89R1987 CJD-F     By: Lopez of Bexar H.B. No. 326       A BILL TO BE ENTITLED   AN ACT   relating to authorizing the increase or decrease of the rates of the   gasoline and diesel fuel taxes based on the cost of certain highway   projects.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  (a)  Subchapter B, Chapter 162, Tax Code, is   amended by adding Section 162.1021 to read as follows:          Sec. 162.1021.  ANNUAL RATE CHANGE ACCORDING TO HIGHWAY COST   INDEX. (a) In this section:                (1)  "Highway cost index" means the 12-month moving   average of the price of materials and labor compiled by the Texas   Department of Transportation and incorporated into state highway   projects.                (2)  "Highway cost index percentage change" means the   percentage increase or decrease in the highway cost index of a given   state fiscal year from the highway cost index of the preceding state   fiscal year.          (b)  Notwithstanding Section 162.102, on January 1 of each   year, the rate of the gasoline tax imposed under this subchapter in   the preceding year is increased or decreased by a percentage equal   to the highway cost index percentage change for the preceding state   fiscal year.          (c)  Not later than December 1 of each year, the comptroller   shall:                (1)  compute the new tax rate as provided by this   section;                (2)  provide the new tax rate to the secretary of state   for publication in the Texas Register; and                (3)  notify each license holder under this subchapter   of the new tax rate.          (b)  The comptroller shall compute the initial adjusted tax   rate as required by Section 162.1021(c), Tax Code, as added by this   section, not later than December 1, 2025. The initial adjusted rate   takes effect January 1, 2026.          SECTION 2.  Effective January 1, 2026, Section 162.103(a),   Tax Code, is amended to read as follows:          (a)  A backup tax is imposed at the rate prescribed by   Section 162.102 or 162.1021 on:                (1)  a person who obtains a refund of tax on gasoline by   claiming the gasoline was used for an off-highway purpose, but   actually uses the gasoline to operate a motor vehicle on a public   highway;                (2)  a person who operates a motor vehicle on a public   highway using gasoline on which tax has not been paid;                (3)  a person who sells to the ultimate consumer   gasoline on which tax has not been paid and who knew or had reason to   know that the gasoline would be used for a taxable purpose;                (4)  a person, other than a person exempted under   Section 162.104, who acquires gasoline on which tax has not been   paid:                      (A)  in an original or subsequent sale; or                      (B)  from any source in this state; and                (5)  a person who acquires gasoline by any unlawful   means, including by purchase through the unauthorized use of a   credit card, a debit card, or other money, regardless of whether tax   was previously paid on the gasoline or was added to the selling   price of the gasoline.          SECTION 3.  (a)  Subchapter C, Chapter 162, Tax Code, is   amended by adding Section 162.2021 to read as follows:          Sec. 162.2021.  ANNUAL RATE CHANGE ACCORDING TO HIGHWAY COST   INDEX. (a) In this section:                (1)  "Highway cost index" means the 12-month moving   average of the price of materials and labor compiled by the Texas   Department of Transportation and incorporated into state highway   projects.                (2)  "Highway cost index percentage change" means the   percentage increase or decrease in the highway cost index of a given   state fiscal year from the highway cost index of the preceding state   fiscal year.          (b)  Notwithstanding Section 162.202, on January 1 of each   year, the rate of the diesel fuel tax imposed under this subchapter   in the preceding year is increased or decreased by a percentage   equal to the highway cost index percentage change for the preceding   state fiscal year.          (c)  Not later than December 1 of each year, the comptroller   shall:                (1)  compute the new tax rate as provided by this   section;                (2)  provide the new tax rate to the secretary of state   for publication in the Texas Register; and                (3)  notify each license holder under this subchapter   of the new tax rate.          (b)  The comptroller shall compute the initial adjusted tax   rate as required by Section 162.2021(c), Tax Code, as added by this   section, not later than December 1, 2025. The initial adjusted rate   takes effect January 1, 2026.          SECTION 4.  Effective January 1, 2026, Section 162.203(a),   Tax Code, is amended to read as follows:          (a)  A backup tax is imposed at the rate prescribed by   Section 162.202 or 162.2021 on:                (1)  a person who obtains a refund of tax on diesel fuel   by claiming the diesel fuel was used for an off-highway purpose, but   actually uses the diesel fuel to operate a motor vehicle on a public   highway;                (2)  a person who operates a motor vehicle on a public   highway using diesel fuel on which tax has not been paid;                (3)  a person who sells to the ultimate consumer diesel   fuel on which a tax has not been paid and who knew or had reason to   know that the diesel fuel would be used for a taxable purpose;                (4)  a person, other than a person exempted under   Section 162.204, who acquires diesel fuel on which tax has not been   paid:                      (A)  in an original or subsequent sale; or                      (B)  from any source in this state; and                (5)  a person who acquires diesel fuel by any unlawful   means, including by purchase through the unauthorized use of a   credit card, a debit card, or other money, regardless of whether tax   was previously paid on the diesel fuel or was added to the selling   price of the diesel fuel.          SECTION 5.  Effective January 1, 2026, Section 20.002(d),   Transportation Code, is amended to read as follows:          (d)  The fee imposed by this section is equal to 25 percent of   the diesel fuel tax rate prescribed by [imposed under] Section   162.202 or 162.2021, Tax Code.          SECTION 6.  Except as otherwise provided by this Act, this   Act takes effect September 1, 2025.