HB 21-1205

Abstract

The bill requires a road usage equalization fee (equalization fee) to be imposed at the time of annual registration on each plug-in electric motor vehicle that is required to be registered in the state. The fee is set in an amount that is estimated to achieve parity between the aggregate amount of motor vehicle registration fees and motor fuel excise taxes paid per vehicle by owners of plug-in electric motor vehicles and vehicles fueled by gasoline, diesel, or other special fuels and is annually adjusted for inflation. The executive directors of the department of transportation and the department of revenue are required to form a joint working group to develop recommendations as to whether and to what extent the equalization fee should be adjusted to achieve the goal of maintaining parity between plug-in electric motor vehicle owners and owners of motor vehicles that use motor fuel for propulsion with respect to the aggregate amount in motor vehicle registration fees and motor fuel taxes paid. The recommendations must include recommendations as to whether the road equalization fee needs to be adjusted to account for changes to motor fuel excise tax rates or the imposition of other government charges that are calculated on the basis of motor fuel consumption, whether the amount of the fee should be different for personal and commercial vehicles, or whether the amount of the fee should vary based on specified factors. After the joint working group reports to the executive directors, the executive directors or their designees must prepare a written report regarding the recommendations for presentation to the transportation legislation review committee during the 2022 legislative interim. Revenue generated by the fee: Must be credited to the highway users tax fund (HUTF) and distributed pursuant to the existing "second stream" HUTF allocation formula as follows: 60% to the state highway fund; 22% to counties; and 18% to municipalities; and Must be used only for maintenance of existing highways, streets, and roads.(Note: This summary applies to this bill as introduced.)