81R1509 CBH-D
 
  By: Carona S.B. No. 217
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the rate of the state gasoline tax and diesel fuel
  taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 162.102, Tax Code, is amended to read as
  follows:
         Sec. 162.102.  TAX RATE.  Except as provided by Section
  162.1025, the [The] gasoline tax rate is 20 cents for each net
  gallon or fractional part on which the tax is imposed under Section
  162.101.
         SECTION 2.  Subchapter B, Chapter 162, Tax Code, is amended
  by adding Section 162.1025 to read as follows:
         Sec. 162.1025.  ANNUAL RATE CHANGE ACCORDING TO PRODUCER
  PRICE INDEX. (a) In this section:
               (1)  "Producer price index" means the producer price
  index for highway and street construction published by the United
  States Department of Labor.
               (2)  "Producer price index percentage change" means the
  percentage increase or decrease, not to exceed five percent, in the
  producer price index of a given state fiscal year from the producer
  price index of the preceding state fiscal year.
         (b)  On October 1 of each year, the rate of the gasoline tax
  imposed under this subchapter is increased or decreased by an
  amount that is equal to the producer price index percentage change
  for the preceding fiscal year multiplied by the combined rate of the
  state and federal gasoline taxes on August 1 of that year.
         (c)  Not later than September 1 of each year, the comptroller
  shall:
               (1)  compute the new tax rate as provided by this
  section;
               (2)  give the new tax rate to the secretary of state for
  publication in the Texas Register; and
               (3)  notify each license holder under this subchapter
  of the applicable new tax rate.
         SECTION 3.  Section 162.103(a), Tax Code, is amended to read
  as follows:
         (a)  A backup tax is imposed at the rate prescribed by
  Sections [Section] 162.102 and 162.1025 on:
               (1)  a person who obtains a refund of tax on gasoline by
  claiming the gasoline was used for an off-highway purpose, but
  actually uses the gasoline to operate a motor vehicle on a public
  highway;
               (2)  a person who operates a motor vehicle on a public
  highway using gasoline on which tax has not been paid;  and
               (3)  a person who sells to the ultimate consumer
  gasoline on which tax has not been paid and who knew or had reason to
  know that the gasoline would be used for a taxable purpose.
         SECTION 4.  Section 162.202, Tax Code, is amended to read as
  follows:
         Sec. 162.202.  TAX RATE. Except as provided by Section
  162.2025, the [The] diesel fuel tax rate is 20 cents for each net
  gallon or fractional part on which the tax is imposed under Section
  162.201.
         SECTION 5.  Subchapter C, Chapter 162, Tax Code, is amended
  by adding Section 162.2025 to read as follows:
         Sec. 162.2025.  ANNUAL RATE CHANGE ACCORDING TO PRODUCER
  PRICE INDEX. (a) In this section:
               (1)  "Producer price index" means the producer price
  index for highway and street construction published by the United
  States Department of Labor.
               (2)  "Producer price index percentage change" means the
  percentage increase or decrease, not to exceed five percent, in the
  producer price index of a given state fiscal year from the producer
  price index of the preceding state fiscal year.
         (b)  On October 1 of each year, the rate of the diesel fuel
  tax imposed under this subchapter is increased or decreased by an
  amount that is equal to the producer price index percentage change
  for the preceding fiscal year multiplied by the combined rate of the
  state and federal diesel fuel taxes on August 1 of that year.
         (c)  Not later than September 1 of each year, the comptroller
  shall:
               (1)  compute the new tax rate as provided by this
  section;
               (2)  give the new tax rate to the secretary of state for
  publication in the Texas Register; and
               (3)  notify each license holder under this subchapter
  of the applicable new tax rate.
         SECTION 6.  Section 162.203(a), Tax Code, is amended to read
  as follows:
         (a)  A backup tax is imposed at the rate prescribed by
  Sections [Section] 162.202 and 162.2025 on:
               (1)  a person who obtains a refund of tax on diesel fuel
  by claiming the diesel fuel was used for an off-highway purpose, but
  actually uses the diesel fuel to operate a motor vehicle on a public
  highway;
               (2)  a person who operates a motor vehicle on a public
  highway using diesel fuel on which tax has not been paid; and
               (3)  a person who sells to the ultimate consumer diesel
  fuel on which a tax has not been paid and who knew or had reason to
  know that the diesel fuel would be used for a taxable purpose.
         SECTION 7.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2009.