On February 20, 2024, Legislative Director Kevin Kinnally submitted a Letter of Information to the House Ways and Means Committee on HB 925- Vehicle Excise Tax- Rate Increase. This bill increases the vehicle excise tax rate from 6 percent to 6.5 percent.
While MACo takes no position on the bill, counties raised several policy matters for the Committee’s consideration.
This bill presents a mechanism to address a multi-billion-dollar budget shortfall in the State’s consolidated Transportation Trust Fund. While the Governor has announced a one-time infusion from the State general fund to maintain services for the coming year, a plan to scale back spending in future years − including a step backward on the share of state-levied taxes dedicated to local transportation needs − remains before the legislature.
This bill presents a mechanism to address a multi-billion-dollar budget shortfall in the State’s consolidated Transportation Trust Fund. While the Governor has announced a one-time infusion from the State general fund to maintain services for the coming year, a plan to scale back spending in future years − including a step backward on the share of state-levied taxes dedicated to local transportation needs − remains before the legislature.
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