Bill Seeks Higher Road Taxes for Motorists, Shifts to Annual Fee While Exempting Taxi Operators
A bill seeking to increase the highway user tax has been held in the Committee on Budget, Appropriations and Finance by its sponsor, Senator Ray Fonseca.
2025-03-19 13:14:04 - VI News Staff
On Tuesday, Mr. Fonseca initially appealed to his colleagues to support Bill 36-0023 which seeks to create more funding for road maintenance with a hike in what is popularly known as road tax, a one-time payment calculated using the weight of the vehicle. Currently, vehicle owners pay 16 cents per pound, which resulted in $4 million in road tax revenues in FY 2024. Mr. Fonseca, however, recommended a rate dependent on the weight of the vehicle.
His proposed legislation would create an eight-tier system, categorizing vehicles based on weight and attaching a fee to each class. The first tier, for vehicles of up to 6,000 pounds, would keep the 16 cent per pound rate. Each tier above that would increase the road tax rate by two cents. The final tier would include vehicles over 33,000 pounds, and carry a rate of 30 cents per pound.
“This legislation will give [the] Public Works Department more funding for improved maintenance of our roads,” Fonseca explained. “Bill 35-0023 establishes a graduated tax rate where only heavier vehicles, which place a greater strain and burden on our roads, will be required to contribute more towards road upkeep,” he noted.
Though the bill was generally supported by lawmakers and invited testifiers, several expressed hesitation with enacting the bill as written.