Bill Text: TX HB399 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to taxes wholly or partly deposited to the credit of the state highway fund; increasing the rates of the gasoline and diesel fuel taxes and authorizing the increase or decrease of those rates in subsequent years.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2015-03-18 - Referred to Transportation [HB399 Detail]

Download: Texas-2015-HB399-Introduced.html

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84R2499 TJB-F
By: Harless H.B. No. 399

A BILL TO BE ENTITLED
AN ACT
relating to taxes wholly or partly deposited to the credit of the
state highway fund; increasing the rates of the gasoline and diesel
fuel taxes and authorizing the increase or decrease of those rates
in subsequent years.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) Section 152.122, Tax Code, is amended to read
as follows:
Sec. 152.122. ALLOCATION OF TAX. Subject to Section
152.1222, the [The] comptroller shall deposit the funds received
under Section 152.121 [of this code] as follows:
(1) in the state fiscal year beginning September 1,
2016, 25 percent to the credit of the state highway fund and 75
percent [1/4 to the credit of the foundation school fund; and
[(2) the remaining funds] to the credit of the general
revenue fund;
(2) in the state fiscal year beginning September 1,
2017, 30 percent to the credit of the state highway fund and 70
percent to the credit of the general revenue fund;
(3) in the state fiscal year beginning September 1,
2018, 35 percent to the credit of the state highway fund and 65
percent to the credit of the general revenue fund;
(4) in the state fiscal year beginning September 1,
2019, 40 percent to the credit of the state highway fund and 60
percent to the credit of the general revenue fund;
(5) in the state fiscal year beginning September 1,
2020, 45 percent to the credit of the state highway fund and 55
percent to the credit of the general revenue fund; and
(6) in state fiscal years beginning on or after
September 1, 2021, 50 percent to the credit of the state highway
fund and 50 percent to the credit of the general revenue fund.
(b) In addition to the substantive changes made by this
section, this section conforms Section 152.122, Tax Code, to the
method of allocating motor vehicle sales and use taxes in effect
before the effective date of this section. Section 11.04, Chapter 4
(S.B. 3), Acts of the 72nd Legislature, 1st Called Session, 1991,
enacted former Section 403.094(h), Government Code, which
abolished certain state fund dedications and resulted in the
abolition of the allocation to the foundation school fund effective
August 31, 1995.
SECTION 2. (a) Section 162.102, Tax Code, is amended to
read as follows:
Sec. 162.102. TAX RATE. The gasoline tax rate is 25 [20]
cents for each net gallon or fractional part on which the tax is
imposed under Section 162.101.
(b) Effective January 1, 2018, Section 162.102, Tax Code, is
amended to read as follows:
Sec. 162.102. TAX RATE. The gasoline tax rate is 30 [20]
cents for each net gallon or fractional part on which the tax is
imposed under Section 162.101.
SECTION 3. (a) Effective September 1, 2018, Subchapter B,
Chapter 162, Tax Code, is amended by adding Section 162.1021 to read
as follows:
Sec. 162.1021. ANNUAL RATE CHANGE ACCORDING TO HIGHWAY COST
INDEX. (a) In this section:
(1) "Highway cost index" means the 12-month moving
average of the price of materials and labor compiled by the Texas
Department of Transportation and incorporated into state highway
projects.
(2) "Highway cost index percentage change" means the
percentage increase or decrease in the highway cost index of a given
state fiscal year from the highway cost index of the preceding state
fiscal year.
(b) Notwithstanding Section 162.102, on January 1 of each
year, the rate of the gasoline tax imposed under this subchapter is
increased or decreased by a percentage equal to the highway cost
index percentage change for the preceding state fiscal year.
(c) Notwithstanding Subsection (b), the percentage increase
or decrease may not result in an increase or decrease in the rate
that exceeds one cent for each net gallon or fractional gallon of
gasoline on which the tax is imposed under Section 162.101.
(d) Not later than December 1 of each year, the comptroller
shall:
(1) compute the new tax rate as provided by this
section;
(2) give the new tax rate to the secretary of state for
publication in the Texas Register; and
(3) notify each license holder under this subchapter
of the applicable new tax rate.
(b) The comptroller shall compute the initial adjusted tax
rate as required by Section 162.1021(d), Tax Code, as added by this
section, not later than December 1, 2018. The initial adjusted rate
takes effect January 1, 2019.
SECTION 4. Effective January 1, 2019, Section 162.103(a),
Tax Code, is amended to read as follows:
(a) A backup tax is imposed at the rate prescribed by
Section 162.102 or 162.1021 on:
(1) a person who obtains a refund of tax on gasoline by
claiming the gasoline was used for an off-highway purpose, but
