Amends TCA Title 67.

Beginning January 1, 2025, this bill makes the changes described below to present petroleum products and alternative fuels tax law.<br /> <br /> ALTERNATE FUEL DEFINITION<br /> <br /> Under present petroleum products and alternative fuels tax law, "alternate fuel" means a liquified petroleum gas or compressed natural gas product used in an internal combustion engine or motor to propel any form of motor vehicle, machine, or mechanical contrivance. This bill adds to the definition of "alternative fuel" a hydrogen gas product used to power a fuel cell to propel any form of motor vehicle, machine, or mechanical contrivance.<br /> <br /> DEALER DEFINITION<br /> <br /> Under present petroleum products and alternative fuels tax law, "dealer" means a person who meets the following criteria:<br /> <br /> (1) Is the operator of a retail station or other retail outlet and who delivers liquified gas into the fuel supply tanks of motor vehicles;<br /> <br /> (2) Delivers liquefied gas into a dispenser capable of fueling motor vehicles; or<br /> <br /> (3) Dispenses compressed natural gas to the public.<br /> <br /> This bill adds to that definition a person who dispenses hydrogen gas to the public. <br /> <br /> LIQUIFIED GAS, TAXABLE SALES OR DELIVERIES, AND USER DEFINITIONS<br /> <br /> Under present petroleum products and alternative fuels tax law, "liquified gas" means all combustible gases that exist in the gaseous state at 60 degrees Fahrenheit and at a pressure of 14.7 pounds per square inch absolute, but does not include gasoline or diesel fuel or compressed natural gas. This bill adds to what is not considered "liquified gas" by including hydrogen gas to go along with diesel fuel and compressed natural gas.<br /> <br /> Additionally, under present petroleum products and alternative fuels tax law, "taxable sales or deliveries" means the delivery in this state of liquefied gas or compressed natural gas into the fuel supply tank of a motor vehicle that does not have affixed a current user permit. This bill adds to that definition a delivery in this state of hydrogen gas into the fuel supply tank of a motor vehicle that does not have affixed a current user permit.<br /> <br /> Finally, under present petroleum products and alternative fuels tax law, "user" means a person who operates a motor vehicle in this state that is propelled by liquified gas or compressed natural gas. This bill adds to that definition a person who operates a motor vehicle in this state that is propelled by hydrogen gas. <br /> <br /> COMPRESSED NATURAL GAS RATE OF TAX<br /> <br /> Present law provides that a use tax is imposed on compressed natural gas used for the propulsion of motor vehicles on the public highways of this state. However, governmental agencies are exempt from the compressed natural gas tax. This bill adds hydrogen gas to the above use tax. Additionally, this bill also provides that government agencies are exempt from this hydrogen gas use tax.<br /> <br /> ALTERNATIVE FUEL TAX DEFINITION<br /> <br /> Under present petroleum products and alternative fuels tax law, "alternative fuels tax" means the per gallon tax on liquified gas and compressed natural gas imposed by existing law. This bill adds hydrogen gas to the present law.<br /> <br /> EXEMPTIONS<br /> <br /> Present law provides that the sale at retail, the use, the consumption, the distribution and the storage for use or consumption in this state of liquefied gas and compressed natural gas is specifically exempted from sales and use taxes. This bill adds hydrogen gas to the list of exemptions.<br />