Texas House Bill HB1351

Texas 2017 - 85th Regular

Caption

Relating to the prohibition of local motor fuel taxes on compressed natural gas and liquefied natural gas.

Impact

If enacted, HB1351 would significantly alter the landscape of local taxation concerning motor fuels in Texas. It centralizes authority over taxing motor fuels at the state level, thus preventing local jurisdictions from enacting additional taxes that could burden consumers and businesses. By limiting local governments' ability to generate revenue through taxes on alternative fuels, the bill could spur greater adoption of CNG and LNG, aligning with state objectives to promote cleaner energy sources and reduce reliance on traditional fossil fuels.

Summary

House Bill 1351 aims to prohibit local governments from imposing taxes on the sale, use, or distribution of compressed natural gas (CNG) and liquefied natural gas (LNG). By amending the Texas Tax Code, this bill establishes that the state taxes on motor fuels, including CNG and LNG, are comprehensive and local subdivisions cannot levy additional taxes. The intention behind this legislation is to encourage the use of alternative fuels and support the state’s energy sector, particularly in promoting natural gas as a viable energy source.

Sentiment

The general sentiment surrounding HB1351 appears to be positive among proponents of the natural gas industry and those advocating for alternative fuel usage. Supporters argue that prohibiting local fuel taxes will streamline expenses for operators of natural gas vehicles and enhance the competitive edge of alternative fuels against conventional fuels like gasoline and diesel. However, some critics may express concerns about local governments losing a source of revenue, which could affect funding for local projects and services.

Contention

Notable points of contention include the balance between state control and local governance. While supporters see the bill as a necessary step to promote alternative fuels at a state level, opponents may argue that it neglects the specific financial needs and autonomy of local governments. The restriction on local taxation could lead to disagreements over the equitable distribution of state resources and the financial flexibility needed to address local priorities.