HLS 21RS-857 ENGROSSED
2021 Regular Session
HOUSE BILL NO. 582
BY REPRESENTATIVES MCFARLAND AND BUTLER
TAX/GASOLINE TAX: Dedicates a portion of the existing tax levied on gasoline and
diesel into the Construction Subfund and imposes a one-time road-use fee on electric
and hybrid vehicles
1 AN ACT
2To enact Part II-A of Chapter 3 of Title 32 of the Louisiana Revised Statutes of 1950, to be
3 comprised of R.S. 32:461, and R.S. 47:818.12(E), relative to transportation projects;
4 to provide for the funding of transportation projects; to provide for the excise tax
5 levied on gasoline and diesel; to require a portion of the excise tax levied on gasoline
6 and diesel to be dedicated into the Construction Subfund of the Transportation Trust
7 Fund; to impose a road-use fee on electric and hybrid motor vehicles; to provide for
8 the collection and disposition of the proceeds; to provide for certain definitions; to
9 provide for requirements and limitations; to provide for an effective date; and to
10 provide for related matters.
11Be it enacted by the Legislature of Louisiana:
12 Section 1. Part II-A of Chapter 3 of Title 32 of the Louisiana Revised Statutes of
131950, comprised of R.S. 32:461, is hereby enacted to read as follows:
14 PART II-A. ELECTRIC VEHICLES AND HYBRID VEHICLES
15 §461. Electric vehicles; hybrid vehicles; imposition of a road-use fee; collection;
16 use of proceeds
17 A.(1) There is hereby levied a one-time road use fee of one thousand dollars
18 on each electric vehicle which is operated upon the highways of this state and which
19 is required to be registered and to pay registration license tax in accordance with the
20 provisions of Chapter 4 of Subtitle II of this Title.
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1 (2) There is hereby levied a one-time road use fee of five hundred dollars on
2 each hybrid vehicle which is operated upon the highways of this state and which is
3 required to be registered and to pay registration license tax in accordance with the
4 provisions of Chapter 4 of Subtitle II of this Title.
5 B. For purposes of this Section, the following terms shall have the following
6 meanings:
7 (1) "Electric vehicle" shall mean a vehicle which is powered by one or more
8 electric motors or energy stored in rechargeable batteries for propulsion.
9 (2) "Hybrid vehicle" shall mean a vehicle that uses gasoline, diesel fuel, or
10 special fuels in combination with an electric motor for propulsion.
11 C. The fee imposed pursuant to the provisions of this Section shall be
12 collected by the motor vehicle dealer from the purchaser at the time of sale of a new
13 or used electric vehicle or a new or used hybrid vehicle. The fee shall be collected
14 by the dealer and remitted to the office of motor vehicles in the same manner as all
15 sales and use taxes are collected.
16 D. The commissioner of motor vehicles shall deposit the proceeds of the fee
17 collected pursuant to the provisions of this Section into the treasury. After
18 compliance with the requirements of Article VII, Section 9(B) of the Constitution of
19 Louisiana, the treasurer shall deposit an amount equal to the proceeds of the fee
20 imposed pursuant to the provisions of this Section into the Construction Subfund of
21 the Transportation Trust Fund pursuant to the requirements of Article VII, Section
22 27(B)(2) of the Constitution of Louisiana."
23 Section 2. R.S. 47:818.12(E) is hereby enacted to read as follows:
24 §818.12. Taxes levied; rates
25 * * *
26 E. Beginning July 1, 2021, and each year thereafter, after satisfying all
27 requirements associated with the bonds or any refunding bonds including all required
28 and related payments under any interest rate swap agreements secured by the avails
29 of the tax levied pursuant to the provisions of this Section and issued pursuant to the
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1 provisions of Chapter 14-A or Chapter 15 of Subtitle III of Title 39 of the Louisiana
2 Revised Statutes of 1950, including expenses related to the bonds as provided for in
3 the resolution to which the bonds were or will be issued, the treasurer shall deposit
4 one hundred twenty million dollars of the avails of the tax levied pursuant to the
5 provisions of this Section into the Construction Subfund of the Transportation Trust
6 Fund pursuant to the requirements of Article VII, Section 27(B)(2) of the
7 Constitution of Louisiana. The avails of the tax levied in this Section shall continue
8 to be pledged and available to pay the requirements associated with the bonds,
9 refunding bonds, or interest rate swap agreements and all bond related expenses as
10 provided in Article VII, Section 27(D) of the Constitution of Louisiana.
