AN ACT RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR FUEL TAX (Sets the allocation to RIPTA at the greater of $0.1175 per gallon or 29.375% of total proceeds, with $0.005 per gallon derived from the $0.01 per gallon environmental protection fee.)

H8315

2026 -- H 8315
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LC006120
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR FUEL TAX

Introduced By:
Representatives Stewart, Alzate, Kislak, Giraldo, Tanzi, DeSimone,
Potter, J. Lombardi, and Cruz

Date Introduced:
March 18, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Section 31-36-20 of the General Laws in Chapter 31-36 entitled "Motor Fuel
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Tax" is hereby amended to read as follows:
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31-36-20. Disposition of proceeds. [Effective January 1, 2026.]
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(a)
Disposition of proceeds.
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(1) Notwithstanding any other provision of law to the contrary, all moneys paid into the
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general treasury under the provisions of this chapter or chapter 37 of this title, and title 46 shall be
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applied to and held in a separate fund and be deposited in any depositories that may be selected by
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the general treasurer to the credit of the fund, which fund shall be known as the Intermodal Surface
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Transportation Fund; provided, that in fiscal year 2004 for the months of July through April six and
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eighty-five hundredth cents ($0.0685) per gallon of the tax imposed and accruing for the liability
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under the provisions of § 31-36-7, less refunds and credits, shall be transferred to the Rhode Island
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public transit authority as provided under § 39-18-21. For the months of May and June in fiscal
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year 2004, the allocation shall be five and five hundredth cents ($0.0505). Thereafter, until fiscal
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year 2006, the allocation shall be six and twenty-five hundredth cents ($0.0625). For fiscal years
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2006 through FY 2008, the allocation shall be seven and twenty-five hundredth cents ($0.0725);
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provided, that expenditures shall include the costs of a market survey of non-transit users and a
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management study of the agency to include the feasibility of moving the authority into the
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department of transportation, both to be conducted under the auspices of the state budget officer.
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The state budget officer shall hire necessary consultants to perform the studies, and shall direct

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payment by the authority. Both studies shall be transmitted by the budget officer to the 2006 session
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of the general assembly, with comments from the authority. For fiscal year 2009, the allocation
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shall be seven and seventy-five hundredth cents ($0.0775), of which one-half cent ($0.005) shall
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be derived from the one cent ($0.01) per gallon environmental protection fee pursuant to § 46-12.9-
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11. For fiscal years 2010 through fiscal year 2025, the allocation shall be nine and seventy-five
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hundredth cents ($0.0975), of which one-half cent ($0.005) shall be derived from the one cent
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($0.01) per gallon environmental protection fee pursuant to § 46-12.9-11. For fiscal
years

year
2026
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and thereafter
, the allocation shall be eleven and seventy-five hundredths cents ($0.1175) of which
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one-half cent ($0.005) shall be derived from the one cent ($0.01) per gallon environmental
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protection fee pursuant to § 46-12.9-11.
For fiscal years 2027 and thereafter, the allocation shall be
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eleven and seventy-five hundredths cents ($0.1175) or 29.375% of the total proceeds, whichever is
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greater, of which one-half cent ($0.005) per gallon shall be derived from the one cent ($0.01) per
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gallon environmental protection fee pursuant to § 46-12.9-11.
One cent ($0.01) per gallon shall be
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transferred to the elderly/disabled transportation program of the department of human services, and
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the remaining cents per gallon shall be available for general revenue as determined by the following
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schedule:
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(i) For the fiscal year 2000, three and one-fourth cents ($0.0325) shall be available for
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general revenue.
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(ii) For the fiscal year 2001, one and three-fourth cents ($0.0175) shall be available for
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general revenue.
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(iii) For the fiscal year 2002, one-fourth cent ($0.0025) shall be available for general
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revenue.
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(iv) For the fiscal year 2003, two and one-fourth cent ($0.0225) shall be available for
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general revenue.
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(v) For the months of July through April in fiscal year 2004, one and four-tenths cents
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($0.014) shall be available for general revenue. For the months of May through June in fiscal year
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2004, three and two-tenths cents ($0.032) shall be available for general revenue, and thereafter,
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until fiscal year 2006, two cents ($0.02) shall be available for general revenue. For fiscal year 2006
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through fiscal year 2009 one cent ($0.01) shall be available for general revenue.
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(2) All deposits and transfers of funds made by the tax administrator under this section,
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including those to the Rhode Island public transit authority, the department of human services, the
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Rhode Island turnpike and bridge authority, and the general fund, shall be made monthly and
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credited and paid by the general treasurer to the designated fund in accordance with this section.
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(3) Commencing in fiscal year 2004, the director of the Rhode Island department of

