Bill S.149, introduced by Senator White, proposes to index the gasoline and diesel fuel taxes to inflation by linking annual increases to the percentage change in the Consumer Price Index (CPI). The bill amends existing laws regarding the imposition of these taxes, specifically changing the fixed rates currently in place. For diesel fuel, the tax will be set at $0.28 per gallon until July 1, 2028, after which it will adjust annually based on the CPI-U. Similarly, the gasoline tax will also be fixed at $0.28 per gallon until the same date, with subsequent adjustments tied to the CPI-U as well.

In addition to the indexing provisions, the bill includes a new effective date, stating that the act will take effect on July 1, 2025. This change aims to ensure that fuel taxes keep pace with inflation, thereby maintaining their purchasing power over time. The bill reflects a shift from static tax rates to a more dynamic system that responds to economic conditions.

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