Relating to the allocation of certain motor vehicle sales tax revenue to the state highway fund and to the uses of that revenue.
If enacted, HB 1370 would significantly affect financial planning for transportation infrastructure in Texas. By earmarking additional motor vehicle sales tax revenues for highway use, the bill is intended to bolster the state’s capacity to invest in critical road projects without increasing taxes. This would help ensure that the needs for road maintenance and development are met from existing tax revenues, potentially improving the efficiency of transportation funding in the state.
House Bill 1370 aims to amend the allocation of certain motor vehicle sales tax revenues, specifically directing excess funds to the state highway fund. This change specifies that the funds exceeding $2.5 billion in a fiscal year, derived from specific tax sections, should be deposited to the state highway fund. This fund is then designated for the construction, maintenance, or acquisition of rights-of-way for public roadways, other than toll roads, and to repay principal and interest on authorized general obligation bonds.
The bill may face legislative scrutiny regarding the appropriate allocation of state revenues and whether concentrating funds in the highway fund limits flexibility in addressing other pressing needs in state or local budgets. Opponents might argue that earmarking such revenues could constrain the state’s ability to address issues in public transit or other infrastructure needs that require funding, particularly in urban areas.