The bill amends Section 31-36-7 of the General Laws in Chapter 31-36, titled "Motor Fuel Tax," to update the process for adjusting the gasoline tax for inflation. It establishes that beginning July 1, 2025, and every two years thereafter, the gasoline tax will be adjusted based on the percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U) over the previous two years, rather than the previous year as currently practiced. The adjustment will be calculated by comparing the CPI-U as of September 30 of the prior calendar year (measurement date) with the CPI-U from September 30, twenty-four months prior to said measurement date.

Additionally, the bill removes the previous start date of July 1, 2015, for the adjustment and replaces it with July 1, 2025. It introduces new language regarding the reporting requirements for distributors, including the need to report the amount of fuels purchased, sold, or used, along with details about transactions as required by the tax administrator. The act is set to take effect upon passage.

Statutes affected:
47: 31-36-7