Introduced by Representatives Keogh of Burlington and Audette of S. Burlington
Subject: Taxation; gasoline and diesel excise taxes; link to inflation; transportation support
Statement of purpose: This bill proposes to adjust the gasoline and diesel tax rates by inflation and to distribute a portion of the revenue to VTrans and to towns for assistance with transportation costs.
AN ACT RELATING TO GASOLINE AND DIESEL TAX ADJUSTED FOR INFLATION AND REVENUE FOR TRANSPORTATION SUPPORT
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 23 V.S.A. § 3003(a) is amended and (f) is added to read:
§ 3003. IMPOSITION OF TAX; EXCEPTIONS
25 27.5 cents per gallon and a fee of one cent per gallon
is imposed on each gallon of fuel established pursuant to the provisions of 10
V.S.A. § 1942:
(1) sold or delivered by a distributor; or
(2) used by a user.
(f) The tax rate in subsection (a) of this section shall be adjusted each calendar quarter by multiplying the current quarter’s adjusted tax rate by the Consumer Price Index rate of inflation for the New England region for the six months preceding the calendar quarter. The new rate shall be announced by the commissioner on the first day of each calendar quarter.
Sec. 2. 23 V.S.A. § 3106(a) and (d) are amended and (e) is added to read:
§ 3106. IMPOSITION, RATE, AND PAYMENT OF TAX
for sales of motor fuels between distributors licensed in this state, which
sales shall be exempt from the tax, in all cases not exempt from the tax under
the laws of the United States at the time of filing the report required by
section 3108 of this title, each distributor shall pay to the commissioner a
19 20.9 cents per gallon upon each gallon of motor fuel
sold by the distributor. The distributor shall also pay to the commissioner a
tax in the same amount upon each gallon of motor fuel used within the state by
him or her.
(d) Since many nonresidents and
residents drive to outdoor areas of Vermont in order to view our natural
resources, to hunt and fish and to use our natural resources for other
healthful recreational purposes, it is the policy of this state that a portion
of the gasoline tax shall be dedicated for the purpose of conserving and maintaining
our natural resources. Therefore, beginning in fiscal year 1998, three-eighths
one cent of the tax the one‑cent fee collected under
subsection (a) of this section shall be transferred 76 percent to the fish and
wildlife fund and 24 percent to the department of forests, parks and recreation
for natural resource management. Of the funds deposited in the fish and
wildlife fund, the interest earned by deposited funds and all funds remaining
at the end of the fiscal year shall remain in the fish and wildlife fund.
(e) The tax rate in subsection (a) of this section shall be adjusted each calendar quarter by multiplying the current quarter’s adjusted tax rate by the Consumer Price Index rate of inflation for the New England region for the six months preceding the calendar quarter. The new rate shall be announced by the commissioner on the first day of each calendar quarter.
Sec. 3. 19 V.S.A. § 11 is amended to read:
§ 11. TRANSPORTATION FUND
(a) The transportation fund shall be comprised of the following:
* * *
(2) ninety percent of the revenue derived from the taxes on motor fuel as provided for by Title 23;
(3) all grants from the federal government and regional associations for transportation purposes except for snowmobiles and motorboats;
(4) moneys received from the sales and use tax on aviation jet fuel under 32 V.S.A. chapter 233;
(5) receipts from pilot and aircraft license fees;
penalties and fines imposed under Titles 5, 19, and 23;
statewide and departmental indirect cost recoveries from federal sources by the
agency of transportation
(8) other miscellaneous sources including the sale of maps, plans, and reports, fees collected by the travel information council, and leases for property at state-owned airports and railroads.
(b) Of the revenue from the gasoline and diesel fuel taxes in Title 23, ten percent shall be distributed by the commissioner of finance and management on a quarterly basis as follows:
(1) three percent to VTrans for public transportation; and
(2) seven percent to towns, allocated among the towns based on the percentage of their miles of town-maintained roads to all miles of
town-maintained roads in Vermont, for road, sidewalk, and streetlight maintenance, public transportation, and other transportation costs of the town.
Sec. 4. EFFECTIVE DATES
This act shall take effect upon passage, and Secs. 1 and 2 of this act shall apply to calendar quarters beginning January 1, 2006, and after; Sec. 3 shall apply to calendar quarters beginning April 1, 2006, and after.
The Vermont General Assembly
115 State Street