HCS/HB 694 - This act establishes a five cent per gallon motor fuel tax on propane fuel used to propel motor vehicles, to be increased to seventeen cents per gallon by January 1, 2025. Owners and operators of propane-fueled vehicles may continue to apply for and use alternative fuel decals in lieu of paying the motor fuel tax. Owners or operators of plug-in electric hybrids, as defined in the act, shall pay one-half of the alternative fuel decal fee. If the owner or operator of a propane-fueled vehicle bearing an alternative fuel decal refuels at an unattended propane refueling station at which the motor fuel tax is collected at the point of sale, such owner or operator shall not be eligible for a refund of such tax paid.
This act requires that any political subdivision which imposes a local excise or sales tax on motor fuel shall use no less than 90% of such funds collected for the construction, reconstruction, maintenance, and repair of roads and streets and for the payment and interest on indebtedness incurred on account of road and street purposes. No more than 10% of such funds collected shall be used for policing, signing, lighting, and cleaning roads and streets.
This act is substantially similar to SCS/SB 435 (2017), and to a provision contained in CCS/SB 8 (2017) and HCS/SCS/SB 399 (2017), and is similar to HB 579 (2017).
JOSHUA NORBERG