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The Texas Comptroller, alongside Gov. Greg Abbott, announced temporary measures in response to recent wildfires. "These waivers will help ensure fuel supplies remain readily available for vehicles used by emergency responders and others to transport supplies and respond to the needs of Texans affected by this unprecedented disaster," states Hegar.
These include numerous state and federal waivers:
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Using dyed diesel on roads: Normally, red-dyed diesel fuel can't be used on highways because it's not taxed for road use. But due to the wildfires, Texas is temporarily allowing it.
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Taxes on dyed diesel: You don't have to pay the state tax (20 cents per gallon) for dyed diesel used on roads during this time.
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Federal tax penalty: If you use dyed diesel on the road, there's usually a penalty for not paying the federal tax (24.4 cents per gallon). The IRS won't charge that penalty for this situation. The IRS penalty waiver is retroactive to the beginning of the wildfire disaster and covers the period of Feb. 23 through March 22 for certain Texas counties.
The suspension of state restrictions and the requirement to pay state motor fuels taxes on dyed diesel is also in effect from Feb. 23 through March 22, unless otherwise terminated by the Office of the Governor or until the disaster declaration is lifted or expires.
Hegar also announced the temporary suspension of certain requirements for motor vehicles engaged in interstate disaster relief efforts due to the Texas wildfires.
To respond to the wildfires and speed up the delivery of fuel into Texas from March 7 through March 22, the Comptroller’s office will also issue expedited licenses to motor fuel distributors, importers, and transporters to import fuel.
The Comptroller’s office will waive the bond requirement for these distributors and importers. There is no bond requirement for transporters.
Distributors, importers and transporters should electronically submit their applications (PDF) to FuelsTax@cpa.texas.gov.
The application will be processed within one business day of receipt. Once processed, the license status will be available through the Comptroller’s online Fuels License Search tool.
The agency also will accept refund claims from people who paid tax on clear diesel fuel purchased and used in off-highway equipment for wildfire relief and recovery efforts within declared disaster areas. The refund claim, Form 06-106 (PDF), is valid for clear diesel fuel used from Feb. 23 through March 22.
The Office of the Governor also issued a temporary waiver to suspend licensing requirements of the International Fuel Tax Agreement (IFTA) when needed relief supplies and fuel are delivered into Texas by truck. This waiver will be in effect until March 22, at which point the Comptroller’s office, in conjunction with the Office of the Governor, will determine whether the waiver should be extended.
For more information on the Comptroller’s role in disaster relief efforts, including information on the use of dyed diesel fuel, see Disaster Relief Information on the Comptroller’s website.
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