SECTION 3.447. Reports, Due Dates, Bonding Requirements, and Qualifications for Annual Filers

(a) Reports required.

(1) A dyed diesel fuel bonded user with an average quarterly tax liability of $600 or less has the option to file reports each quarter or each year. After a dyed diesel fuel bonded user has selected a method of reporting, the method cannot be changed without permission from the comptroller unless the dyed diesel fuel bonded user's tax liability for a year exceeds $2,400, or the comptroller deems change otherwise necessary. If the dyed diesel fuel bonded user's diesel fuel tax liability during a year exceeds $2,400, the dyed diesel fuel bonded user must file a report for all previous quarters of that year. Future reports must be filed on a quarterly basis.

(2) Dyed diesel fuel bonded users with an average quarterly tax liability of more than $600 must file quarterly reports.

(3) Compressed natural gas and liquefied natural gas dealers with an average quarterly tax liability of $600 or less have the option to file reports each quarter or each year. After a compressed natural gas and liquefied natural gas dealer has selected a method of reporting, the dealer cannot change the method without permission from the comptroller, unless the compressed natural gas and liquefied natural gas dealer's tax liability for a year exceeds $2,400. The comptroller may require a compressed natural gas and liquefied natural gas dealer to change its method of reporting when the comptroller deems change otherwise necessary. If the compressed natural gas and liquefied natural gas dealer's tax liability during a year exceeds $2,400, the compressed natural gas and liquefied natural gas dealer must file a report for all previous quarters of that year. Future reports must be filed on a quarterly basis.

(4) The report and payment of tax on sales of compressed natural gas and liquefied natural gas made from September 1, 2013, through December 31, 2013, are to be included with the 2013 annual return.

(b) Due dates.

(1) The due date for all annual reports is January 25th.

(2) The due date for all quarterly reports is the 25th day of the month following the calendar quarter end date.

(3) If the report is filed by the due date, a request for refund of taxes paid on compressed natural gas and liquefied natural gas used out-of-state by a Texas interstate trucker must be made on the annual report.

(c) Bonding requirements. Dyed diesel fuel bonded users that report annually will be required to post security in the amount of two times the annual tax liability on taxable uses of diesel fuel. The minimum bond is $10,000. The bond may be waived if it is determined that the bond is not necessary to protect the state.

(d) Changes in filing status.

(1) A license holder that is going out of business or whose license is cancelled must file a report on or before the 25th day of the month following the calendar quarter in which business ceased.

(2) Dyed diesel fuel bonded users will be notified each March of any filing status change based on the dyed diesel fuel bonded user's previous-year reports.

(e) Compressed natural gas/liquefied natural gas reports. Licensed compressed natural gas/liquefied natural gas dealers who are also compressed natural gas/liquefied natural gas interstate truckers registered under a multistate tax agreement must file their compressed natural gas/liquefied natural gas dealer report with the same frequency that they report their interstate trucker operations under the multistate tax agreement.

Source Note: The provisions of this §3.447 adopted to be effective October 13, 2004, 29 TexReg 9554; amended to be effective February 16, 2014, 39 TexReg 776; amended to be effective January 27, 2016, 41 TexReg 683