Since 1923, Texas has used motor fuel taxes to maintain state infrastructure and public schools. Today, Texas imposes a 20-cent tax per gallon of gasoline and diesel fuel. According to the Texas Comptroller Office, in 2018, motor fuel taxes brought in $3.7 billion, nearly 6.6 percent of all state tax collections. Because the motor fuel tax plays a significant part in Texas’ revenue, the state prioritizes the collection and enforcement of motor fuel tax.
What are the Motor Fuel Tax Laws in Texas?
There are several different motor fuel tax crimes you can be charged within Fort Bend, Texas. Section 162.403 of the Texas Tax Code lists 36 offenses ranging from second-degree felonies to Class C misdemeanors.
Second Degree Felony
Failing to remit collected motor fuel taxes- Making a sale of dyed diesel fuel to an unlicensed individual
- Purchasing gasoline tax-free when not authorized
- Purchasing motor fuel with the intent to evade taxes
- Transporting motor fuel without the required shipping documents
- Importing, selling, using, blending, distributing, or storing motor fuel for which taxes are owed and not paid
- Blending fuel to expand its volume and evade taxation
- Evading or attempting to evade motor fuel taxes
- Holding an aviation fuel dealer’s license and making a taxable sale or use of gasoline or diesel fuel
Dyed diesel fuel is untaxed because it is intended for off-road vehicles that do not operate on public highways. It is dyed red, so law enforcement can easily identify it.
Third Degree Felony
- Selling or delivering dyed diesel fuel for vehicle operations on a public highway
- Destroying required books and records
- Falsifying entries in required books and records
- Delivering false reports to the comptroller
- Transporting motor fuel under a false cargo manifest or shipping document
- Engaging in a motor fuel transaction without a license
- Forging, falsifying, or altering an invoice or shipping document required by law
- Making a false statement in a claim for a tax refund
Class A Misdemeanor
- Concealing motor fuel with the intent to engage in illegal conduct
- Refusing to make sales of motor fuel on the volume-corrected basis required under the law
- Refusing to stop or surrender a vehicle transporting motor fuel when ordered to do so by an authorized official
Class B Misdemeanor
- Refusing to allow the comptroller or attorney general to inspect the records, equipment, materials, or premises of a license holder
- Refusing to allow an official to measure or take samples of the contents of a storage container where motor fuel is produced, processed, blended, stored, sold, delivered, or used
- Refusing to make or deliver a required report to the comptroller
- Failing to obtain an import verification if you are an importer
- Purchasing motor fuel for export without paying taxes and selling it in Texas without obtaining a diversion number
- Delivering compressed natural gas or liquefied natural gas into a vehicle without a proper license
Class C Misdemeanor
- Refusing to allow a police officer to inspect a vehicle transporting or using motor fuel
- Operating a motor vehicle without a valid trip permit or state trucker’s license
- Transporting gasoline or diesel fuel in a cargo tank that is connected with the fuel injector or carburetor or the fuel supply tank feeding the fuel injector or carburetor of the motor vehicle transporting the product
- Selling or delivering gasoline or diesel fuel from a fuel supply tank that is connected with the fuel injector or carburetor of a motor vehicle
- Owning or operating a vehicle without an accurately recording odometer when mileage reports or records are required under the law
- Using dyed diesel fuel for the operation of the vehicle on a public highway
What are the Penalties of Motor Fuel Tax Crimes in Sugar Land?
The penalty for motor fuel crimes depends on the specific facts of your case. You may be facing fines, jail time, and community service. In addition, the Texas Comptroller’s office may cancel or refuse to issue or reissue a Chapter 162 motor fuel license to any individual who has violated Texas motor fuel tax laws. This can occur without prior notice in some cases.
Experienced Texas Motor Fuel Tax Attorney
If a law enforcement agency has accused you of a motor fuel tax offense, you should get in touch with an experienced criminal defense attorney. Texas criminal defense lawyer Adam Capetillo has a thorough understanding of everything written into Texas Tax Code Section 162. He has more than ten years of experience handling motor fuel tax cases. Call Capetillo Law Firm today at (346) 249-5544 for a free consultation.
