House Appropriations hears plan to shift purchase-and-use tax from education to transportation

House Appropriations Committee members on Tuesday heard a briefing from the Joint Fiscal Office on the motor-vehicle purchase-and-use tax and a governor’s recommendation to phase $10 million a year from the education fund to the transportation fund.

Logan Moberg of the Joint Fiscal Office began the presentation by defining the levy: “So we call it purchase and use tax. The full name is the motor vehicle purchase and use tax,” and explained it is levied at 6% of a vehicle’s value, with a $2,486 cap that applies to certain heavy trucks (those registered over 10,099 pounds), plus a separate 9% tax on short-term rental vehicles.

Moberg reviewed the tax’s history and current allocations. He said that after several changes the state now directs one-third of purchase-and-use…