Bill > S1560

This bill proposes a revenue-neutral shift from sales tax to transportation fuel tax. The key provisions are: 1. The sales tax rate will be gradually reduced from 6.25% to 5.5% over 2018-2020, with the revenue loss offset by an increase in the transportation fuel tax. 2. The transportation fuel tax will be set at a rate that results in the same total revenue as if the sales tax remained at 6.25% and the fuel tax was 25 cents per gallon, adjusting for previous revenue differences. The fuel tax rate cannot be less than 25 cents per gallon. For aviation fuel, the tax will be 7.5% of the average price, but not less than 10 cents per gallon. The purpose is to shift the tax burden from sales to transportation fuel in a revenue-neutral manner, which could incentivize more fuel-efficient transportation and reduce carbon emissions.

Budget and Finance

https://malegislature.gov/Bills/190/S1560