Texas House bill by Rep. Morales Shaw exempts nonprofit food banks from motor vehicle taxes

Passed bill authored by State Rep. Penny Morales Shaw aims to support nonprofit food banks by exempting vehicles used primarily for their purposes from motor vehicle taxes, following approval in both chambers, according to the Texas Legislature website.

In the House, 50 Democrats and 40 Republicans voted in favor of the bill, while 43 Republicans opposed it.

Meanwhile, in the Senate, 11 Democrats and 14 Republicans voted in favor, while six Republicans voted against it.

Penny Morales Shaw introduced the bill in the Texas House on Monday, March 10, during the 89th regular legislative session.

Shaw graduated from Nova Southeastern University in 2000 with a JD.

Shaw, a Democrat, was elected to the Texas State House in 2021 to represent the state’s 148th House district, replacing previous state representative Anna Eastman.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to exemptions from the taxes imposed on the sale, use, or rental of a motor vehicle for a vehicle purchased, used, or rented by a nonprofit food bank or a provider of housing and related services’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill introduces an exemption from taxes on the sale, use, or rental of motor vehicles for nonprofit food banks. Specifically, it amends the Texas Tax Code to ensure that taxes do not apply to vehicles that are purchased by a nonprofit food bank and primarily used for the food bank’s purposes. This measure only applies to transactions occurring on or after the bill’s effective date, which is set for Sept. 1, 2025. The bill aims to financially support nonprofit food banks by alleviating the tax burden associated with acquiring vehicles essential to their operations.

The bill was co-authored by Rep. James Frank (Republican – District 69), Rep. Brooks Landgraf (Republican – District 81), and Rep. Mihaela Plesa (Democrat – District 70), along with 33 other authors.

The bill received its final legislative approval on Wednesday, May 28, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.