HBA-SEB, JRA C.S.H.B. 3159 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3159
By: Oliveira
Ways & Means
4/13/1999
Committee Report (Substituted)

BACKGROUND AND PURPOSE 

Currently, buses providing public transportation are partially exempt from
the federal diesel fuel tax and only school buses can file for state diesel
fuel tax refunds.  Airlines and railroads are subsidized by federal funds
and are completely exempt from state diesel fuel tax.  Bus operators are
currently facing increased costs, due to retrofitting required by the
Americans with Disabilities Act.  Without some form of state subsidy,
intercity bus service may be discontinued to some small towns and rural
areas.  C.S.H.B. 3159 exempts buses transporting passengers in intercity
scheduled bus service in Texas from the state diesel fuel tax. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 153.203, Tax Code, to include, in the list of
items exempt from diesel fuel tax, diesel fuel sold by a permitted supplier
to a person other than a political subdivision who owns, controls,
operates, or manages a commercial motor vehicle designed to transport more
than 15 passengers.  Establishes that this exemption applies to diesel fuel
that is delivered exclusively into the supply tank of the commercial motor
vehicle and is used exclusively to transport passengers for compensation or
hire between points in this state on a fixed route or schedule.  Makes a
conforming change. 

SECTION 2.  Amends Section 153.222(a), Tax Code, to authorize a person to
file a claim for a refund of diesel fuel taxes paid, less the deduction
allowed vendors and a filing fee, if the person has paid tax on diesel fuel
used in a commercial motor vehicle designed to transport more than 15
passengers. 

SECTION 3.  Effective date: September 1, 1999.
            Makes application of this Act prospective.

SECTION 4.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original in SECTION 1 by amending Section
152.203, Tax Code, to modify the tax exemption on diesel fuel for
commercial motor vehicles designed to transport more than 15 passengers.
The substitute exempts diesel fuel that is sold to a person other than a
political subdivision who owns, controls, operates, or manages such a
vehicle.  The original exempted diesel fuel sold only to the owner of the
vehicle.  The substitute makes the tax exemption applicable if the fuel is
delivered exclusively into the supply tank of the commercial motor vehicle
and is used exclusively to transport passengers for compensation or hire
between points in this state on a fixed route or schedule.  The original
made the exemption applicable simply if the fuel was used in intercity
scheduled bus service between points in Texas over fixed routes.   

The substitute modifies the original in SECTION 2 to conform to the changes
in SECTION 1.   

The substitute modifies the original in SECTION 3 to add a prospective
clause.