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Subcommittee advances bill to make vehicle- and tire-tax allocations recurring for transportation
Summary
The subcommittee voted to advance House Bill 1683 to convert prior one-time transportation allocations into a recurring dedication from existing sales taxes on motor vehicle sales and tires. The sponsor said the first-year fiscal note is about $1 billion; the bill passed and will move to finance and full Transportation.
House Bill 1683, presented by the bill's sponsor, would reallocate existing sales-tax revenue on motor-vehicle sales and an existing tire sales tax to create a recurring revenue stream dedicated to the highway/transportation fund. The sponsor told the committee this is not a new tax but a reallocation of dollars the state has already been collecting in the general fund for transportation.
"The fiscal note for this piece of legislation, year 1 will essentially create 1000000000 dollars of revenue for our highway fund," the sponsor said, describing prior one-time investments and the intent to make the funding recurring. The sponsor referenced the Transportation Modernization Act in the 2023 budget and said the state has placed large sums into transportation in recent cycles.
Vice Chairman Butler asked explicitly whether the bill creates a new tax; the sponsor responded "that is correct" that it does not and is a reallocation of existing revenue. After member questions and brief discussion the committee voted to advance the measure; the clerk announced the result as 10 ayes, 0 nos. The sponsor said the bill will move to finance and then full Transportation for further consideration.
