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House backs road‑fund bill raising fuel tax 3¢ and increasing EV registration fees to boost county and township road money
Summary
Lawmakers approved House Bill 13‑82, a package that raises the state fuels tax by 3 cents a gallon, increases several electric vehicle registration fees, and redistributes revenue to counties, townships and cities; proponents said it targets rural road needs, opponents criticized complexity of the distribution formula.
The North Dakota House of Representatives approved House Bill 13‑82 on final passage, 58‑35, a measure that raises motor fuels taxes by 3 cents a gallon and increases registration fees for electric and plug‑in hybrid vehicles while directing revenue to a new city, county and township road fund.
Representative D. Anderson, the bill carrier on the floor, said the increase would raise the state fuels tax from 23 cents to 26 cents per gallon and channel funds to counties and townships for road maintenance. "This will go into a fund that is managed by the Department of DOT and it will go out to the counties and the townships and cities," Anderson said. He cited estimated biennial distributions for several counties and noted that the extra money could maintain additional gravel miles in rural areas.
Opponents questioned the need for the particular distribution formula and flagged that the bill carves out special treatment for non‑oil producing counties. Representative Ruby and others argued the highway distribution fund already allocates for local government, and that separate formulas can complicate fairness. Representative Casper asked whether electric vehicles would be taxed in any other way beyond higher registration fees; the answer from the carrier was that registration is the only practical lever in state law.
The bill includes a fiscal note prepared by the North Dakota Department of Transportation: the department estimated additional revenues and expenditures in the tens of millions across the 2025‑27 and 2027‑29 biennia (floor discussion cited figures of about $42 million per biennium in other funds categories). Under bill language discussed on the floor, two‑thirds of the increased allocation would go to non‑oil producing counties; sponsors said the carve‑out aims to help rural jurisdictions carrying heavier local loads without oil‑sector revenue.
Nut graf: Supporters argued the measure is a targeted user fee to shore up rural infrastructure and bridge maintenance backlogs; opponents said it needlessly complicates distribution by creating a separate carve‑out and prefers a simpler increase directed into the existing highway distribution formula.
Key record points: - Committee recommendations: passed tax and finance and appropriations committees; appropriations reported a due‑pass recommendation. - Final House vote: 58 yeas, 35 nays; bill declared passed. - Changes included increasing certain EV registration fees (examples on the floor: $100 to $150 for one EV class; other fee increases outlined on page references) and a 3¢ per gallon fuels tax increase.
Discussion vs. decision: The debate addressed tradeoffs between a general increase to the highway distribution fund and a targeted fund for non‑oil producing counties. The House decided to adopt the targeted approach contained in HB 13‑82.
