Relating to the allocation of certain revenue from the taxes imposed on the sale, rental, or use of motor vehicles to the state highway fund and to the uses of that revenue.
The specific impact of HB373 is on the state tax code, particularly Section 152.122, which governs the allocation of funds derived from motor vehicle-related taxes. By reallocating these funds predominantly to the state highway fund, the bill is designed to ensure that transportation projects are better supported financially. This has implications for local governments and transportation systems dependent on non-vehicular tax sources, as they may see reduced funding from this stream.
House Bill 373 aims to modify the allocation of certain revenue generated from taxes imposed on the sale, rental, or use of motor vehicles. This bill seeks to gradually increase the percentage of these taxes that are directed to the state highway fund, moving it from an initial allocation of one-sixth in the fiscal year beginning September 1, 2015, to a full 100% by fiscal years beginning on or after September 1, 2020. This funding strategy is intended to bolster infrastructure improvements and maintenance for highways throughout Texas, reflecting a prioritization of transportation needs in state spending.
While supporters of HB373 advocate for improved infrastructure funding and emphasize the necessity of updating the revenue allocation, concerns exist regarding the potential neglect of other transportation modalities, such as public transit systems, which may not benefit directly from these funds. The legislation explicitly prohibits the use of these funds for toll roads or mass transit rail systems, potentially sparking debate among stakeholders advocating for more comprehensive transportation solutions in metropolitan areas. This focus raises questions about whether the bill adequately addresses the diverse needs of Texas transportation infrastructure.