The bill amends Section 31-36-7 of the General Laws concerning the Motor Fuel Tax, specifically focusing on the reporting and payment requirements for fuel distributors. It mandates that every distributor must submit a monthly report detailing the amount of fuel purchased, sold, or used within the state, along with the corresponding tax payment of thirty-two cents ($0.32) per gallon. Additionally, the bill introduces a provision that requires the state controller to establish a restricted receipt account for gasoline tax receipts if the federal government mandates a portion of the tax for highway improvements.

A significant change in the bill is the adjustment of the gasoline tax, which will now occur every two years instead of annually, starting from July 1, 2025. The adjustment will be based on the two-year percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U), comparing the index from September 30 of the previous year to that of September 30, twenty-four months prior. This adjustment will ensure that the tax reflects inflation over a longer period, with the stipulation that the total tax cannot fall below the current rate. The act will take effect upon passage.

Statutes affected:
5468: 31-36-7