Louisiana House Bill HB478

Louisiana 2018 Regular Session

• Introduced: 3/2/18
• Refer: 3/2/18
• Refer: 3/12/18
• Report Pass: 5/7/18

Caption

Dedicates a portion of the state sales and use taxes on sales of motor vehicles for transportation projects based on a cost-benefit analysis (EG -$97,300,000 GF RV See Note)

Impact

The implementation of HB 478 is expected to significantly alter how transportation projects are funded in Louisiana. Starting in fiscal year 2020-2021, a designated percentage of tax avails will be allocated to the Highway Capacity Fund, with increments leading to full funding by fiscal year 2024-2025. This shift emphasizes data-driven funding strategies for highway projects, prioritizing those with high economic or safety benefits. Furthermore, the funds will not be applied to operational costs of the Department of Transportation and Development, which could free up resources for direct project funding.

Summary

House Bill 478 aims to amend the dedication of revenues from the state sales and use taxes on motor vehicles to create a Highway Capacity Fund. This newly established fund is designated for transportation projects based on a cost-benefit analysis, intending to improve highway infrastructure. The proposed law retains the current dedication of mineral revenues but removes references to the sales and use tax on motor vehicles for certain funding allocations, focusing instead on creating a clear formula for investing in transportation projects with measurable benefits.

Sentiment

Supporters of HB 478 view the bill as a progressive step towards modernizing and optimizing transportation funding. They argue that applying a cost-benefit analysis will ensure that state funds are utilized efficiently, directing money toward projects that can demonstrably improve safety and infrastructure. However, there are critics who express concerns that this approach may overlook urgent local needs that do not fit neatly into a data-driven model, potentially leading to inequities in infrastructure investment across different areas of the state.

Contention

The primary point of contention surrounding HB 478 is the reliance on a cost-benefit analysis to determine funding allocations, which some lawmakers and community advocates fear could sideline important but less quantifiable transportation needs. Opponents argue that such an approach may lead to disparities in funding for smaller or rural communities that may not generate the same level of economic activity but still require significant infrastructure investment. The bill's progression has sparked debates on how best to balance data-driven strategies with community-driven needs.