The bill, S.B. No. 677, proposes an exemption from certain motor fuel taxes for counties in Texas. It amends the Tax Code to include new provisions that allow counties to purchase gasoline and diesel fuel for their exclusive use without being subject to the tax. Specifically, the bill adds language to Section 162.104 and Section 162.204, stating that fuel sold to a county for its exclusive use is exempt from the tax. Additionally, it introduces provisions in Sections 162.125 and 162.227 that entitle counties exempt from the tax to a refund of any tax paid on fuel purchases, allowing them to file a claim with the comptroller for the refund.

The bill also clarifies that the tax exemptions for fuel sold to counties do not affect tax liabilities that accrued before the bill's effective date, which is set for July 1, 2025, contingent upon receiving a two-thirds vote from both houses of the legislature. If the necessary vote is not achieved, the bill will take effect on September 1, 2025. Overall, this legislation aims to provide financial relief to counties by reducing their operational costs related to fuel purchases.

Statutes affected:
Introduced: Tax Code 162.104, Tax Code 162.125, Tax Code 162.204, Tax Code 162.227 (Tax Code 162)