Bill: HB 991, 84(R) - 2015
Committee
House Business & Industry
Vote Recommendation
Vote Recommendation |
Economic Freedom |
Property Rights |
Personal Responsibility |
Limited Government |
Individual Liberty |
Yes |
Neutral |
Neutral |
Neutral |
Positive |
Neutral |
Author(s)
Dwayne Bohac
Co-Author(s)
Giovanni Capriglione
Bill Caption
Relating to requiring notice of federal and state tax rates for motor fuel sold at retail; providing a civil penalty.
Fiscal Notes
TDA indicates it would be required to design and contract printing for 200,000 fuel tax stickers to
meet the requirement to display stickers on each face of a motor fuel pump. TDA estimates that
160,000 stickers will be mailed to licensed locations in the first year and the remaining 40,000
stickers would be used in years 2, 3 and 4 for new licenses issued. This cost is estimated to be
$126,000 for all stickers in years 1, 2, 3 and 4. This estimate is based upon costs associated with
printing Consumer Information Stickers that are currently required to be displayed on each face of
a motor fuel pump.
It is further anticipated that the stickers will need to be replaced in five (5) years as a result of
environmental degradation. Postage and shipping supplies required to ship the stickers to each
fuel station is estimated to cost $30,000. In 5 years, TDA will again incur these shipping costs to
replace the stickers due to environmental degradation. TDA anticipates the need to hire 2
temporary employees at the rate of $11.50 per hour to sort and ship stickers to all fuel stations in
the state. The total cost for temporary employees is anticipated to be $4,000 in years 1 and 5. Total
5 year fiscal impact is estimated to be $320,000.
Bill Analysis
HB 991 seeks to make the Department of Agriculture to publish the a notice on the current
rates of the federal and state motor fuel taxes on each pump in a clear and conspicuous manner.
The civil penalties in the filed version have since been removed.
Vote Recommendation Notes
5/25 Update:
This bill is substantively the same as when we
reported on it in its original chamber. We continue to support HB 991. The Senate sponsor is Sen. Huffines.
First chamber recommendation below:
HB 991 would require the Department of Agriculture to display the state and federal motor fuel tax rates on each gas pump. The costs associated with this are minuscule and not overly burdensome compared to the transparency benefits consumers will see. The real question to this legislation is whether consumers will call for lower tax rates on motor fuels when they constantly see how much the state and federal government is making off of them.