SB 1312 Summary

• Replaces the previous motor fuel tax system with a new tax imposed at 12% of the statewide average rack price of motor fuel per gallon, effective January 1, 2017.

• Establishes a formula for determining the statewide average rack price using the previous fiscal year's average (through 2019) or previous three fiscal years' average (beginning 2020), with a minimum price floor of $2.45 per gallon and maximum of $3.33 per gallon.

• Requires the Department of Transportation to annually adjust and publish the fuel tax rate by January 1, rounded to the nearest one-tenth of one cent, based on the calculated average rack price.

• Imposes a reduced tax rate of three-nineteenths of the regular rate on alternative fuels and authorizes counties to levy an additional tax of up to 3% on wholesale motor fuel sold in their jurisdiction.

• Directs the Department of Transportation to study a road usage charge mileage-based revenue system as a potential alternative to the motor fuel tax and make recommendations to the legislature.