2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 162 - Motor Fuel Taxes › Subchapter A. General Provisions › Section 162.003. Cooperative Agreements With Other States

Sec. 162.003.  COOPERATIVE AGREEMENTS WITH OTHER STATES.  (a)  The comptroller may enter into a cooperative agreement with another state for the collection of motor fuel taxes, the exchange of information, the auditing of users of motor fuel used in fleets of motor vehicles operated or intended for interstate operation, and the auditing of importers and exporters.  An agreement or amendment of an agreement takes effect according to its terms, except that an agreement or amendment may not take effect until the proposed agreement or amendment is published in the Texas Register.
(b)  An agreement may provide for:
(1)  determining the base state for motor fuel users;
(2)  user, importer, and exporter records requirements;
(3)  audit procedures;
(4)  exchange of information;
(5)  persons eligible for tax licensing;
(6)  licensing and license revocation procedures, permits, penalties, and fees;
(7)  defining qualified motor vehicles;
(8)  determining bonding procedures, types, and amounts;
(9)  specifying reporting requirements and periods;
(10)  defining refund procedures and limitations, including the payment of interest;
(11)  defining uniform penalties, fees, and interest rates;
(12)  determining methods for collecting motor fuel taxes and for collecting and forwarding motor fuel taxes, other than penalties, due to another jurisdiction;
(13)  the temporary remittal of funds equal to the amount of the taxes and interest due to another jurisdiction but not otherwise collected, subject to appropriation of funds for that purpose;  and
(14)  other provisions to facilitate the administration of the agreement.
(c)  The comptroller may, as required by the terms of an agreement, forward to an officer of another state any information in the comptroller's possession relating to the manufacture, receipts, sale, use, transportation, or shipment of motor fuel by any person.  The comptroller may disclose to an officer of another state the location of officers, motor vehicles, and other real and personal property of users, importers, and exporters of motor fuel.
(d)  An agreement may provide for each state to audit the records of a person based in this state to determine if the motor fuel taxes due each state that is a party to the agreement are properly reported and paid.  An agreement may provide for each state to forward the findings of an audit performed on a person based in this state to each other state in which the person has taxable use of motor fuel, from which the person imports motor fuel into this state, or to which the person exports motor fuel from this state.  For a person who is not based in this state and who has taxable use of motor fuel in this state or an import into or export out of this state, the comptroller may use an audit performed by another state that is a party to an agreement with this state to make an assessment of motor fuel taxes against the person.
(e)  An agreement entered into under this section does not affect the authority of the comptroller to audit any person under any other law.
(f)  An agreement entered into under this section prevails over an inconsistent rule of the comptroller.  Except as otherwise provided by this section, a statute of this state prevails over an inconsistent provision of an agreement entered into under this section.
(g)  The comptroller may segregate in a separate fund or account the amount of motor fuel taxes, other than penalties, estimated to be due to other jurisdictions, motor fuel taxes subject to refund during the fiscal year, licensing fees, and other costs collected under the agreement.  On a determination of an amount held that is due to be remitted to another jurisdiction, the comptroller may issue a warrant or make an electronic transfer of the amount as necessary to carry out the purposes of the agreement.  An auditing cost, membership fee, and other cost associated with the agreement may be paid from interest earned on funds segregated under this subsection.  Any interest earnings in excess of the costs associated with the agreement shall be credited to general revenue.
(h)  The legislature finds that it is in the public interest to enter into motor fuel tax agreements with other jurisdictions that may provide for the temporary remittal of amounts due other jurisdictions that exceed the amounts collected and for cooperation with other jurisdictions for the collection of taxes imposed by this state and other jurisdictions on motor fuel that is imported into or exported out of this state.  The comptroller shall ensure that reasonable measures are developed to recover motor fuel taxes and other amounts due this state during each biennium.
(i)  The comptroller shall attempt to enter into a cooperative agreement with each state that borders this state to provide for the collection of taxes imposed by this state and the bordering state on motor fuel that is imported into this state from or exported from this state to the bordering state.  The comptroller is encouraged to attempt to enter into similar cooperative agreements with states that do not border this state.
Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004.