Texas Senate Bill SB1120

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, SB1120 would significantly change the regulatory landscape concerning motor fuel taxation at the local level. The prohibition of local motor fuel taxes would likely encourage the adoption and utilization of compressed natural gas and liquefied natural gas within Texas. This could potentially lead to increased investments in infrastructure for alternative fuel vehicles and support the state's broader environmental goals by reducing reliance on diesel and gasoline, which are more polluting. Conversely, it may result in loss of revenue for local governments that previously imposed such taxes.

Summary

Senate Bill 1120 aims to prohibit local governments in Texas from imposing motor fuel taxes on compressed natural gas (CNG) and liquefied natural gas (LNG). The bill modifies Section 162.014 of the Tax Code to clarify that the state taxes on motor fuels are exclusive, meaning local entities cannot levy additional excise or occupation taxes related to the sale, use, or distribution of these alternative fuels. By promoting CNG and LNG without local tax burdens, SB1120 aligns with state interests in enhancing the use of cleaner, domestically produced energy sources.

Sentiment

The sentiment regarding SB1120 appears to be generally positive among proponents who advocate for cleaner energy solutions and economic strategies promoting the use of CNG and LNG. Supporters argue that this bill will reduce costs for consumers and businesses that rely on alternative fuel vehicles, ultimately fostering a more sustainable transportation environment. However, there may be concerns from local governments about losing revenue sources and the implications for their autonomy in setting local tax policies.

Contention

Notable points of contention surrounding SB1120 involve the balance between state regulation and local governance. Opponents may argue that the bill undermines local authority to respond to specific community needs and preferences regarding energy sources and taxation. Critics could emphasize that this legislation centralizes tax authority at the state level, potentially disregarding unique local circumstances that warrant tailored fiscal policies. The consideration of long-term impacts on local government finances versus state energy goals creates an ongoing debate over this bill's implications.