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Kelly Hancock
Acting Texas Comptroller of Public Accounts
Kelly Hancock
Acting Texas Comptroller of Public Accounts
Kelly Hancock
Acting Texas Comptroller of Public Accounts
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taxes

Diesel Fuel

Legislative Update

HB 1109 exempts from motor fuels tax gasoline and diesel fuel sold to a county in Texas for the county's exclusive use. The exemption does not override existing dyed diesel requirements and restrictions.

Who is responsible for this tax?

The supplier or permissive supplier collects tax on:

  • The net gallons of diesel fuel removed from the terminal rack or imported into Texas, other than in the bulk transfer/terminal system.
  • The terminal operator in Texas unless at the time of removal the terminal operator has a terminal operator's license issued for the facility from which the diesel fuel is withdrawn, the terminal operator verifies that the person who removes the diesel fuel has a supplier's license, and the terminal operator does not have a reason to believe that the supplier's license is not valid.
  • The gallons of diesel fuel blended in Texas outside the bulk transfer/terminal system.
  • The gallons of diesel fuel brought into Texas in the fuel supply tanks of a commercial motor vehicle licensed as an interstate trucker, or an IFTA licensed vehicle.

(Texas Tax Code (TTC) 162.201)

Rates

Twenty cents ($.20) per gallon on diesel fuel removed from a terminal, imported, blended, sold to an unauthorized person or other taxable use not otherwise exempted by law. (TTC 162.202)

Deductions

When this tax is paid by the due date, suppliers and importers can apply a 2 percent discount, and distributors and importers a 1.75 percent discount.

Due Date

  • Suppliers, permissive suppliers, distributors, importers, exporters and blenders: monthly on the 25th day of the month following the end of the calendar month (for example, April 25 for March activity)
  • Dyed diesel fuel bonded users and interstate truckers (except IFTA licensed): quarterly on the 25th day of the month following the end of the calendar quarter (April 25, July 25, Oct. 25 and Jan. 25); or yearly, if qualified, on Jan. 25 (TTC 162.215)
  • IFTA licensees: quarterly on the last day of the month following the end of the calendar quarter (April 30, July 31, Oct. 31 and Jan. 31) (IFTA Articles of Agreement - R960)

If the due date is a Saturday, Sunday or a legal holiday, the next business day is considered the due date.

Penalties and Interest

Penalties
  • A $50 penalty is assessed on each report filed after the due date.
  • If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
  • If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.

Effective January 2018, the following additional penalties apply to licensed suppliers, permissive suppliers, distributors, importers and exporters who purchase gasoline or diesel fuel for export but redirect the purchased fuel to a destination in Texas prior to export:

  • A penalty of $2,000 or five times the amount of the tax due, whichever is greater, is assessed if the tax due on the redirected fuel is paid after the due date.
  • A penalty of $200 is assessed on each subsequent sale of tax-free gasoline or diesel fuel in Texas that is not reported within 180 days of the due date of the original report of the sale.
Interest
  • Past due taxes are charged interest beginning 61 days after the due date.
  • To calculate interest on past due taxes, visit Interest Owed and Earned.

Reporting and Payment Requirements

Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.

Less than $10,000

Select one of these reporting methods:

Select one of these payment methods:

$10,000 - $49,999

Select one of these reporting methods:

Select one of these payment methods:

$50,000 - $499,999

Electronic Data Interchange (EDI) is the only available reporting method.

Select one of these payment methods:

$500,000 or more

Electronic Data Interchange (EDI) is the only available reporting method.

Select one of these payment methods:

Import Verification and Diversion Numbers

To obtain an Import Verification Number on motor fuel transported into Texas by cargo tank, call us at 877-676-7811.

To obtain a Diversion Number on motor fuel delivered to a destination state different from the destination state printed on the bill of lading, delivery manifest or shipping document, call us at 877-976-7800.

Additional Resources

Fuels Tax Licenses and Signed Statement Registration Numbers (Updated Daily)

Required Applications: