Dedicates certain state sales and use tax revenues for deposit into the Construction Subfund of the Transportation Trust Fund under certain circumstances (EG DECREASE GF RV See Note)
Impact
If enacted, HB 853 would effectively reallocate a significant portion of state revenue towards transportation infrastructure projects. It aims to enhance the financial resources available for construction, thereby potentially improving the state's transportation systems. This dedication of funds could lead to a more sustainable financial model for supporting critical infrastructure, as it ties funding directly to the performance of state sales tax revenues.
Summary
House Bill 853 proposes to allocate certain state sales and use tax revenues for deposit into the Construction Subfund of the Transportation Trust Fund. This would occur under specific circumstances, namely when state 'General Revenues from Sales and Use Taxes' exceed $4 billion for two consecutive years. The bill sets forth a protocol for notification from the commissioner of administration to the governor, legislature, and state treasurer regarding the threshold being met, ensuring transparency and accountability in the funding process.
Sentiment
The sentiment around HB 853 seems to be generally supportive among those who prioritize infrastructure development and economic growth. Supporters argue that the bill is a proactive measure to ensure ongoing investment in transportation, which is vital for the state's economic health. However, there could be concerns regarding the impact of such dedicated funding on other areas of the budget, especially if state revenues do not meet the projected thresholds in future fiscal years.
Contention
Notable points of contention could arise regarding the implications of dedicating sales tax revenues to a specific fund. Critics may argue that it creates rigidity in the state budget, potentially limiting funds available for other essential services such as education or health care. Furthermore, there are concerns about the reliance on fluctuating sales tax revenues, as economic downturns could affect the availability of funding for transportation projects, undermining the intent of the bill.
Dedicates certain state sales and use tax revenues for deposit into the Construction Subfund of the Transportation Trust Fund (RE -$200,000,000 GF RV See Note)
Dedicates the avails of state sales and use taxes on purchases of motor vehicles to the Construction Subfund in the Transportation Trust Fund (OR -$456,000,000 GF RV See Note)
Dedicates a portion of the avails of state sales and use tax to the Construction Subfund of the Transportation Trust Fund and extends .4% of current state sales and use tax (EG -$37,800,000 GF RV See Note)
Increases certain special permit fees and dedicates the proceeds of the fee increase into the Construction Subfund of the Transportation Trust Fund (EN +$8,584,000 SD RV See Note)
Phases in the dedication of the temporary state sales tax levy to the Construction Subfund of the Transportation Trust Fund. (8/1/22) (OR -$226,500,000 SG RV See Note)
Dedicates the economic proceeds from the Deepwater Horizon litigation to transportation projects and redirects funding to the Construction Subfund of the Transportation Trust Fund (EN -$24,000,000 GF RV See Note)
Provides relative to the dedication of funds into the Construction Subfund of the Transportation Trust Fund (Items #10 and #11) (OR SEE FISC NOTE SD EX)
Increases certain ocean container permit fees and dedicates proceeds of the fee increase into the Construction Subfund of the Transportation Trust Fund