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Lets discuss TX 152.090 sales tax exemption

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Here is the statute for anyone interested: TAX CODE CHAPTER 152. TAXES ON SALE, RENTAL, AND USE OF MOTOR VEHICLES

Here are my other thoughts:
  1. Clearly this letter not written by a lawyer. No lawyer would call it "statute 152.090."
  2. It seems like the tricky part will be the CARB Phase II part. This seems to apply to heavy duty vehicles, like semis. CA Phase 2 GHG So the Model S will never be listed as a Phase II vehicle.
  3. However, the statute says "or stricter Phase II emission standards established by that board" (AND is hydrogen power capable)
  4. It seems the letter omits that part. Instead, she just looked to see whether the S was listed and called it a day. That is where I would focus the appeal.
  5. Therefore, you'd need to prove that the S meets the CARB Phase II emissions standards AND it is hydrogen power capable.
  6. I did a quick search and I cannot see that anyone has taken this issue to court.
 
Here is the statute for anyone interested: TAX CODE CHAPTER 152. TAXES ON SALE, RENTAL, AND USE OF MOTOR VEHICLES

Here are my other thoughts:
  1. Clearly this letter not written by a lawyer. No lawyer would call it "statute 152.090."
  2. It seems like the tricky part will be the CARB Phase II part. This seems to apply to heavy duty vehicles, like semis. CA Phase 2 GHG So the Model S will never be listed as a Phase II vehicle.
  3. However, the statute says "or stricter Phase II emission standards established by that board" (AND is hydrogen power capable)
  4. It seems the letter omits that part. Instead, she just looked to see whether the S was listed and called it a day. That is where I would focus the appeal.
  5. Therefore, you'd need to prove that the S meets the CARB Phase II emissions standards AND it is hydrogen power capable.
  6. I did a quick search and I cannot see that anyone has taken this issue to court.


Don't overlook that the CARB Phase II part is as of September 1, 2007. Those regulations may be different than those shown on the current CA Phase II GHG link above.
 
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Reactions: Boourns
I just spoke with the owner of a fuel cell company about getting me in to charge at a stationary fuel cell. His company built it, but because the stationary fuel cell is part of a public utility company now, I'll need to be cleared by the Department of Homeland Security to be granted access. He's working with his PUC/DHS contacts now to get me access to charge and to allow me to video the process. The approval process may take a couple of weeks but if this pans out, I'll have video of charging a Model S from a stationary hydrogen fuel cell. Two weeks is cutting it close for my appeal, but there aren't a lot of stationary fuel cells within driving distance to charge from.

I really think we can all benefit by pooling our resources and submitting the same exact appeal document. There's no reason not to, since I suspect our rejections were authored by the same exact examiner.
 
Through a friend of mine I just reached out to a university professor here in Texas and had an interesting conversation. The professor had a very good point. He said, "You have a very valid position but no Texas university professor is going to put his name to helping you with this because doing so would put a target on his head. In one way or another, the state of Texas would destroy any state professor who helps with this." He suggested that we approach a professor in a state that's not terribly friendly towards Texas and who would be happy to see Texas tax people take a stick in the eye.
 
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Alrighty, I've got my CNG/H2 regulator working on CNG, right now. It doesn't put out the cleanest of sine waves but the car will charge on the 5A setting @ 240VAC. I don't have a hydrogen tank/primary regulator, though to test this with but everything I've read says it only needs a few PSI of hydrogen gas to make this work.
 
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Reactions: SW2Fiddler
Anyone have any updates/success that we could use?

I found the following online:
\begin quote"
BILL ANALYSIS



H.B. 2971

By: Chisum

Ways & Means

Committee Report (Unamended)



BACKGROUND AND PURPOSE


Texas and the United States face increasing gasoline prices and an ever increasing dependence on foreign sources of crude oil to produce that gasoline. Texas and the United States also face uncertainties with relation to global warming and the impact it could have on our economy.


Hydrogen has the ability to revolutionize the way the world produces and uses its energy resources. Hydrogen is a clean fuel; it can increase our energy security and become a new driver of economic growth in Texas.


Texas has all the necessary natural resources to become a leader in the hydrogen market. However, an immediate challenge is to make use of the competitive advantage Texas has with regards to hydrogen production. As a result, the purpose of HB 2971 is to provide an incentive to consumers to purchase hyrdrogen fuel capable vehicles by exempting carbon-free hydrogen fuel from the liquified gas tax decal or a special use liquified gas tax decal; and exempting hydrogen capable motor vehicles from the sales and use taxes. Carbon-free hydrogen is defined as hydrogen produced without carbon by-products; or uses the carbon byproducts for other uses; or that permanently geologically sequesters the carbon byproducts.


RULEMAKING AUTHORITY


It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.


ANALYSIS


The bill adds Section 152.090 (a) to define a hydrogen-powered vehicle as one which meets or exceeds the Phase II standards established by the California Air Resources Board as of September, 2007, for an ultra low-emission vehicle II and is hydrogen power capable with a fuel economy rating of at least 45 miles per gallon or is fully hydrogen-powered, and

(b) exempts the hydrogen-powered motor vehicle from sales and use taxes.


The bill adds Section 162.3022(a) and (b) to exempt Carbon-free hydrogen from the liquefied gas tax decal or a special use liquefied gas tax decal.


The bill states Subsection (c) which defines hydrogen as carbon-free if carbon resulting from the production of hydrogen and from the generation of any electricity used in the production of hydrogen is captured and


  • is permanently geologically sequestered, or
  • used in the production of other carbon-based products at a rate that exceeds 90% of the carbon released in production.

Subsection(d) provides that the generation of wind power, solar power, hydroelectricity, geothermal electricity, tidal electricity, or nuclear power are considered carbon-free sources of energy.


The bill states tax liability which was in place before the enactment of this bill continue

in effect. Taxes under the former law may be collected and civil and criminal enforcement may be applied in the collection of those taxes.


This Act takes effect September 1, 2007.


EFFECTIVE DATE


September 1, 2007.
"\endquote

What strikes me as relevant and useful, is the subsection (d) that references electric energy, and that the goal seems to be supporting Ultra low emissions (for which zero emissions would be obviously ideal). One thing to keep in mind is that back in 2007, electric vehicles were not really an option. Even the roadster didn't come out until 2008.
Not allowing this exception for Teslas is like saying you can't take some course because you need a C in College Algebra as a requirement, even though you skipped College Algebra and already got A's in Calculus I and II.

How can any of this be leveraged so that a tax office won't see it as overstepping the "rulemaking authority to a state officer, department, agency, or institution"?
 
...energy used to create Hydrogen. To exempt such Hydrogen from the liquid fuels tax decal.
Unless I am wrong, not being a Lawyer and all.

Stuff benefiting us would be amendments to the actual Section 152.090 concerning car sales tax. Right?

"Subsection(d) provides that the generation of wind power, solar power, hydroelectricity, geothermal electricity, tidal electricity, or nuclear power are considered carbon-free sources of energy."

Section C is the one about hydrogen, which is where it defines as accepted hydrogen I would assume. Also, not stated here, but hydrogen itself also gets a tax deduction.