1. (a) This rule applies only to motor fuel transactions that take place on or after January 1, 2004. Motor fuel transactions that occur prior to January 1, 2004, will be governed by sections in Texas Administrative Code, Title 34, Part 1, Chapter 3, Subchapter L.

2. (b) Reports required.

   1. (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. (2) Dyed diesel fuel bonded users with an average quarterly tax liability of more than $600 must file quarterly reports.
   3. (3) Liquefied gas dealers and liquefied gas interstate truckers must file annual reports.

3. (c) Due dates.

   1. (1) The due date for all annual reports is January 25th.
   2. (2) If the report is filed by the due date, a request for refund of taxes paid on liquefied gas used out-of-state must be made on the annual report.
4. (d) 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.

5. (e) Qualifications.

   1. (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. (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.
6. (f) Liquefied gas reports. Licensed liquefied gas dealers who are also liquefied gas interstate truckers registered under a multistate tax agreement must file their liquefied 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.