Louisiana House Bill HB553

Louisiana 2017 Regular Session

• Introduced: 3/31/17
• Refer: 3/31/17
• Refer: 4/10/17

Caption

Provides for an additional tax on motor fuels and imposition of a 1/2 cent sales tax on motor fuels.

Impact

The proposed changes under HB 553 are expected to have a significant impact on state tax laws, particularly regarding how motor fuels are taxed. By eliminating the existing exemption for gasoline, the bill would ensure that gasoline sales are subject to the new sales tax, thereby increasing the overall cost of fuel for consumers. The additional 7-cent tax on gasoline, diesel, and special fuels would contribute to infrastructure funding, which proponents argue is critical for maintaining and improving state highways and transportation systems.

Summary

House Bill 553 proposes the imposition of a 0.5-cent sales tax on motor fuels such as gasoline, diesel, and special fuels. The bill seeks to amend existing tax laws by repealing the current exemption on the sale of gasoline and adding a new tax rate on these fuels, which would be deposited into the 21st Century Transportation and Infrastructure Fund. This measure is intended to generate additional revenue for the state's transportation infrastructure, addressing the growing needs for maintenance and development.

Sentiment

The sentiment around HB 553 appears mixed, with supporters advocating for the proactive approach to transportation funding while opponents express concerns over the increase in fuel costs for consumers and businesses. Proponents argue that the additional revenue is necessary to support infrastructure improvements that benefit the state's economy. Meanwhile, critics highlight the potential financial burden on low-income households who are already struggling with transportation costs amidst rising prices in other sectors.

Contention

Notable points of contention surrounding HB 553 include the debate over the necessity of increasing fuel taxes versus the potential negative impact on consumers. Opponents argue that imposing additional taxes may not be the best solution for generating revenue, suggesting that it could drive up living costs during a period when many households are facing economic challenges. Additionally, there is a concern about the allocation and proper use of funds generated through these taxes, as transparency and accountability in spending are prioritized by certain advocacy groups and constituents.