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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | December 16, 2022 08:39 AM |
|---|---|
| From: | Representative Seth M. Grove |
| To: | All House members |
| Subject: | Motor Licensing Fund Revenue Restructuring |
| Soon, I intend to introduce legislation restructuring the revenue sources deposited into the Motor License Fund. The goal of this legislation is to rebalance the revenue sources of the Motor License Fund ensuring that all vehicles, no matter the fuel type used, contribute to funding the maintenance of our roads and bridges. In order to accomplish this, my legislation will shift the reliance of the Motor License Fund away from the current gas tax structure which will reduce the costs to taxpayers when filling up at the pump. Additionally, this legislation will finally achieve the long-term goal of many members; and that is, it removes the entire funding of the State Police out of the Motor License Fund and into the General Fund. My legislation will do all of the following to achieve a more taxpayer friendly and competitive way to fund the maintenance of our roads and bridges ensuring that all vehicle owners in the Commonwealth contribute : 1) deposits the current sales taxes collected on the purchase of a motor vehicle into the Motor License Fund, regardless of the fuel type the vehicle uses; 2) imposes an excise tax on the purchase of motor fuels; 3) significantly reduces the current 61.1 cents per gallon gas tax and 78.5 cents per gallon diesel tax, which takes effect on January 1, 2023, to be more competitive with surrounding states; and 4) shifts the State Police funding out of the Motor License Fund and into the General Fund. The Biden Administration has formally announced upgraded CAFE standards for 2024 and with this decision, automobiles are going to become even more expensive than they currently are. These federal CAFÉ standards have been detrimental to all states across the nation that have relied on a direct, per gallon taxation system. With more fuel-efficient vehicles, this reduces the potential of the per gallon taxation system, keeping revenues stagnant and making planning for transportation that much more challenging. Many households are struggling with the current inflationary pressures as their buying power has been limited with prices rising faster than their income. The Act 89 of 2013 provisions will effectuate a gas tax increase on January 1, 2023, at a time when households can least afford it. Please join me in cosponsoring this much needed reform for funding the maintenance of our roads and bridges in the Commonwealth in order to make our current gas tax structure more competitive with other states and implement a funding structure which is more taxpayer friendly ensuring all vehicle owners contribute. |