BILL TO INDEX MOTOR FUELS TAX NEEDS YOUR HELP

Now is the time to come to the aid of Texas Good Roads by contacting your state representatives seeking support for House Bill 5, the indexing of motor fuels taxes.

Representative Mike Krusee of Round Rock, chairman of the House Transportation Committee, is the author of this legislation that would tie an annual adjustment of the state motor fuels tax to the Consumer Price Index (CPI). The state motor fuels tax is 20 cents and has been at that level since 1991. If indexing had been in effect since that time, the current levy would be at 28 cents. Three fourths of the state motor fuels tax proceeds are dedicated by the state constitution to the highway fund and the remaining quarter is allocated to public schools.

Mr. Krusee told the House Ways and Means Committee, which unanimously favored the bill, that the CPI has averaged 1.9 to 3.3 annually in recent years. If the average increase was 2.0, then the 20 cent tax would be increased by .4 cents. The adjustment would be made by the Legislative Budget Board.

Chairman Krusee told the Ways and Means Committee that the projected addition to the highway fund would be about $100 million over two years. This will not be a cure-all for a shortage in highway funding but it will be an important step in the right direction.

Speaker Tom Craddick has also publicly stated his support for the proposal.

Please contact your state representative to ask for his or her support of this measure. Click here to find the contact information for your representative. (http://www.house.state.tx.us/members/welcome.htm)