This section sets when diesel fuel tax applies and who must collect or pay it.
Sec. 162.201. POINT OF IMPOSITION OF DIESEL FUEL TAX. (a) A tax is imposed on the removal of diesel fuel from the terminal using the terminal rack other than by bulk transfer. The supplier or permissive supplier is liable for and shall collect the tax imposed by this subchapter from the person who orders the withdrawal at the terminal rack. (b) A tax is imposed at the time diesel fuel is imported into this state, other than by a bulk transfer, for delivery to a destination in this state. The supplier or permissive supplier is liable for and shall collect the tax imposed by this subchapter from the person who imports the diesel fuel into this state. If the seller is not a supplier or permissive supplier, the person who imports the diesel fuel into this state is liable for and shall pay the tax. (c) A tax is imposed on the removal of diesel fuel from the bulk transfer/terminal system in this state. The supplier is liable for and shall collect the tax imposed by this subchapter from the person who orders the removal from the bulk transfer/terminal system. (d) A tax is imposed on diesel fuel brought into this state in the motor fuel supply tank or tanks of a motor vehicle operated by a person required to be licensed as an interstate trucker. The interstate trucker is liable for and shall pay the tax. (e) A tax is imposed on the blending of diesel fuel at the point blended diesel fuel is made in this state outside the bulk transfer/terminal system. The blender is liable for and shall pay the tax. The number of gallons of blended diesel fuel on which the tax is imposed is equal to the difference between the number of gallons of blended fuel made and the number of gallons of previously taxed diesel fuel used to make the blended fuel. (e-1) A tax is imposed on diesel fuel that is otherwise exempt from taxation under Section 162.204(a)(4) or (7) if the diesel fuel is sold into a truck or railcar in this state to a person who does not hold a license under Section 162.205(a)(1), (2), (3), (4), or (6). The person who sold the diesel fuel is liable for and shall collect and remit the tax. (e-2) A tax is imposed on diesel fuel that is otherwise exempt from taxation under Section 162.204(a)(4) or (7) if before export the diesel fuel is sold in this state to a person who holds a license under Section 162.205(a)(1), (2), (3), (4), or (6) and the diesel fuel is delivered to a destination in this state. The person that redirected the delivery of the diesel fuel to a destination in this state is liable for and shall pay the tax. (e-3) A tax is imposed on diesel fuel that is otherwise exempt from taxation under Section 162.204(a)(7) if the diesel fuel is sold into a marine vessel in this state to a person who does not hold a license under Section 162.205(a)(1), (2), (3), (4), or (6), unless the exporter of record is licensed under Section 162.205(a)(1), (2), (3), (4), or (6). The person who sold the diesel fuel is liable for and shall collect and remit the tax. (f) The terminal operator in this state is considered a supplier for the purpose of the tax imposed under this subchapter unless at the time of removal: (1) the terminal operator has a terminal operator's license issued for the facility from which the diesel fuel is withdrawn; (2) the terminal operator verifies that the person who removes the diesel fuel has a supplier's license; and (3) the terminal operator does not have a reason to believe that the supplier's license is not valid. (g) In each subsequent sale of diesel fuel on which the tax has been paid, the amount of the tax shall be added to the selling price so that the tax is paid by each person receiving the diesel fuel until it is paid ultimately by the person using or consuming the diesel fuel. (h) Diesel fuel is considered to be used when it is delivered into a fuel supply tank. Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004. Amended by: Acts 2009, 81st Leg., R.S., Ch. 1227 (S.B. 1495), Sec. 19, eff. September 1, 2009. Acts 2017, 85th Leg., R.S., Ch. 601 (S.B. 1557), Sec. 6, eff. January 1, 2018. Acts 2019, 86th Leg., R.S., Ch. 388 (H.B. 3954), Sec. 4, eff. September 1, 2019. Acts 2023, 88th Leg., R.S., Ch. 191 (H.B. 3651), Sec. 4, eff. September 1, 2023.