Texas HB 4756: Relating to authorizing the increase or decrease of the rates of the gasoline and diesel fuel taxes based on the cost of certain highway projects.

Bill Text

By:AALopez                                         H.B.ANo.A4756
A BILL TO BE ENTITLED
AN ACT
relating to authorizing the increase or decrease of the rates of the
gasoline and diesel fuel taxes based on the cost of certain highway
projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION
A1.AA(a)   Subchapter B, Chapter162, Tax Code, is
amended by adding Section 162.1021 to read as follows:
Sec.A162.1021.AAANNUAL RATE CHANGE ACCORDING TO HIGHWAY COST
INDEX. (a) In this section:
(1)AA"Highway cost index" means the 12-month moving
average of the price of materials and labor compiled by the Texas
Department of Transportation and incorporated into state highway
projects.
(2)AA"Highway cost index percentage change" means the
percentage increase or decrease in the highway cost index of a given
state fiscal year from the highway cost index of the preceding state
fiscal year.
(b)AANotwithstanding Section162.102,Aon January 1 of each
year, the rate of the gasoline tax imposed under this subchapter is
increased or decreased by a percentage equal to the highway cost
index percentage change for the preceding state fiscal year.
(c)AANot later than December 1 of each year, the comptroller
shall:
(1)AAcompute  the  new  tax  rate  as  provided  by  this
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section;
(2)AAgive the new tax rate to the secretary of state for
publication in the Texas Register; and
(3)AAnotify each license holder under this subchapter
of the applicable new tax rate.
(b)
AAThe comptroller shall compute the initial adjusted tax
rate as required by Section 162.1021(c), Tax Code, as added by this
section, not later than December 1, 2019. The initial adjusted rate
takes effect January 1, 2020.
SECTION
A2.AAEffective January 1, 2020, Section162.103(a),
Tax Code, is amended to read as follows:
(a)
AAA backup tax is imposed at the rate prescribed by
Section162.102
or 162.1021 on:
(1)
AAa 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)
AAa person who operates a motor vehicle on a public
highway using gasoline on which tax has not been paid;
(3)
AAa  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; and
(4)
AAa  person,  other  than  a  person  exempted  under
Section162.104, who acquires gasoline on which tax has not been
paid from any source in this state.
SECTION
A3.AA(a)   Subchapter C, Chapter162, Tax Code, is
amended by adding Section 162.2021 to read as follows:
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H.B.
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Sec.A162.2021.AAANNUAL RATE CHANGE ACCORDING TO HIGHWAY COST
INDEX. (a) In this section:
(1)AA"Highway cost index" means the 12-month moving
average of the price of materials and labor compiled by the Texas
Department of Transportation and incorporated into state highway
projects.
(2)AA"Highway cost index percentage change" means the
percentage increase or decrease in the highway cost index of a given
state fiscal year from the highway cost index of the preceding state
fiscal year.
(b)AANotwithstanding Section162.202,Aon January 1 of each
year, the rate of the diesel fuel tax imposed under this subchapter
is increased or decreased by a percentage equal to the highway cost
index percentage change for the preceding state fiscal year.
(c)AANot later than December 1 of each year, the comptroller
shall:
(1)AAcompute  the  new  tax  rate  as  provided  by  this
section;
(2)AAgive the new tax rate to the secretary of state for
publication in the Texas Register; and
(3)AAnotify each license holder under this subchapter
of the applicable new tax rate.
(b)
AAThe comptroller shall compute the initial adjusted tax
rate as required by Section 162.2021(c), Tax Code, as added by this
section, not later than December 1, 2019. The initial adjusted rate
takes effect January 1, 2020.
SECTION
A4.AAEffective January 1, 2020, Section162.203(a),
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H.B.
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Tax Code, is amended to read as follows:
(a)
AAA backup tax is imposed at the rate prescribed by
Section162.202
or 162.2021 on:
(1)
AAa 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)
AAa person who operates a motor vehicle on a public
highway using diesel fuel on which tax has not been paid;
(3)
AAa 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; and
(4)
AAa  person,  other  than  a  person  exempted  under
Section162.204, who acquires diesel fuel on which