HR 8252
Gas Tax Reduction Act
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- Passed House
- Passed Senate
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Bill overview
This bill, the Gas Tax Reduction Act, proposes a mechanism for the federal government to withhold a portion of transportation funds from states if their gasoline tax rate reaches $0.50 per gallon or higher. Specifically, it directs the Secretary to withhold 8% of apportioned funds to states that meet this threshold, starting in the fiscal year following the bill’s enactment. The bill aims to incentivize states to maintain or increase their gasoline tax rates to adequately fund infrastructure.
Key provisions
- The bill establishes a threshold of $0.50 per gallon for state gasoline taxes.
- It mandates a 8% withholding of federal transportation funds from states exceeding this threshold.
- The withholding begins in the fiscal year following the bill’s enactment.
- The bill amends Title 23, United States Code, to include the withholding provision.
Who is affected
- States
- Federal Government (specifically the Secretary)
- Motorists (indirectly, through gas tax rates)
Notable changes
- Introduces a federal mechanism to influence state gasoline tax rates.
- Creates a financial incentive for states to increase their gas tax revenue.
Fiscal impact
The bill could result in a reduction of federal transportation funds allocated to states with gasoline tax rates exceeding $0.50 per gallon.
Sponsors
Official sponsors from legislative records.
Primary sponsor
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119th CONGRESS — 2d Session
H. R. 8252
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend title 23, United States Code, to provide for withholding of funds for noncompliance with State gas tax restriction, and for other purposes.
This Act may be cited as the Gas Tax Reduction Act
.
The Secretary shall withhold 8 per centum of the amount required to be apportioned to any State under each of paragraphs (1) and (2) of section 104(b) on the first day of each fiscal year after the first fiscal year beginning after the date of enactment of this section in which the tax for gasoline in such State is equal to or greater than $0.50 per gallon.