Bill S.149, introduced by Senator White, proposes to index the gasoline and diesel fuel taxes to inflation by adjusting the tax rates annually based on the percentage change in the Consumer Price Index (CPI). Specifically, the bill amends current law to establish that the tax on each gallon of fuel will remain at $0.28 until July 1, 2028, after which it will increase annually according to the CPI-U for the preceding 12-month period. If the CPI shows a negative change, the tax rate will remain unchanged from the previous year.

In addition to the indexing provisions, the bill also modifies the language regarding the imposition of taxes on fuel sales. It replaces the fixed tax amounts of $0.28 for diesel and $0.121 for gasoline with a structure that allows for annual adjustments based on inflation. The effective date for these changes is set for July 1, 2025.

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