Dallas Gasoline Excise Tax - Allocation & Rates

Taxation and Finance Texas 5 Minutes Read ยท published February 06, 2026 Flag of Texas

Dallas, Texas relies primarily on state and regional motor-fuel levies and local revenue streams to fund road maintenance and transportation projects. This guide explains how gasoline excise taxes are allocated and administered as they affect Dallas operations, which offices have enforcement or oversight roles, where the legal authority is recorded, and how residents or businesses can act to pay, appeal, or report compliance issues. For municipal code language and enacted ordinances consult the City of Dallas code and for state excise tax rates consult the Texas Comptroller resources referenced below.[1][2]

How the gasoline excise tax relates to Dallas finance

Municipal budgets for streets, signals, and transportation improvements in Dallas are funded from a mix of state motor-fuels excise taxes passed through by the state, federal grants, local sales and property tax revenues, bonds, and special district assessments. The City allocates local capital and operating funds to match or supplement state and federal transportation dollars; specific allocation mechanisms are set in budget documents and intergovernmental agreements rather than a single municipal gasoline excise ordinance.[1]

Local road work in Dallas is funded by a blend of state fuel taxes and local budget allocations.

Rates, calculation and who collects them

Excise tax rates on gasoline are established by Texas state law and administered by the Texas Comptroller. The City of Dallas does not separately impose a per-gallon municipal gasoline excise tax distinct from the state levy; local shares derive from state distribution formulas, grants, and budget appropriations. For the state per-gallon rates and the Comptroller's current rate tables, see the Texas Comptroller's fuels pages.[2]

  • Rate source: Texas statutes and Comptroller tables; the City uses state distributions in local budgets.
  • Calculation: excise is charged at the point of wholesale distribution and remitted to the state; local allocation is by statutory formula or grant program.
  • Local ordinances: specific revenue uses appear in budget and capital-improvement documents, not in a standalone municipal gasoline tax ordinance.[1]

Allocation & common uses

Funds derived from state fuel taxes and local matching dollars commonly pay for street resurfacing, signal timing, bridge repairs, right-of-way maintenance, and local transit-related projects. Allocation decisions are made during the City budget process and through project-level agreements for federal or state grants.

  • Capital projects: resurfacing, bridge repair and major street reconstruction.
  • Programmatic uses: preventive maintenance and traffic-safety improvements.
  • Matching funds: municipal budget allocations that meet grant requirements.

Penalties & Enforcement

Enforcement of motor-fuels excise tax obligations is primarily a state function administered by the Texas Comptroller; local enforcement of municipal code provisions that affect transportation funding or permit compliance is handled by City of Dallas departments as described below.[2][3]

  • Fine amounts: specific monetary fines for state fuel-tax violations are set in state law and described on the Comptroller pages; specific municipal fine amounts tied to code violations affecting allocation are not specified on the cited municipal code page.[2][1]
  • Escalation: first, repeat, and continuing-offence escalations are governed by state tax statutes or by municipal penalty schedules where applicable; the municipal code page does not list per-offence escalations for gasoline tax allocation issues (not specified on the cited page).[2][1]
  • Non-monetary sanctions: administrative orders, withholding of permits, stop-work directives, or referral to court may apply depending on the enforcing authority; specific municipal non-monetary remedies are not itemized on the cited municipal code page.[1]
  • Enforcer and complaint pathway: state excise enforcement is by the Texas Comptroller; local compliance and code-related complaints are received by City of Dallas departments and reporting portals such as the City reporting/contact page.[2][3]
  • Appeal and review: appeals of state tax assessments follow procedures described by the Comptroller (and ultimately through state administrative or judicial review); municipal appeal timelines for code enforcement or permit denials are governed by the City code and administrative rules and are not specified on the cited municipal code page.
  • Defences and discretion: statutory defenses, audit protest rights, and permit/variance processes can provide relief; details and eligibility criteria are set by state statute or municipal administrative rules and may require formal application.
If you receive a tax assessment or municipal notice, act promptly to request review or file an appeal.

Applications & Forms

The Texas Comptroller publishes fuel tax registration, reporting, and refund claim forms; City-level forms for budget allocation or grant matching appear in City budget or departmental pages. If you need to register as a fuel distributor or file state tax returns, use the Comptroller forms; for local permits or variance requests consult the City department responsible for the specific permit.[2][3]

  • State fuel tax forms: available from the Texas Comptroller (registration, returns, refund claims).
  • Municipal forms: budget requests, grant match forms, and permit applications are available from City of Dallas departments; specific form names and fees are listed on the relevant department pages (not specified on the cited municipal code page).[1]

FAQ

Who sets the per-gallon gasoline excise tax rate that affects Dallas?
The per-gallon excise tax rate is set by the State of Texas and administered by the Texas Comptroller.[2]
Does the City of Dallas impose its own gasoline excise tax?
No separate per-gallon municipal gasoline excise is specified in the cited municipal code; local allocations come from state distributions and municipal budget decisions.[1]
How do I report suspected evasion or misuse of fuel-tax funds?
Report suspected state tax issues to the Texas Comptroller and local municipal concerns to the City of Dallas reporting/contact page.[2][3]

How-To

  1. Identify whether your issue is a state tax matter or a city code/permitting issue by checking the Texas Comptroller fuel pages and the City of Dallas code.[2][1]
  2. If state-related, use the Comptroller registration or audit protest forms to file returns or dispute an assessment.[2]
  3. If municipal, contact the relevant City of Dallas department or file a complaint via the City reporting/contact portal for code enforcement or permit issues.[3]
  4. Keep records: invoices, manifests, permit documents and correspondence for appeals or audits.

Key Takeaways

  • State law sets per-gallon fuel taxes; Dallas receives allocations through state distribution and local budgeting.
  • Enforcement of excise obligations is primarily by the Texas Comptroller; municipal code enforcement is handled by City of Dallas departments.

Help and Support / Resources

  1. [1] City of Dallas Code of Ordinances (Municode)
  2. [2] Texas Comptroller - Fuels and motor-fuel tax rates
  3. [3] City of Dallas official site and contact/reporting portal

Categories

General Governance and Administration Public Safety Public Health and Welfare Land Use and Zoning Housing and Building Standards Transportation Environmental Protection Parks and Public Spaces Business and Consumer Protection Taxation and Finance Labor and Employment Education Civil Rights and Equity Elections and Campaign Finance Events and Special Uses Signs and Advertising Utilities and Infrastructure Technology and Data