| 1 | 1 | | BILL AS INTRODUCED S.149 |
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| 2 | 2 | | 2025 Page 1 of 3 |
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| 4 | 4 | | |
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| 5 | 5 | | VT LEG #382268 v.2 |
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| 6 | 6 | | S.149 1 |
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| 7 | 7 | | Introduced by Senator White 2 |
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| 8 | 8 | | Referred to Committee on 3 |
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| 9 | 9 | | Date: 4 |
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| 10 | 10 | | Subject: Motor vehicles; gasoline tax; diesel fuel tax; inflation; indexing 5 |
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| 11 | 11 | | Statement of purpose of bill as introduced: This bill proposes to provide that 6 |
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| 12 | 12 | | gasoline and diesel fuel taxes shall annually increase by the percentage change 7 |
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| 13 | 13 | | in the Consumer Price Index. 8 |
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| 14 | 14 | | An act relating to indexing the gasoline and diesel fuel taxes for inflation 9 |
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| 15 | 15 | | It is hereby enacted by the General Assembly of the State of Vermont: 10 |
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| 16 | 16 | | * * * Diesel Fuel Tax * * * 11 |
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| 17 | 17 | | Sec. 1. 23 V.S.A. § 3003 is amended to read: 12 |
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| 18 | 18 | | § 3003. IMPOSITION OF TAX; EXCEPTIONS 13 |
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| 19 | 19 | | (a)(1) A tax of $0.28 in the amount set forth in subdivision (2) of this 14 |
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| 20 | 20 | | subsection, a fee of $0.01 established pursuant to the provisions of 10 V.S.A. 15 |
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| 21 | 21 | | § 1942, and a $0.03 motor fuel transportation infrastructure assessment, which 16 |
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| 22 | 22 | | for purposes of the International Fuel Tax Agreement only shall be deemed to 17 |
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| 23 | 23 | | be a surcharge, are imposed on each gallon of fuel: 18 |
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| 24 | 24 | | (1)(A) sold or delivered by a distributor; or 19 |
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| 25 | 25 | | (2)(B) used by a user. 20 BILL AS INTRODUCED S.149 |
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| 26 | 26 | | 2025 Page 2 of 3 |
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| 28 | 28 | | |
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| 29 | 29 | | VT LEG #382268 v.2 |
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| 30 | 30 | | (2) The amount of the tax on each gallon of fuel pursuant to subdivision 1 |
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| 31 | 31 | | (1) of this subsection shall, before July 1, 2028, be $0.28. Beginning on July 2 |
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| 32 | 32 | | 1, 2028, and on each subsequent July 1, the amount of the tax shall increase by 3 |
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| 33 | 33 | | the percentage change in the Bureau of Labor Statistics Consumer Price Index 4 |
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| 34 | 34 | | for All Urban Consumers (CPI-U) for the 12-month period preceding the 5 |
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| 35 | 35 | | previous April 1. The amount of the tax shall remain the same as the previous 6 |
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| 36 | 36 | | year if the percentage change in the CPI-U for the 12-month period preceding 7 |
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| 37 | 37 | | the previous April 1 is negative. 8 |
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| 38 | 38 | | * * * 9 |
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| 39 | 39 | | * * * Gasoline Tax * * * 10 |
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| 40 | 40 | | Sec. 2. 23 V.S.A. § 3106 is amended to read: 11 |
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| 41 | 41 | | § 3106. IMPOSITION, RATE, AND PAYMENT OF TAX 12 |
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| 42 | 42 | | (a)(1) Except for sales of motor fuels between distributors licensed in this 13 |
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| 43 | 43 | | State, which sales shall be exempt from the taxes and assessments authorized 14 |
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| 44 | 44 | | under this section, unless exempt under the laws of the United States at the 15 |
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| 45 | 45 | | time of filing the report required by section 3108 of this title, each distributor 16 |
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| 46 | 46 | | shall pay to the Commissioner: 17 |
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| 47 | 47 | | (A) a tax of $0.121 in the amount set forth pursuant to subdivision (6) 18 |
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| 48 | 48 | | of this subsection (a) upon each gallon of motor fuel sold by the distributor; 19 |
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| 49 | 49 | | and 20 |
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| 50 | 50 | | * * * 21 BILL AS INTRODUCED S.149 |
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| 51 | 51 | | 2025 Page 3 of 3 |
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| 52 | 52 | | |
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| 53 | 53 | | |
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| 54 | 54 | | VT LEG #382268 v.2 |
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| 55 | 55 | | (6) The amount of the tax on each gallon of motor fuel pursuant to 1 |
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| 56 | 56 | | subdivision (1) of this subsection shall, before July 1, 2028, be $0.28. 2 |
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| 57 | 57 | | Beginning on July 1, 2028, and on each subsequent July 1, the amount of the 3 |
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| 58 | 58 | | tax shall increase by the percentage change in the Bureau of Labor Statistics 4 |
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| 59 | 59 | | Consumer Price Index for All Urban Consumers (CPI-U) for the 12-month 5 |
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| 60 | 60 | | period preceding the previous April 1. The amount of the tax shall the same as 6 |
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| 61 | 61 | | the previous year if the percentage change in the CPI-U for the 12-month 7 |
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| 62 | 62 | | period preceding the previous April 1 is negative. 8 |
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| 63 | 63 | | * * * 9 |
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| 64 | 64 | | * * * Effective Date * * * 10 |
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| 65 | 65 | | Sec. 3. EFFECTIVE DATE 11 |
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| 66 | 66 | | This act shall take effect on July 1, 2025. 12 |
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