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  H.B. No. 3599
 
 
 
 
AN ACT
  relating to an exemption from certain motor fuel taxes for, and
  registration fees for motor vehicles owned by, certain nonprofit
  food banks.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 162.001, Tax Code, is amended by adding
  Subdivision (45-a) to read as follows:
               (45-a)  "Nonprofit food bank" means a nonprofit entity
  that solicits, stores, and redistributes edible food to agencies
  that feed needy families and individuals.
         SECTION 2.  Section 162.104(a), Tax Code, is amended to read
  as follows:
         (a)  The tax imposed by this subchapter does not apply to
  gasoline:
               (1)  sold to the United States for its exclusive use,
  provided that the exemption does not apply with respect to fuel sold
  or delivered to a person operating under a contract with the United
  States;
               (2)  sold to a public school district in this state for
  the district's exclusive use;
               (3)  sold to a commercial transportation company or a
  metropolitan rapid transit authority operating under Chapter 451,
  Transportation Code, that provides public school transportation
  services to a school district under Section 34.008, Education Code,
  and that uses the gasoline only to provide those services;
               (4)  exported by either a licensed supplier or a
  licensed exporter from this state to any other state, provided that
  the bill of lading indicates the destination state and the supplier
  collects the destination state tax;
               (5)  moved by truck or railcar between licensed
  suppliers or licensed permissive suppliers and in which the
  gasoline removed from the first terminal comes to rest in the second
  terminal, provided that the removal from the second terminal rack
  is subject to the tax imposed by this subchapter;
               (6)  delivered or sold into a storage facility of a
  licensed aviation fuel dealer from which gasoline will be delivered
  solely into the fuel supply tanks of aircraft or aircraft servicing
  equipment, or sold from one licensed aviation fuel dealer to
  another licensed aviation fuel dealer who will deliver the aviation
  fuel exclusively into the fuel supply tanks of aircraft or aircraft
  servicing equipment;
               (7)  exported to a foreign country if the bill of lading
  or shipping documents indicate the foreign destination and the fuel
  is actually exported to the foreign country;
               (8)  sold to a volunteer fire department in this state
  for the department's exclusive use; [or]
               (9)  sold to a nonprofit entity that is organized for
  the sole purpose of and engages exclusively in providing emergency
  medical services and that uses the gasoline exclusively to provide
  emergency medical services, including rescue and ambulance
  services; or
               (10)  sold to a nonprofit food bank and delivered into:
                     (A)  the fuel supply tank of a motor vehicle with a
  gross vehicle weight rating of at least 25,000 pounds that is owned
  by the nonprofit food bank and used to deliver food; or
                     (B)  a storage facility from which gasoline will
  be delivered solely into the fuel supply tanks of motor vehicles
  described by Paragraph (A).
         SECTION 3.  Section 162.125(a), Tax Code, is amended to read
  as follows:
         (a)  A license holder may 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:
               (1)  the United States government for its exclusive
  use, provided that a credit is not allowed for gasoline used by a
  person operating under contract with the United States;
               (2)  a public school district in this state for the
  district's exclusive use;
               (3)  an exporter licensed under this subchapter if the
  seller is a licensed supplier or distributor and the exporter
  subsequently exports the gasoline to another state;
               (4)  a licensed aviation fuel dealer if the seller is a
  licensed distributor; [or]
               (5)  a commercial transportation company or a
  metropolitan rapid transit authority operating under Chapter 451,
  Transportation Code, that provides public school transportation
  services to a school district under Section 34.008, Education Code,
  and that uses the gasoline exclusively to provide those services;
  or
               (6)  a nonprofit food bank that delivers or will
  deliver the gasoline into the fuel supply tank of a motor vehicle
  with a gross vehicle weight rating of at least 25,000 pounds that is
  owned by the nonprofit food bank and used to deliver food.
         SECTION 4.  Subchapter B, Chapter 162, Tax Code, is amended
  by adding Section 162.1276 to read as follows:
         Sec. 162.1276.  REFUND FOR CERTAIN NONPROFIT FOOD BANKS.
