County officials warn proposed state tax shift could reduce gas-tax revenue for local roads

County officials used the meeting to flag a pending state proposal that they said could reduce funding for local roads.

Speaker 6 described a bill circulating in the House that would reduce the gas tax by moving the tax onto producers or by changing taxation at refineries (described in the transcript as a production tax). Officials expressed concern the change could reduce the gas-tax revenue counties and cities currently receive for road maintenance and class B road funding. Speaker 6 said the county and tribe will meet with legislators and the governor's office and that they hope to defeat the proposal in the Senate; the League of Cities and Towns is also monitoring the measure.

Participants debated potential downstream effects: some said producers might reduce pump prices but could instead include the tax in pricing and shift costs back to consumers, or in other scenarios, in-state production could decline and taxable volume could fall—both outcomes that would reduce local gas-tax receipts. Several speakers urged local elected officials to communicate concerns to state legislators and the governor's office.

The transcript records expressions of concern and plans for lobbying but does not include bill numbers, text, or final legislative outcomes. Officials asked members to share concerns through existing channels and noted they will follow up during weekly meetings at the Capitol.