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Transportation Funding Bill, HB 170, Passes the Senate Today The Senate passed the Senate Substitute to HB 170, the Critical Transportation Act, as amended on the Senate floor (29-25). The Substitute retains some original provisions from the House version, but the Senate substitute to HB 170 as amended on the Senate Floor includes the following changes; Floor Amendment to Senate Sub: Deleted section 3-3 removing the annual "highway use impact fee" paid on an annual basis.
Changes to State Revenue in Senate Sub: • A 24 cents-per-gallon state excise tax on gasoline and diesel, down from the House’s 29.2 cents-per gallon proposal; • The indexing formula was changed to remove the CAFÉ standards and only index based on CPI; • A $5 rental car fee charged at a flat rate for all rentals regardless whether they are for business or • A $250 million annual payment toward debt service for the state Department of Transportation, to allow the department to free up a matching amount toward its motor fuel fund to pay for projects • Repeals the tax free weekend that typically occurs the first weekend in August.
Changes to Local Governments in Senate Sub: The substitute leaves the current rate and sales tax base for all local sales taxes alone but caps the average retail price for fuel that the local sales taxes can be collected on at the four year average rate of $3.39 per gallon of gasoline, not including diesel. By comparison, local sales taxes are currently being collected on an average price of $2.59 per gallon for gasoline and $3.16 per gallon for diesel. The $3.39 cap would apply equally to gasoline and diesel fuel.
An updated summary and the current version of the bill as passed by the Senate on Friday, March 20, can be found here.
It is likely for this legislation to undergo other changes as it moves through the final days of the session. Please continue to monitor the ACCG website and watch for Action Alerts from the policy staff. Legislative Priority HB 202 in Senate Finance Committee One of ACCG’s legislative priorities, HB 202, will be heard in the Senate Finance Subcommittee today. This legislation deals with property tax administration appeals and administration reform. ACCG asks that you continue to monitor this priority legislation as well. Click here for the most recent summary and version of HB 202.
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