LC006120 - Page 2 of 5
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transportation is authorized to remit, on a monthly or less frequent basis as shall be determined by
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the director of the Rhode Island department of transportation, or the director’s designee, or at the
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election of the director of the Rhode Island department of transportation, with the approval of the
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director of the department of administration, to an indenture trustee, administrator, or other third-
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party fiduciary, in an amount not to exceed two cents ($0.02) per gallon of the gas tax imposed, in
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order to satisfy debt service payments on aggregate bonds issued pursuant to a joint resolution and
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enactment approving the financing of various department of transportation projects adopted during
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the 2003 session of the general assembly, and approved by the governor.
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(4) Commencing in fiscal year 2015, three and one-half cents ($0.035) shall be transferred
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to the Rhode Island turnpike and bridge authority to be used for maintenance, operations, capital
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expenditures, and debt service on any of its projects as defined in chapter 12 of title 24 in lieu of a
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toll on the Sakonnet River Bridge. The Rhode Island turnpike and bridge authority is authorized to
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remit to an indenture trustee, administrator, or other third-party fiduciary any or all of the foregoing
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transfers in order to satisfy and/or secure its revenue bonds and notes and/or debt service payments
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thereon, including, but not limited to, the bonds and notes issued pursuant to the Joint Resolution
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set forth in Section 3 of Article 6 of Chapter 23 of the Public Laws of 2010. Notwithstanding any
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other provision of said joint resolution, the Rhode Island turnpike and bridge authority is expressly
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authorized to issue bonds and notes previously authorized under said joint resolution for the
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purpose of financing all expenses incurred by it for the formerly authorized tolling of the Sakonnet
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River Bridge and the termination thereof.
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(b) Notwithstanding any other provision of law to the contrary, all other funds in the fund
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shall be dedicated to the department of transportation, subject to annual appropriation by the general
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assembly. The director of transportation shall submit to the general assembly, budget office, and
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office of the governor annually an accounting of all amounts deposited in and credited to the fund
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together with a budget for proposed expenditures for the succeeding fiscal year in compliance with
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§§ 35-3-1 and 35-3-4. On order of the director of transportation, the state controller is authorized
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and directed to draw their orders upon the general treasurer for the payments of any sum or portion
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of the sum that may be required from time to time upon receipt of properly authenticated vouchers.
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(c) At any time the amount of the fund is insufficient to fund the expenditures of the
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department of transportation, not to exceed the amount authorized by the general assembly, the
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general treasurer is authorized, with the approval of the governor and the director of administration,
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in anticipation of the receipts of monies enumerated in this section to advance sums to the fund, for
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the purposes specified in this section, any funds of the state not specifically held for any particular
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purpose. However, all the advances made to the fund shall be returned to the general fund

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immediately upon the receipt by the fund of proceeds resulting from the receipt of monies to the
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extent of the advances.
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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 set the allocation rate to be transferred to the Rhode Island public transit
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authority for 2027 and thereafter at eleven and seventy-five hundredths cents ($0.1175) or 29.375%
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of the total proceeds, whichever is greater, of which one-half cent ($0.005) per gallon shall be
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derived from the one cent ($0.01) per gallon environmental protection fee.
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This act would take effect upon passage.
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