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    Louisiana House Bill 542 proposes fuel tax increase and EV/Hybrid fee

    A new bill introduced by Representative Steve Carter in the Louisiana House of Representatives proposes a tax increase on fuel along with a new annual tax for electric vehicles and hybrids.

    According to the abstract provided on the digest, the proposed bill "increases the per gallon tax on gasoline, diesel, and special fuels and levies an annual tax on electric and hybrid vehicles and [dedicates] a portion of the tax to the Construction Subfund of the Transportation Trust Fund."

    The bill proposes a gradual lowering of a current 16¢ tax on "gasoline, diesel, and special fuels" down to 8¢ per gallon by July 2025. The bill also proposes levying "a new, additional tax on gasoline and special fuels of 9¢ per gallon" that will be incrementally raised annually until it reaches 26¢ per gallon in July 2031. Additionally, the bill proposes a separate, similar diesel tax increase of 7¢ per gallon increasing incrementally to 24¢ per gallon by July 2031. This is in addition to a current, separate 4¢ tax on "gasoline, diesel, and special fuels" which the proposed law retains.

    In addition, the bill also proposes to levy "an annual tax of $300 per year on each electric vehicle and an annual $200 per year on each hybrid vehicle operated on state highways which are required to be registered and to pay registration license tax in accordance with present law." According to the bill, this tax would be collected every two years "at the same time and in the same manner as the registration license tax pursuant to present law."

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