Texas Senate Bill SB1041

Texas 2021 - 87th Regular

Caption

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

Impact

The proposed changes would significantly boost state revenues generated from fuel sales, which could then be reinvested into roadways, public transportation, and other essential infrastructure initiatives. Supporters argue that this tax increase is necessary to ensure the safety and effectiveness of Texas's transportation networks, as outdated infrastructure poses risks to public safety and economic efficiency. The bill highlights an essential shift in the state’s fiscal approach to address infrastructure challenges, especially as the population continues to grow rapidly.

Summary

Senate Bill 1041 aims to increase the state gasoline and diesel fuel taxes in Texas. Specifically, the bill proposes raising the gasoline tax rate from 20 cents to 40 cents per net gallon, and similarly increasing the diesel tax rate from 20 cents to 40 cents per net gallon. This legislation is designed to reallocate funds to critical infrastructure projects and improve the state's transportation system. The bill underscores Texas's ongoing efforts to fund road maintenance and construction amid rising transportation demands and vehicle usage across the state.

Contention

However, the bill is likely to face contention during discussions, mainly from groups advocating for lower taxes, including constituents who may struggle with additional costs associated with higher fuel prices. Critics of the bill may argue that increasing fuel taxes disproportionately impacts low-income families and could have broader economic implications, such as increasing the cost of goods and services that rely on transportation. Therefore, while the bill aims to address infrastructure needs, it raises questions about balancing state revenue requirements with the financial burden placed on residents.