2025 -- S 0047

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR FUEL TAX

     Introduced By: Senators Zurier, DiPalma, DiMario, Sosnowski, and Acosta

     Date Introduced: January 23, 2025

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 31-36-7 of the General Laws in Chapter 31-36 entitled "Motor Fuel

Tax" is hereby amended to read as follows:

     31-36-7. Monthly report of distributors — Payment of tax.

     (a) State requirements. Every distributor shall, on or before the twentieth (20th) day of each

month, render a report to the tax administrator, upon forms to be obtained from the tax

administrator, of the amount (number of gallons) of fuels purchased, sold, or used by the distributor

within this state and the amount of fuels sold by the distributor without this state from fuels within

this state during the preceding calendar month, and, if required by the tax administrator as to

purchases, the name or names of the person or persons from whom purchased and the date and

amount of each purchase, and as to sales, the name or names of the person or persons to whom sold

and the amount of each sale, and shall pay at the same time to the administrator tax at the rate of

thirty-two cents ($0.32) per gallon on all taxable gallons of fuel sold or used in this state.

     (b) Federal requirements. In the event the federal government requires a certain portion of

the gasoline tax to be dedicated for highway improvements, then the state controller is directed to

establish a restricted receipt account and deposit that portion of gasoline tax receipts which brings

the state into federal compliance.

     Beginning July 1, 2015 2025, and every other year thereafter, the gasoline tax shall be

adjusted by the two (2) year percentage of increase in the Consumer Price Index for all Urban

Consumers (CPI-U) as published by the United States Bureau of Labor Statistics determined by

comparing the CPI-U as of September 30 of the prior calendar year (“measurement date”) with the

CPI-U as of September 30, twenty-four (24) months prior to said measurement date; said

adjustment shall be rounded to the nearest one cent ($.01) increment, provided that the total tax

shall not be less than provided for in section (a).

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR FUEL TAX

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     This act would make an adjustment for inflation on the motor fuel tax. As currently written

and applied, the tax administrator makes an adjustment every two (2) years, based on the inflation

that occurred in the previous year. This act would adjust every two (2) years based on the inflation

that has occurred in the previous two (2) years.

     This act would take effect upon passage.

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