Relating to an exemption from certain motor fuel taxes for counties in this state.
relating to an exemption from certain motor fuel taxes for counties
in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 162.104(a), Tax Code, is amended to read
as follows:
(a) The tax imposed by this subchapter does not apply to
gasoline:
(1) sold to the United States for its exclusive use,
provided that the exemption does not apply with respect to fuel sold
or delivered to a person operating under a contract with the United
States;
(2) sold to a public school district in this state for
the district’s exclusive use;
(2-a) sold to a county in this state for the county’s
exclusive use;
(3) sold to a commercial transportation company or a
metropolitan rapid transit authority operating under Chapter 451,
Transportation Code, that provides public school transportation
services to a school district under Section 34.008, Education Code,
and that uses the gasoline only to provide those services;
(4) exported by either a licensed supplier or a
licensed exporter from this state to any other state, provided that
the bill of lading indicates the destination state and the supplier
collects the destination state tax;
(5) moved by truck or railcar between licensed
suppliers or licensed permissive suppliers and in which the
gasoline removed from the first terminal comes to rest in the second
terminal, provided that the removal from the second terminal rack
is subject to the tax imposed by this subchapter;
(6) delivered or sold into a storage facility of a
licensed aviation fuel dealer from which gasoline will be delivered
solely into the fuel supply tanks of aircraft or aircraft servicing
equipment, or sold from one licensed aviation fuel dealer to
another licensed aviation fuel dealer who will deliver the aviation
fuel exclusively into the fuel supply tanks of aircraft or aircraft
servicing equipment;
(7) exported to a foreign country if the bill of lading
or shipping documents indicate the foreign destination and the fuel
is actually exported to the foreign country;
(8) sold to a volunteer fire department in this state
for the department’s exclusive use;
(9) sold to a nonprofit entity that is organized for
the sole purpose of and engages exclusively in providing emergency
medical services and that uses the gasoline exclusively to provide
emergency medical services, including rescue and ambulance
services; or
(10) sold to a nonprofit food bank and delivered into:
(A) the fuel supply tank of a motor vehicle with a
gross vehicle weight rating of at least 25,000 pounds that is owned
by the nonprofit food bank and used to deliver food; or
(B) a storage facility from which gasoline will
be delivered solely into the fuel supply tanks of motor vehicles
described by Paragraph (A).
SECTION 2. Section 162.125, Tax Code, is amended by
amending Subsection (a) and adding Subsection (g-3) to read as
follows:
(a) A license holder may take a credit on a return for the
period in which the sale occurred if the license holder paid tax on
the purchase of gasoline and subsequently resells the gasoline
without collecting the tax to:
(1) the United States government for its exclusive
use, provided that a credit is not allowed for gasoline used by a
person operating under contract with the United States;
(2) a public school district in this state for the
district’s exclusive use;
(2-a) a county in this state for the county’s exclusive
use;
(3) an exporter licensed under this subchapter if the
seller is a licensed supplier or distributor and the exporter
subsequently exports the gasoline to another state;
(4) a licensed aviation fuel dealer if the seller is a
licensed distributor;
(5) a commercial transportation company or a
metropolitan rapid transit authority operating under Chapter 451,
Transportation Code, that provides public school transportation
services to a school district under Section 34.008, Education Code,
and that uses the gasoline exclusively to provide those services;
or
(6) a nonprofit food bank that delivers or will
deliver the gasoline into the fuel supply tank of a motor vehicle
with a gross vehicle weight rating of at least 25,000 pounds that is
owned by the nonprofit food bank and used to deliver food.
(g-3) A county exempt from the tax imposed under this
subchapter that paid tax on the purchase of gasoline is entitled to
a refund of the tax paid, and the county may file a refund claim with
the comptroller for that amount.
