Lopez Bill Makes Fuel Tax Changes Automatic Every January 1

The text as introduced · 1,005 words

89R1987 CJD-F

By: Lopez of Bexar
H.B. No. 326

A BILL TO BE ENTITLED

AN ACT

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.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. (a) 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 in

the preceding year is increased or decreased by a percentage equal

to the highway cost index percentage change for the preceding state

fiscal year.

(c) Not later than December 1 of each year, the comptroller

shall:

(1) compute the new tax rate as provided by this

section;

(2) provide 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 new tax rate.

(b) The comptroller shall compute the initial adjusted tax

rate as required by Section 162.1021(c), Tax Code, as added by this

section, not later than December 1, 2025. The initial adjusted rate

takes effect January 1, 2026.

SECTION 2. Effective January 1, 2026, 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;

(4) a person, other than a person exempted under

Section 162.104, who acquires gasoline on which tax has not been

paid:

(A) in an original or subsequent sale; or

(B) from any source in this state; and

(5) a person who acquires gasoline by any unlawful

means, including by purchase through the unauthorized use of a

credit card, a debit card, or other money, regardless of whether tax

was previously paid on the gasoline or was added to the selling

price of the gasoline.

SECTION 3. (a) 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

in the preceding year is increased or decreased by a percentage

equal to the highway cost index percentage change for the preceding

state fiscal year.

(c) Not later than December 1 of each year, the comptroller

shall:

(1) compute the new tax rate as provided by this

section;

(2) provide 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 new tax rate.

(b) The comptroller shall compute the initial adjusted tax

rate as required by Section 162.2021(c), Tax Code, as added by this

section, not later than December 1, 2025. The initial adjusted rate

takes effect January 1, 2026.

SECTION 4. Effective January 1, 2026, 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;

(4) a person, other than a person exempted under

Section 162.204, who acquires diesel fuel on which tax has not been

paid:

(A) in an original or subsequent sale; or

(B) from any source in this state; and

(5) a person who acquires diesel fuel by any unlawful

means, including by purchase through the unauthorized use of a

credit card, a debit card, or other money, regardless of whether tax

was previously paid on the diesel fuel or was added to the selling

price of the diesel fuel.

SECTION 5. Effective January 1, 2026, Section 20.002(d),

Transportation Code, is amended to read as follows:

(d) The fee imposed by this section is equal to 25 percent of

the diesel fuel tax rate prescribed by [ imposed under ] Section

162.202 or 162.2021 , Tax Code.

SECTION 6. Except as otherwise provided by this Act, this

Act takes effect September 1, 2025.