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HB 5320

AN ACT RELATING TO HUMAN SERVICES -- MEDICAL ASSISTANCE -- PRESCRIPTION DRUGS

2025 Regular Session Introduced by Stephen Casey and 9 co-sponsors

The highway use tax is repealed, removing the tax on certain vehicles starting September 1, 2025.

05/20/2025 Committee recommended measure be held for further study
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Bill Summary · HB 5320

Summary — HB 5320: "An Act Eliminating the Highway Use Tax"

Status: Enacted (filed without Governor’s signature 2025-06-20); Effective date: September 1, 2025
Introduced: March 14, 2025
Committee referrals: Joint Committee on Finance, Revenue and Bonding; also considered in Natural Resources and Local Government
Companion bill: SB 3054

Purpose / Intent

HB 5320 would repeal the state's highway use tax. The bill’s primary intent is to eliminate the statutory tax charged on certain vehicles for use of public highways (commonly applied to heavy commercial vehicles and carriers). The legislative record indicates the measure was advanced through committee, passed both chambers, transmitted to the Governor, and ultimately filed without the Governor’s signature; it becomes effective September 1, 2025.

Key provisions (as indicated by bill title and procedural record)

  • Repeals the highway use tax statute(s) — i.e., removes the legal requirement that certain vehicle owners/operators pay the highway use tax.
  • Changes take effect on September 1, 2025 (per legislative actions noting the effective date).
  • No replacement tax or explicit offset is listed in the summarized legislative actions provided.

Note: The full text of the bill would specify which vehicles, weight classes, exemptions, collection mechanisms, and statutory sections are affected. Those details are not included in the summary record provided.

Who is affected

  • Primary: Owners/operators of vehicles subject to the highway use tax — typically commercial trucking companies, haulers, and others who operate heavy vehicles regulated by that tax.
  • State agencies: Departments responsible for transportation and tax collection (e.g., state Department of Transportation and Department of Revenue Services) — would no longer administer/collect the tax.
  • State finances: Funds that previously received highway use tax revenues (often transportation or special transportation funds) would see a reduction in revenue unless other revenue sources or appropriations are identified.
  • Local governments and contractors: Indirectly affected if highway maintenance or capital funding is adjusted due to revenue changes.

Fiscal and policy implications

  • Revenue impact: Repeal will reduce state tax receipts tied to highway use. The provided record does not include a fiscal note or substitute funding mechanism. Stakeholders should review the official fiscal note and budget documents to quantify the revenue loss and any planned offsets.
  • Transportation funding: If highway use tax revenues previously supported highway maintenance, capital projects, or debt service, repeal could require reallocations, budget cuts, or identification of alternative funding.
  • Industry impact: Trucking and freight industries would likely benefit from reduced tax burden; effects on state infrastructure funding could have longer-term indirect impacts (e.g., maintenance deferrals).

Legislative timetable / notable procedural actions

  • Filed: 2025-03-14
  • Referred to Finance, Revenue and Bonding (1/16 entry) and considered in other committees (Natural Resources, Local Government)
  • Committee activity: Reported favorably (committee substitute considered and reported), public hearings held, recommended for Local & Uncontested Calendar
  • Passed House and Senate in May 2025 (final Senate passage 5/29/2025)
  • Sent to Governor 5/31/2025; filed without Governor’s signature 6/20/2025
  • Effective date: 9/1/2025

Where to look for more detail

  • Full enrolled bill text and statutory changes to identify specific tax provisions removed.
  • Official fiscal note for estimated revenue impact and possible offsets.
  • Companion bill SB 3054 for any differences in language or implementation details.

This summary describes the available legislative record and likely impacts; consult the bill text and fiscal analyses for implementation specifics.

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

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