Bill > S0047

This bill modifies the existing motor fuel tax law by changing how inflation adjustments are calculated. Currently, the tax administrator adjusts the gasoline tax every two years based on the inflation of the previous year. The proposed bill would instead require the adjustment to be calculated using the inflation rate over two full years, specifically by comparing the Consumer Price Index for all Urban Consumers (CPI-U) as of September 30 with the CPI-U from 24 months prior. The tax adjustment would be rounded to the nearest cent and cannot reduce the base tax rate below the current thirty-two cents per gallon. Additionally, the bill updates a reference date from 2015 to 2025, indicating when these new calculation methods would begin. The tax adjustment mechanism aims to ensure that the motor fuel tax keeps pace with economic changes while providing a predictable and standardized method for periodic increases. The bill would take effect immediately upon its passage.

Budget and Finance

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