The bill amends Section 31-36-7 of the General Laws in Chapter 31-36, which pertains to the "Motor Fuel Tax." It introduces a new subsection (c) that establishes a restricted receipt account named "municipal projects." This account is to be funded by allocating fifteen percent (15%) of the revenue collected from the gasoline tax each year. The funds in this account are designated for local capital improvements. Additionally, the bill requires the Department of Transportation to develop a formula to determine the distribution of funds to cities and towns for capital improvements on local public ways. The formula will consider factors such as local road mileage, population, and employment in each city or town.

The bill also stipulates that the Department of Transportation must calculate the amounts to be distributed from the restricted receipt account by June 15 of each year, based on the account balance as of June 1. The determined funds must then be distributed to local communities by July 1 of each year. The bill includes an insertion that adjusts the gasoline tax biennially based on the Consumer Price Index for all Urban Consumers (CPI-U), ensuring that the tax does not fall below the rate specified in subsection (a). The act is set to take effect upon passage.

Statutes affected:
785: 31-36-7