Louisiana House Bill HB777

Louisiana 2015 Regular Session

• Introduced: 4/13/15
• Refer: 4/14/15
• Report Pass: 5/5/15

Caption

Increases the state excise tax on gasoline, diesel, and special fuels for ten years (EG +$300,000,000 SD RV See Note)

Impact

If passed, HB 777 would amend existing tax statutes related to fuels, adding an additional ten-cent levy while retaining the current tax structure. The financial implications suggest that the state could gain substantial revenue, estimated at around $300 million over the decade. This could enhance the ability of the state to tackle pressing transportation and infrastructure needs, addressing long-standing issues related to road and bridge safety, as well as improving overall travel conditions within the state.

Summary

House Bill 777 proposes an increase in the state excise tax on gasoline, diesel fuel, and special fuels by an additional ten cents per gallon. This new tax is set to be implemented from July 1, 2015, through June 30, 2025. The bill aims to generate funds to support transportation projects and infrastructure in Louisiana, a state that has been facing budget constraints and infrastructure challenges for years. By increasing the excise tax, the bill seeks to provide a dedicated revenue stream for maintenance and improvement of the state’s transport network.

Sentiment

The sentiment surrounding HB 777 appears to be mixed. Supporters argue that the additional revenue from the tax increase is essential to enhance infrastructure that is crucial for economic growth and safety. They emphasize the importance of proactive measures to ensure that Louisiana’s transportation network does not fall into further disrepair. On the other hand, opponents express concerns about the burden that the tax increase will place on consumers, particularly those who are already feeling deep economic pressures. There is a fear that raising fuel taxes could disproportionately affect low-income individuals and families who rely on driving for their daily commutes.

Contention

Notable points of contention include the debate over the impact of fuel taxes on consumers versus the necessity for improved infrastructure funding. Opponents argue that while infrastructure funding is important, imposing higher taxes on fuel may lead to increased costs across the economy as transportation costs rise. This aspect raises questions about the bill's potential undesirable consequences on the cost of living for residents and its acceptance within the general public.