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Senate Finance strips gas-vehicle and jet-fuel elements from transportation bill; committee debates mileage-based user fee beginning with EVs

Senate Transportation · May 1, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Legislative counsel said Senate Finance removed purchase-and-use tax changes, the planned expansion of a mileage-based user fee for gas vehicles, and a jet-fuel surcharge; agency officials urged a phased rollout starting with battery electric vehicles using a $3 million federal grant to build IT systems and committee members debated inclusion of hybrids and rural impacts.

Damian Leonard of the Office of Legislative Council told the Senate Transportation Committee that Senate Finance has proposed three amendments to the pending transportation bill: removing sections 11–12 (changes to the purchase and use tax allocation to the education fund), striking sections 21–23 (the planned expansion of a mileage-based user fee to plug-in hybrids and, later, all light-duty vehicles with an annual inflation adjustment), and removing sections 44–45 (a jet-fuel surcharge and its allocation to transportation/aviation infrastructure).

The committee…

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