The House Appropriations Transportation Subcommittee passed their budget for the upcoming 2019-2020 Fiscal Year, which includes revenue from a proposed change in how taxes are paid at the gas pump. Under the proposal, the 6% sales tax would be phased-out at the gas pump over two-years. Currently, all sales tax is directed to the School Aid Fund. Instead, a fuel tax would be assessed at the gas pump, with all revenue going to infrastructure. The loss of revenue to the School Aid Fund from removing the sales tax on fuel would be filled through budget changes and cuts.
The transportation budget will be sent to the full House Appropriations Committee for consideration. The tax changes will require legislative action and cannot be done through the budget bill.
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