S.B. No. 132 Summary

• Maintains the motor fuel excise tax rate at 28 cents per gallon, with revenue distributed to state and local purposes including highway maintenance, administration, and bond obligations.

• Creates a new distribution mechanism for any tax rate increases above 28 cents per gallon, allocating 55% to the highway operating fund and 45% to the gasoline excise tax fund for distribution to local governments.

• Changes the distribution formula for revenue increases to local governments by implementing a vehicle miles traveled (VMT) methodology for municipal corporations, counties, and townships rather than the previous registration-based approach.

• For VMT-based distributions under increased tax revenue, allocates 62.86% to municipal corporations and townships combined and 37.14% to counties based on road maintenance responsibility and vehicle miles on maintained highways.

• Requires the Department of Transportation to annually report vehicle miles traveled data by county and municipality to calculate distribution amounts, with implementation beginning the first day of the first full month after the bill's effective date.