The bill H.643 proposes to redirect all revenue generated from the purchase and use tax to the Transportation Fund, implementing this change gradually over a six-year period. Specifically, it amends 16 V.S.A. 4025(a)(5) to adjust the annual revenue cap from the purchase and use tax, starting at a maximum of $50,000,000.00 and decreasing incrementally each year until it reaches $10,000,000.00 by 2031. The amendments include a series of changes where the annual cap is reduced from $50,000,000.00 to $40,000,000.00, then to $30,000,000.00, $20,000,000.00, and finally to $10,000,000.00, with the last provision being repealed.

The effective dates for these changes are staggered, with the first amendment taking effect on July 1, 2026, and subsequent amendments following in the years 2027 through 2031. This structured approach allows for a gradual transition of funds from the education fund to the transportation fund, reflecting the bill's intent to prioritize transportation financing over the specified timeframe.

Statutes affected:
As Introduced: 16-4025(a)(5), 16-4025, 16-4025(a)