2025 Texas sessionsRegular and both called sessions have ended. This index covers House and Senate bills, not resolutions. Statuses come from official reports.

2025 · Regular session · House bill

HB1109

HB1109 exempts gasoline and diesel sold to a Texas county for the county's exclusive use from the corresponding state motor-fuel taxes.

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Official caption: Relating to an exemption from certain motor fuel taxes for counties in this state.

Became law without signatureSource-checked explanation published

Official report lists House author(s): VanDeaver, Bell, Keith, Wharton. This does not identify sponsors or amendment drafters.

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Bill explanation published · Version and amendment review scope is stated below · Individual amendment records may not be separately annotated.

Bill highlights

Selected points from the published explanation. Follow each point to its source-linked context; conditions and limits may matter.

HB1109 exempts gasoline and diesel sold to a Texas county for the county's exclusive use from the corresponding state motor-fuel taxes.
Those are distinct provisions; the seller's return credit should not be confused with the county's refund claim.

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What does it do?

HB1109 exempts gasoline and diesel sold to a Texas county for the county’s exclusive use from the corresponding state motor-fuel taxes. It took effect July 1, 2025, after the Legislature supplied the required two-thirds votes. The bill became law without the governor’s signature on May 26, 2025. It is not a fuel-tax cut for all drivers or all local-government entities. Final law · History

The law supplies two ways to account for tax already paid in the distribution chain:

A qualifying fuel-license holder that paid the tax and then resells the fuel tax-free to a county may take a credit on the return for the sale period.
An exempt county that paid tax on its fuel purchase is entitled to a refund and may file a claim with the comptroller.

Those are distinct provisions; the seller’s return credit should not be confused with the county’s refund claim. Tax liabilities that accrued before July 1, 2025 remain enforceable under prior law. This act does not retroactively erase them or change federal fuel taxes.

What changed along the way?

All five indexed versions retain the same county exemption, seller-credit, county-refund and effective-date framework. The introduced and House committee texts match. The engrossed text adds “and” in the sentence preserving tax collection and civil/criminal enforcement; the Senate committee and enrolled texts match that wording. The official index lists no floor amendments, so this minor drafting correction is not attributed to an adopted floor amendment.

Final passage was 132–14 in the House, with one present but not voting, and 31–0 in the Senate. Text-version index · Introduced · House committee · Engrossed · Senate committee · Amendment index

For the full amendment record, open the official amendment index.

Official bill versions

Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.

Who could benefit—and who could bear the costs?

Counties save the state motor-fuel tax on qualifying purchases. The corresponding cost is lower state revenue, including revenue for schools and highways. The act does not require counties to pass savings through as lower property taxes or guarantee a particular county’s savings.

Both indexed Legislative Budget Board notes estimate a $2.293 million loss to General Revenue-related funds for the biennium ending August 31, 2027, using the July 1 effective date that actually applied. That headline is not the total across all state funds. The note’s July-date table estimates:

Fiscal 2026: $89,000 less General Revenue, $1.046 million less Available School Fund revenue, and $3.139 million less State Highway Fund revenue—$4.274 million combined.
Fiscal 2027: $91,000, $1.067 million and $3.202 million less, respectively—$4.360 million combined.
Losses continue in the published projections through fiscal 2030. The alternative September-date estimate did not become the applicable timing scenario.

The estimate uses 23,816 county gasoline/diesel vehicles, assumes average fuel use matches the state fleet at about 880 gallons per vehicle each year, and applies the 20-cent-per-gallon state tax to about 20.95 million gallons. That is an estimate based on fleet assumptions, not audited savings or a payment appropriated to counties. Introduced fiscal note · Engrossed fiscal note

Official sources

Catalog report retrieved 2026-10-25. Check the official record for corrections or later changes.