House Bill No. 326 proposes amendments to the Texas Tax Code to allow for annual adjustments to gasoline and diesel fuel tax rates based on a newly defined "highway cost index." This index will reflect the 12-month moving average of the price of materials and labor used in state highway projects, as compiled by the Texas Department of Transportation. The bill mandates that, starting January 1, 2026, the rates for gasoline and diesel fuel taxes will be increased or decreased annually according to the percentage change in the highway cost index from the previous fiscal year. The comptroller is tasked with calculating the new tax rates by December 1 each year and notifying relevant parties.

Additionally, the bill introduces backup tax provisions that apply to individuals and entities that misuse tax-exempt gasoline or diesel fuel. The backup tax will be imposed at the rates established under the new sections 162.1021 and 162.2021, which are created by this bill. The effective date for the initial adjusted tax rates is set for January 1, 2026, with the overall act taking effect on September 1, 2025.

Statutes affected:
Introduced: Tax Code 162.103, Tax Code 162.203, Transportation Code 20.002 (Transportation Code 20, Tax Code 162)