H.B. No. 1109 amends the Texas Tax Code to provide an exemption from certain motor fuel taxes for counties within the state. Specifically, the bill adds provisions that exempt gasoline and diesel fuel sold to counties for their exclusive use from the tax imposed under the relevant subchapters. This exemption is intended to support local governments by reducing their operational costs related to fuel purchases. Additionally, the bill allows counties that have paid tax on fuel purchases to claim a refund for the taxes paid, which they can file with the comptroller.

The bill also clarifies that the tax exemptions for fuel sold to the United States, public school districts, and other entities remain in place, while introducing the new exemptions for counties. The changes will take effect on July 1, 2025, contingent upon receiving a two-thirds vote from both houses of the legislature; otherwise, the effective date will be September 1, 2025. The legislation ensures that tax liabilities incurred before the effective date will continue to be governed by the previous law.

Statutes affected:
Introduced: Tax Code 162.104, Tax Code 162.125, Tax Code 162.204, Tax Code 162.227 (Tax Code 162)
House Committee Report: Tax Code 162.104, Tax Code 162.125, Tax Code 162.204, Tax Code 162.227 (Tax Code 162)
Engrossed: Tax Code 162.104, Tax Code 162.125, Tax Code 162.204, Tax Code 162.227 (Tax Code 162)
Senate Committee Report: Tax Code 162.104, Tax Code 162.125, Tax Code 162.204, Tax Code 162.227 (Tax Code 162)
Enrolled: Tax Code 162.104, Tax Code 162.125, Tax Code 162.204, Tax Code 162.227 (Tax Code 162)