Increases the state excise tax levied on gasoline, diesel fuel, and special fuels for three years
If enacted, HB 388 would modify the existing tax structure as detailed in R.S. 47:818.12 and 818.101, increasing the state tax rate from sixty cents per gallon to sixty-four cents for the specified period. This additional revenue is expected to directly support various transportation projects that facilitate economic development, potentially leading to improved safety and efficiency on the highways. The increased emphasis on funding infrastructure might also bolster employment in construction and related industries.
House Bill 388 proposes an increase in the state excise tax on gasoline, diesel fuel, and special fuels by an additional four cents per gallon from July 1, 2015, through June 30, 2018. The legislation aims to boost funding for the Transportation Infrastructure Model for Economic Development Program, which is designed to enhance transportation infrastructure across Louisiana. By raising the tax, the bill seeks to address budgetary needs related to infrastructure projects, thereby supporting economic activities linked to transportation.
The sentiment regarding HB 388 appears to be mixed among legislators and stakeholders. Advocates assert that investing in transportation is critical for economic growth and long-term sustainability of the state's infrastructure. Conversely, opponents may argue against increasing taxes during challenging economic times, fearing that it could place an additional burden on consumers and businesses, particularly those in the transportation sector.
The primary points of contention surrounding HB 388 revolve around the balance between necessary taxes to fund public good versus the economic strain on residents. Some lawmakers raise concerns about the implications of higher fuel taxes on low and middle-income households and the overall economy. Additionally, there may be debates over the effectiveness of the proposed infrastructure program and whether it will yield tangible benefits to the constituents affected by the tax increase.