actually uses the gasoline to operate a motor vehicle on a public
highway;
(2) a person who operates a motor vehicle on a public
highway using gasoline on which tax has not been paid;
(3) a person who sells to the ultimate consumer
gasoline on which tax has not been paid and who knew or had reason to
know that the gasoline would be used for a taxable purpose; and
(4) a person, other than a person exempted under
Section 162.104, who acquires gasoline on which tax has not been
paid from any source in this state.
SECTION 5. (a) Section 162.202, Tax Code, is amended to read
as follows:
Sec. 162.202. TAX RATE. The diesel fuel tax rate is 25 [20]
cents for each net gallon or fractional part on which the tax is
imposed under Section 162.201.
(b) Effective January 1, 2018, Section 162.202, Tax Code, is
amended to read as follows:
Sec. 162.202. TAX RATE. The diesel fuel tax rate is 30 [20]
cents for each net gallon or fractional part on which the tax is
imposed under Section 162.201.
SECTION 6. (a) Effective September 1, 2018, Subchapter C,
Chapter 162, Tax Code, is amended by adding Section 162.2021 to read
as follows:
Sec. 162.2021. ANNUAL RATE CHANGE ACCORDING TO HIGHWAY COST
INDEX. (a) In this section:
(1) "Highway cost index" means the 12-month moving
average of the price of materials and labor compiled by the Texas
Department of Transportation and incorporated into state highway
projects.
(2) "Highway cost index percentage change" means the
percentage increase or decrease in the highway cost index of a given
state fiscal year from the highway cost index of the preceding state
fiscal year.
(b) Notwithstanding Section 162.202, on January 1 of each
year, the rate of the diesel fuel tax imposed under this subchapter
is increased or decreased by a percentage equal to the highway cost
index percentage change for the preceding state fiscal year.
(c) Notwithstanding Subsection (b), the percentage increase
or decrease may not result in an increase or decrease in the rate
that exceeds one cent for each net gallon or fractional gallon of
diesel fuel on which the tax is imposed under Section 162.201.
(d) Not later than December 1 of each year, the comptroller
shall:
(1) compute the new tax rate as provided by this
section;
(2) give the new tax rate to the secretary of state for
publication in the Texas Register; and
(3) notify each license holder under this subchapter
of the applicable new tax rate.
(b) The comptroller shall compute the initial adjusted tax
rate as required by Section 162.2021(d), Tax Code, as added by this
section, not later than December 1, 2018. The initial adjusted rate
takes effect January 1, 2019.
SECTION 7. Effective January 1, 2019, Section 162.203(a),
Tax Code, is amended to read as follows:
(a) A backup tax is imposed at the rate prescribed by
Section 162.202 or 162.2021 on:
(1) a person who obtains a refund of tax on diesel fuel
by claiming the diesel fuel was used for an off-highway purpose, but
actually uses the diesel fuel to operate a motor vehicle on a public
highway;
(2) a person who operates a motor vehicle on a public
highway using diesel fuel on which tax has not been paid;
(3) a person who sells to the ultimate consumer diesel
fuel on which a tax has not been paid and who knew or had reason to
know that the diesel fuel would be used for a taxable purpose; and
(4) a person, other than a person exempted under
Section 162.204, who acquires diesel fuel on which tax has not been
paid from any source in this state.
SECTION 8. Subchapter A, Chapter 222, Transportation Code,
is amended by adding Section 222.0015 to read as follows:
Sec. 222.0015. USE OF CERTAIN MONEY IN STATE HIGHWAY FUND.
(a) This section applies only to the following money deposited to
the credit of the state highway fund:
(1) all money deposited under Section 152.122, Tax
Code;
(2) all proceeds from the collection of taxes imposed
by Subchapter B, Chapter 162, Tax Code, attributable to the portion
of the tax rate in excess of 20 cents for each net gallon or
fractional part of gasoline on which the tax is imposed under
Section 162.101, Tax Code; and
(3) all proceeds from the collection of taxes imposed
by Subchapter C, Chapter 162, Tax Code, attributable to the portion
of the tax rate in excess of 20 cents for each net gallon or
fractional part of diesel fuel on which the tax is imposed under
Section 162.201, Tax Code.
(b) Notwithstanding other law, including Sections 201.115,
222.001, and 222.003, money described by Subsection (a):
(1) may not be pledged for the repayment of bonds; and
(2) may be used only for acquiring rights-of-way and
planning, designing, constructing, and maintaining nontolled
public roadways.
SECTION 9. This Act takes effect January 1, 2016, but only
if the constitutional amendment proposed by the 84th Legislature,
Regular Session, 2015, limiting the permissible uses of the state
highway fund, including further limiting the use of additional tax
and fee revenue attributable to changes to certain state taxes and
fees, to increase revenue for nontolled public highway purposes is
approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.