Bill > HB1109

This bill amends the Texas Tax Code to create a new motor fuel tax exemption for counties in the state. Specifically, the bill adds language to exempt gasoline and diesel fuel sold to a county for its exclusive use from state motor fuel taxes. The bill also provides that if a county pays motor fuel taxes and is later found to be exempt, the county can file a refund claim with the state comptroller to recover those taxes. The changes apply to both gasoline and diesel fuel taxes and are structured similarly across different sections of the tax code. The bill will take effect on July 1, 2025, but only if it receives a two-thirds vote in both legislative chambers; otherwise, it will take effect on September 1, 2025. The bill does not retroactively change tax liabilities that accrued before its effective date, meaning existing tax obligations will remain in place as they were prior to this legislation.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1109