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Indexed Motor Fuel Tax

An indexed statewide motor fuels tax would allow the current motor fuels tax rate to change based on the rate of inflation. Since 1991, Texas has charged a flat 20 cents per gallon tax on gasoline and diesel fuels, but inflation has gone up, causing the purchasing power of a dollar to go down. This means the taxes collected by the motor fuels tax do not increase at the same rate as the cost of construction.

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