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Appropriations committee sends bill diverting vehicle sales tax to WYDOT to House floor
Summary
House Bill 33, which would divert the state portion of vehicle sales tax to the Wyoming Department of Transportation, was recommended do pass by the House Appropriations Committee after testimony from WYDOT and discussion of long-term road-funding shortfalls.
The House Appropriations Committee on Oct. 27 recommended House Bill 33, a measure to divert the state-side portion of sales tax on vehicle purchases to the Wyoming Department of Transportation (WYDOT) to address chronic shortfalls in road funding.
Chairman Chipman Brown opened discussion by framing the bill as a targeted revenue redirection aimed at funding road maintenance. The committee was told the proposal would divert roughly $69 million in the first year (growing by about $1 million annually in early years), which the sponsor and WYDOT said would be earmarked for state highway preservation and maintenance.
WYDOT Director Darren Westby told the committee the department had operated for years with flat revenues while inflation and deferred maintenance have eroded buying power. "We've been flat revenue wise for 20 years," Westby said, describing a long-term funding gap and WYDOT's shift to a preservation-only operating mode.
The committee examined trade-offs. Chairman Brown and other members noted the diversion reduces general fund resources available for other state agencies and programs; committee members named examples such as the Department of Environmental Quality, Department of Family Services and state parks. The bill's fiscal note estimated a drop of about $70 million from the general fund and committee discussion emphasized that how to backfill or adjust other budgets would be the legislature's decision.
Testimony also addressed implementation details. The sponsor and staff said the bill would affect only the state-side portion of the sales tax on vehicles and would not change local sales-tax disbursements. The Department of Revenue told the committee the change requires programming and distribution work; the committee record shows the Department sought a $100,000 appropriation to cover programming costs, a request committee members said they would consider later as the bill moves forward.
Committee members and witnesses placed the measure in a broader package of options considered during an interim study: one complementary bill that would have redirected severance taxes was defeated, and other revenue ideas were discussed but not advanced. Supporters described HB 33 as one bite of a larger solution to an approximate $400 million annual shortfall in WYDOT funding identified in prior studies.
Representative Harrelson moved that the committee recommend the bill "do pass;" Representative Aleman seconded. The roll-call vote was 7–0 in favor (Representatives Aleman, Angelos, Haroldson, Pendergraft, Sherwood, Smith and Chairman Bair voted aye). With that recommendation, HB 33 advances to the full House for further consideration.
