Committee backs bill to extend motor-fuel tax credit to diesel used in APUs

The Senate Committee on Finance voted to report Senate Bill 771 favorably to the full Senate after sponsors said the bill restores tax equity by allowing refunds or credits for diesel used in auxiliary power units (APUs) and power-take-off units (PTOs), as the law already does for gasoline.

Senator Hinojosa told the committee that diesel was inadvertently excluded when the motor-fuel tax code was rewritten in 2003 and that the bill corrects that discrepancy. Supporters argued that APUs and PTOs operate while a vehicle is stationary and therefore do not cause roadway wear that motor-fuel taxes are intended to address.

Robert Jones, who said he has worked in fuel excise tax for more than 35 years, testified in favor of the bill and said it "puts equity between the different types of fuels." The committee recorded a roll-call vote in which the clerk announced 10 ayes and no nays; the bill will be reported favorably to the full Senate and moved forward.

No amendments or opposing testimony were recorded in the committee transcript. The chair asked members to quickly prepare to vote so the committee could move multiple pending items to the floor.