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SB 2142

A BILL for an Act to amend and reenact section 57-40.3-10 of the North Dakota Century Code, relating to motor vehicle excise tax allocations; and to provide an effective date.

69th Legislative Assembly (2025-26) Introduced by Mike Brandenburg and 5 co-sponsors

Reallocates motor vehicle excise tax receipts to a 50/50 split: 50% to the general fund and 50% to the flexible transportation fund, starting after July 31, 2025.

Second reading, failed to pass, yeas 0 nays 47
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WeVote Research Nonpartisan
Bill Summary · SB 2142

Summary — SB 2142 (North Dakota)

A bill to amend how motor vehicle excise tax revenue is allocated and (in earlier drafts) to create a dedicated township road and bridge sustainability fund.

Main purpose

  • Reallocate proceeds from the motor vehicle excise tax (chapter 57-40.3 NDCC) and, in an earlier proposed amendment, create a dedicated "township road and bridge sustainability fund" to provide ongoing road and bridge infrastructure funding targeted to townships in non‑oil‑producing counties.

Key provisions (multiple versions/iterations)

Note: SB 2142 was amended during consideration and had competing language in different drafts. Both major approaches are summarized below.

A. Proposed amendment (Legislative Council draft dated Feb 5, 2025)
- Creates a new township road and bridge sustainability fund in the state treasury.
- Funds for the new account come from a specified portion of motor vehicle excise tax revenue (see allocation changes below).
- The fund is continuously appropriated to the state treasurer for quarterly distributions to eligible organized and unorganized townships located in non‑oil‑producing counties for road and bridge infrastructure projects.
- Eligibility and certification requirements:
- Organized townships must annually certify (to the treasurer) road miles, general fund balance as of December 31, and the mills levied under section 57‑15‑20 in the prior tax year.
- Counties must certify road miles for unorganized townships.
- Townships are excluded from allocations if they: maintained no township roads as of Dec. 31; had a general fund balance > $100,000 as of Dec. 31; did not levy at least 18 mills in the prior year; or failed to submit required certification.
- Allocation formula: funds are distributed to non‑oil‑producing counties at least quarterly; each township’s share is proportional to its road miles relative to total eligible township road miles in the county.
- Definitions: “Non‑oil‑producing county” = county that received no allocation or less than $5 million under subsection 2 of section 57‑51‑15 in the most recently completed even‑numbered fiscal year before the biennium. “Road and bridge infrastructure projects” defined broadly (construction, maintenance, repair, replacement; paved and unpaved).
- Proposed allocation change (in this draft): 25% of motor vehicle excise tax revenue to the new township fund; 75% to the flexible transportation fund (section 24‑02‑37.3).

B. First engrossment (subsequent, simpler amendment)
- Amends section 57‑40.3‑10 to allocate motor vehicle excise tax receipts monthly as:
- 50% to the general fund; and
- 50% to the flexible transportation fund (24‑02‑37.3).
- This version removes the township fund language and its allocation.

Effective date

  • If enacted, the change is effective for motor vehicle excise tax collections transmitted to the state treasurer after July 31, 2025 (per the bill text).

Who would be affected

  • State budget/fiscal outlook: changes where motor vehicle excise tax revenue is directed (general fund, flexible transportation fund, and/or a new township fund depending on the version).
  • Townships in non‑oil‑producing counties (if the township fund language were enacted): would receive quarterly, formula‑based allocations for road and bridge projects, subject to certification and eligibility conditions.
  • County treasurers: responsible for distributing funds to organized townships and maintaining a special fund for unorganized township roads.
  • Motor vehicle taxpayers: no change to tax rate is proposed, but the destination of those revenues would change.

Legislative status and procedural notes

  • Introduced: March 10, 2025 (per bill information provided).
  • Effective‑date clause tied to collections after July 31, 2025.
  • Final recorded action in the provided materials: second reading — failed to pass (yeas 0, nays 47). As of that vote the bill did not advance.
  • The bill underwent multiple drafts and committee referrals; language varied between versions (creation of a dedicated township fund vs. a simpler reallocation between general and transportation funds).

If you want, I can produce: (1) a comparison table of the different drafts, (2) an estimate of likely dollar amounts affected given recent motor vehicle excise tax receipts, or (3) a plain‑language explainer for township officials.

Compiled from official sources — confirm details with the bill’s official record.

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