Bill > SB677

This bill amends the Texas Tax Code to provide a motor fuel tax exemption for counties in the state. Specifically, the bill adds language to several sections of the tax code that allows counties to purchase gasoline and diesel fuel without paying the state motor fuel tax, similar to existing exemptions for entities like the U.S. government, public school districts, and nonprofit organizations. The bill creates new provisions that allow counties to receive a credit or refund if they have already paid taxes on fuel purchases. Counties will be able to buy gasoline and diesel fuel for their exclusive use without being charged the motor fuel tax, and if they have already paid the tax, they can file a refund claim with the state comptroller. These changes apply to both gasoline and diesel fuel purchases. The bill will take effect on July 1, 2025, provided it receives a two-thirds vote in the Texas legislature, or on September 1, 2025, if it does not meet the two-thirds voting threshold. The bill specifies that these changes do not affect tax liabilities that accrued before the effective date, ensuring existing tax obligations remain in place.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB677