(Constitutional Amendment) Requires annual adjustments in the tax on gasoline, motor fuels, and special fuels in accordance with the Consumer Price Index beginning Jan. 1, 2014
Impact
If passed, HB 358 would significantly impact state revenue from fuel taxes. By linking tax adjustments to the Consumer Price Index, the legislation would guarantee that these taxes keep pace with inflation, thereby safeguarding the state's income derived from such taxes. This approach aims to prevent a decline in revenue that could result from stagnant tax rates amid rising costs. The proposed changes will necessitate careful monitoring of the CPI and could require adjustments to budget planning and expenditures related to transportation and infrastructure funding.
Summary
House Bill 358 is a proposed constitutional amendment aiming to require annual adjustments in the taxes levied on gasoline, motor fuels, and special fuels, beginning January 1, 2014. The bill mandates that these tax rates be adjusted in accordance with increases in the Consumer Price Index (CPI), ensuring that the rates do not decrease below those imposed on December 31, 2013. This legislation is intended to maintain the purchasing power of tax revenues from fuel, in light of inflationary trends.
Sentiment
The sentiment around HB 358 is likely to be mixed. Supporters argue that the bill provides a necessary mechanism to ensure stable revenue for vital services linked to fuel taxes, such as road maintenance and infrastructure improvements. Opponents may express concerns regarding the impact of higher fuel taxes on consumers, particularly in times of economic hardship, arguing it could disproportionately affect lower-income citizens who rely heavily on transportation. The debate is expected to touch upon broader issues of economic fairness and the role of government in regulating taxes.
Contention
Notable points of contention regarding HB 358 include the balance between maintaining state revenues and the potential burden on taxpayers. Critics may highlight that while the intention is to secure funding for essential services, increased gasoline taxes could lead to higher costs for consumers, which in turn may stimulate opposition from various advocacy groups. Discussions around this bill could also explore broader topics such as state budget needs versus individual financial constraints, creating a complex dialogue on the merits of indexing taxes to inflation.
Requires the tax on gasoline, diesel fuels, and special fuels to be adjusted annually in accordance with the Consumer Price Index (OR +$5,800,000 SD RV See Note)
Creates an additional tax on motor fuels and requires the tax on gasoline, diesel fuels, and special fuels to be adjusted annually in accordance with the Consumer Price Index (EG +$551,600,000 SD RV See Note)
(Constitutional Amendment) Provides relative to the deposit and use of the avails of the taxes levied on gasoline, motor fuels, and special fuels (OR SEE FISC NOTE SD EX)
Adjusts the amount of excise tax levied on gasoline, diesel, and special fuels and levies new taxes on gasoline, diesel, special fuels, and electric and hybrid vehicles (EG INCREASE SD RV See Note)
(Constitutional Amendment) Provides relative to sales and use tax exemptions for gasoline, diesel fuels, special fuels, food for home consumption, certain residential utilities, and prescription drugs
(Constitutional Amendment) Removes the prohibition of the state levying sales and use taxes on gasoline and certain motor fuels (OR +$173,250,000 GF RV See Note)
Constitutional amendment to increase the homestead exemption to $15,000 of the assessed valuation and provides for annual adjustment in accordance with the Consumer Price Index. (1/1/11) (2/3 - CA13s1(A)) (OR SEE FISC NOTE LF RV See Note)