Tex. Tax Code Section 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 (Exemptions)(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 (Persons Required to Be Licensed)(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 (Exemptions)(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 (Persons Required to Be Licensed)(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 (Exemptions)(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 (Persons Required to Be Licensed)(a)(1), (2), (3), (4), or (6), unless the exporter of record is licensed under Section 162.205 (Persons Required to Be Licensed)(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.

Source: Section 162.201 — Point of Imposition of Diesel Fuel Tax, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­162.­htm#162.­201 (accessed May 4, 2024).

162.001
Definitions 162.002
Tax Liability on Leased Vehicles 162.003
Cooperative Agreements with Other States 162.004
Motor Fuel Transportation: Required Documents 162.005
Cancellation or Refusal of License 162.006
Summary Suspension of License 162.007
Enforcement of License Cancellation, Suspension, or Refusal 162.008
Inspection of Premises and Records 162.009
Authority to Stop and Examine 162.010
Impoundment and Seizure 162.011
Sale of Seized Property 162.012
Presumptions 162.013
Venue of Tax Collection Suits 162.014
Other Motor Fuel Taxes Prohibited 162.015
Additional Tax Applies to Inventories 162.016
Importation and Exportation of Motor Fuel 162.101
Point of Imposition of Gasoline Tax 162.102
Tax Rate 162.103
Backup Tax 162.104
Exemptions 162.105
Persons Required to Be Licensed 162.106
Trip Permits 162.107
Permissive Supplier Requirements on Out-of-state Removals 162.108
License Application Procedure 162.109
Issuance and Display of License 162.110
Licenses and Trip Permits 162.111
Bond and Other Security for Taxes 162.112
License Holder Status List 162.113
Remittance of Tax to Supplier or Permissive Supplier 162.114
Returns and Payments 162.115
Records 162.116
Information Required on Supplier’s and Permissive Supplier’s Return 162.117
Duties of Seller of Gasoline 162.118
Information Required on Distributor’s Return 162.119
Information Required on Importer’s Return 162.120
Information Required on Terminal Operator’s Return 162.121
Information Required on Motor Fuel Transporter’s Return 162.122
Information Required on Exporter’s Return and Payment of Tax on Exports 162.123
Information Required on Blender’s Return 162.124
Information Required on Interstate Trucker’s Return 162.125
Refund or Credit for Certain Taxes Paid 162.0125
Duty to Keep Records 162.126
Refund for Bad Debts 162.127
Claims for Refunds 162.128
When Gasoline Tax Refund or Credit May Be Filed 162.201
Point of Imposition of Diesel Fuel Tax 162.202
Tax Rate 162.203
Backup Tax 162.204
Exemptions 162.205
Persons Required to Be Licensed 162.206
Statement for Purchase of Dyed Diesel Fuel 162.207
Trip Permits 162.208
Permissive Supplier Requirements on Out-of-state Removals 162.209
License Application Procedure 162.210
Issuance and Display of License 162.211
Licenses and Trip Permits 162.212
Bond and Other Security for Taxes 162.213
License Holder Status List 162.214
Remittance of Tax to Supplier or Permissive Supplier 162.215
Returns and Payments 162.216
Records 162.217
Information Required on Supplier’s and Permissive Supplier’s Return 162.218
Duties of Seller of Diesel Fuel 162.219
Information Required on Distributor’s Return 162.220
Information Required on Importer’s Return 162.221
Information Required on Terminal Operator’s Return 162.222
Information Required on Motor Fuel Transporter’s Return 162.223
Information Required on Exporter’s Return and Payment of Tax on Imports 162.224
Information Required on Blender’s Return 162.225
Information Required on Interstate Trucker’s Return 162.226
Information Required on Dyed Diesel Fuel Bonded User’s Return 162.227
Refund or Credit for Certain Taxes Paid 162.228
Refund for Bad Debts 162.229
Claims for Refunds 162.230
When Diesel Fuel Tax Refund or Credit May Be Filed 162.231
Notice Regarding Dyed Diesel Fuel 162.232
Dyed Diesel Fuel Notice Required on Shipping Documents, Bills of Lading, and Invoices 162.233
Unauthorized Sale or Use of Dyed Diesel Fuel 162.234
Alteration of Dye or Marker in Dyed Diesel Fuel Prohibited 162.235
Use of Dyed Fuel Prohibited 162.351
Tax Imposed 162.352
Tax Imposed 162.353
Tax Rate 162.354
Backup Tax 162.355
Fuel Presumed Subject to Tax 162.356
Exemptions 162.357
Dealer’s License 162.358
Interstate Trucker’s License 162.359
License Application Procedure 162.360
Issuance and Display of License 162.361
Bond and Other Security for Taxes 162.362
Returns and Payments 162.363
Records 162.364
Duties of Persons Holding Tax Payments 162.365
Refund or Credit for Certain Taxes Paid 162.366
Credit for Bad Debt or Nonpayment 162.367
Claims for Refunds 162.368
Refund for Certain Metropolitan Rapid Transit Authorities 162.369
When Compressed Natural Gas or Liquefied Natural Gas Tax Refund or Credit May Be Filed 162.401
Failure to Pay Tax or File Report 162.402
Prohibited Acts 162.403
Criminal Offenses 162.404
Criminal Offenses: Special Provisions and Exceptions 162.405
Criminal Penalties 162.406
Criminal Penalties: Corporations and Associations 162.407
Venue of Criminal Prosecutions 162.408
Negation of Exception: Information, Complaint, or Indictment 162.409
Issuance of Bad Check or Similar Sight Order to Licensed Distributor, Licensed Supplier, or Permissive Supplier 162.410
Election of Offenses 162.501
Tax Administration Fund 162.502
Allocation of Unclaimed Refundable Gasoline Taxes 162.503
Allocation of Gasoline Tax 162.504
Allocation of Diesel Fuel Tax 162.506
Allocation of Compressed Natural Gas and Liquefied Natural Gas Tax 162.1025
Separate Statement of Tax Collected from Purchaser 162.1155
Duty to Report Subsequent Sales of Tax-free Gasoline Purchased for Export 162.1275
Refund for Certain Metropolitan Rapid Transit Authorities 162.1276
Refund for Certain Nonprofit Food Banks 162.2025
Separate Statement of Tax Collected from Purchaser 162.2165
Duty to Report Subsequent Sales of Tax-free Diesel Fuel Purchased for Export 162.2275
Refund for Certain Metropolitan Rapid Transit Authorities 162.2276
Refund for Certain Nonprofit Food Banks 162.5025
Allocation of Other Unclaimed Refundable Nondedicated Taxes 162.5045
Allocation of Taxes Paid on Undyed Diesel Fuel Used Off-highway
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Accessed:
May 4, 2024

§ 162.201’s source at texas​.gov