Senate Transportation panel approves amendment sending remaining motor-vehicle excise revenue to DOT flexible fund; bill referred to Appropriations

The Senate Transportation Committee approved an amendment to Senate Bill 2,142 that moves the remaining share of motor-vehicle excise tax revenue out of the general fund and into the Department of Transportation’s flexible fund, then voted to pass the bill as amended and refer it to the Appropriations Committee.

Senator Grama said he prepared the amendment (filed as Amendment 25.0818.01001) to ensure excise-tax revenue that historically was used for roads and bridges is routed to the DOT rather than remaining in the general fund. “Those funds should be used for roads and bridges. That was always the intent of that excise tax,” Grama said, arguing that the flexible fund would allow the DOT and appropriators to prioritize the worst roads and bridges across townships and counties.

The amendment responds to concerns that strict eligibility rules in the bill would exclude townships that have not levied exactly an 18-mill property tax. Grama said state tax department data show 433 townships do not meet an 18-mill threshold as currently written and three counties — Rowlett County, Trail County and Steele County — had not yet submitted required data to the state tax department. “If I have some at 17.99 in 2024…