If it feels like SB 20, changes to the gas tax bill, is on a fast track, you are correct. Under current law, a portion of the gas tax is re-calculated every six months depending on the wholesale price of petroleum. The rate is re-set every six months on Jan. 1 and July 1. But the two dates that the rate is determined, is actually on March 31 and September 30 – the end of the two six-month base periods.
So if no changes are made to current law, the adjustment on March 31 based on market predictions would likely go to around 29 cents. Changes in SB 20 sets the gas tax rate at 36 cents on April 1, 2015.
In addition, SB 20 eliminates the two six month base periods and instead change to an annual base period used in re-setting the gas tax – on September 30, bypassing the March 31 re-set altogether.
All of this is dependent on SB 20 passing before March 31. Although versions of the bill have passed both bodies with bi-partisan support, there are still disagreements over details. The bill was sent back over to the Senate on Thursday – for consideration this week. The Senate can confer with the changes the House made or not, in which case a conference committee will be appointed to work out differences and re-present the bill to both bodies for an up 0r down vote. Then it would go to the Governor for his signature before it can become law.
All by March 31.
No matter what happens, it’s time to get serious about how to pay for roads and setting priorities for transportation funding. How would they do this? Ideas for charging based on usage here and for setting priorities here and options besides tax increases here. Let’s get started!