  (a)  A nonprofit food bank is entitled to and may file a claim with
  the comptroller for a refund in the amount provided by this section
  of taxes paid under this subchapter for gasoline delivered into the
  fuel supply tank of a motor vehicle with a gross vehicle weight
  rating of at least 25,000 pounds that is owned by the nonprofit food
  bank and used to deliver food.
         (b)  The amount of the refund under Subsection (a) is equal
  to the amount of tax paid under this subchapter for gasoline that
  qualifies for the refund and is purchased by the nonprofit food
  bank.
         (c)  A nonprofit food bank that requests a refund under this
  section shall maintain all supporting documentation relating to the
  refund until the sixth anniversary of the date of the request.
         SECTION 5.  Section 162.204(a), Tax Code, is amended to read
  as follows:
         (a)  The tax imposed by this subchapter does not apply to:
               (1)  diesel fuel sold to the United States for its
  exclusive use, provided that the exemption does not apply to diesel
  fuel sold or delivered to a person operating under a contract with
  the United States;
               (2)  diesel fuel sold to a public school district in
  this state for the district's exclusive use;
               (3)  diesel fuel sold to a commercial transportation
  company or a metropolitan rapid transit authority operating under
  Chapter 451, Transportation Code, that provides public school
  transportation services to a school district under Section 34.008,
  Education Code, and that uses the diesel fuel only to provide those
  services;
               (4)  diesel fuel exported by either a licensed supplier
  or a licensed exporter from this state to any other state, provided
  that the bill of lading indicates the destination state and the
  supplier collects the destination state tax;
               (5)  diesel fuel moved by truck or railcar between
  licensed suppliers or licensed permissive suppliers and in which
  the diesel fuel removed from the first terminal comes to rest in the
  second terminal, provided that the removal from the second terminal
  rack is subject to the tax imposed by this subchapter;
               (6)  diesel fuel delivered or sold into a storage
  facility of a licensed aviation fuel dealer from which the diesel
  fuel will be delivered solely into the fuel supply tanks of aircraft
  or aircraft servicing equipment, or sold from one licensed aviation
  fuel dealer to another licensed aviation fuel dealer who will
  deliver the diesel fuel exclusively into the fuel supply tanks of
  aircraft or aircraft servicing equipment;
               (7)  diesel fuel exported to a foreign country if the
  bill of lading or shipping documents indicate the foreign
  destination and the fuel is actually exported to the foreign
  country;
               (8)  dyed diesel fuel sold or delivered by a supplier to
  another supplier and dyed diesel fuel sold or delivered by a
  supplier or distributor into the bulk storage facility of a dyed
  diesel fuel bonded user or to a purchaser who provides a signed
  statement as provided by Section 162.206;
               (9)  the volume of water, fuel ethanol, renewable
  diesel, biodiesel, or mixtures thereof that are blended together
  with taxable diesel fuel when the finished product sold or used is
  clearly identified on the retail pump, storage tank, and sales
  invoice as a combination of diesel fuel and water, fuel ethanol,
  renewable diesel, biodiesel, or mixtures thereof;
               (10)  dyed diesel fuel sold by a supplier or permissive
  supplier to a distributor, or by a distributor to another
  distributor;
               (11)  dyed diesel fuel delivered by a license holder
  into the fuel supply tanks of railway engines, motorboats, or
  refrigeration units or other stationary equipment powered by a
  separate motor from a separate fuel supply tank;
               (12)  dyed kerosene when delivered by a supplier,
  distributor, or importer into a storage facility at a retail
  business from which all deliveries are exclusively for heating,
  cooking, lighting, or similar nonhighway use;
               (13)  diesel fuel used by a person, other than a
  political subdivision, who owns, controls, operates, or manages a
  commercial motor vehicle as defined by Section 548.001,
  Transportation Code, if the fuel:
                     (A)  is delivered exclusively into the fuel supply
  tank of the commercial motor vehicle; and
                     (B)  is used exclusively to transport passengers
  for compensation or hire between points in this state on a fixed
  route or schedule;
               (14)  diesel fuel sold to a volunteer fire department
  in this state for the department's exclusive use; [or]
               (15)  diesel fuel sold to a nonprofit entity that is
  organized for the sole purpose of and engages exclusively in
  providing emergency medical services and that uses the diesel fuel
  exclusively to provide emergency medical services, including
  rescue and ambulance services; or
               (16)  diesel fuel sold to a nonprofit food bank and
  delivered into:
                     (A)  the fuel supply tank of a motor vehicle with a
  gross vehicle weight rating of at least 25,000 pounds that is owned
  by the nonprofit food bank and used to deliver food; or
                     (B)  a storage facility from which diesel fuel
  will be delivered solely into the fuel supply tanks of motor
  vehicles described by Paragraph (A).
