More money for roads

Substantial increases in transportation spending in the 2016-17 state budget have momentum in Austin and, at least from the governor and leaders of the Senate, that includes allocations from motor vehicle sales tax revenue.

Still, there is some disagreement over exactly how it will be done.

Gov. Greg Abbott said in his State of the State address on Tuesday that his budget “constitutionally dedicates one-half of the existing motor vehicle sales tax to fund roads.”

That means voters would have to approve the change, and if they do, the funding would be locked in tight for the Texas Department of Transportation.

Texas charges a 6.25 percent tax on the sale of new and used motor vehicles, which is the same as the state portion of the sales tax on other goods and services. There’s no additional local sales tax on vehicles.

Motor vehicle sales tax revenue has been rising sharply and is expected to reach almost $4.9 billion in 2017. That money now goes toward general state expenses; Abbott’s plan would spend about $2.4 billion on roads.

The Senate’s initial version of the 2016-17 budget would devote a one-time allocation of $1.2 billion from the motor vehicle sales tax to transportation.

This story was originally published February 20, 2015 at 7:32 PM with the headline "More money for roads."