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Bill

HB 326

Relating to authorizing the increase or decrease of the rates of the gasoline and diesel fuel taxes based on the cost of certain highway projects.

89th Legislature (2025) Introduced by Ray Lopez

Bill authorizes Texas to automatically raise or lower gasoline and diesel fuel taxes based on highway project costs, tying tax rates to infrastructure spending needs.

Referred to Ways & Means
#comptrollerofpublicaccounts(v2608) #highways(i0390) #secretaryofstate(v0042) #transportation #texasdepartmentof(v8796) #taxation--motorfuels(i0809)
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Bill Summary · HB 326

Legislative bill overview

HB 326 would authorize Texas to adjust gasoline and diesel fuel tax rates up or down based on the actual costs of highway construction and maintenance projects. Rather than maintaining fixed tax rates, this mechanism would create a dynamic relationship between fuel taxes and transportation infrastructure spending needs.

Why is this important

Fuel taxes are a primary revenue source for road maintenance and construction in Texas. As construction costs fluctuate due to inflation, material prices, and labor expenses, a mechanism to adjust tax rates could help ensure adequate funding for highway projects or potentially reduce taxes if costs decrease. This directly affects both state transportation infrastructure quality and what drivers pay at the pump.

Potential points of contention

  • Tax volatility: Linking fuel taxes to project costs creates unpredictable tax rates for consumers and businesses, making budgeting difficult and potentially causing sudden increases at the pump during inflation or major construction booms
  • Political pressure: Elected officials may face pressure to keep rates low regardless of actual infrastructure needs, potentially underfunding maintenance and creating a backlog of necessary repairs
  • Regressive impact: Fuel taxes disproportionately burden lower-income drivers and rural communities with longer commutes, and variable rates could exacerbate this inequity

Compiled from official sources — confirm details with the bill’s official record.

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