimed;
(C) verification that limited sales tax was paid on
the movable specialized equipment, if purchased in Texas; and
(D) verification that an oversize/overweight permit
is used to travel on the highways of this state.
(3) Computation of refund. One-fourth of one gallon
for each mile of incidental highway travel shall be deducted from
the number of gallons claimed.
(4) Moveable specialized equipment licensed under the
International Fuel Tax Agreement (IFTA). An IFTA licensee may only
request a refund for state fuel tax paid on diesel fuel used in moveable
specialized equipment licensed under the IFTA directly from the comptroller
and separately from the IFTA tax return. A refund claim must be supported
with purchase invoice(s) and trip or mileage logs described in paragraph
(2) of this subsection.
(5) Recovery of refund. If a refund has been issued
for movable specialized equipment for a partial calendar year, and
it is determined that the movable specialized equipment traveled 7,500
miles or more on the highways in that calendar year then the taxes
previously refunded for that vehicle must be repaid to the comptroller.
(q) Refund of state fuel tax paid on diesel fuel used
in a medium to remove drill cuttings from a well bore in the production
of oil or gas. A refund must be supported with purchase invoice(s)
and distribution log described in Tax Code, §162.229.
(r) Refund of state fuel tax paid on diesel fuel used
as a feedstock in manufacturing. A person may claim a refund or a
license holder may take a credit on a return for state fuel tax paid
on diesel fuel used as a feedstock in the manufacturing of tangible
personal property for resale, but not as a motor fuel. A refund claim
must be supported with purchase invoice(s), records showing the amount
of diesel fuel used as feedstock and a description of the tangible
personal property manufactured.
(s) The right to receive a refund or take a credit
under this section is not assignable.
|
| Source Note: The provisions of this §3.432 adopted to be effective April 13, 2005, 30 TexReg 2089; amended to be effective December 4, 2007, 32 TexReg 8849; amended to be effective November 16, 2009, 34 TexReg 8039; amended to be effective November 19, 2014, 39 TexReg 9047; amended to be effective April 11, 2016, 41 TexReg 2600; amended to be effective February 11, 2020, 45 TexReg 918 |
