There is one revenue source that can provide all the qualities necessary to be an effective revenue stream. I have proposed a constitutional amendment which would dedicate the existing sales tax on new and used automobiles to the state highway fund. Approval of this constitutional amendment will give TxDOT a predictable revenue stream which they can use to implement long-range transportation plans. The existing sales tax rate is 6.25% of the sale price of all new and used vehicles. Conservative forecasts for this revenue stream come in at around $3 billion annually. We all know there is a significant funding challenge with regard to school financing and Medicaid, and those must be addressed for the sake of the state and its residents. That’s why legislation for this proposal would incrementally transfer the vehicle sales taxes by 10% per year, and would not begin until the next biennium. That should provide adequate time for lawmakers to fill in the gaps in general revenue. This is a common sense solution to a major problem. If the Legislature is determined to find additional revenue for transportation, this, or some variation of this, is an option that will give the department the revenue it needs to alleviate congestion statewide. Transportation infrastructure is a core function of government and must be addressed. What could make more sense than to dedicate the tax on a vehicle to the infrastructure on which it depends upon? Editor’s Note: Senator Robert Nichols, recently appointed by Lieutenant Governor David Dewhurst to chair the Senate Transportation Committee, joined AGC members at the October letting to discuss his plan for increasing revenue for highway funding. Nichols, formerly a Texas Transportation Commissioner, is uniquely well-suited among senators to lead this committee. The Chapter looks forward to working with the chairman and his staff to fulfill his goal of infusing Texas’ depleted highway funds with a stable, predictable revenue stream. The following article outlines his funding proposal for the upcoming session. end . January/February 2013
Upon his appointment to Chair the Senate Transportation Committee, Senator Nichols comes to discuss his funding initiatives at the Chapter’s Public Affairs Meeting.
HOT MIX - COLD MIX AGGREGATES - FLEXIBLE BASE QUALITY MATERIALS & QUALITY SERVICE FOUR LOCATIONS TO SERVE YOU
HUNTER - MAIN (512)396-1555 UVALDE (512)396-1555
VICTORIA (361)573-3292 GLIDDEN (979)732-3511
* RAIL DELIVERY AVAILABLE * MAIN OFFICE: P.O. BOX 2109 - SAN MARCOS, TX 78667
13