11 * * *
12 Section 3. This Act shall become effective on July 1, 2021.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 582 Engrossed 2021 Regular Session McFarland
Abstract: Dedicates $120M of the avails of the tax levied on gasoline and diesel into the
Construction Subfund of the Transportation Trust Fund (TTF) and imposes a one-
time $1,000 road-use fee on electric vehicles and a one-time $500 road-use fee on
hybrid vehicles and dedicates the proceeds of the fees into the Construction Subfund
of the TTF.
Dedication of the Tax Levied on Gasoline and Diesel
Present law provides for the levy of a tax of 4¢ per gallon of gasoline, diesel, and special
fuels. Present law requires the proceeds of this 4¢ per gallon tax on these motor fuels to be
credited to the Transportation Infrastructure Model for Economic Development (TIMED)
account in the Transportation Trust Fund (TTF) for use solely on projects in the TIMED
program.
Proposed law retains present law with respect to the levy of a tax of 4¢ per gallon of
gasoline, diesel, and special fuels.
Present law provides for the levy of a tax of 16¢ per gallon tax on gasoline, diesel, and
special fuels.
Proposed law retains present law regarding the levy of the 16¢ per gallon tax on gasoline,
diesel, and special fuels but dedicates, beginning July 1, 2021, $120M of the avails of the
16¢ per gallon tax on gasoline and diesel into the Construction Subfund of the TTF.
However, before the treasurer deposits $120M of the avails of the tax into the Construction
Subfund, all requirements associated with bonds, refunding bonds, and all required and
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HB NO. 582
related payments under any interest rate swap agreements secured by the avails of the tax
must be satisfied. Further provides that the avails of the tax continue to be pledged and
available to pay the requirements associated with bonds, refunding bonds, or interest rate
swap agreements as provided in present constitution.
Electric Vehicles and Hybrid Vehicles
Proposed law imposes a one-time road use fee of $1,000 on each electric vehicle and one-
time road-use fee of $500 on each hybrid vehicle which is operated upon the highways of
this state and which is required to be registered and to pay registration license tax in
accordance with present law. Further requires the fee to be collected by the motor vehicle
dealer from the purchaser at the time of sale of a new or used electric vehicle or hybrid
vehicle and remitted to the office of motor vehicles in the same manner as all sales and use
taxes are collected.
Proposed law requires the commissioner of motor vehicles to deposit the proceeds of the fees
collected into the treasury. After compliance with the requirements of the present
constitution, the treasurer shall deposit an amount equal to the proceeds of the fee imposed
into the Construction Subfund of the TTF.
Proposed law defines an "electric vehicle" as a vehicle powered by one or more electric
motors or energy stored in rechargeable batteries for propulsion and defines a "hybrid
vehicle" as a vehicle that uses gasoline, diesel fuel, or special fuels in combination with an
electric motor for propulsion.
Effective on July 1, 2021.
(Adds R.S. 32:461 and R.S. 47:818.12(E))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Delete repeal of the 16¢ per gallon tax on gasoline, diesel, and special fuels.
2. Delete the levy of a new 16¢ per gallon tax on gasoline, diesel, and special fuels.
3. Beginning July 1, 2021, dedicate $120M of the avails of the tax levied on
gasoline and diesel in present law into the Construction Subfund of the TTF after
all requirements associated with bonds, refunding bonds, and all required and
related payments under any interest rate swap agreements secured by the avails
of the tax are satisfied.
4. Delete the annual tax of $200 per year levied on each electric vehicle and the
annual tax of $100 per year on each hybrid vehicle operated on state highways
which are required to be registered and to pay registration license tax in
accordance with present law.
5. Impose a one-time road use fee of $1,000 on each electric vehicle and one-time
road use fee of $500 on each hybrid vehicle which is operated upon the highways
of this state and which is required to be registered and to pay registration license
tax in accordance with present law.
6. Change the collection of the fee from the office of motor vehicles every two
years to motor vehicle dealers to be collected from the purchaser at the time of
sale of a new or used electric vehicle or hybrid vehicle.
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7. Delete provisions requiring the legislative auditor to commence a comprehensive
audit of the Dept. of Transportation and Development to review the department's
operations, organizational efficiency, and performance in regard to the
department's utilization of operating revenues and to review the use of the avails
of the taxes deposited into the Construction Subfund of the TTF.
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