Pub. 60 2019-2020 Issue 1

24 TAX STRUCTURE Motor fuels tax varies with State Gasoline Prices Inªation Other Notes Year of last increase Alabama X Tax indexed annually to the National Highway Construction C ost Index 2019 Arkansas X 2019 California X 2017 Connecticut X 2013 Florida X 2015 Georgia X X Tax varies with inªation and vehicle fuel e¦ciency 2015 Hawaii X General sales tax applies to gasoline Illinois X General sales tax applies to gasoline Indiana X X Tax varies with inªation and general sales tax applies to gaso line 2017 Kentucky X 2015 Maryland X X 2015 Michigan X 2017 Nebraska X X Tax varies with gasoline prices and legislature's spending decisions 2016 New Jersey X X Tax varies with gasoline prices and state revenue collection 2016 New York X 2013 North Carolina X X Tax varies with population and inªation 2015 Pennsylvania X 2015 Rhode Island X 2015 Utah X X 2017 Vermont X 2015 Virginia X West Virginia X D.C. X 2009 Source: National Conference of State Legislatures In 2015, Oregon became the ‚rst U.S. state to test a road usage charge program, called OReGO. Drivers opting in to the program agree to tracking with a mileage-reporting device and pay 1.5 cents per mile, while receiving a tax credit for the standard gasoline tax that is automatically applied to their road usage charges. Despite privacy concerns, more than 1,300Oregon vehicles are currently enrolled in the program. New Money for Texas RoadsIn No- vember 2014, Texas voters over- whelmingly passed Proposition 1, which directs more funding to the state’s transportation needs. Pri- or to Prop 1, the state’s Econom- ic Stabilization Fund (ESF), the “rainy day fund,” received 75 percent of the state’s annual oil and natural gas production tax revenue in excess of ‚s- cal 1987 revenues. Proposition 1 now allocates up to half of that revenue to the State Highway Fund (SHF) – $1.38 billion in ‚scal 2019. †e allocations to the SHF will end after the ‚scal 2035 transfer if the Legislature doesn’t renew them. In 2015, voters approved Proposition 7, potentially the largest increase in transportation funding in Texas history. †is amendment directs the Comptroller’s o¦ce to deposit up to $2.5 billion of net revenue annually into the SHF from the state sales tax, after total sales tax receipts exceed $28 billion. †e deposits will cease in ‚scal 2032 unless the Legislature extends the arrangement. Beginning f iscal 2020, Proposition 7 further directs the Comptroller’s o¦ce to annually transfer to the SHF 35 percent of state motor vehicle sales tax revenue above the ‚rst $5 billion collected. Without legislative action, this will expire in 2029. Federal legislation has added to Texas transportation funding as well. †e 2015 Fixing America’s Surface Trans- portation Act (FAST) provides federal funding to state and local governments to assist with mobility needs. Under FAST, Texas is receiving $18.3 billion in additional highway funding for ‚scal 2016 through ‚scal 2020. Yet even these additional funding streams won’t address the entire prob- lem. As population and tra¦c conges- tion continue to grow, Texas policy- makers may consider alternatives. FN 