Committee redirects state portion of vehicle sales/use taxes to highway fund, estimates ~$67M annually

The committee voted unanimously to sponsor bill draft 25LSO0257, which would transfer the state portion of motor-vehicle sales and use taxes (the statewide portion of the vehicle sales/use tax) to the highway fund beginning July 1, 2025.

LSO overview and administrative concerns: Talise Hanson described statutory changes to sales/use tax distribution. Department of Revenue staff explained county treasurers collect most vehicle sales tax on cars and trucks and remit returns that the department can trace; they said the state portion involved is roughly $67 million in the most recent fiscal year and that mopeds/motorcycles/ORVs are reported differently and pose administrative complexity.

WYDOT perspective and amendment: WYDOT said vehicle purchasers use roads and should contribute to maintenance; the department and Revenue proposed and the committee adopted amendments to exclude mopeds/motorcycles/ORVs from the transfer (to avoid imposing new vendor return burdens) and to allow a transitional FY2026 general-fund transfer while the Department of Revenue implements programming changes.

Vote and implementation: After adopting two agency-drafted amendments the committee voted 14-0 to sponsor the bill as amended. Department of Revenue will implement necessary programming to distribute funds directly to the highway fund in subsequent fiscal years; initial reporting will use a transfer mechanism for FY2026 to avoid administrative disruption.

Fiscal scale: Department of Revenue noted the state share being redirected is approximately $67 million in the last fiscal year; local and county shares are not altered by the draft and remain with counties and local entities as under current law.