TX HB1109

Counties in Texas are exempted from state gasoline and diesel fuel taxes on fuel purchased for the county's exclusive use, placing them on equal footing with public school districts and the federal government

License holders who paid tax on gasoline or diesel fuel purchases and subsequently resell to a county without collecting tax may claim a credit on their return for that period

Counties that paid motor fuel taxes on purchases they were entitled to have exempted may file refund claims directly with the comptroller to recover the tax paid

The exemption does not apply retroactively; tax liability accrued before the effective date remains enforceable under prior law

Effective date is July 1, 2025 if passed by two-thirds vote in both chambers, otherwise September 1, 2025; passed House 132-14 on April 10, 2025 and Senate 31-0 on May 13, 2025