HB 1354-FN - AS INTRODUCED
2000 SESSION
HOUSE BILL 1354-FN
AN ACT indexing the rate of the motor fuel tax to changes in the value of the dollar.
SPONSORS: Rep. MacGillivray, Hills 21
COMMITTEE: Public Works and Highways
This bill ties the rate of the motor fuel tax to changes in the value of the dollar. The bill also requires the commissioner of safety to report to the house public works and highways committee and the senate transportation committee on methods for adjusting the motor fuel tax based on changes in fuel efficiency.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
00-2577
05/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT indexing the rate of the motor fuel tax to changes in the value of the dollar.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Findings. The general court finds that:
I. Highway fund revenues from road tolls should not decrease in purchasing power as a result of changes in the value of a dollar over which New Hampshire has no control.
II. Small automatic annual adjustments for changes are preferable to larger jumps at irregular intervals.
2 New Section; Road Toll Rate Indexed for Changes in Purchasing Power.. Amend RSA 260 by inserting after section 32 the following new section:
260:32-a Road Toll Rate Indexed for Inflation. The road toll imposed by RSA 260:32 shall be adjusted annually for changes in purchasing power. The commissioner of the department of safety, as soon as practical after March 31 of each year starting with 2001, shall determine the rate of the road toll commencing on July 1 of that year by multiplying the rate of the road toll imposed by RSA 260:32 by the Consumer Price Index for all urban consumers ("CPI-U") calculated by the United States Bureau of Labor Statistics, or successor index, for the most recent month available as of March 31 of that year, dividing by the same index for the most recent month available as of March 31, 2000, and rounding to the nearest 0.1 cent per gallon. The commissioner of the department of safety shall announce any change in the rate of the road toll as expeditiously as possible after making this calculation.
3 Study. The commissioner of the department of safety shall, on or before November 15, 2000, submit a report to the house clerk, the senate clerk, the house public works and highways committee, the senate transportation committee, and the governor describing one or more possible methods for automatically adjusting the rate of the road toll imposed by RSA 260:32 and RSA 260:32-a whenever the average fuel efficiency of motor vehicles in New Hampshire increases, so that revenues to construct, maintain, and administer highways do not increase.
4 Effective Date. This act shall take effect January 1, 2001.
LBAO
00-2577
12/8/99
HB 1354-FN - FISCAL NOTE
AN ACT indexing the rate of motor fuel tax to changes in the value of the dollar.
FISCAL IMPACT:
The Department of Safety indicates this bill will have an indeterminable increase on state highway revenue in FY 2001 and state highway revenues, expenditures and local revenue in FY 2002 and each year thereafter. There is no fiscal impact on county revenue or county and local expenditures.
METHODOLOGY:
The Department states the fiscal impact of this bill cannot be estimated because the Department is unable to predict the future Consumer Price Index and its effect on the gasoline road toll, as proposed in this bill. For informational purposes, the official budget for gasoline road toll is $124.0 million and $128.3 million for FY 2000 and FY 2001, respectively. The Department further states that state highway expenditures and local revenue would be impacted to reflect the 12% apportionment to the cities and towns requirement that would occur the year following the implementation date of this bill.