AN ACT ELIMINATING THE HIGHWAY USE TAX.

2025 Regular Session Introduced by Joe Canino

Repeals the highway use tax, removing a key funding source for highways; affects taxpayers and agencies relying on this revenue for transportation programs.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding

#highways #salesandusetax

Overview

HB 5542 proposes to repeal the highway use tax. The bill is currently in the legislative process and has been assigned to committees for consideration. It was introduced on March 14, 2025, and is listed as “REF. TO JOINT COMM. ON Finance, Revenue and Bonding.” As of April 7, 2025, it was read a first time and referred to the Subcommittee on County & Regional Government by the Speaker.

Purpose and Intent

The primary aim of HB 5542 is to eliminate the highway use tax. The filename and official title indicate a repealing action on this particular levy.

The bill falls under the broader subject area of Highways, Sales and Use Tax, suggesting the highway use tax is a revenue mechanism linked to transportation funding and related fiscal policy.

Key Provisions (as indicated by title)

Repeal of the highway use tax: The act would remove the highway use tax from law, effectively ending its collection and any statutory framework governing it.

Implications for revenue and funding would depend on the full text, including whether the repeal is paired with offsetting measures or sunset provisions. (Note: The available information does not specify replacement or offset mechanisms.)

Important: The exact statutory language, definitions, affected tax bases, administration, and any phase‑in or transition provisions are not provided in the summary you shared. The bill’s full text would spell out specifics such as repeal timing, enforcement continuity, and any transitional rules.

Affected Parties and Impacts

Taxpayers currently subject to the highway use tax (individuals, businesses, or entities paying the tax).

Government agencies and transportation authorities that administer or rely on highway use tax revenue for funding highway projects and related programs.

Stakeholders involved in transportation planning and budgeting, as the removal of a revenue stream could influence funding levels or necessitate alternative financing.

Potential broader fiscal effects on transportation infrastructure funding, depending on whether the repeal is offset by other revenue sources.

Procedural and Timeline Aspects

Introduced: March 14, 2025.

Initial referral: January 21, 2025 — Ref. to Joint Committee on Finance, Revenue and Bonding.

Floor actions: Read first time on April 7, 2025.

Committee action: Referred on April 7, 2025, to the Subcommittee on County & Regional Government by the Speaker.

Next steps: The bill would typically progress through committee consideration, potential amendments, and hearings before advancing to a full chamber vote. The specific timeline depends on committee deliberations and legislative calendar.

Notes for Readers

A comprehensive understanding of HB 5542 requires the full bill text, which would specify repeal language, any transitional provisions, and whether the repeal is coupled with new or alternative revenue measures for highways.

To track further developments, monitor committee agendas for the Subcommittee on County & Regional Government and the Joint Committee on Finance, Revenue and Bonding, as well as any fiscal notes or impact analyses released by the fiscal staff.

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