Texas may introduce a tax on truck mileage

May 19, 20230

The Texas House of Representatives passed a bill that could introduce a vehicle mileage tax.

State legislators voted 96 to 46 to move the amended bill forward. The pilot program will “evaluate the possibility of eliminating state motor fuel taxes and other vehicle user charges.”

Now Texas levies a tax of 20 cents per gallon on the purchase of diesel fuel. Legislators believe a vehicle mileage tax would be the best option for long-term transportation funding: “The vehicle mileage tax offers a fair and equitable source of funding for Texas highway maintenance.”

The program will evaluate tolls for vehicle owners in Texas, which are based on the number of miles driven in the state. However, the House of Representatives approved the legislation after removing the condition that the program applied to commercial vehicles.

With this change, the program will include personal vehicles, and the program will run for 1 year and will be limited to 800 participants.

The Texas Trucking Association expressed concern that the adoption of this program would jeopardize privacy. House Transportation Committee Chairman Terry Canales (D-Edinburgh) said the program will determine the best way to track vehicle mileage.

Following the program, the Texas Department of Transportation will be required to submit a report to the legislature summarizing the results.


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