Louisiana House Bill HR242

Louisiana 2016 Regular Session

• Introduced: 6/5/16
• Passed: 6/6/16

Caption

Urges and requests the Department of Transportation and Development to study levying additional taxes on gasoline

Impact

If implemented, HR242 would significantly alter state laws regarding taxation authority, allowing local governments to directly benefit from the revenues generated by gasoline taxes. This could lead to enhanced local transportation networks and better maintenance of critical infrastructure, such as roads and traffic signals. However, since the Louisiana Constitution currently prohibits such taxes at the parish level, there would need to be amendments made to enable new tax structures aimed at addressing the funding shortfall for local transportation projects.

Summary

House Resolution 242 (HR242) requests that the Department of Transportation and Development study the feasibility of allowing parish governing authorities to levy and collect a sales tax on the retail sale of gasoline. This initiative stems from a growing concern about deteriorating transportation infrastructure in Louisiana and the inadequacy of existing gasoline tax revenues to meet maintenance needs. Many parishes view this option as a means to raise funds locally, thus reducing the dependency on state budgets for transportation projects.

Sentiment

The sentiment surrounding HR242 appears to be mixed. Supporters, including local government officials and transportation advocates, argue that the ability for parishes to levy their own gasoline taxes would empower localities to fund necessary infrastructure projects effectively. Conversely, opponents may express concerns about the implications of increased local taxation and the potential for disparities between wealthier and less affluent parishes in terms of transportation funding and service levels.

Contention

Notable points of contention might include the potential burden on consumers through higher gasoline prices, and whether such a tax would unfairly impact rural communities disproportionately. Additionally, discussions around the implications for state funding and responsibilities are critical, as local gasoline taxes may lead to a fragmentation of transportation funding mechanisms statewide. The question of how to structure such taxes to withstand fluctuating fuel prices and construction costs remains a significant concern that the Department must address in their study.