Relating to taxes wholly or partly deposited to the credit of the state highway fund; increasing the rates of the gasoline and diesel fuel taxes and authorizing the increase or decrease of those rates in subsequent years.
Impact
This legislation will significantly affect the allocation of funds to the state highway fund, which is crucial for maintaining and improving transportation infrastructure. The amendment to the tax code will ensure that a greater percentage of motor fuel tax revenues will be directed toward the highway fund over time. Specifically, the bill mandates that 50% of these taxes will go to the highway fund by 2021, increasing local and state governments' ability to finance infrastructure projects without over-relying on bond issuances. This detailing of allocation percentages clarifies and secures the revenue stream dedicated to highway and road projects.
Summary
House Bill 399 aims to adjust taxation related to gasoline and diesel fuel by increasing the rates of both taxes and allowing for future adjustments based on a specified highway cost index. The proposed changes include raising the gasoline tax from 20 cents to 30 cents per gallon, with further increases permitted according to the highway cost index, which is aimed at making the tax responsive to inflation and the actual costs of highway maintenance and construction. The bill establishes a framework for ongoing rate changes rather than a fixed rate, which is designed to address funding needs for state transportation projects more dynamically.
Contention
While proponents of the bill argue that increased funding for transportation is necessary for public safety and economic growth, critics express concerns over the potential burden on consumers, especially in times of fluctuating fuel prices. Some lawmakers voice apprehension that these increased rates may disproportionately impact low-income families and individuals who rely heavily on personal vehicles for transportation. Furthermore, there is debate regarding the adequacy of the funds raised to meet the actual needs of state infrastructure projects, raising questions about oversight and accountability in the expenditure of these tax revenue increases.
Enabling for
Proposing a constitutional amendment limiting the permissible uses of the state highway fund, including further limiting the use of additional tax and fee revenue attributable to changes to certain state taxes and fees, to increase revenue for nontolled public highway purposes.
Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.
Relating to the banning of school district ad valorem taxes for certain residential properties and an increase in the rates of certain state taxes to cover the increased cost to the state of providing public education; increasing the rates of taxes.
Relating to the elimination of certain property taxes for school district maintenance and operations and the provision of public education funding by increasing the rates of certain state taxes.
Proposing a constitutional amendment creating the Texas Connectivity Fund for the development of broadband and other telecommunications services in all areas of the state and authorizing the appropriation to that fund of a portion of revenue received from the existing state sales and use taxes on telecommunications services while not increasing the rate of the sales and use taxes.