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BILL AS INTRODUCED 2007-2008

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H.279

Introduced by   Representatives Keogh of Burlington and Audette of                 S. Burlington

Referred to Committee on

Date:

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 for 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

(a)  A tax of 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 is amended to read:

§ 3106.  Imposition, rate, and payment of tax

(a)  Except 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 tax of 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 of 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:

(1)  all taxes, penalties, and fees received by the commissioner of motor vehicles except those relating to motorboats imposed under chapter 29 of Title 23 which shall be expended pursuant to 23 V.S.A. § 3319;

(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;

(6)  all penalties and fines imposed under Titles 5, 19, and 23; and

(7)  both statewide and departmental indirect cost recoveries from federal sources by the agency of transportation.; and

(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, 2008 and after; Sec. 3 shall apply to calendar quarters beginning April 1, 2008 and after.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us