Senate committee hears bill to dedicate motor vehicle excise tax to rural roads, create township sustainability fund

State Senator Terry Wanzek, sponsor of Senate Bill 2142, opened the Senate Transportation Committee hearing by calling for a dedicated, sustainable funding stream for rural roads and bridges.

"It is a big ask. I know it's a big ask, but there's a big need out there," Wanzek said, explaining the bill would move a larger share of the motor vehicle excise tax into transportation uses and create a new state‑administered township fund.

The bill would allocate 75% of motor vehicle excise tax revenue to the North Dakota Department of Transportation (NDDOT) Flexible Fund and the remaining 25% to a newly created Township Road and Bridge Sustainability Fund in the state treasury. Under the bill as presented, the treasury fund would be distributed to townships in non‑oil producing counties based on certified road miles; townships would need to be levying at the statutory maximum of 18 mills to qualify under the sponsor's draft.

Why it matters: witnesses told the committee rural roads are the first and last mile of North Dakota agriculture and energy production and said consistent funding is needed for safety and to keep commodities moving to market. "The first mile of that trip from the dirt of North Dakota's fields to the grocery store shelves and coolers is most likely on a township road," said Larry Severson, executive director of the North Dakota Township Officers Association.

Testimony and…