TITLE 34.PUBLIC FINANCE

Part 1. COMPTROLLER OF PUBLIC ACCOUNTS

Chapter 3. TAX ADMINISTRATION

Subchapter L. MOTOR FUEL TAX

34 TAC §3.201

The Comptroller of Public Accounts proposes an amendment to §3.201, concerning the motor fuel testing fee. As requested by the Commissioner of Agriculture and authorized by Texas Civil Statutes, Article 8614, the Comptroller of Public Accounts collects a fee on a periodic basis from each distributor and supplier who deals in motor fuel. This proposed amendment will change the due date of the fee.

Mike Reissig, Director of Estimates, has determined that for the first five-year period the amendment will be in effect there will be no significant revenue impact on the state or local government.

Mr. Reissig also has determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of adopting the amendment will be in providing new information regarding tax responsibilities. This amendment is adopted under the Tax Code, Title 2, and does not require a statement of fiscal implications for small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed amendment.

Comments on the proposal may be submitted to Bryant K. Lomax, Manager, Tax Policy Division, P.O. Box 13528, Austin, Texas 78711.

This amendment is proposed under the Tax Code, §111.002 and §111.0022, which provide the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the fees the Comptroller is authorized to administer or collect.

The amendment implements Texas Civil Statutes, Article 8614, §9.

§3.201.Motor Fuel Testing Fee.

(a)

Motor fuel testing fee. An annual fee, as determined under subsection (b) of this section, is imposed on every person holding or required to hold a motor fuel distributor or supplier permit under the Tax Code, Chapter 153, as of January 1 of each year.

(b)

Annual fee amount. The fee is based on the total amount of net taxable gallons of gasoline and/or diesel fuel sold and reported to the comptroller on the permit holder's Texas Fuels Tax Report for the previous calendar year. The fee amount due is based on the following schedule.

Figure: 34 TAC §3.201(b) (No change.)

(c)

Due date of the fee. The motor fuel testing fee shall be due on July [ March ] 1 of each year[ , except that the fee for the year 1999 will be due July 1, 1999 ].

(d)

Report forms. Each holder of a motor fuels distributor or supplier permit must remit the fee on a form prescribed by the comptroller. The fact that a permit holder does not receive the form or does not receive the correct form from the comptroller does not relieve the permit holder of the responsibility of paying the required fee.

(e)

Payment of the fee. On or before the due date of each year, every person who held or was required to hold a motor fuels distributor or supplier permit on January 1 of that year shall remit to the comptroller the total fee amount due.

(f)

Penalty. Penalties due on delinquent fees and reports shall be imposed as provided by the Tax Code, §111.061.

(g)

Interest. Interest due on delinquent fees shall be imposed as provided by the Tax Code, §111.060.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 17, 2000.

TRD-200001997

Martin Cherry

Special Counsel

Comptroller of Public Account

Earliest possible date of adoption: April 30, 2000

For further information, please call: (512) 463-4062