Texas House Bill HB3961

Texas 2017 - 85th Regular

Caption

Relating to increasing the rates of the state gasoline and diesel fuel taxes.

Impact

The amendment to Section 162.102 of the Tax Code indicates a clear intention to enhance the state’s tax income through fuel taxes. The increase in fuel tax rates will primarily impact consumers and businesses that rely on gasoline and diesel fuel, potentially raising costs. However, the sponsors of the bill argue that this increase is necessary to sustain and improve transportation infrastructure that benefits all Texans, and that the long-term advantages of well-maintained roads and reduced congestion outweigh initial costs.

Summary

House Bill 3961 proposes to increase the state gasoline and diesel fuel tax rates from 20 cents to 22 cents per net gallon. The legislation aims to generate additional revenue for the state, which can be earmarked for critical transportation infrastructure projects. By adjusting the fuel tax rates, the bill addresses the growing needs for maintenance and improvements to the state’s roadways and transportation systems, ensuring they can safely accommodate increasing traffic and improve overall public safety.

Contention

During discussions of HB3961, there were varying opinions regarding the tax increase. Proponents highlighted the necessity of the tax hike in relation to declining infrastructure conditions and the importance of funding public projects. In contrast, opponents of the bill raised concerns about the financial burden on families and local businesses already facing economic pressures. Additionally, some critics questioned the effectiveness and accountability of how the funds generated from increased fuel taxes would be utilized, expressing the need for transparency and specific allocation towards infrastructure improvements.