Louisiana House Bill HB684

Louisiana 2013 Regular Session

• Introduced: 4/16/13
• Refer: 4/17/13

Caption

Provides relative to the levy of the state excise tax on gasoline and diesel fuel

Impact

The passage of HB 684 would significantly influence state revenue mechanisms associated with fuel consumption. By modifying the levy framework, the state could potentially streamline the process for levying taxes on fuel. While the current fixed rate is straightforward, removing the per gallon assessment may lead to complexities in calculating overall tax liabilities, particularly if volume sold varies greatly over time or between entities.

Summary

House Bill 684 proposes modifications to the state excise tax levied on gasoline and diesel fuel in Louisiana. Specifically, the bill removes the requirement that the tax be assessed on each net gallon sold, used, or consumed in the state. The current law stipulates a tax of sixteen cents per net gallon for both gasoline and diesel, and the intention behind this bill is likely aimed at making tax administration simpler or possibly adjusting revenue structures related to fuel sales.

Sentiment

The sentiment surrounding HB 684 appears to be mixed. Supporters might view it as a necessary administrative reform that simplifies the tax structure and reduces burdens on fuel distributors. However, concerns have been raised regarding the adequacy of state revenue that is dependent on fuel sales, particularly given the volatile nature of fuel consumption patterns. Opponents fear that changes could lead to potential shortfalls in tax revenue if not appropriately managed.

Contention

The notable point of contention around HB 684 revolves around the economic implications of altering the state's excise tax structure. Critics argue that removing the per gallon tax could make it difficult to ensure consistent revenue generation. Additionally, there may be apprehensions from industry stakeholders about unpredictable financial impacts stemming from fluctuating fuel sales. Thus, debates focus on balancing necessary reforms in taxation with the need to maintain stable state funding.