Purchase and Use Tax
A purchase and use tax that is equivalent to the sales tax rate is assessed, upon the occasion of first registration, on the purchase price of a motor vehicle (less allowance for the resale value of the buyer's used vehicle). The maximum tax on trucks over 6,100 pounds, agricultural vehicles, school buses, trailers and motorcycles is $750.00. Effective August 1, 1997 the purchase and use tax rate increased from 4% to 5%. In fiscal year 1998, the purchase and use tax is expected to constitute more than 31% of the total transportation fund revenue.
Motor Fuel Taxes
Effective August 1, 1997, gasoline distributors are taxed at a rate of nineteen cents per gallon sold. Diesel fuel purchased at the pump is taxed at a rate of seventeen cents per gallon. Diesel fuel users who pay based on reported miles driven are taxed at a rate of twenty six cents. In fiscal year 1998, gasoline tax revenue is estimated to contribute over 33% of the total transportation fund revenue; diesel fuel taxes are forecast to be slightly more than 6% of fund revenue.
Motor Vehicle Fees
A registration fee is collected on all motor vehicle and trailers. The fee is determined by the type, size, weight, and purpose of the vehicle. In fiscal year 1998, motor vehicles fees will contribute more than 22% to total transportation fund revenue.