The Comptroller’s office oversees the collection of the state’s taxes on gasoline, diesel fuel and liquefied and compressed natural gas. The agency also regulates motor fuel suppliers and certain users, including dealers and interstate truckers. (Tax Code, Chapter 162)
The Tax Code (Section 162.403) sets forth 36 criminal offenses involving motor fuels taxes (MFTs), several of which are felonies punishable by fines and/or imprisonment. Felony crimes include:
Dyed diesel fuel is untaxed because it is intended for use in off-road vehicles that do not operate on public highways (e.g., farm tractors). This exemption makes dyed (red) diesel highly susceptible to abuse and corruption.
The Comptroller's office may cancel or refuse to issue, or reissue, a Chapter 162 license to any applicant who has violated or failed to comply with state motor fuels tax laws or a rule issued by the Comptroller (Tax Code, Sec. 162.005). In some cases, this can occur without prior notice (Tax Code, Sec. 162.006).
Motor fuels felony and misdemeanor cases are prosecuted in the counties in which they occur.