1999 Legislation
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SENATE BILL NO. 1167 – Gas tax, reduced to 21[ per gal

SENATE BILL NO. 1167

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S1167.....................................................by TRANSPORTATION
GASOLINE FUEL TAX - Amends existing law to reduce the gasoline fuel tax
from twenty-five cents per gallon to twenty-one cents per gallon; and to
distribute all revenues in the Restricted Highway Fund to local highway
jurisdictions.

02/12    Senate intro - 1st rdg - to printing
02/15    Rpt prt - to Transp

Bill Text


S1167


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1167

                               BY TRANSPORTATION COMMITTEE

 1                                        AN ACT
 2    RELATING TO THE GASOLINE FUEL TAX; AMENDING SECTION  40-701,  IDAHO  CODE,  TO
 3        DELETE PROVISIONS OF LAW WHICH DISTRIBUTE CERTAIN MOTOR FUELS TAX REVENUES
 4        TO  THE  RESTRICTED HIGHWAY FUND; AMENDING SECTION 40-701A, IDAHO CODE, TO
 5        DELETE A REFERENCE TO A REVENUE SOURCE FOR THE RESTRICTED HIGHWAY FUND AND
 6        TO PROVIDE FOR APPORTIONMENT OF ALL MONEYS IN THE FUND  TO  LOCAL  HIGHWAY
 7        JURISDICTIONS; AND AMENDING SECTION 63-2405, IDAHO CODE, TO REDUCE THE TAX
 8        IMPOSED  ON GASOLINE FUELS FROM TWENTY-FIVE CENTS PER GALLON TO TWENTY-ONE
 9        CENTS PER GALLON.

10    Be It Enacted by the Legislature of the State of Idaho:

11        SECTION 1.  That Section 40-701, Idaho Code, be, and the  same  is  hereby
12    amended to read as follows:

13        40-701.  HIGHWAY  DISTRIBUTION  ACCOUNT  --  APPORTIONMENT.  (1)  There is
14    established in the state treasury an account known as the  "Highway  Distribu-
15    tion Account," to which shall be credited:
16        (a)  Moneys  as  provided by sections 63-2412(1)(e)4 and 63-2418(3), Idaho
17        Code;
18        (b)  All moneys collected by the department, their agents and vendors, and
19        county assessors and sheriffs, under the provisions  of  title  49,  Idaho
20        Code, except as otherwise specifically provided for; and
21        (c)  All other moneys as may be provided by law.
22        (2)  The highway distribution account shall be apportioned as follows:
23        (a)   An amount equivalent to the net increase in the motor fuels tax
24        exceeding  twenty-one  cents  (21[)  per  gallon shall be deposited to the
25        restricted highway fund, and the remainder shall be distributed: 
26          (b)    Thirty-five  and  seventy-seven   hundredths   percent
27        (35.77%) to local units of government as provided in section 40-709, Idaho
28        Code;
29        (  c    b )  Fifty-eight and eighty-three hundredths
30        percent (58.83%) to the  state  highway  account  established  in  section
31        40-702, Idaho Code; and
32        (  d  c )  Five and forty hundredths percent (5.40%)
33        to the law enforcement account,  established  in  section  67-2914,  Idaho
34        Code. The state controller shall cause the remittance of the moneys appor-
35        tioned  to  local units of government not later than January 25, April 25,
36        July 25 and October 25 of each year, and to the state highway account  and
37        the  law enforcement account as the moneys become available to the highway
38        distribution account.
39        (3)  Interest earned on the investment of idle moneys in the highway  dis-
40    tribution account shall be paid to the highway distribution account.
41        (4)  All  idle  moneys in the dedicated highway trust or asset accounts or
42    subaccounts established from highway user revenues,  reimbursements,  fees  or
43    permits  shall  be  invested by the state treasurer in the same manner as pro-


                                          2

 1    vided under section 67-1210, Idaho Code, with respect to other surplus or idle
 2    moneys in the state treasury. Interest earned  on  the  investments  shall  be
 3    returned to the various highway trust or asset accounts and subaccounts.

