Texas Administrative Code
Title 34 - PUBLIC FINANCE
Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 3 - TAX ADMINISTRATION
Subchapter KK - SCHOOL FUND BENEFIT FEE
Section 3.1251 - School Fund Benefit Fee

Universal Citation: 34 TX Admin Code § 3.1251

Current through Reg. 50, No. 26; June 27, 2025

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Commercial motor vehicle--A self-propelled vehicle used to transport passengers for compensation or hire between points in Texas on a fixed or scheduled route that:
(A) has a gross weight, registered weight, or gross weight rating of more than 26,000 pounds; or

(B) is designed to transport more than 15 passengers, including the driver.

(2) Fixed or scheduled route--Published routes between fixed points in Texas that are open for travel by the general public with intended times of departure and arrival at a terminal or other specified location. Fixed or scheduled route travel includes the distance from the Texas border to the first arrival point, the distance from the first arrival point to the last departure point, and the distance from the last departure point to the Texas border.

(3) Political subdivision--Any county, city, town, village, district, or other political subdivision of the state. For the purpose of this section, a political subdivision includes a person performing a contract to provide transportation services for any city, town, village, district, or other political subdivision of the state.

(b) Collection of tax on sales of diesel fuel. Diesel fuel suppliers, permissive suppliers, distributors, and retail dealers must collect the tax imposed by Tax Code, Chapter 162, on sales of diesel fuel to any person qualifying for a tax refund under subsection (c) of this section.

(c) Refund of tax paid on diesel fuel used on fixed or scheduled routes.

(1) A person, other than a political subdivision, who owns, controls, operates, or manages a commercial motor vehicle and uses diesel-powered motor vehicles to transport passengers for compensation or hire between points in Texas on fixed or scheduled routes may file a claim for refund with the comptroller for state taxes paid on diesel fuel used exclusively in commercial motor vehicles while traveling fixed or scheduled routes.

(2) The amount of fuel subject to state motor fuels tax refund shall be computed by dividing the total miles traveled on fixed or scheduled routes by the vehicles' average mile-per-gallon.

(3) A claim for refund must be filed in the calendar month following the month in which the diesel fuel is used in a commercial motor vehicle.

(4) A claim for refund of tax paid on diesel fuel consumed while traveling fixed or scheduled routes may not be paid unless the motor vehicle operator has filed the required school fund benefit fee report.

(5) Tax paid on diesel fuel used to operate commercial motor vehicles on charter trips or other non-fixed or non-scheduled routes is not refundable, other than for refunds provided by § 3.432 of this title (relating to Refunds on Gasoline and Diesel Fuel Tax).

(d) School fund benefit fee due. A fee is imposed under Transportation Code, Chapter 20, §20.002, on diesel fuel exempted from the motor fuels tax under Tax Code, Chapter 162, at a rate of $0.04875 per gallon.

(e) Due date of report and payment.

(1) The school fund benefit fee report and payment are due not later than the last day of the month following the calendar month in which liability for the fee is incurred.

(2) A commercial motor vehicle operator must file a monthly report even if there is no fee to report.

(3) Penalties due on delinquent fees and reports shall be imposed as provided by Tax Code, § 111.061.

(4) Interest on delinquent fees shall be imposed as provided by Tax Code, § 111.060.

(f) Records required. A commercial motor vehicle operator shall keep records showing:

(1) all fixed or scheduled routes;

(2) the date and number of miles traveled on fixed or scheduled routes in Texas;

(3) the date and number of miles traveled on charter trips and other non-fixed or non-scheduled routes in Texas;

(4) the number of gallons of diesel fuel on hand on the first day of each month;

(5) the number of gallons of diesel fuel purchased or received, showing the name of the seller and the date of each purchase;

(6) the date and number of gallons of diesel fuel delivered into the fuel supply tanks of commercial motor vehicles; and

(7) the date and number of gallons delivered into the fuel supply tanks of other diesel powered motor vehicles.

Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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