Bill S.149, introduced by Senator White, aims to index the gasoline and diesel fuel taxes to inflation by linking annual tax increases to the percentage change in the Consumer Price Index (CPI). The bill amends existing laws to establish that the current tax rates for gasoline and diesel fuel, which are set at $0.28 per gallon, will remain unchanged until July 1, 2028. After this date, the tax rates will increase annually based on the CPI-U for the preceding 12-month period, with a provision that the tax amount will not decrease if the CPI shows a negative change.

In addition to the indexing provisions, the bill also modifies the language regarding the imposition of taxes on fuel sales. It replaces specific dollar amounts previously stated in the law with a framework that allows for future adjustments based on inflation. The effective date for these changes is set for July 1, 2025.

Statutes affected:
As Introduced: 23-3003, 23-3106