Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Mileage Based User Fee topic
No spam. Unsubscribe anytime.
Conference committee debates mileage-based user fee options, timing and credits
Summary
Members and staff debated key differences between the House and Senate versions of a proposed mileage-based user fee: payment timing, a $178 cap in the Senate, a 1.4¢/mile rate in both versions, inspection-credit mechanics and a phased transition with federal-plan reporting deadlines through 2028.
The conference committee reconciling the House and Senate transportation bills spent much of the session on how a mileage-based user fee (MBUF) would work in practice and how to phase it in.
Damon Leonard, legislative counsel, told the committee that both bills set the fee at 1.4¢ per mile but diverge on payment options: the House would require payment within 45 days of the mileage-reporting period, while the Senate adds a pay-as-you-go option, estimated advance payments and a flat-fee alternative and includes a $178 cap that the House does not. "The amount of the mileage based user fee is 1.4¢ per mile in both versions," Leonard said.
The Senate text further defines a mileage-reporting period to capture newly registered vehicles and proposes several reporting requirements for implementation. Leonard said the Senate would require an Agency of Transportation transition plan due Jan. 2027 with legislative recommendations, a draft federally required plan by July 30, 2028, and a final federally required plan by Sept. 15, 2028.
An Agency of Transportation official, whose name was not specified in the transcript, told members the agency favors implementation language that eases consumer interactions with DMV and supports the long-term health of the transportation fund. The official proposed a 60-day accommodation for registration invoicing so that mileage-reporting periods that close within 60 days of a registration renewal could be payable at the subsequent renewal; the change is intended to allow renewal notices (sent ~45–60 days before renewal) to include the mileage charge without forcing consumers to pay before they can appeal odometer readings.
The agency also proposed a 90-day inspection-credit window: if an owner obtains a required inspection within 90 days after a registration renewal, the agency could credit the difference between a default flat fee and the actual mileage-based amount, provided the agency has sufficient odometer data (typically two readings).
Committee members asked about revenue-timing effects and consumer protections; agency staff said the 60-day approach may defer some receipts to the next reporting period but does not change the miles counted. The Senate text contains options to expand the fee to hybrids and plug-in hybrids in future years and, in one section, raises the default flat rate to $375 to align with transportation-fund defaults.
Next steps the committee requested included a concise tracking document that groups differences by topic and clear drafting language for the 60-day invoice accommodation, inspection-credit rules and the implementation-report timeline. The committee did not take a final vote on any provision during the session.
