Bill > S0149

This bill proposes to automatically adjust the gasoline and diesel fuel tax rates annually based on inflation, specifically using the Consumer Price Index for All Urban Consumers (CPI-U). Currently set at $0.28 per gallon, the tax will remain at that rate until July 1, 2028, after which it will increase each July 1st by the percentage change in the CPI-U for the previous 12-month period ending in April. If the CPI-U shows a negative change, the tax rate will remain the same as the previous year. This means the tax will be indexed to inflation, helping to ensure that the revenue from fuel taxes keeps pace with rising costs over time. The bill applies to both gasoline and diesel fuel taxes and will take effect on July 1, 2025. By linking the tax rate to the CPI-U, the legislation aims to create a predictable, automatic adjustment mechanism that reflects changes in the economy's price levels without requiring annual legislative action.

Transportation and Infrastructure

https://legislature.vermont.gov/bill/status/2026/S.149