34 Tex. Admin. Code § 3.434 - Liquefied Gas Tax Decal
(a) This section
applies to periods prior to September 1, 2015. Effective September 1, 2015, the
tax on liquefied gas is repealed.
(b) Use of decal. Except as provided in
subsections (c), (d), and (g) of this section, a person who operates a motor
vehicle that is required to be licensed in Texas for use on the public highways
of Texas and that is powered by ethane, propane, butane, or a mixture of those
gases, including a motor vehicle equipped to use liquefied gas interchangeably
with another motor fuel, must:
(1) obtain
from the comptroller a liquefied gas decal; and
(2) prepay the liquefied gas tax to the
comptroller on an annual basis.
(c) Motor Vehicle Dealer. A motor vehicle
dealer registered under Transportation Code, Chapter 503, must pay the
liquefied gas tax to a licensed liquefied gas dealer when the fuel is delivered
into the fuel supply tanks of each motor vehicle that display a motor vehicle
dealer decal and that is held for resale.
(d) Interstate trucker. An interstate trucker
registered under a multistate tax agreement (International Fuel Tax Agreement),
must pay the liquefied gas tax to a licensed liquefied gas dealer when the fuel
is delivered into the fuel supply tanks of motor vehicles that have two axles
and a registered gross weight in excess of 26,000 pounds; have three or more
axles, or are used in combination and the registered gross weight of the
combination exceeds 26,000 pounds, and that display current multistate tax
agreement (International Fuel Tax Agreement) decals.
(e) Vehicle registered in another state. A
liquefied gas tax decal cannot be issued to a motor vehicle registered in a
state other than Texas. Owners of such vehicles must pay tax to a licensed
liquefied gas dealer on fuel delivered into the fuel supply tanks.
(f) Application. Each person purchasing
liquefied gas for use in a liquefied gas powered motor vehicle must submit an
annual application to the comptroller for each vehicle.
(1) Initial application. An applicant
initially applying for a liquefied gas tax decal for a Class A - F motor
vehicle must purchase a decal based on an estimate of miles that will be driven
during the next one-year period.
(2) Renewal. The applicant must produce an
ending odometer reading on the renewal application. In the absence of an ending
odometer reading, the previous year's mileage will be presumed to be at least
15,000 miles. Applications for the upcoming year should be submitted during the
month of expiration of the current decal.
(A)
The liquefied gas tax does not apply to miles traveled outside the state. A
record of miles traveled by the motor vehicle outside Texas must be maintained
and submitted with the renewal each year. The record must include the date(s)
of travel, beginning and ending odometer readings and destination.
(B) Special use vehicles. Vehicles required
to be licensed for highway use but whose main purpose, design, and use is off
the highway may renew a liquefied gas decal for a rate less than the mileage
indicated on the odometer if a record or log indicating the miles traveled on
the highway by the vehicle is maintained and attached to the renewal
application.
(g) Exceptions.
(1) School district transportation and county
exceptions. The liquefied gas tax does not apply to liquefied gas sold to
public school districts and counties in this state, or to commercial
transportation companies providing transportation services to public school
districts in this state. These transportation companies must obtain letters of
exception from the comptroller, as discussed in §
3.448 of this title (relating to
Transportation Services for Texas Public School Districts).
(2) Decal not required. A public school
district, a commercial transportation company providing transportation services
to a public school district and holding a valid letter of exception from the
comptroller, or a county in this state operating a motor vehicle powered by
liquefied gas is not required to prepay the liquefied gas tax and obtain a
decal for the motor vehicle.
(h) Rate schedule.
(1) The following rate schedule (based on
mileage driven the previous year) applies.
(2) Transit company. A special use
liquefied gas tax decal and tax is required for the following type of vehicles:
Class T: Transit carrier vehicles operated by a transit company, $444. The
Class T special use liquefied gas decal may be displayed by compressed natural
gas and liquefied natural gas transit carrier vehicles that qualify under Tax
Code, §
162.312.
(i) Display of decal. The decal
shall be affixed to the inside, lower right corner of the windshield (passenger
side) of the vehicle. An expired or invalid liquefied gas tax decal shall be
removed before installing a new decal or transferring ownership of the motor
vehicle.
(j) Refunds; transfer of
decal. If a motor vehicle bearing a liquefied gas tax decal is sold,
transferred, destroyed, or the liquefied gas carburetor system (regulator or
fuel supply tank) is removed from the motor vehicle the owner is entitled to a
refund of the unused portion of the advanced taxes paid for the decal year. The
owner must submit to the comptroller the liquefied gas tax decal with an
affidavit identifying the motor vehicle and circumstances for requesting a
refund. The comptroller shall refund that portion of the tax payment that
corresponds to the number of complete months remaining in the decal
year.
Notes
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