Relating to a sales and use tax exemption for certain unprocessed materials used in the manufacture of hydrocarbons.

SB 63 creates a sales and use tax exemption for unprocessed sand, dirt, and gravel used in manufacturing hydrocarbons (such as oil and gas products). The exemption applies only when these materials undergo basic handling activities - like gathering, sorting, or washing - without undergoing chemical changes. This directly benefits oil and gas manufacturers by reducing their tax burden on these specific raw materials. The bill amends Texas Tax Code Section 151.318(b) to include these materials under existing manufacturing tax exemptions.