SB 333 Summary

• Road Funding Mechanism: Transfers state excess reserves to the local road and bridge matching grant fund (up to $30 million) and state highway fund, with money from the state highway fund used for preserving and reconstructing existing roads and bridges.

• Tax Changes: Increases gasoline tax from 18 cents per gallon to an indexed rate, special fuel tax from 16 cents to an indexed rate, and motor carrier surcharge tax from 11 cents to an indexed rate, all effective after June 30, 2016, with rates determined by a consumer price index formula.

• Income Tax Reductions: Reduces non-corporate taxpayer income tax rates in phases from 2019 to 2025, with rates declining from 3.3% to 3.06% by calendar year 2025.

• Local Transportation Authority: Allows counties and municipalities to impose higher motor vehicle license excise surtax and wheel tax rates (up to 20% and $80 respectively) if they adopt approved transportation asset management plans; authorizes municipalities with 20,000+ population to impose municipal surtax and wheel taxes.

• Electric Vehicle Fee and Regional Cities Funding: Imposes $100 supplemental registration fee on electric vehicles (effective after December 31, 2016) directed to the local road and bridge matching grant fund; appropriates $42 million from the regional cities development fund for a third grant under the regional cities initiative.