Texas Comptroller Manual of Accounts - Fiscal 2024
Revenue Object 3008 – Diesel Fuel Tax

A $0.20 per gallon tax on net gallons of diesel fuel removed from the terminal rack. Qualified transit companies can receive a rebate effectively lowering the rate to $0.195 per gallon.

For timely payment, suppliers may take a credit equal to 2% of the amount of tax owed. Distributors and importers, 1.75%.

Certain entities are exempt from the diesel fuel tax such as the United States Government, Texas public school districts, certain exporters and others (162.204). Certain entities may obtain refunds such as interstate truckers and transit authorities.

The following entities are required to obtain a diesel fuel tax license:

• supplier
• distributor
• terminal operator
• exporter
• blender
• motor fuel transporter
• aviation fuel dealer
• dyed diesel fuel bonded user
• interstate trucker

In addition to other penalties, a person failing to report subsequent sales of tax-free motor fuel purchase for export is subject to a penalty of $200 per sale. Failure to pay motor fuel tax under Tax Code 162.101(e-1) or 162.201(e-2) requires a penalty equal to the greater of $2,000 or five time the amount of tax due.

Suppliers, permissive suppliers, distributors, importers, exporters, and blenders - monthly: 25th day of the month following the end of the calendar month.

Dyed diesel fuel bonded users and interstate truckers (except IFTA licensed), quarterly: 25th day of the month following the end of the calendar quarter; or yearly, if qualified: January 25.

International Fuel Tax Agreement (IFTA) licensees - quarterly: last day of the month following the end of the calendar quarter.

Amended by H.B. 697, 67th Leg. R.S.

Amended by S.B. 988, 68th Leg., R.S.

Previously deposited to the Highway Motor Fuel Tax Fund Account (0060). Effective 9-1-84, S.B. 27, 68th Leg., 2nd C.S. abolished the account and redirected receipts to the General Revenue Fund (0001). 

S.B. 614, 68th Leg., R.S., H.B. 122, 68th Leg., 2nd C.S., and S.B. 237, 69th Leg., R.S. amended Diesel Tax Prepaid User Permits. These permits were repealed by H.B. 2458, 78th Leg., R.S.

$200 and $2,000 penalties added by S.B. 1557, 85th Leg., R.S.

H.B. 79, 69th Leg., 3rd C.S., temporarily increased the tax from $0.10 to $0.15 and transit company tax from $0.095 to $0.145 for the period 01/01/1987 to 09/01/1987. H.B. 62, 70th Leg., 2nd C.S. made these increases permanent until H.B. 11 72nd Leg., 1st C.S., increased the tax from $0.15 to $0.20 and $0.145 to $0.195 for qualified transit companies beginning 10/01/1991.

H.B. 2458, 78th Leg., R.S. recodified motor fuels taxes from Tax Code, Chapter 153 to Chapter 162.

Allocations amended by H.B. 1356, 71st Leg., R.S., and S.B. 3, 72nd Leg., 1st C.S.

1% of total gross tax previously allocated to the Comptroller's Operating Fund Account (No. 0062) for administrative costs. Dedication abolished per § 403.094, Government Code, effective 8-31-95. H.B. 2458, 78th Leg., R.S. attempted to reestablish the dedication of 1% allocation to a special fund but was not exempted in H.B. 3318 and abolished.