The councillor was one of two Tories suspended within weeks of being elected to Stirling Council in May after the social media posts were uncovered.
He and Alastair Majury were allowed to return to the party last month, with leader Ruth Davidson saying it was important to give people the opportunity to change.
At the time she said: “As well as a full disciplinary, as well as the sanction of being suspended, as well as a full and unreserved apology, both of the individuals indicated that they had a genuine wish to change their behaviour.”
However in a statement issued on Friday, the Tories said Mr Davies’ membership has now been terminated after he refused to apologise to the council.
Mr Majury remains a Conservative councillor after making an apology.
A spokesman said: “Mr Majury made a full apology to the council yesterday for his actions.
“Mr Davies did not do so and he has therefore had his membership of the party terminated.”
Mr Davies now sits as an independent councillor.