Bill Caption

Relating to motor fuel taxes applicable to gasoline and diesel fuel within the bulk transfer system.

Fiscal Notes

No fiscal implication to the State is anticipated.

Bill Analysis

HB 3954 concerns bulk movements of gasoline and diesel fuel for purposes of the motor fuel tax liability, the exemption of fuel exported to foreign destinations, and the use of certain motor fuel storage facilities. This bill would impose a tax on gasoline or diesel fuel that is otherwise exempt from motor fuel taxation on the basis of being exported to a foreign country if the gasoline or diesel is sold into a marine vessel in Texas to a person who does not hold the requisite license for a supplier, permissive supplier, distributor, importer, or exporter, unless the exporter of record holds such a license. This bill stipulates that the person who sold the fuel would be liable for the tax and requires that person to collect and remit the tax.

This bill also clarifies that the current tax imposed on fuel that is otherwise exempt from motor fuel taxation on the basis of being exported to another state or foreign country if the fuel is sold in Texas to a person who does not hold such a license is imposed on such fuel sold into a truck or railcar in Texas to such a person. 

Vote Recommendation Notes

Texas Action remains neutral on HB 3954 because it does not affect our liberty principles. This bill merely appears to clarify who is liable and exempt from motor fuel taxation for purposes of bulk movements of gasoline and diesel fuel.