Bill: HB 3468, 84(R) - 2015

Committee

House Ways & Means

Vote Recommendation

Vote Recommendation Economic Freedom Property Rights Personal Responsibility Limited Government Individual Liberty
Neutral Neutral Neutral Neutral Neutral Neutral

Author(s)

Tan Parker

Bill Caption

Relating to the payment of motor fuel taxes by certain entities that operate ambulances.

Fiscal Notes

A fiscal note dated May 7, 2015 anticipates a negative two-year net impact to General Revenue Related Funds from CSHB 3468 of $1,054,000 through the biennium ending August 31, 2017.

Bill Analysis

House Bill 3468 would exempt gasoline from the gasoline tax when sold to an entity that uses gasoline exclusively for an ambulance operated by a person licenses under Chapter 773 of the Health and Safety Code and that has an agreement with a local governmental entity to provide emergency ambulance services.

House Bill 3468 would allow a license holder to take a credit on a return for the period in which the sale occurred if the license holder paid tax on the purchase of gasoline and subsequently resells the gasoline without collecting the tax to an entity that uses gasoline exclusively for an ambulance operated by a person licenses under Chapter 773 of the Health and Safety Code and that has an agreement with a local governmental entity to provide emergency ambulance services.

An entity that uses gasoline exclusively for an ambulance operated by a person licenses under Chapter 773 of the Health and Safety Code and that has an agreement with a local governmental entity to provide emergency ambulance services would be entitled to a refund of the gasoline tax to operate an ambulance. The refund claim would have to contain information regarding the vehicle mileage, the hours of service provided and the fuel consumed. All supporting documentation for the claim would have to be retained by the entity for 6 years after the request.

The same exemption, credit, and refund would apply under the same conditions to diesel fuel and the diesel tax.

Vote Recommendation Notes

Under current law, counties are exempt from paying the liquefied gas tax or the compressed natural gas or liquefied natural gas tax, meaning that hospitals are also exempt as entities operated by the county. Certain ambulance services would hence already be exempt from certain motor fuel taxes

House Bill 3468 would exempt from the gasoline tax and the diesel tax the gasoline and diesel sold to entities that use the fuels to operate ambulances services and that have an agreement with a local governmental entity to provide these services.

House Bill 3468 would apply a tax exemption more equally by applying an exemption that exists for a service of a political subdivision to community ambulance services but like any exemption for a particular group in an industry or area of business or service, this can potentially cause unintended consequences when some emergency services remain liable to pay the tax.

As a consequence of potentially good and bad provisions in the bill, we will remain neutral on House Bill 3468.

Source URL (retrieved on 03/28/2024 06:03 PM): http://reports.texasaction.com/bill/84r/hb3468?print_view=true