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Senate debates proposal to change future gas‑tax split to 60/40 for new revenue
Summary
Senators debated House Bill 308, which would leave the current state/local motor fuel distribution intact but, if the legislature raises the gas tax in the future, allocate any new revenue 60% to state and 40% to local governments. The Wilbur Smith study, road‑transfer assumptions, and timing of the change were central to the debate.
Senate debate on House Bill 308 focused on how any future increase in the motor fuel tax would be distributed between the state and local governments. Under the bill’s text presented on the floor, the existing distribution remains unchanged; if the tax is raised later the increase would be split 60% state / 40% local.
Supporters — including the League of Cities and Towns and the Association of Counties — said the change responds to local infrastructure needs; speakers noted municipal road budgets rely in part on the motor fuel tax and argued increased local share would help cities and counties preserve streets and meet maintenance needs.
Opponents cautioned that the Wilbur Smith highway study assumptions (continuing federal funding levels and road transfers between state and local control) remain unresolved, and warned the proposal could create unfunded responsibilities if the state shifts road maintenance to local governments without secured revenue or an agreed transfer plan. Several senators urged that any redistribution be decided at the moment a tax increase is proposed, when revenue flows and responsibilities can be evaluated together.
Floor speakers pointed to the complexity of the long‑term transport funding picture and recommended further study and negotiation before enacting a permanent future formula.
