An act relating to indexing the gasoline and diesel fuel taxes for inflation

This bill (S 149) adjusts Vermont's gasoline and diesel fuel taxes to automatically increase annually based on inflation, as measured by the Consumer Price Index (CPI-U). Starting July 1, 2028, the tax rates will rise each July 1 by the percentage change in the CPI-U from the prior 12 months (adjusted to April 1), but will not decrease if inflation is negative. It directly affects fuel distributors and consumers through higher fuel costs over time, with current rates set at $0.28 per gallon for diesel and $0.121 per gallon for gasoline. The change takes effect July 1, 2025, and aims to maintain the real value of fuel tax revenue amid rising prices.