Effective July 1, 2012: Changes to the Petroleum Products Delivery Fee

House Bill 2694, passed during the 82nd Legislature Regular Session (2011), reauthorized and made permanent, the fee on the delivery of certain petroleum products that was set to expire on Aug. 31, 2011. The law requires the Texas Commission on Environmental Quality (TCEQ) by rule to set the amount of the petroleum product delivery fee rates. The fee applies to all petroleum products imported into Texas or withdrawn from a Texas bulk storage facility and delivered into cargo tanks or barges. The fee set by the TCEQ is based upon total net gallons delivered, as shown in this schedule, beginning July 1, 2012:

Gallons Delivered Fee
Less than 2,500 net gallons $  2.75
2,500 but less than 5,000 net gallons $  5.50
5,000 but less than 8,000 net gallons $  8.65
8,000 but less than 10,000 net gallons $11.00
10,000 or more net gallons, per 5,000 or increment thereof $  5.50

 

For gasoline deliveries of at least 7,000 but less than 8,000 net gallons (whether single product type or split load), special rules apply:

  • If the gasoline portion of the delivery is less than 7,000 net gallons, the fee is $8.65.
  • If the gasoline portion of the delivery is at least 7,000 net gallons, the total load is presumed to be at least 8,000 gallons and the fee is $11.00.

For more information, please see the Petroleum Products Delivery Fee page on our website.

*Originally published in the May edition of Tax Policy News – a monthly newsletter about Texas tax policy at http://www.window.state.tx.us/taxinfo/taxpnw/tpn2012/tpn1205.html

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