 4        SECTION  2.  That  Section 40-701A, Idaho Code, be, and the same is hereby
 5    amended to read as follows:

 6        40-701A.  RESTRICTED HIGHWAY FUND. (1) In order to insure that  authorized
 7    increases  in highway user taxes and fees are expended exclusively on the con-
 8    struction and maintenance of highways, bridges and railroad  crossings,  there
 9    is established in the state treasury the "Restricted Highway, Bridge and Rail-
10    road Crossing Maintenance, Repair and Construction Fund" hereafter referred to
11    as the restricted highway fund, to which shall be credited:
12        (a)  Moneys  as  provided by section s  49-402(1) , 
13         and 40-701(2)(a),  Idaho Code; and
14        (b)  All other moneys as may be provided by law; and
15        (c)  Interest earned on the investment of idle moneys  in  the  restricted
16        fund shall be paid to the restricted highway fund.
17        (2)  Moneys in the fund shall be apportioned as follows:
18        (a)  Beginning April 1, 1996, all moneys accruing to the fund in an amount
19        not to exceed six million dollars ($6,000,000) shall be transferred to the
20        state  highway  account  to  be  administered  by the Idaho transportation
21        department for use as the state and local match for federal highway admin-
22        istration (FHWA) and federal emergency management agency (FEMA)  road  and
23        bridge projects. Such moneys shall be used exclusively for repair and res-
24        toration of local and state roads damaged by the 1996 and by the 1997 nat-
25        ural  disasters  as  defined by federal law and regulation under title 23,
26        code of federal regulations, section 668.103(f), in the counties of Adams,
27        Benewah, Boise, Bonner, Boundary, Clearwater, Elmore, Gem,  Idaho,  Koote-
28        nai,  Latah, Lewis, Nez Perce, Owyhee, Payette, Shoshone, Valley and Wash-
29        ington. When apportionment of moneys to the state highway account is  suf-
30        ficient  to meet the purposes for which the moneys are designated, but not
31        exceeding six million dollars ($6,000,000), no additional transfers  shall
32        be  made  as  provided in this subsection, and moneys accruing to the fund
33        shall thereafter be apportioned as provided in  subsection  s  
34        (2)(b)    and (2)(c)  of this section. Any unused moneys trans-
35        ferred to the state highway account under the provisions of  this  subsec-
36        tion shall be returned to the restricted highway fund.
37        (b)    Fifty      One  hundred    percent  (  5
38         10 0%) to  the state highway account; and
39     
40          (c)  Fifty  percent  (50%) to  local highway jurisdictions in
41        accordance with the provisions of section 40-709, Idaho Code.
42        (3)  Subsequent to apportionment  of  moneys  as  required  in  subsection
43    (2)(a) of this section, the state controller shall remit moneys apportioned to
44    the  state  highway  account,  and shall cause the remittance of moneys appor-
45    tioned to the local highway jurisdictions not later than January 25, April 25,
46    July 25 and October 25 of each year.
47        (4)  Moneys apportioned from the fund as  provided  in  subsection  s
48      (2)(b)    and  (2)(c)  of this section shall be used exclu-
49    sively for the construction, repair and maintenance of  the  roads,  highways,
50    bridges and railroad crossings within the state.
51        (5)  On  or before February 1 of each year,  the Idaho transportation
52    department and  the local highway  technical  assistance  council  shall
53      each  submit a report to both the senate transportation committee


                                          3

 1    and the house transportation and defense committee of the  Idaho  legislature,
 2    which  provides  a detailed accounting of the moneys apportioned, the projects
 3    for which moneys from the fund were expended, and the effect such expenditures
 4    have had on addressing the backlog of highway, bridge  and  railroad  crossing
 5    needs.

 6        SECTION  3.  That  Section 63-2405, Idaho Code, be, and the same is hereby
 7    amended to read as follows:

 8        63-2405.  IMPOSITION OF TAX. (1) An excise tax is hereby  imposed  on  all
 9    gasoline received. The tax is to be paid by the licensed distributor, and mea-
10    sured  by the total number of gallons of gasoline received by him, at the rate
11    of twenty- five  one  cents   (2  5    1
12    [)  per gallon. That tax, together with any penalty and/or interest due,
13    shall be remitted with the monthly distributor's report  required  in  section
14    63-2406, Idaho Code.
15        (2)  The  excise tax rate set forth in this section shall, when applied to
16    gasohol or to special fuels designed for use in diesel engines, be reduced  by
17    the same percentage that the quantity of denatured anhydrous ethanol contained
18    in  the gasoline or, in the case of special fuels the quantity of such special
19    fuel which is derived from agricultural products or the wastes of  such  prod-
20    ucts,  bears  to  the total fuel subject to tax. Provided however, in no event
21    shall the rate set forth in this section be  reduced  more  than  ten  percent
22    (10%).

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE

                              RS08882

This legislation repeals the $.04 fuel tax imposed in 1997. It
reduces tax imposed on gasoline fuels from twenty-five cents per
gallon to twenty-one cents per gallon. This bill also gives
local highway jurisdictions 100% of restricted highway fund from
registration fees.







                            FISCAL NOTE

Return of $34,000,000 to tax payers will result in economic
stimulus resulting in unknown positive impact of state general
funds.

Passage of Federal T-21 legislation results in an increase of
approximately $77 million per year over the next 6 years to
Idaho Transportation Department.

Proposed Distribution - R5 08882 - Reduce Fuel Tax to 21 cents
      ( - 4 cents) and keep passenger car registration increase
      


Gross
revenue
Revenue
to ITD
Revenue
to Locals


0 cent Fuel tax increase to the RHF
$       -
$      -
$       -


Registration Fee Increase to RHF
$       9.1
$      -
$       9.1


Clean Water Trust to RHF
$       8.5
$      -
$       8.5


TOTAL
$      17.6
$      -
$      17.6


      Change from Existing
$     (34.0)
$     (25.8)
$      (8.2)




CONTACT: Senator Evan Frasure
         Phone: 332-1315

STATEMENT OF PURPOSE/ FISCAL NOTE             S1167