TITLE: Relating to an exemption for municipalities and this state from the compressed natural gas and liquefied natural gas tax.

SUMMARY: Relating to an exemption for municipalities and this state from the compressed natural gas and liquefied natural gas tax.

FULL TEXT:
AN ACT relating to an exemption for municipalities and this state from the compressed natural gas and liquefied natural gas tax. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 162.356, Tax Code, is amended to read as follows: Sec. 162.356. EXEMPTIONS. The tax imposed by this subchapter does not apply to compressed natural gas or liquefied natural gas delivered into the fuel supply tank of: (1) a motor vehicle operated exclusively by the United States, provided that the exemption does not apply with respect to fuel delivered into the fuel supply tank of a motor vehicle of a person operating under a contract with the United States; (2) a motor vehicle operated exclusively by a public school district in this state; (3) a motor vehicle operated exclusively by a commercial transportation company or a metropolitan rapid transit authority operating under Chapter 451, Transportation Code, that provides public school transportation services to a school district under Section 34.008, Education Code, and that uses the fuel only to provide those services; (4) a motor vehicle operated exclusively by a volunteer fire department in this state; (5) a motor vehicle operated exclusively by a county in this state; (5-a) a motor vehicle operated exclusively by a municipality in this state; (5-b) a motor vehicle operated exclusively by this state; (6) a motor vehicle operated exclusively by a nonprofit electric cooperative corporation organized under Chapter 161, Utilities Code; (7) a motor vehicle operated exclusively by a nonprofit telephone cooperative corporation organized under Chapter 162, Utilities Code; (8) a motor vehicle that is not registered for use on the public highways of this state and that is used exclusively off-highway; or (9) off-highway equipment, a stationary engine, a motorboat, an aircraft, equipment used solely for servicing aircraft and used exclusively off-highway, a locomotive, or any device other than a motor vehicle operated or intended to be operated on the public highways. SECTION 2. Section 162.365(a), Tax Code, is amended to read as follows: (a) A license holder may take a credit on a return for the period in which the purchase occurred, and a person who does not hold a license under this subchapter may file a refund claim with the comptroller if the license holder or person paid tax on compressed natural gas or liquefied natural gas and the license holder or person: (1) is the United States government and the fuel was delivered into the fuel supply tank of a motor vehicle operated exclusively by the United States, provided that a credit or refund is not allowed for fuel delivered into the fuel supply tank of a motor vehicle operated by a person operating under a contract with the United States; (2) is a public school district in this state and the fuel was delivered into the fuel supply tank of a motor vehicle operated exclusively by the district; (3) is a commercial transportation company that provides public school transportation services to a school district under Section 34.008, Education Code, and the fuel was delivered into the fuel supply tank of a motor vehicle used to provide those services; (4) is a volunteer fire department in this state and the fuel was delivered into the fuel supply tank of a motor vehicle operated exclusively by the department; (5) is a county in this state and the fuel was delivered into the fuel supply tank of a motor vehicle operated exclusively by the county; (5-a) is a municipality in this state and the fuel was delivered into the fuel supply tank of a motor vehicle operated exclusively by the municipality; (5-b) is this state and the fuel was delivered into the fuel supply tank of a motor vehicle operated exclusively by this state; (6) is a nonprofit electric cooperative corporation organized under Chapter 161, Utilities Code, and the fuel was delivered into the fuel supply tank of a motor vehicle operated exclusively by the electric cooperative; (7) is a nonprofit telephone cooperative corporation organized under Chapter 162, Utilities Code, and the fuel was delivered into the fuel supply tank of a motor vehicle operated exclusively by the telephone cooperative; (8) uses the fuel in off-highway equipment, in a stationary engine, in a motorboat, in an aircraft, in equipment used solely for servicing aircraft and used exclusively off-highway, in a locomotive, or for other nonhighway purposes and not in a motor vehicle operated or intended to be operated on the public highways; or (9) uses the fuel in a motor vehicle that is operated exclusively off-highway, except for incidental travel on the public highways as determined by the comptroller, provided that a credit or refund may not be allowed for the portion used in the incidental highway travel. SECTION 3. The change in law made by this Act does not affect taxes imposed before the effective date of this Act, and the law in effect before the effective date of this Act is continued in effect for purposes of the liability for and collection of those taxes. SECTION 4. This Act takes effect September 1, 2015.