SB 1557

85(R) - 2017
Senate Finance
House Ways & Means
Senate Finance
House Ways & Means
Oil & Gas

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral


Lois Kolkhorst


Hugh Shine

Bill Caption

Relating to the administration of gasoline and diesel fuel motor fuels taxes and the fee on the delivery of certain petroleum products.

Fiscal Notes

Depending on the level of improved compliance induced by the bill, there could be an indeterminate amount of increase in the remittance of motor fuel taxes and petroleum product delivery fees.

Bill Analysis

SB 1557 would withdraw the tax-exempt status of gasoline or diesel fuel if they are sold in this state to a person who does not hold a supplier, permissive supplier, distributor, importer, or exporter license. A tax would be imposed at the time of sale in this situation. 

Requirements would be created for the reporting of sale of tax-free gasoline or diesel fuel purchased for export. A penalty would be administered to anyone who fails to comply with the reporting requirements and who failed to pay the taxes they were subject to.

Vote Recommendation Notes

SB 1557 would hold those who seek a tax exemption for exporting gasoline and diesel outside Texas accountable when they exercise that exemption and impose penalties for the abuse of the exemption. Implementation and accountability of the sales tax system is an appropriate function of state government. As such, we believe this bill supports our principle of limited government by making sure companies do not abuse the system when dealing with exports.