84(R) - 2015
House Ways & Means
House Ways & Means
Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.
A fiscal note dated April 13, 2015 anticipates a negative two-year net impact to General Revenue Related Funds of ($4,326,000) through the biennium ending August 31, 2017.
House Bill 2318 would amend Chapter 162 of the Tax Code related to motor fuel taxes to provide a credit for a license holder and a refund for a person who does not hold a license on the diesel fuel tax when the diesel fuel is used in Texas by auxiliary power units or power take-off equipment on any motor vehicle.
Vote Recommendation Notes
According to its statement of purpose, House Bill 2318 seeks to re-institute the credit or refund for diesel fuel used by auxiliary power units or power take-off equipment that was eliminated by a previous legislation. The statement points out that a rebate for gasoline-powered units was retained though (Section 162.125(e) of the Tax Code).
Revenues from gasoline and diesel fuel taxes are mainly allocated to the State Highway Fund. These taxes are hence collected mainly to pay for the construction and repair of the road system that is being used by motor vehicles that are propelled on roads thanks to these fuels.
But in the case of these fuels being used by auxiliary power units or power take-off equipment attached to a motor vehicle, they are not used to propel a car on roads. These taxes, in that particular case, are hence improperly levied.
House Bill 2318 would provide that users of auxiliary power units or power take-off equipment attached to their motor vehicle get a rebate or refund on the tax for the fuel used to power these units. This bill would hence favor a limited government, and we support it.