TX SB935

Counties in Texas would be exempt from state motor fuel taxes (both gasoline and diesel) on fuel purchased for the county's exclusive use, similar to existing exemptions for public school districts and the federal government

License holders who paid tax on fuel and then resold it to a county for the county's exclusive use may take a credit on their return for the tax paid

Counties that paid motor fuel taxes on purchases qualifying for the exemption may file a refund claim with the comptroller to recover the tax amount

The exemption does not affect tax liability that accrued before the effective date, and former law continues to apply for collection and enforcement of pre-existing tax obligations

Effective date is July 1, 2025 if the bill receives a two-thirds vote in both chambers, otherwise September 1, 2025