AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR FUEL TAX

SB 47 adjusts the state motor fuel tax rate every two years to account for inflation, using the Consumer Price Index (CPI-U) from the previous two years instead of the previous year. It requires the tax administrator to calculate the adjustment based on CPI-U data from September 30 of the prior year compared to data from two years earlier, rounding to the nearest cent. This change affects fuel distributors who pay the tax, as it modifies how their tax payments are adjusted annually. The bill does not change the base tax rate of $0.32 per gallon but updates the inflation calculation method to a two-year rolling average. The adjustment would take effect upon passage, with the first change applying in 2025.