Bill > HB326

This bill introduces a new mechanism for dynamically adjusting gasoline and diesel fuel tax rates in Texas based on changes in highway construction costs. Specifically, the bill creates two new sections in the Texas Tax Code (162.1021 for gasoline and 162.2021 for diesel fuel) that establish an annual tax rate adjustment tied to the "highway cost index" - a 12-month moving average of materials and labor prices used in state highway projects. On January 1st of each year, starting in 2026, the tax rate will automatically increase or decrease by the percentage change in the highway cost index from the previous fiscal year. The Texas Comptroller will be responsible for calculating the new tax rates by December 1st each year, publishing them in the Texas Register, and notifying license holders of the updated rates. This approach aims to create a more responsive and data-driven method of setting fuel tax rates that can adapt to fluctuations in highway construction costs, potentially helping to ensure that fuel tax revenues more closely align with infrastructure development expenses. The bill will take effect on September 1, 2025, with the first rate adjustments occurring on January 1, 2026.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB326