This bill requires the department of transportation to direct a study of transportation infrastructure needs, costs, and funding sources for the years 2028, 2050, and 2075. In conducting the study, the department must consider existing sources of revenue dedicated to transportation infrastructure, including the highway fund, potential sources of existing revenue not dedicated to transportation but derived substantially from transportation activities, and the impact of the bill's allocation of revenues received from the sale, use, consumption, distribution, or storage for use or consumption of new or used motor vehicles and new or used tires on or after October 1, 2026, on transportation infrastructure needs. The department must report findings and recommendations to legislative committees by January 1, 2028. ALLOCATIONS FROM TAXES ON CERTAIN MOTOR VEHICLES AND TIRES This bill also reallocates the receipts for the monies received from the sale, use, consumption, or distribution of new or used tires on or after July 1, 2025, for the transportation equity trust fund as a special allocation by including revenues received from the sale, use, consumption, distribution, or storage for use or consumption of new or used motor vehicles and new or used tires on or after October 1, 2026. Further, this bill makes the following allocations from the sale, use, consumption, distribution, or storage for use or consumption of new or used motor vehicles and new or used tires on or after October 1, 2026:  95.3970% of revenues to be allocated to and deposited in the highway fund.  4.6030% of revenues to be appropriated to the several incorporated municipalities within this state to be allocated and distributed to them monthly, in the proportion as the population of each municipality bears to the aggregate population of all municipalities within the state, according to the latest federal census and other censuses authorized by law.  All revenue generated from the tax levied at the rate of 2.75% on the amount in excess of $1,600 but less than or equal to $3,200 to be allocated and deposited into the highway fund. MUNICIPALITIES RECEIVING ALLOTMENTS This bill provides that municipalities incorporated after the last decennial federal census, until the next decennial federal census, are eligible for an allotment, commencing on July 1, following incorporation and the election and installation of officials, on the population basis determined under regulations of the department of economic and community development and certified by that office to the commissioner provided that an accurate census of population has been certified to the department of economic and community development by the municipality. Municipalities participating in allocation must continue to do so on the basis of their population determined according to law. PROHIBITED REVENUE This bill prohibits any portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes, and any portion of the revenue derived from the increase in the rate of sales and use tax from 6% to 7% from being apportioned and distributed. Such revenue must be allocated as provided in present law.

Statutes affected:
Introduced: 67-6-103