Texas House Bill HB2513

Texas 2017 - 85th Regular

Caption

Relating to increasing the rate of the state diesel fuel tax.

Impact

If enacted, HB2513 would directly impact the state's taxation framework by increasing the tax liability for diesel fuel users, which in turn may affect operating costs for businesses relying on diesel for transportation, such as trucking companies and agricultural operations. Although this increase may lead to higher prices at the pump, proponents argue that the subsequent boost in tax revenue will provide necessary funds for maintaining Texas's extensive road infrastructure.

Summary

House Bill 2513 seeks to amend the Texas Tax Code by increasing the state diesel fuel tax from 20 cents to 22 cents per net gallon. This legislative change is designed to raise additional revenue that could be allocated toward various state projects, particularly in the areas of transportation and infrastructure. The bill aims to address the growing needs for funding in these sectors, which are crucial for maintaining and improving roadways and transit systems throughout Texas.

Contention

While the bill has its proponents who advocate for improved infrastructure through increased funding, there may be concerns raised by industry stakeholders who oppose the tax hike on diesel fuel. Critics might argue that higher fuel taxes can lead to increased costs of goods and services, ultimately burdening consumers. There could also be discussions regarding the effectiveness of using fuel tax revenue specifically for transportation purposes, as some may question whether the funds will be appropriately allocated and used to directly benefit the state's transportation systems.