SB 286 - This act increase the general sales tax by 1% and dedicates that money for transportation purposes. The revenue from this tax will be placed in a newly created fund known as the State Sales Tax Transportation Fund. The revenue from this fund shall be used by the Transportation Commission in the following manner:

1) 15% for public transit (75% urban and 25% rural); 2) 5% for multi modal transportation projects; 3) 30% for interstate highway needs (with 2% of these allocated funds to be used for toll roads); and 4) 50% for the remaining state highway system (with 2% of these allocated funds to be used for toll roads).

This act eliminates the sunset on the motor fuel tax (currently expires in 2008)and increases the fuel tax by two cents (17 to 19 cents). This act requires the Director of the Department of Transportation to be elected for two year terms rather than being appointed by the Commission. This act reduces the amount of appropriations other state agencies receive from the highways and transportation fund by 20% over a five year period beginning in fiscal year 2003. Finally, this act requires counties and cities to match state funds when making road improvements due to new development.

The act contains a referendum clause.
STEPHEN WITTE