|(a) This section applies to periods prior to September
1, 2015. Effective September 1, 2015, the tax on liquefied gas is
(b) Use of decal. Except as provided in subsections
(c), (d), and (g) of this section, a person who operates a motor vehicle
that is required to be licensed in Texas for use on the public highways
of Texas and that is powered by ethane, propane, butane, or a mixture
of those gases, including a motor vehicle equipped to use liquefied
gas interchangeably with another motor fuel, must:
(1) obtain from the comptroller a liquefied gas decal;
(2) prepay the liquefied gas tax to the comptroller
on an annual basis.
(c) Motor Vehicle Dealer. A motor vehicle dealer registered
under Transportation Code, Chapter 503, must pay the liquefied gas
tax to a licensed liquefied gas dealer when the fuel is delivered
into the fuel supply tanks of each motor vehicle that display a motor
vehicle dealer decal and that is held for resale.
(d) Interstate trucker. An interstate trucker registered
under a multistate tax agreement (International Fuel Tax Agreement),
must pay the liquefied gas tax to a licensed liquefied gas dealer
when the fuel is delivered into the fuel supply tanks of motor vehicles
that have two axles and a registered gross weight in excess of 26,000
pounds; have three or more axles, or are used in combination and the
registered gross weight of the combination exceeds 26,000 pounds,
and that display current multistate tax agreement (International Fuel
Tax Agreement) decals.
(e) Vehicle registered in another state. A liquefied
gas tax decal cannot be issued to a motor vehicle registered in a
state other than Texas. Owners of such vehicles must pay tax to a
licensed liquefied gas dealer on fuel delivered into the fuel supply
(f) Application. Each person purchasing liquefied gas
for use in a liquefied gas powered motor vehicle must submit an annual
application to the comptroller for each vehicle.
(1) Initial application. An applicant initially applying
for a liquefied gas tax decal for a Class A - F motor vehicle must
purchase a decal based on an estimate of miles that will be driven
during the next one-year period.
(2) Renewal. The applicant must produce an ending odometer
reading on the renewal application. In the absence of an ending odometer
reading, the previous year's mileage will be presumed to be at least
15,000 miles. Applications for the upcoming year should be submitted
during the month of expiration of the current decal.
(A) The liquefied gas tax does not apply to miles traveled
outside the state. A record of miles traveled by the motor vehicle
outside Texas must be maintained and submitted with the renewal each
year. The record must include the date(s) of travel, beginning and
ending odometer readings and destination.
(B) Special use vehicles. Vehicles required to be licensed
for highway use but whose main purpose, design, and use is off the
highway may renew a liquefied gas decal for a rate less than the mileage
indicated on the odometer if a record or log indicating the miles
traveled on the highway by the vehicle is maintained and attached
to the renewal application.
(1) School district transportation and county exceptions.
The liquefied gas tax does not apply to liquefied gas sold to public
school districts and counties in this state, or to commercial transportation
companies providing transportation services to public school districts
in this state. These transportation companies must obtain letters
of exception from the comptroller, as discussed in §3.448 of
this title (relating to Transportation Services for Texas Public School
(2) Decal not required. A public school district, a
commercial transportation company providing transportation services
to a public school district and holding a valid letter of exception
from the comptroller, or a county in this state operating a motor
vehicle powered by liquefied gas is not required to prepay the liquefied
gas tax and obtain a decal for the motor vehicle.
(h) Rate schedule.
(1) The following rate schedule (based on mileage driven
the previous year) applies.
(2) Transit company. A special use liquefied gas tax
decal and tax is required for the following type of vehicles: Class
T: Transit carrier vehicles operated by a transit company, $444. The
Class T special use liquefied gas decal may be displayed by compressed
natural gas and liquefied natural gas transit carrier vehicles that
qualify under Tax Code, §162.312.
(i) Display of decal. The decal shall be affixed to
the inside, lower right corner of the windshield (passenger side)
of the vehicle. An expired or invalid liquefied gas tax decal shall
be removed before installing a new decal or transferring ownership
of the motor vehicle.
(j) Refunds; transfer of decal. If a motor vehicle
bearing a liquefied gas tax decal is sold, transferred, destroyed,
or the liquefied gas carburetor system (regulator or fuel supply tank)
is removed from the motor vehicle the owner is entitled to a refund
of the unused portion of the advanced taxes paid for the decal year.
The owner must submit to the comptroller the liquefied gas tax decal
with an affidavit identifying the motor vehicle and circumstances
for requesting a refund. The comptroller shall refund that portion
of the tax payment that corresponds to the number of complete months
remaining in the decal year.
|Source Note: The provisions of this §3.434 adopted to be effective September 2, 2004, 29 TexReg 8373; amended to be effective February 16, 2014, 39 TexReg 775; amended to be effective December 29, 2015, 40 TexReg 9724