Committee gives HB1382 a due pass recommendation to add 3¢ fuel tax split to counties, cities, townships

Representative Craig Hedlund said House Bill 1382 would add 3 cents per gallon to the motor fuels tax, with the revenue distributed as one cent each to counties, cities and townships. Hedlund told the committee the payment would be distributed from the state treasurer and that committee language would use an existing distribution formula to allocate funds to townships.

Members praised the proposal as targeted support for local street, road and bridge work that local governments often lack the revenue to fund. Representative Pyle said the change is “key” for small towns that cannot raise sufficient local revenue for routine street repairs. Representative Wagner said the measure will help jurisdictions that cannot build to federal-aid standards and that local road projects can cost millions per mile.

Representative Richter asked whether public transportation or other uses would receive funds; Hedlund said the intent was to direct funds to political subdivisions rather than the state highway distribution fund and that the bill did not allocate an explicit share to public transportation.

Representative Brandenburg moved a motion for a due pass on HB1382, seconded by Representative Murphy. The committee took a recorded vote and recommended a due pass (13 yes, 7 no, 3 absent). The chair said the bill will return to the bill carrier for floor consideration.

Ending: Committee members asked staff to reconcile distribution language for non-oil producing counties and signaled the bill would progress to the next legislative step with requests for further technical review.