Enrolled Bill Summary

The Tax Code allows the sale of dyed tax-free diesel fuel, or of undyed diesel fuel to be used for an agricultural purpose, absent any collection of a motor fuel tax provided the fuel is not resold. Purchasers must supply signed statements that include certain identification numbers issued by the comptroller. House Bill 1241 amends the code to clarify the type of agricultural purposes that qualify for such sales. The bill also increases from 3,000 to 7,400 gallons the amount that may be purchased tax-free in a single transaction, amends the 10,000-gallon monthly maximum on tax-free diesel purchases so as to apply the maximum only to dyed diesel fuel, and sets a monthly maximum of 25,000 gallons of diesel fuel, applicable to fuel purchased for agricultural purposes or for consumption by the purchaser in oil or gas production.