Revision: Jan. 13, 2016, midnight
\t \t\tSB 494-FN-A - AS INTRODUCED
2016 SESSION
\t16-2951
\t09/06
SENATE BILL\t494-FN-A
AN ACT\trepealing the exemption from the road toll for federal government fuel purchases.
SPONSORS:\tSen. Feltes, Dist 15; Sen. Birdsell, Dist 19
COMMITTEE:\tWays and Means
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ANALYSIS
\tThis bill repeals the exemption from the road toll for federal government fuel purchases.
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Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2951
\t09/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trepealing the exemption from the road toll for federal government fuel purchases.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Reference Deleted; Airways Toll. Amend RSA 422:34, I to read as follows:
\t\tI. There is hereby imposed an airways toll of $.04 per gallon upon the sale of each gallon of motor fuel or fuel, as defined by RSA 259:58, sold to and used in the propulsion of aircraft. [The airways toll shall be subject to the exemptions provided for government sales by RSA 260:32.]
\t2 Repeal. The following are repealed:
\t\tI. RSA 260:32, I, relative to an exemption from the road toll.
\t\tII. RSA 260:52-g, relative to refunds to eligible credit and fuel card issuers.
\t3 Effective Date. This act shall take effect July 1, 2016.
\t\t\t\t\t\t\t\t\t\t\t16-2951
\t\t\t\t\t\t\t\t\t\t\t1/5/16
SB 494-FN-A- FISCAL NOTE
AN ACT\trepealing the exemption from the road toll for federal government fuel purchases.
FISCAL IMPACT:
The Department of Safety states this bill, as introduced, will increase state restricted revenue by $335,406 in FY 2017 and each year thereafter, increase state restricted expenditures and local revenue by an indeterminable amount in FY 2017 and by $40,249 in FY 2018 and each year thereafter, and increase local revenue by $40,249 in FY 2018 and each year thereafter. There will be no impact on county revenue or county and local expenditures.
METHODOLOGY:
The Department of Safety states this bill removes the exemption from the airway toll and road toll for federal government entities and repeals allowing refunds to eligible credit cards and fuel card issuers, which have paid road toll on behalf of an exempt governmental entity that purchased fuel at a fixed retail pump. The Department states while it did not note any government airway toll exemptions taken in either FY 2014 or FY 2015, it has provided this bill’s potential road toll revenue impact based on FY 2015 federal government sales/refund figures:
Retail Sales by Distributors to Federal Government (Gallons) | 137,177 |
Bulk Sales by Distributors to Federal Government (Gallons) | 852,136 |
Total Tax Exempt Sales | 989,313 |
Refunds Submitted by Federal Government or Eligible Credit Card (Gallons) | 521,524 |
Total Gallons | 1,510,837 |
Road Toll Rate (Per Gallon) | $0.222 |
Total Estimated State Revenue Increase | $335,406 |
Based on the revenue projection above, state expenditures and local revenues would increase under this bill by $40,249 in FY 2018 and each year thereafter highway block grant as pursuant to RSA 235:23 (12 percent of total road toll revenue and motor vehicle fees are distributed to cities and towns pursuant to a specified formula in the year following collection). The Department of Safety states this bill may result in one time minor changes to the Road Toll Bureau’s automated fuel toll system at an estimated cost of less than $10,000.