Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter J - PETROLEUM PRODUCTS DELIVERY FEE › Section 3.151 - Imposition, Collection, and Bonds or Other Security of the Fee

Current through Reg. 49, No. 28; July 12, 2024
(a) The Texas Petroleum Products Delivery Fee
				  is imposed, collected, and paid to the state by operators of bulk facilities.
				  The fee is assessed when petroleum products are withdrawn from the bulk
				  facility and delivered into a cargo tank or barge or imported into this state
				  in a cargo tank or barge for delivery to another location for distribution or
				  sale. The fee is not assessed when the fuel is destined for delivery to another
				  bulk facility, an electrical generating plant, a common carrier railroad for
				  its exclusive use, or is to be exported from the state prior to being placed
				  into intermediate storage tanks.
(b) For the purposes of this section,
				  withdrawals from a bulk facility into a cargo tank or barge are not subject to
				  the fee when the entire withdrawal is delivered into the fuel supply tanks of
				  vessels or boats prior to being placed into intermediate storage
				  tanks.
(c) The fee is collected by
				  the operator of a bulk facility from the person ordering the withdrawal. The
				  fee is set by the Texas Commission on Environmental Quality subject to Water
				  Code, §
										26.3574(b-1).
(d) In determining the amount of fee due for
				  motor gasoline, other alcohol blended fuels, and aviation gasoline, each net
				  temperature corrected withdrawal of 7,000 gallons or more but less than 10,000
				  gallons shall be presumed to have been a delivery into a cargo tank having a
				  capacity of 8,000 gallons or more but less than 10,000 gallons.
(e) In determining the amount of fee due on
				  all withdrawals not covered by subsection (d) of this section, it shall be
				  presumed that the capacity of the cargo tank or barge is equal to the total net
				  temperature corrected quantity of product withdrawn.
(f) For the purposes of this section, a bulk
				  facility is a refinery terminal or any other terminal or facility which
				  receives petroleum products by pipeline, rail, or barge, and delivers the
				  products into a cargo tank or barge.
(g) For the purposes of this section, the
				  operator of a bulk facility is the person who first invoices petroleum products
				  withdrawn from the facility. An exchange statement is not considered an
				  invoice.
(h) For the purposes of
				  this section, an electrical generating facility is a plant operated for the
				  primary purpose of generating electricity for sale to consumers.
(i) Persons exempt from the petroleum
				  products delivery fee, including persons operating barges who make withdrawals
				  from a permitted bulk facility for delivery into the fuel supply tanks of
				  vessels or boats prior to intermediate storage, shall request in writing a
				  letter of exemption from the comptroller. The letter of exemption issued by the
				  comptroller, or a copy, must be furnished to the seller each time purchases
				  exempt from the petroleum products delivery fee are made.
(j) If the person making the sale to the
				  exempt purchaser does not hold a petroleum products delivery fee permit, the
				  purchaser must also furnish to the seller a statement listing the date of
				  purchase, number of gallons purchased per delivery, and destination of the
				  product. For the seller to receive credit for exempt sales, this documentation
				  must be presented to the permitted bulk facility from which the product was
				  purchased.
(k) As an alternative to
				  subsection (j) of this section, an exempt purchaser may elect to seek refund
				  directly from the comptroller. When an exempt purchaser elects to use this
				  option, the purchaser must use this option with the vendor for all petroleum
				  products purchased during the refund claim period for which the fee has been
				  paid. The exempt purchaser must furnish to the comptroller:
(1) a letter declaring that the exempt
				  purchaser did not provide the seller with a comptroller issued petroleum
				  products delivery fee exemption letter and will not seek a refund from the
				  seller or bulk facility from which the petroleum products were
				  withdrawn;
(2) a copy of the
				  comptroller issued petroleum products delivery fee exemption letter;
(3) documentation showing that the petroleum
				  products delivery fee was paid; and
(4) any other information the comptroller
				  deems necessary to validate the refund.