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Bill

H 535

TRANSPORTATION – Amends existing law to revise provisions regarding apportionment of the Highway Distribution Account, to remove a limitation regarding revenues received from fuel taxes, and to revise a provision regarding the distribution of the tax on special fuels.

68th Legislature, 2nd Regular Session (2026)

H.B. 535 adjusts Idaho's highway funding distribution by changing apportionment formulas and removing fuel tax revenue restrictions to redirect transportation infrastructure investment.

Reported Printed and Referred to Transportation & Defense
#controller #state #funds #highways #transportation #accounts
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Bill Summary · H 535

Legislative bill overview

H.B. 535 modifies how Idaho distributes highway funding by changing the apportionment formula for the Highway Distribution Account, removing restrictions on fuel tax revenue allocation, and adjusting how special fuel taxes are distributed among transportation programs. These amendments affect the flow of revenue from motor fuel taxes to various highway and transportation infrastructure projects.

Why is this important

Highway funding mechanisms directly impact road maintenance, construction, and safety across the state. Changes to apportionment formulas can shift resources between urban and rural areas, different types of roads, or various transportation modes, affecting which communities receive infrastructure investments and how quickly projects are completed.

Potential points of contention

  • Geographic distribution concerns – Revising apportionment could shift funding between urban and rural regions, raising questions about equity and whether some areas will receive less support for local road maintenance
  • Revenue reallocation limits – Removing fuel tax revenue limitations may allow flexible use of transportation funds, but could create uncertainty about stable funding for specific highway programs that previously had dedicated allocations
  • Special fuels tax distribution – Changes to how special fuel taxes (diesel, alternative fuels) are distributed could affect funding for specific transportation sectors or vehicle types, potentially impacting commercial trucking operations or alternative fuel infrastructure development

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

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