Louisiana House Bill HB736

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15
• Report Pass: 5/11/15
• Refer: 5/12/15

Caption

Provides relative to the state excise tax levied on special fuels and for the administration and collection of the tax (EG INCREASE SD RV See Note)

Impact

The bill outlines various procedures for the administration, collection, and analysis of special fuels taxes. Under the proposed law, the calculation for excise tax will transition from a fixed rate to one based on a diesel or gasoline gallon equivalent, which could promote more equitable taxation based on actual consumption levels. Additionally, provisions are included for penalties and sanctions related to non-compliance with tax regulations, enhancing the enforcement framework around fuel tax collection.

Summary

House Bill 736 aims to amend and reenact the state excise tax on special fuels, including compressed natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas (LPG). It proposes a shift from a flat annual fee system to a tax levied based on the energy content of the fuels used. This change is intended to more accurately reflect the usage of these fuels in vehicles registered for highway use, thereby updating the tax framework to align with the state's transportation policy objectives.

Sentiment

The general sentiment surrounding HB 736 appears to be pragmatic. Proponents may argue that modernizing the tax structure helps adapt to current fuel consumption trends and acknowledges the shift towards alternative fuels. However, concerns could arise regarding the feasibility and administrative burden of the new compliance and reporting mechanisms required from fuel dealers and users.

Contention

Notable points of contention focus on the potential complexities introduced by the new tax structure and the increased scrutiny on fuel distribution practices. The bill empowers the Department of Revenue with significant compliance and enforcement abilities, including the authority to seize vehicles and property related to tax violations. Critics might express apprehension about whether this level of enforcement might be excessive or lead to regulatory overreach, affecting small fuel retailers and operators adversely.