A BILL for an Act to amend and reenact section 57-40.3-10 of the North Dakota Century Code, relating to motor vehicle excise tax allocations; and to provide an effective date.
Summary
SB 2142 would have changed how North Dakota distributes revenue from motor vehicle excise tax collections. Under current law, those revenues are deposited in the state treasury and allocated according to section 57-40.3-10. The bill would have amended that section so that, after certain existing deposits, the money collected under the chapter would be split evenly: 50% to the state general fund and 50% to the flexible transportation fund.
The bill also included an effective date provision making the change apply only to motor vehicle excise tax collections transmitted to the state treasurer after July 31, 2025. In practical terms, it would have redirected a portion of vehicle excise tax revenue away from its existing allocation structure and into the flexible transportation fund, while preserving the other half for general state purposes.
Impact
If enacted, SB 2142 would have amended North Dakota Century Code section 57-40.3-10 governing the transfer of motor vehicle excise tax revenue. The main legal effect would have been to establish a mandatory 50/50 allocation between the general fund and the flexible transportation fund for covered collections, changing the flow of state revenue and potentially affecting funding available for transportation-related projects and the general budget. Because the bill failed, no statutory change took effect.
Sentiment
The bill did not advance and failed on Senate second reading by a vote of 0 yeas to 47 nays on February 24, 2025. That vote indicates overwhelmingly negative sentiment in the Senate toward the proposal, with no recorded support at final consideration. No committee transcripts were provided, so the available record reflects opposition at the floor vote rather than detailed committee debate.
Contention
The central point of contention appears to have been the reallocation of motor vehicle excise tax revenue between the general fund and the flexible transportation fund. Supporters likely viewed the bill as a way to dedicate more revenue to transportation uses, while opponents likely objected to reducing flexibility or altering existing revenue distribution for the state budget. The unanimous defeat suggests broad resistance, but the record provided does not identify specific arguments or named opponents beyond the Senate as a whole.
A BILL for an Act to amend and reenact section 57-40.3-10 of the North Dakota Century Code, relating to motor vehicle excise tax allocations; and to provide an effective date.
A BILL for an Act to amend and reenact section 57-40.3-02 of the North Dakota Century Code, relating to the motor vehicle excise tax; and to provide for an effective date.
The imposition of motor vehicle excise tax and an exemption for motor vehicle excise tax paid or not assessed in other states; and to provide an effective date.
A BILL for an Act to amend and reenact sections 57-40.3-02 and 57-40.3-09 of the North Dakota Century Code, relating to the imposition of motor vehicle excise tax and an exemption for motor vehicle excise tax paid or not assessed in other states; and to provide an effective date.
AN ACT to amend and reenact subsection 2 of section 57-40.3-04 of the North Dakota Century Code, relating to a motor vehicle excise tax exemption for tribal governments; and to provide an effective date.
A BILL for an Act to amend and reenact subsection 15 of section 57-40.3-04 of the North Dakota Century Code, relating to a motor vehicle excise tax exemption for enrolled tribal members; and to provide an effective date.