TX SB677

Counties in Texas would be exempt from state motor fuel taxes on gasoline and diesel fuel purchased for the county's exclusive use, adding counties to the list of exempt entities that already includes the federal government, public school districts, and volunteer fire departments

License holders who paid tax on fuel purchases and then resell to counties without collecting tax would be able to claim a credit on their tax returns for the period in which the sale occurred

Counties that already paid motor fuel taxes on purchases would be entitled to file refund claims with the comptroller to recover the tax amounts paid

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

Effective date is July 1, 2025, if passed by two-thirds vote of both legislative chambers, otherwise September 1, 2025