| 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
(F) a nonprofit entity that is organized for the sole
purpose of and engages exclusively in providing emergency medical
services in Texas, including rescue and ambulance services, when the
purchase is for its exclusive use.
(2) An exempt entity enumerated in paragraph (1)(A)
- (F) of this subsection may claim a refund of state fuel tax paid
on gasoline, diesel fuel, compressed natural gas, or liquefied natural
gas purchased for its exclusive use.
(3) A refund may be requested for state fuels tax on
compressed natural gas or liquefied natural gas used in a motor vehicle
operated exclusively by:
(A) a Texas county or a Texas municipality; or
(B) a transit company, including a metropolitan rapid
transit authority under Transportation Code, Chapter 451, or a regional
transportation authority under Transportation Code, Chapter 452, that
provides transportation services and who on January 1, 2015, held
a prepaid liquefied gas decal as that section existed on that date.
(i) Refund or credit for state fuel tax on gasoline
or diesel fuel exported from Texas or sold for export.
(1) A person may claim a refund or a licensed supplier,
permissive supplier, distributor, importer, exporter, or blender may
take a credit on a return for state fuel tax paid on gasoline or diesel
fuel that the person or the license holder exports from this state
in quantities of 100 or more gallons. Proof of export must be one
of the following:
(A) proof of export that United States Customs officials
have certified, if the fuel was exported to a foreign country;
(B) proof of export that a port of entry official of
the state of importation has certified, if the state of importation
maintains ports of entry;
(C) proof from the taxing officials of the state into
which the fuel was imported that shows that the exporter has accounted
for the fuel on that state's tax returns;
(D) other proof that the fuel has been reported to
the state into which the gasoline or diesel fuel was imported; or
(E) a common or contract carrier's transporting documents
(see §3.439 of this title (relating to Motor Fuel Transportation
Documents)) that list the consignor and consignee, the points of origin
and destination, the number of gallons shipped or transported, the
date of export, and the kind of fuel exported.
(2) A licensed supplier, permissive supplier or distributor
may take a credit on a return for state fuel tax paid on gasoline
or diesel fuel resold tax-free to a licensed supplier, permissive
supplier, distributor, importer, or exporter for immediate export
from this state under the following circumstances:
(A) a shipping document or bill of lading issued by
the seller that shows the destination state;
(B) the purchaser (exporter) is licensed in Texas as
a supplier, permissive supplier, distributor, importer, or exporter;
and
(C) the purchaser is licensed in the destination state
to pay that state's tax; or
(D) if the destination is a foreign country, a shipping
document or bill of lading issued by the seller that shows the foreign
destination.
(3) A licensed supplier must collect either the destination
state's tax or Texas tax from the purchaser on gasoline or diesel
fuel exported to another state.
(j) Refund or credit for state fuel tax on gasoline
or diesel fuel loss by fire, theft, or accident. A person may claim
a refund or a license holder may take a credit on a return for state
fuel tax paid on 100 or more gallons of gasoline or diesel fuel loss
by fire, theft, or accident. The claimant must maintain records of
the incident that establishes that the exact quantity of fuel that
has been claimed as lost was actually lost, and that the loss resulted
from that incident. The time limitation prescribed in subsection (b)(1)
of this section is determined by the date of the first incident of
a multiple incident loss that totals 100 gallons or more. A claim
for refund for loss by fire, theft, or accident shall be accompanied
by fire department, police department, or regulatory agency reports
as appropriate.
(1) If the incident is a drive-away theft at a retail
outlet (i.e., theft occurs when a person delivers gasoline or diesel
fuel into the fuel supply tank(s) of a motor vehicle at a retail outlet
without payment for the fuel), the following documentation shall be
maintained:
(A) a police department report or evidence that the
incident of drive-away theft has been or will be taken as a deduction
on the federal income tax return during the same or the subsequent
reporting period; and
Cont'd... |
