This year, Legislative Day had the largest group of participants since 2003 and meetings with the Texas [image-nocss] Legislature focused on several bills and proposals, including Local Fuels Tax (SB 855), which could have a direct and negative impact on consumers in four of the largest counties in Texas, subjecting them to higher prices at the fuel pumps yet again.
Proposed legislation Local Fuels Tax (SB 855), by State Senator John Carona (R), and a companion HB 9, by State representative Vicki Truitt (R) would provide Bexar, Dallas, Tarrant and Travis counties the mechanism to impose local gasoline taxes. The bill provides for elections to be held in these counties to allow voters to choose from several funding mechanisms to pay for transportation projects. Among the various funding mechanisms is a local gasoline tax of up to 10 cents a gallon. The tax would be imposed by the county, collected by the county, audited and enforced by the county.
TPCA is opposed to this legislation and met with legislators last week to express concerns. Because price is the dominant factor when consumers and businesses choose where to purchase fuel, allowing certain counties to assess their own fuels taxes will devastate both convenience stores and other fuel businesses located within the county by making their fuel price uncompetitive when compared to the neighboring areas. Without the collection, enforcement and auditing functions currently used for state and federal fuel taxes, county fuel tax may create an unfair market for both consumers and legitimate businesses. Each county may contain thousands of individual retailers and commercial business interests, who purchase, sell and use fuels. Absent a strong enforcement process, illicit schemes to evade a county fuel tax will reward unscrupulous operators, limit revenue gains and undermine the local competitive market.
"Allowing counties to assess a local fuels tax is not the right way to provide more transportation dollars for the urban areas of Texas. Given that consumers' sensitivity to price remains high and that a local tax can be legally avoided by fueling in an adjacent area, this proposal simply will not deliver the revenues its proponents hope it will. When you also consider the administrative and competitive issues for our members that come along with a local fuels tax, it just doesn't make sense," Chris Newton, president of the TPCA, said.
"We feel it is critical to maintain a level playing field where all petroleum marketers can be assured equal competitive footing. The proposed legislation will unfairly raise the costs for marketers in the affected areas," said Bob Johnson, president of Pinnacle.
Arlington, Texas-based Pinnacle is a major provider of automation technology industry focusing on the convenience store and petroleum industries. It delivers products that automate the broad spectrum of c-store operations and supply chain management of fuel operations. Nationwide, Pinnacle's products and services are used daily in thousands of convenience outlets to automate and improve store operations and by fuel marketers to increase efficiency in the complex management of fuel delivery. Products include the PCI-compliant Palm POS, EPM Business Intelligence Suite and Enterprise Loyalty Suite.
One of the largest state trade associations of its kind, the 1,000-member TPCA represents petroleum marketers and convenience store owners and operators who own, operate or supply approximately 16,000 c-stores, gas stations and other retail motor fuel outlets in Texas and the southwest United States. Collectively, these petroleum marketers and convenience store companies supply nearly 9 billion gallons of fuel and tons of related products annually to Texas motorists. The average TPCA member owns and operates 10 c-stores and supplies 12 more. These businesses provide fuel and lubricants to the vast majority of commercial end-users, including farmers, construction firms and local and state governments. In addition, TPCA associate members represent all of the diverse fields associated with the petroleum distribution system and c-store industry.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.