Restructures fuel tax system by moving to a flat, indexed per-gallon excise tax and establishes motor carrier-specific surcharges.

Makes significant changes to the state�s transportation revenue structure by replacing the current price-based fuel tax with a fixed per-gallon excise tax that begins at a statutory base rate and adjusts annually based on cost indexes. Also establishes motor carrier-specific surcharges subject to minimums and automatic adjustments over time.

The new state excise tax on gasoline and special fuels would be set at an **initial base rate of 29.6 cents per gallon (cpg), replacing the existing price-based formula.

The heavy equipment motor carrier surtax (applied to vehicles subject to that surcharge) would be set with initial base rates of: 2.2 cpg on gasoline for FY 2026-27 and 4.3 cpg for FY 2027-28
3.6 cpg on special fuels for FY 2026-27 and 7.2 cpg for FY 2027-28

Pending Committee action.

01/14/2026 Introduced in House. Referred to House Committee on Committees.
01/22/2026 Referred to House Committee on Transportation.