Bill > SB276

This bill modifies the motor vehicle excise tax, which is a tax on the purchase price of vehicles, by increasing its rate to five percent through June 30, 2031, and then reducing it to three percent thereafter, with provisions for applying the tax to the vehicle's reasonable value if the purchase price is not representative and allowing trade-in allowances to be deducted. Crucially, it also changes how the revenue from this tax is distributed: until June 30, 2031, sixty percent of the net receipts will go to the general fund and forty percent will be directed to a newly created "highway district projects fund" to finance specific major highway improvements across six districts, with the ability to issue up to $650 million in bonds for these projects. After June 30, 2031, all net receipts from the motor vehicle excise tax will go to the general fund. The bill also establishes the "highway district projects fund" and outlines how it will be administered and used for debt service on bonds issued for these highway projects, with any remaining balances reverting to the state road fund for general road purposes once the bonds are paid off.