Modify Specific Ownership Tax Rates

On and after July 1, 2020, the bill modifies the rates of specific ownership tax imposed on motor vehicles, commercial trailers, and special mobile machinery that is less than 25 years old, increasing the total amount of specific ownership tax revenue collected. Additional specific ownership tax revenue generated by the specific ownership tax rate modifications is transferred to the highway users tax fund (HUTF) for allocation to the state, counties, and municipalities in accordance with the existing "second stream" statutory formula for the allocation of HUTF money. The state, counties, and municipalities may expend the revenue only for construction, reconstruction, repairs, improvement, planning, supervision, and maintenance of state highways, county roads, and municipal streets, including the acquisition of rights-of-way and access rights.

(Note: This summary applies to this bill as introduced.)