The bill amends the Texas Tax Code to provide an exemption from certain motor fuel taxes for counties within the state. Specifically, it 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 detailed in the amendments to Sections 162.104 and 162.204, where new language is inserted to include counties alongside other entities such as the United States government and public school districts. Additionally, the bill allows counties that are exempt from these taxes to claim refunds for any taxes paid on gasoline and diesel fuel purchases, as outlined in the new subsections added to Sections 162.125 and 162.227.

The bill also clarifies that the changes made do not affect any tax liabilities that accrued before the effective date of the Act, ensuring that previous laws remain in effect for the collection and enforcement of those taxes. The Act is set to take effect on July 1, 2025, contingent upon receiving a two-thirds vote from both houses of the legislature; otherwise, it will take effect on September 1, 2025.

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