Bill > A4940

Introduced Session

This bill eliminates the Treasurer's authority to annually adjust petroleum products gross receipts tax after State Fiscal Year 2021. Instead, the Legislature will be required to pass a law to change the petroleum products gross receipts tax. Currently, and through State Fiscal Year 2026, the rate of tax imposed on petroleum products is adjusted annually by the State Treasurer, after collaborating with the Legislative Budget and Finance Officer, to meet the "highway fuel cap amount." The highway fuel cap amount is approximately $2 billion and is based on the amount equivalent to 2016 fuel sales as if taxed at certain rates. If the amount of revenue in a year exceeds the cap amount, the following year's tax rate is decreased. However, if the revenue in a year is less than the cap amount, the tax rate is increased in the following year to meet the shortfall. Under this bill, the Treasurer's authority to adjust the gas tax is removed, and only the Legislature will be able to change the tax rate of the petroleum products gross receipts tax.

AI Summary

Committee Categories

Bob Auth (R)*,  Gerry Scharfenberger (R)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 11/09/2020)