Texas House Bill HB2931

Texas 2021 - 87th Regular

Caption

Relating to increasing the rates of the state gasoline and diesel fuel taxes.

Impact

If enacted, the passage of HB2931 would significantly alter the financial landscape for consumers and businesses that rely on gasoline and diesel fuel across Texas. The increased tax rates would lead to higher fuel costs for drivers, potentially impacting transportation expenses for both residents and companies operating in the state. Proponents argue that the increased revenue generated from these taxes would be directed towards essential infrastructure projects, including road maintenance and expansion, which could benefit overall economic growth and enhance public safety on the roads.

Summary

House Bill 2931 proposes an increase in the state gasoline and diesel fuel tax rates. Specifically, the bill amends Section 162.102 of the Texas Tax Code to raise the gasoline tax from 20 cents to 40 cents per gallon and the diesel tax from 20 cents to 40 cents per gallon. This legislative change responses to the need for increased state revenue to support infrastructure and transportation improvements, which have been critical for the state's economic growth and mobility.

Contention

While supporters of HB2931 emphasize the benefits of investing in infrastructure through increased fuel tax rates, there are points of contention regarding the impact on consumers and businesses. Critics of the bill raise concerns about the financial burden that higher fuel taxes may impose on low-income families and small businesses. They argue that the increase could lead to an unfair disadvantage for those already struggling with transportation costs. Furthermore, there may be debates over whether the revenue generated will be effectively utilized for the intended infrastructure improvements or if it might be diverted for other purposes.