Louisiana House Bill HB578

Louisiana 2017 Regular Session

• Introduced: 3/31/17
• Refer: 3/31/17
• Refer: 4/10/17

Caption

Levies an additional tax on gasoline and diesel fuel and provides for use of the avails of the tax

Impact

The bill is expected to significantly affect state laws regarding transportation funding. By establishing the 21st Century Transportation and Infrastructure Fund, it creates a reliable and dedicated source of funding for vital infrastructure projects. The legislation mandates that at least 1 to 2 cents of the new tax revenue will be allocated specifically to local government projects, thereby promoting localized infrastructure improvements. The allocated funds will not only support road maintenance but also facilitate construction and improvement of various transportation facilities essential for community development.

Summary

House Bill 578 introduces an additional tax of 7 cents per net gallon on gasoline and diesel fuel. The revenue generated from this tax is directed to the 21st Century Transportation and Infrastructure Fund. The bill aims to enhance funding for state and local government transportation and capital infrastructure projects, addressing areas that require significant financial resources for maintenance and development. The introduction of this tax represents a proactive approach to ensuring sustained infrastructure growth in Louisiana.

Sentiment

The reception of HB 578 is mixed among legislators and the public. Supporters argue that the bill is essential for revitalizing Louisiana's aging infrastructure, enabling necessary upgrades and improvements that would enhance safety and efficiency. Conversely, opponents express concerns about the additional financial burden the new tax may impose on citizens, potentially impacting low-income residents disproportionately. The debate reflects broader tensions regarding taxation and government spending priorities.

Contention

Key points of contention surrounding the bill include discussions about the sufficiency of current infrastructure funding and concerns over government accountability in managing and distributing the allocated funds. Critics question whether the implementation of an additional tax is the most effective solution, suggesting alternative methods could achieve similar results without extra financial burdens on taxpayers. The ongoing discourse highlights the complexities of balancing improved infrastructure with fiscal responsibility and community needs.