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HD 1820

An Act establishing a local option gas tax

194th Legislature (2025-2026) Introduced by Tommy Vitolo

Allows municipalities to enact up to $0.03 per gallon local gas tax to fund local transportation projects and maintenance.

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Bill Summary · HD 1820

HD 1820: An Act Establishing a Local Option Gas Tax

Summary

This proposed bill would allow municipalities in the state to enact a local option gas tax of up to $0.03 per gallon of gasoline and diesel fuel sold within their jurisdiction. The purpose of this bill is to provide cities and towns with an additional revenue source to fund local transportation infrastructure projects and maintenance.

Key Provisions

  • Authorizes municipalities to implement a local gas tax of up to $0.03 per gallon through a local ordinance or ballot measure
  • Allows the local gas tax to be applied to both gasoline and diesel fuel sales
  • Requires that revenue generated from the local gas tax must be used exclusively for transportation-related expenses, such as:
    • Road and bridge construction, repair, and maintenance
    • Sidewalk, bike lane, and public transit improvements
    • Snow and ice removal
    • Street lighting
  • Gives municipalities the flexibility to set the specific gas tax rate within the $0.03 per gallon cap
  • Requires local governments to hold a public hearing and vote to enact or change the local gas tax rate
  • Mandates that the local gas tax revenue be reported separately in municipal budgets and financial statements

Affected Parties

  • Municipalities and their residents, who would have the option to raise additional funding for local transportation needs
  • Drivers who purchase gasoline and diesel fuel in jurisdictions that enact the local gas tax
  • Local businesses that sell motor fuels, who would be responsible for collecting the tax
  • The state government, which would provide oversight and potentially coordinate administration of the local gas taxes

Timeline and Implementation

If passed, the bill would take effect on July 1, 2026. Municipalities would then have the ability to enact a local gas tax through a local ordinance or public ballot measure at any time after that date. The bill does not impose any deadlines or mandate that all cities and towns must implement the tax.

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

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