         SECTION 6.  Section 162.227(a), Tax Code, is amended to read
  as follows:
         (a)  A license holder may take a credit on a return for the
  period in which the sale occurred if the license holder paid tax on
  the purchase of diesel fuel and subsequently resells the diesel
  fuel without collecting the tax to:
               (1)  the United States government for its exclusive
  use, provided that a credit is not allowed for gasoline used by a
  person operating under a contract with the United States;
               (2)  a public school district in this state for the
  district's exclusive use;
               (3)  an exporter licensed under this subchapter if the
  seller is a licensed supplier or distributor and the exporter
  subsequently exports the diesel fuel to another state;
               (4)  a licensed aviation fuel dealer if the seller is a
  licensed distributor; [or]
               (5)  a commercial transportation company or a
  metropolitan rapid transit authority operating under Chapter 451,
  Transportation Code, that provides public school transportation
  services to a school district under Section 34.008, Education Code,
  and that uses the diesel fuel exclusively to provide those
  services; or
               (6)  a nonprofit food bank that delivers or will
  deliver the diesel fuel into the fuel supply tank of a motor vehicle
  with a gross vehicle weight rating of at least 25,000 pounds that is
  owned by the nonprofit food bank and used to deliver food.
         SECTION 7.  Subchapter C, Chapter 162, Tax Code, is amended
  by adding Section 162.2276 to read as follows:
         Sec. 162.2276.  REFUND FOR CERTAIN NONPROFIT FOOD BANKS.
  (a)  A nonprofit food bank is entitled to and may file a claim with
  the comptroller for a refund in the amount provided by this section
  of taxes paid under this subchapter for diesel fuel delivered into
  the fuel supply tank of a motor vehicle with a gross vehicle weight
  rating of at least 25,000 pounds that is owned by the nonprofit food
  bank and used to deliver food.
         (b)  The amount of the refund under Subsection (a) is equal
  to the amount of tax paid under this subchapter for diesel fuel that
  qualifies for the refund and is purchased by the nonprofit food
  bank.
         (c)  A nonprofit food bank that requests a refund under this
  section shall maintain all supporting documentation relating to the
  refund until the sixth anniversary of the date of the request.
         SECTION 8.  Subchapter J, Chapter 502, Transportation Code,
  is amended by adding Section 502.458 to read as follows:
         Sec. 502.458.  VEHICLES USED BY NONPROFIT FOOD BANKS. (a)  
  In this section, "nonprofit food bank" has the meaning assigned by
  Section 162.001, Tax Code.
         (b)  The owner of a motor vehicle described by Section
  162.104(a)(10)(A) or 162.204(a)(16)(A), Tax Code, may apply for
  registration under Section 502.451 of this code and is exempt from
  the payment of the registration fee that would otherwise be
  required by this chapter if the vehicle is used by a nonprofit food
  bank to deliver food.
         (c)  An application for registration under this section must
  include:
               (1)  a statement by the owner of the vehicle that the
  vehicle is used by a nonprofit food bank to deliver food; and
               (2)  a statement signed by an officer of the nonprofit
  food bank that the vehicle has been used by a nonprofit food bank to
  deliver food and qualifies for registration under this section.
         SECTION 9.  Chapter 162, Tax Code, as amended by this Act,
  does not affect tax liability accruing before the effective date of
  this Act.  That liability continues in effect as if this Act had not
  been enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 10.  Section 502.458, Transportation Code, as added
  by this Act, applies only to an application for registration
  submitted on or after the effective date of this Act.
         SECTION 11.  This Act takes effect September 1, 2023.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3599 was passed by the House on May 8,
  2023, by the following vote:  Yeas 137, Nays 6, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 3599 was passed by the Senate on May
  17, 2023, by the following vote:  Yeas 30, Nays 1.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor