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S1172.....................................................by TRANSPORTATION GASOLINE FUEL TAX - Amends existing law to reduce the gasoline fuels tax by two cents per gallon to twenty-three cents per gallon; to distribute the two cents above twenty-one cents per gallon to local units of government; 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
S1172|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1172 BY TRANSPORTATION COMMITTEE 1 AN ACT 2 RELATING TO THE GASOLINE FUEL TAX; AMENDING SECTION 40-701, IDAHO CODE, TO 3 PROVIDE THAT CERTAIN FUEL TAX REVENUES SHALL BE DISTRIBUTED TO CITIES AND 4 COUNTIES; AMENDING SECTION 40-701A, IDAHO CODE, TO DELETE A REFERENCE TO A 5 REVENUE SOURCE FOR THE RESTRICTED HIGHWAY FUND AND TO PROVIDE FOR APPOR- 6 TIONMENT OF ALL MONEYS IN THE FUND TO LOCAL HIGHWAY JURISDICTIONS; AND 7 AMENDING SECTION 63-2405, IDAHO CODE, TO REDUCE THE TAX IMPOSED ON GASO- 8 LINE FUELS FROM TWENTY-FIVE CENTS PER GALLON TO TWENTY-THREE CENTS PER 9 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 bedeposited25distributed tothe restricted highway fund26local units of government as provided in section 40-709, 27 Idaho Code , and the remainder shall be distributed: 28 (b) Thirty-five and seventy-seven hundredths percent (35.77%) to local 29 units of government as provided in section 40-709, Idaho Code; 30 (c) Fifty-eight and eighty-three hundredths percent (58.83%) to the state 31 highway account established in section 40-702, Idaho Code; and 32 (d) Five and forty hundredths percent (5.40%) to the law enforcement 33 account, established in section 67-2914, Idaho Code. The state controller 34 shall cause the remittance of the moneys apportioned to local units of 35 government not later than January 25, April 25, July 25 and October 25 of 36 each year, and to the state highway account and the law enforcement 37 account as the moneys become available to the highway distribution 38 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 sections49-402(1) , 13and 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 subsections34 (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)FiftyOne hundred percent (53810 0%) tothe state highway account; and3940(c) Fifty percent (50%) tolocal 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 subsections48(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 transportation52department andthe local highway technical assistance council shall 53eachsubmit 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-fivethree cents (253 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
RS08881
This legislation repeals 2 cents per gallon of the original 4
cents per gallon for the tax imposed in 1997. this 2 cents is
the state portion. 100% of the remaining 2 cents tax is
retained by the local highway jurisdictions. In 1997, this 4
cent tax per gallon of fuel was imposed because of extreme
flood damages to road and bridges and the high percentage of
roads classified in poor condition. Since enactment of federal
legislation restored full use of federal highway funds for
highway purposes, this crisis has passed.
FISCAL NOTE
Return of $17,000,000 to tax payers will result in economic
stimulus resulting in unknown positive impact of state general
funds.
Proposed Distribution RS 08881 - Reduce Fuel Tax to 23 cents
( - 2 cents) and keep passenger car registration increase
Gross
revenue
Revenue
to ITD
Revenue
to Locals
2 cent Fuel tax increase to the RHF
$ 17.0
$ -
$ 17.0
Registration Fee Increase to RHF
$ 9.1
$ -
$ 9.1
Clean Water Trust to RHF
$ 8.5
$ -
$ 8.5
TOTAL
$ 34.6
$ -
$ 34.6
Change from Existing
$ (17.0)
$ .(25.8)
$ 8.8
CONTACT: Senator Evan Frasure
STATEMENT OF PURPOSE/ FISCAL NOTE S1172