Texas House Bill HB2578

Texas 2009 - 81st Regular

• Out of House Committee: 5/4/09

Caption

Relating to the deferral by a licensed distributor or importer of payment of gasoline and diesel fuel taxes and information required on a tax return relating to credits authorized for certain of those deferrals.

Impact

If enacted, HB2578 would have a significant impact on how fuel taxes are collected and managed within the state. The changes proposed by the bill could lead to improved efficiency in tax processing for distributors, allowing them to defer certain tax payments under defined criteria. This would potentially ease financial burdens on fuel distributors, enabling better cash flow management and possibly leading to cost efficiencies that could be passed on to consumers.

Summary

House Bill 2578 aims to amend provisions related to the deferral of gasoline and diesel fuel taxes by licensed distributors and importers. The bill seeks to clarify the information that must be included on tax returns regarding credits authorized for deferral payments. By modifying Sections 162.116 and 162.217 of the Tax Code, the legislation intends to streamline reporting requirements for fuel distributors and enhance the structure of tax compliance.

Contention

While HB2578 has the potential to simplify tax procedures for fuel distributors, it may also raise concerns among state policymakers about potential losses in tax revenue if deferral credits are not correctly monitored. The bill's provisions could lead to debates about the effectiveness of current oversight mechanisms over fuel taxation and whether the changes adequately protect the state's revenue interests while supporting the industry.