Texas House Bill HB501

Texas 2015 - 84th Regular

• Filed: 12/12/14

Caption

Relating to the exemption of rural transit districts from motor fuel taxes.

Impact

The passing of HB501 is expected to positively influence rural transit districts by allowing them financial relief, enabling them to allocate more resources towards enhancing their public transportation offerings. Additionally, it encourages the use of alternative fuels, which can contribute to environmental sustainability efforts within these communities. The legislation also indicates a growing recognition of the importance of rural transit systems in ensuring mobility for all residents, particularly in regions where public transportation options are limited.

Summary

House Bill 501 relates specifically to the exemption of rural transit districts from motor fuel taxes. This legislative measure amends the Texas Tax Code, ensuring that these districts do not have to pay motor fuel taxes on gasoline and diesel used exclusively for public transportation purposes. This includes not only regular gasoline but also alternative fuel sources such as compressed natural gas and liquefied natural gas. The bill aims to support rural transportation systems by alleviating the financial burden associated with fuel taxes, thereby promoting more robust public transit options in less populated areas.

Contention

Despite the anticipated benefits, there may be points of contention surrounding HB501 regarding the loss of tax revenue for the state government, which could impact funding for other essential services. Some legislators may raise concerns about the fairness and implications of granting such exemptions, particularly in light of competing urban transit needs or budgetary constraints. Advocates for rural transit argue that the financial benefits of such tax exemptions ultimately outweigh these concerns, as they promote greater accessibility and local economic development, while opponents may emphasize the need for a more equitable taxation system.