2023 -- S 0785

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LC001091

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR FUEL TAX

     Introduced By: Senators Zurier, McKenney, Felag, Rogers, and Picard

     Date Introduced: March 23, 2023

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 31-36-7 of the General Laws in Chapter 31-36 entitled "Motor Fuel

Tax" is hereby amended to read as follows:

     31-36-7. Monthly report of distributors — Payment of tax.

     (a) State requirements. Every distributor shall, on or before the twentieth (20th) day of each

month, render a report to the tax administrator, upon forms to be obtained from the tax

administrator, of the amount (number of gallons) of fuels purchased, sold, or used by the distributor

within this state and the amount of fuels sold by the distributor without this state from fuels within

this state during the preceding calendar month, and, if required by the tax administrator as to

purchases, the name or names of the person or persons from whom purchased and the date and

amount of each purchase, and as to sales, the name or names of the person or persons to whom sold

and the amount of each sale, and shall pay at the same time to the administrator tax at the rate of

thirty-two cents ($0.32) per gallon on all taxable gallons of fuel sold or used in this state.

     (b) Federal requirements. In the event the federal government requires a certain portion of

the gasoline tax to be dedicated for highway improvements, then the state controller is directed to

establish a restricted receipt account and deposit that portion of gasoline tax receipts which brings

the state into federal compliance.

     Beginning July 1, 2015, and every other year thereafter, the gasoline tax shall be adjusted

by the percentage of increase in the Consumer Price Index for all Urban Consumers (CPI-U) as

published by the United States Bureau of Labor Statistics determined as of September 30 of the

prior calendar year; said adjustment shall be rounded to the nearest one cent ($.01) increment,

provided that the total tax shall not be less than provided for in section (a).

     (c)(1) There is created within the general fund a restricted receipt account known as

“municipal projects”. Fifteen percent (15%) of revenue collected from the gasoline tax shall be

deposited into this account each year and used to fund local capital improvements as specified in

subsection (c)(2) of this section.

     (2) Local communities. The department of transportation shall develop a formula for the

purpose of determining the amount of funding cities and towns receive of the gasoline tax

established pursuant to this section for the implementation of capital improvements on local public

ways, and such formula shall be based on the local road mileage, population, and employment of

each city or town.

     (3) On or before June 15 of each year, the department of transportation shall determine the

amount of funds from the restricted receipt account established pursuant to subsection (c)(1) of this

section, according to the formula developed in subsection (c)(2) of this section, and based on the

balance in the account as of June 1 of that year. The department of transportation shall then

distribute those amounts to local communities on or before July 1 of each year.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR FUEL TAX

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     This act would create a restricted receipt account wherein fifteen percent (15%) of revenue

collected from the gasoline tax shall be deposited into the account each year and used for the

implementation of capital improvements on local public ways in each municipality. This act would

further requirement the department of transportation to create a formula for the purpose of

determining the amount of funding each municipality receives each year from the restricted receipt

account and distribute the funds to each community on or before July 1 of each year.

     This act would take effect upon passage.

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