Extends allocation of motor fuel tax to the Intermodal Surface Transportation Fund through 2025. Changes the allocation to 30% total proceeds, including 30% from the one cent per gallon environmental protection fee through 2026 and thereafter.
S0046 amends Rhode Island’s motor fuel tax disposition statute to change how gasoline tax revenues are allocated to the Intermodal Surface Transportation Fund. Under current law, the statute contains a series of historical allocation formulas and earmarks for transit, the Elderly/Disabled Transportation Program, the Rhode Island Turnpike and Bridge Authority, debt service, and general revenue. This bill updates the schedule so that, for fiscal year 2026 and thereafter, 30% of total motor fuel tax proceeds — including 30% of the environmental protection fee portion — will be deposited into the transportation fund.
The bill also preserves the existing framework that directs certain portions of fuel tax receipts to transportation-related uses, including the Rhode Island Public Transit Authority, the Department of Human Services’ Elderly/Disabled Transportation Program, and the Rhode Island Turnpike and Bridge Authority, while the remaining funds continue to support the Department of Transportation subject to annual appropriation. It takes effect upon passage and is primarily a revenue-allocation measure rather than a new tax or fee.
In practical terms, the bill would alter state fiscal law by revising the statutory distribution of motor fuel tax revenues and extending the transportation fund allocation formula beyond 2025. It would affect the flow of money among the general fund, transit programs, bridge and road financing, and transportation debt service, but it does not create a new program or change the underlying motor fuel tax rate.
The available context shows no recorded committee testimony or votes, so there is no documented public debate in the materials provided. Based on the bill’s content, the likely overall sentiment is neutral-to-supportive among transportation and infrastructure stakeholders because it maintains and clarifies dedicated transportation funding. Any concern would likely center on the impact to general revenue and the continued earmarking of fuel tax receipts away from the state’s general fund.
The bill amends § 31-36-20 governing the disposition of motor fuel tax proceeds. It changes the statutory allocation beginning in fiscal year 2026 so that 30% of total proceeds, including the environmental protection fee component, are credited to the Intermodal Surface Transportation Fund. The measure leaves in place existing transfers and uses tied to transit, elderly/disabled transportation, bridge authority funding, and Department of Transportation expenditures, thereby affecting the distribution of state transportation-related revenues and the amount available for general revenue.
No committee transcripts or vote records were provided, so there is no direct evidence of debate or opposition in the available materials. The bill’s purpose appears administrative and fiscal, and its structure suggests a generally supportive posture toward maintaining dedicated transportation funding. Because it preserves established earmarks and extends the allocation formula, the likely sentiment is pragmatic and budget-focused rather than controversial.
The main potential point of contention is fiscal: increasing or preserving the share of motor fuel tax revenues dedicated to transportation reduces flexibility for the general fund and may limit money available for other state priorities. Another possible issue is the continued earmarking of fuel tax receipts among multiple recipients, including transit, the Elderly/Disabled Transportation Program, and the Rhode Island Turnpike and Bridge Authority, which can create competing claims on a finite revenue stream. No specific objections or proponents are documented in the provided record.