SECTION 3. Section 162.204(a), Tax Code, is amended to read
as follows:
(a) The tax imposed by this subchapter does not apply to:
(1) diesel fuel sold to the United States for its
exclusive use, provided that the exemption does not apply to diesel
fuel sold or delivered to a person operating under a contract with
the United States;
(2) diesel fuel sold to a public school district in
this state for the district’s exclusive use;
(2-a) diesel fuel sold to a county in this state for
the county’s exclusive use;
(3) diesel fuel sold to a commercial transportation
company or a metropolitan rapid transit authority operating under
Chapter 451, Transportation Code, that provides public school
transportation services to a school district under Section 34.008,
Education Code, and that uses the diesel fuel only to provide those
services;
(4) diesel fuel exported by either a licensed supplier
or a licensed exporter from this state to any other state, provided
that the bill of lading indicates the destination state and the
supplier collects the destination state tax;
(5) diesel fuel moved by truck or railcar between
licensed suppliers or licensed permissive suppliers and in which
the diesel fuel removed from the first terminal comes to rest in the
second terminal, provided that the removal from the second terminal
rack is subject to the tax imposed by this subchapter;
(6) diesel fuel delivered or sold into a storage
facility of a licensed aviation fuel dealer from which the diesel
fuel will be delivered solely into the fuel supply tanks of aircraft
or aircraft servicing equipment, or sold from one licensed aviation
fuel dealer to another licensed aviation fuel dealer who will
deliver the diesel fuel exclusively into the fuel supply tanks of
aircraft or aircraft servicing equipment;
(7) diesel fuel exported to a foreign country if the
bill of lading or shipping documents indicate the foreign
destination and the fuel is actually exported to the foreign
country;
(8) dyed diesel fuel sold or delivered by a supplier to
another supplier and dyed diesel fuel sold or delivered by a
supplier or distributor into the bulk storage facility of a dyed
diesel fuel bonded user or to a purchaser who provides a signed
statement as provided by Section 162.206;
(9) the volume of water, fuel ethanol, renewable
diesel, biodiesel, or mixtures thereof that are blended together
with taxable diesel fuel when the finished product sold or used is
clearly identified on the retail pump, storage tank, and sales
invoice as a combination of diesel fuel and water, fuel ethanol,
renewable diesel, biodiesel, or mixtures thereof;
(10) dyed diesel fuel sold by a supplier or permissive
supplier to a distributor, or by a distributor to another
distributor;
(11) dyed diesel fuel delivered by a license holder
into the fuel supply tanks of railway engines, motorboats, or
refrigeration units or other stationary equipment powered by a
separate motor from a separate fuel supply tank;
(12) dyed kerosene when delivered by a supplier,
distributor, or importer into a storage facility at a retail
business from which all deliveries are exclusively for heating,
cooking, lighting, or similar nonhighway use;
(13) diesel fuel used by a person, other than a
political subdivision, who owns, controls, operates, or manages a
commercial motor vehicle as defined by Section 548.001,
Transportation Code, if the fuel:
(A) is delivered exclusively into the fuel supply
tank of the commercial motor vehicle; and
(B) is used exclusively to transport passengers
for compensation or hire between points in this state on a fixed
route or schedule;
(14) diesel fuel sold to a volunteer fire department
in this state for the department’s exclusive use;
(15) diesel fuel sold to a nonprofit entity that is
organized for the sole purpose of and engages exclusively in
providing emergency medical services and that uses the diesel fuel
exclusively to provide emergency medical services, including
rescue and ambulance services; or
(16) diesel fuel sold to a nonprofit food bank and
delivered into:
(A) the fuel supply tank of a motor vehicle with a
gross vehicle weight rating of at least 25,000 pounds that is owned
by the nonprofit food bank and used to deliver food; or
(B) a storage facility from which diesel fuel
will be delivered solely into the fuel supply tanks of motor
vehicles described by Paragraph (A).
SECTION 4. Section 162.227, Tax Code, is amended by
amending Subsection (a) and adding Subsection (f-3) to read as
follows:
(a) A license holder may take a credit on a return for the
period in which the sale occurred if the license holder paid tax on
the purchase of diesel fuel and subsequently resells the diesel
fuel without collecting the tax to:
(1) the United States government for its exclusive
use, provided that a credit is not allowed for gasoline used by a
person operating under a contract with the United States;
(2) a public school district in this state for the
district’s exclusive use;
(2-a) a county in this state for the county’s exclusive
use;
(3) an exporter licensed under this subchapter if the
seller is a licensed supplier or distributor and the exporter
subsequently exports the diesel fuel to another state;
(4) a licensed aviation fuel dealer if the seller is a
licensed distributor;
(5) a commercial transportation company or a
metropolitan rapid transit authority operating under Chapter 451,
Transportation Code, that provides public school transportation
services to a school district under Section 34.008, Education Code,
and that uses the diesel fuel exclusively to provide those
services; or
(6) a nonprofit food bank that delivers or will
deliver the diesel fuel into the fuel supply tank of a motor vehicle
with a gross vehicle weight rating of at least 25,000 pounds that is
owned by the nonprofit food bank and used to deliver food.
(f-3) A county exempt from the tax imposed under this
subchapter that paid tax on the purchase of diesel fuel is entitled
to a refund of the tax paid, and the county may file a refund claim
with the comptroller for that amount.
SECTION 5. The changes in law made by this Act do not affect
tax liability accruing before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
taxes due for civil and criminal enforcement of the liability of
those taxes.
SECTION 6. This Act takes effect July 1, 2025, if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for effect on that
date, this Act takes effect September 1, 2025.
