Both the House (HB 1131) and Senate (SB1) versions of have been referred to House State Affairs committee, with a hearing scheduled for Wednesday, February 18.  Currently HB 1131 (the Governor’s bill) and SB 1 closely mirror each other:

·         Each increases the vehicle excise tax from 3% to 4%

·         Each increases the fuel fees (including ethanol) by 2 cents per gallon each year.

HB 1131 ends in 2030

SB 1 ends in f June 2023

·         Each increases vehicle registration fees by ten percent

·         Each increases the farm truck registration fees:

HB 1131 goes to 70% of the commercial rate in the first year, and then to 80% the next year

SB 1 goes to 70% of the commercial rate in the first year, and then to 75% the next year

·         Each allows counties to assess an additional $1.20 per thousand dollars of valuation, and the townships to assess an additional 50 cents per thousand, for roads. The additional assessment would need to be approved by a public vote.

Additional amendments that are being discussed include:

·         Implementing annual increases in the vehicle registration fee, from one to three dollars per year, based on the age of the vehicle

·         Adding a $40 annual registration fee for hybrid vehicles and an $80 fee for electric vehicles, as a substitute for the gas tax those vehicles are not paying in return for wear and tear on the highway system.

·         Allowing counties to impose a wheel tax on up to 12 wheels per vehicle.

The bills will generate over $50,000,000 for state and local highway and bridges. Additional money for local roads and bridges will be generated the counties and townships assessing for rad needs.