RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR FUEL TAX
Summary
S2668 amends Rhode Island’s motor fuel tax disposition statute to change how gasoline tax revenues are allocated beginning in fiscal year 2027. The bill sets the amount transferred to the Rhode Island Public Transit Authority (RIPTA) at the greater of 11.75 cents per gallon or 29.375% of total proceeds, and specifies that one-half cent per gallon of that amount continues to come from the environmental protection fee. The measure updates the existing revenue-sharing formula within the motor fuel tax framework rather than creating a new tax.
The bill also preserves the broader structure of the motor fuel tax fund, under which certain portions are dedicated to transportation-related uses, including the Department of Transportation, the elderly/disabled transportation program, and the Rhode Island Turnpike and Bridge Authority. It leaves in place the monthly transfer and accounting requirements and the authority for transportation-related debt service and bridge-related funding mechanisms. In practical terms, the bill would increase or lock in RIPTA’s share of fuel tax proceeds under a higher minimum formula for 2027 and beyond.
Impact
If enacted, S2668 would amend § 31-36-20 of the Rhode Island General Laws to revise the statutory allocation of motor fuel tax proceeds, specifically increasing the guaranteed transfer to RIPTA for fiscal year 2027 and later. The bill would affect the distribution of fuel tax revenues among RIPTA, the Department of Transportation, the elderly/disabled transportation program, the Rhode Island Turnpike and Bridge Authority, and the general fund, while leaving the underlying tax rate unchanged. It would also continue the use of a portion of the environmental protection fee to support transit funding.
Sentiment
Based on the bill caption and the absence of recorded committee testimony or votes, the measure appears to be framed as a transportation funding adjustment with a generally supportive policy rationale for public transit. The bill’s structure suggests an effort to provide RIPTA with a more stable or higher revenue floor. No formal opposition, amendments, or recorded vote history is available in the provided materials, so the overall sentiment cannot be measured from debate, but the proposal is presented in a straightforward fiscal and transportation context.
Contention
The main point of contention likely concerns how much motor fuel tax revenue should be reserved for RIPTA versus how much should remain available for other state transportation needs or general revenue. Any increase in the transit allocation could be viewed by opponents as reducing flexibility for the Department of Transportation, bridge and road projects, or the general fund. Supporters would likely emphasize transit funding stability and the continued dedication of a small portion of the environmental protection fee to transportation purposes. No specific stakeholder objections or endorsements are included in the provided record.
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.
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.
Exempts from sales tax the trade-in values of motorcycles as well the proceeds received as a result of an unrecovered stolen or total loss of a motorcycle.