Bill > S1315

This bill proposes to adjust how revenue is collected by changing the way taxes are calculated on transportation fuels, specifically by modifying the definition of "tax per gallon" in Chapter 64A of the General Laws. Instead of a fixed rate, the tax will now be a percentage of the average price of fuel for each type, determined quarterly by the commissioner. This percentage is set to increase incrementally over several years, starting at 7.5%, rising to 9.0% in 2014, 11.0% in 2015, and finally 13.5% in 2016, with a minimum tax of 23 cents per gallon. However, a separate section introduces a provision to lower this percentage by 0.25% each year from 2014 to 2016, suggesting a potential offset or a phased implementation of the tax increase. This shift in revenue collection from a potentially fixed sales tax to a variable fuel tax aims to adapt to fluctuating fuel prices and potentially increase funding for transportation infrastructure.