§ 162.227 — REFUND OR CREDIT FOR CERTAIN TAXES PAID.

Texas § 162.227

• Jurisdiction: Texas
• Code TX: Tax Code

Text

Sec. 162.227. REFUND OR CREDIT FOR CERTAIN TAXES PAID. (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;
(2-a) a county in this state for the county'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;
(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.
(b) For truck or railcar movements between licensed suppliers or licensed permissive suppliers in which the diesel fuel removed from the first terminal comes to rest in the second terminal and tax was paid on the first removal, the license holder who receives the diesel fuel in the second terminal may take the credit.
(c) A license holder may take a credit on a return for the period in which the purchase occurred, and a person who does not hold a license under this subchapter, other than a license as an aviation fuel dealer, may file a refund claim with the comptroller if the license holder or person paid tax on diesel fuel and the license holder or person:
(1) is the United States government and the diesel fuel is for its exclusive use, provided that a credit or refund is not allowed for diesel fuel used by a license holder or person operating under a contract with the United States;
(2) is a public school district in this state and the diesel fuel is for the district's exclusive use;
(3) is a commercial transportation company that provides public school transportation services to a school district under Section 34.008 , Education Code, and the diesel fuel is used exclusively to provide those services; or
(4) is a licensed aviation fuel dealer who delivers the diesel fuel into the fuel supply tanks of aircraft or aircraft servicing equipment.
(c-1) A license holder may take a credit on a return for the period in which the purchase occurred, and a person who does not hold a license under this subchapter may file a refund claim with the comptroller, if the license holder or person paid tax on diesel fuel and the diesel fuel is used in this state:
(1) as a feedstock in the manufacturing of tangible personal property for resale not as a motor fuel; or
(2) in a medium for the removal of drill cuttings from a well bore in the production of oil or gas.
(c-2) A license holder may take a credit on a return for the period in which the purchase occurred, and a person who does not hold a license may file a refund claim with the comptroller, if:
(1) the license holder or person paid tax on diesel fuel;
(2) the diesel fuel is used in this state by movable specialized equipment used in oil field well servicing; and
(3) the person who purchased the diesel fuel has received or is eligible to receive a federal diesel fuel tax refund under the Internal Revenue Code of 1986 for the diesel fuel used by movable specialized equipment used in oil field well servicing.
(d) A license holder may take a credit on a return for the period in which the purchase occurred if the license holder paid tax on the diesel fuel and the license holder is a licensed interstate trucker who uses the diesel fuel outside this state in commercial vehicles operated under an interstate trucker license, provided that a credit or refund claimed under this subdivision must be taken or filed within the limitations period as provided by Section 162.230 .
(d-1) A license holder may take a credit on a return for the period in which the purchase occurred, and a person who does not hold a license may file a refund claim with the comptroller, if the license holder or person paid tax on diesel fuel and the diesel fuel is used in this state by auxiliary power units or power take-off equipment on any motor vehicle. If the quantity of that diesel fuel can be accurately measured while the motor vehicle is stationary by any metering or other measuring device or method designed to measure the fuel separately from fuel used to propel the motor vehicle, the comptroller may approve and adopt the use of the device as a basis for determining the quantity of diesel fuel consumed in those operations for a tax credit or tax refund. If there is no separate metering device or other approved measuring method, the license holder may take the credit and the person who does not hold a license may claim the refund on a percentage of the diesel fuel consumed by each motor vehicle equipped with an auxiliary power unit or power take-off equipment. The comptroller shall determine the percentage of diesel fuel for which the credit or refund may be claimed. The climate-control air conditioning or heating system of a motor vehicle that has a primary purpose of providing for the convenience or comfort of the operator or passengers is not a power take-off system, and a credit or refund may not be allowed for the tax paid on any portion of the diesel fuel that is used for that purpose. A credit or refund may not be allowed for the diesel fuel tax paid on that portion of the diesel fuel that is used for idling.
(e) A person who paid tax on the purchase of diesel fuel may claim a credit or seek a refund with the comptroller if 100 or more gallons of diesel fuel is subsequently exported or lost by fire, theft, or accident. A credit or refund claimed under this subsection must be taken or filed within the limitations period provided by Section 162.230 .
(f) A transit company who paid tax on the purchase of diesel fuel may seek a refund with the comptroller of one-half of one cent per gallon for diesel fuel used in transit vehicles.
(f-1) A volunteer fire department exempt from the tax imposed under this subchapter that paid tax on the purchase of diesel fuel is entitled to a refund of the tax paid, and the volunteer fire department may file a refund claim with the comptroller for that amount.
(f-2) A nonprofit entity exempted under Section 162.204 (a)(15) from the tax imposed under this subchapter that paid tax on the purchase of diesel fuel is entitled to a refund of the tax paid, and the entity may file a refund claim with the comptroller for that amount.
(f-3) A county exempt from the tax imposed under this subchapter that paid tax on the purchase of diesel fuel is entitled to a refund of the tax paid, and the county may file a refund claim with the comptroller for that amount.
(g) The right to receive a refund or take a credit under this section is not assignable.
(h) The comptroller may adopt rules specifying procedures and requirements that must be followed to claim a credit or refund under this section.
(i) Expired.
(j) A license holder may take a credit on a return for the tax included in the retail purchase price of diesel fuel for the period in which the purchase occurred when made by one of the following purchasers, if the purchase was made by acceptance of a credit card not issued by the license holder, the credit card issuer did not collect the tax from the purchaser, and the license holder reimbursed the credit card issuer for the amount of tax included in the retail purchase price:
(1) the United States government for its exclusive use;
(2) a public school district in this state for the district's exclusive use;
(3) a commercial transportation company that provides public school transportation services to a public school district under Section 34.008 , Education Code, for its exclusive use to provide those services;
(4) a nonprofit electric cooperative corporation organized under Chapter 161 , Utilities Code; and
(5) a nonprofit telephone cooperative corporation organized under Chapter 162 , Utilities Code.

Legislative History

Added by Acts 2003, 78th Leg., ch. 199, Sec. 1, eff. Jan. 1, 2004. Amended by: Acts 2007, 80th Leg., R.S., Ch. 220 (H.B. 1332 ), Sec. 1, eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 911 (H.B. 2982 ), Sec. 3(a), eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 931 (H.B. 3314 ), Sec. 15, eff. July 1, 2007. Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969 ), Sec. 27.001(87), eff. September 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 161 (S.B. 254 ), Sec. 4, eff. July 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 1227 (S.B. 1495 ), Sec. 28, eff. September 1, 2009. Acts 2015, 84th Leg., R.S., Ch. 1255 (H.B. 1905 ), Sec. 27, eff. September 1, 2015. Acts 2023, 88th Leg., R.S., Ch. 536 (H.B. 3599 ), Sec. 6, eff. September 1, 2023. Acts 2025, 89th Leg., R.S., Ch. 108 (S.B. 771 ), Sec. 1, eff. September 1, 2025. Acts 2025, 89th Leg., R.S., Ch. 165 (H.B. 1109 ), Sec. 4, eff. July 1, 2025.