Transportation Funding Adjustments

     Contingent upon voter approval of a proposed initiative to amend the state constitution to change existing law on transportation funding and to increase the amount of state revenue dedicated to road transportation (proposed initiative), from January 1, 2027, through July 1, 2030, the bill reduces:

• The excise tax on gasoline from $0.22 per gallon to $0.14 per gallon;
• The excise tax on special fuel from $0.215 to $0.13 per gallon;
• Certain vehicle registration fees, including late fees; and
• The road usage fees initially from $0.06 to $0.04 per gallon, and then as necessary to offset the amount of state revenue diverted to transportation uses as the result of a proposed initiative.

     The bill also creates the support road transportation fund (fund) contingent upon voter approval of the proposed initiative. The fund consists of state revenue dedicated to road transportation by the proposed initiative. Money in the fund is used to replace certain transportation-related general fund transfers for payments for the financed purchase of assets or certificate of participation agreements, and to replace certain general fund transfers to the state highway fund. The money remaining in the fund after making these transfers is allocated as follows:

• 60% is paid to the state highway fund;
• 23% is paid to counties for certain transportation expenses; and
• 17% is paid to cities and incorporated towns for certain transportation expenses.

     Lastly, the bill clarifies that state revenue collected to support road transportation, as defined in the proposed initiative, does not include enterprise fee revenue.


(Note: This summary applies to this bill as introduced.)