Texas House Bill HB4183

Texas 2021 - 87th Regular

Caption

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.

Impact

The introduction of HB 4183 is set to impact state tax laws significantly by creating a framework for local motor fuel taxes that had previously been limited under existing legislation. The revenue generated from these additional taxes is designated for specific uses as dictated by state law. It is expected that this will empower municipalities economically by providing a means to bolster local funding for transportation and infrastructure improvements. However, with these powers also come new compliance requirements for distributors and sellers of motor fuels, which could affect operational costs and logistics within the supply chain.

Summary

House Bill 4183 aims to regulate and impose taxes concerning state and municipal motor fuel usage, particularly gasoline and diesel. The bill outlines the authority for municipalities to impose an additional motor fuel tax, which can be enacted through a local election. Specifically, it allows for a municipal tax rate of one cent per gallon, subject to adjustments annually based on economic indicators such as the consumer price index. This legislation is designed to provide cities the ability to generate revenue through fuel sales and support infrastructure-related projects through the revenue collected.

Contention

Notable points of contention surrounding the bill include the potential for increased tax burdens on consumers and opposition from those who argue that it infringes on free market operations by effectively imposing additional taxes on essential goods. Additionally, the administrative requirements for tracking fuel sales and compliance with the new tax structure could place significant burdens on small businesses and distributors who may not have the existing infrastructure to manage these changes efficiently. Critics assert that the local tax imposition might lead to a patchwork of tax rates across municipalities, complicating interstate and intrastate fuel distribution.