Transportation (Transportation Funding)

H.863 imposes a $0.30 fee on retail deliveries (like online orders shipped to Vermont) that are subject to sales tax, collected by vendors and listed separately on receipts. It permits municipalities to levy a local tax on gasoline and diesel fuel sales and allocates funds to transportation programs including electric vehicle incentives, public transit coordination, and creating pollinator habitats along roads. The bill also requires public EV charging stations to accept credit cards and provide real-time availability, and mandates a study on electric bicycle safety. These provisions aim to fund infrastructure improvements, support clean energy transitions, and enhance transportation equity.

H.643 redirects all revenue from Vermont's purchase and use tax to the Transportation Fund instead of the Education Fund, phasing out the education allocation over six years. The bill gradually reduces the annual cap for education funding - from $50 million in 2026 down to $10 million in 2030 - before fully repealing it by 2031. This change directly affects state budget allocations, shifting funds from education to transportation infrastructure without altering the tax itself. The policy change takes effect annually starting July 1, 2026, with full implementation by 2031.

This bill (S 149) adjusts Vermont's gasoline and diesel fuel taxes to automatically increase annually based on inflation, as measured by the Consumer Price Index (CPI-U). Starting July 1, 2028, the tax rates will rise each July 1 by the percentage change in the CPI-U from the prior 12 months (adjusted to April 1), but will not decrease if inflation is negative. It directly affects fuel distributors and consumers through higher fuel costs over time, with current rates set at $0.28 per gallon for diesel and $0.121 per gallon for gasoline. The change takes effect July 1, 2025, and aims to maintain the real value of fuel tax revenue amid rising prices.

H.426 provides funding for electric vehicle and eBike incentive programs, including $6 million for new plug-in electric vehicle purchases and $150,000 for eBike incentives in fiscal year 2026. It imposes a $0.30 fee on retail deliveries (subject to sales tax) to generate revenue for transportation initiatives and allocates $2.8 million to public transit agencies to maintain service levels. The bill also requires updated transportation standards to include complete streets and green infrastructure, establishes rules for electric vehicle charging equipment installation, and directs evaluations of projects to reduce vehicle miles traveled and emissions. These changes directly affect vehicle buyers, retail delivery vendors, public transit agencies, and municipalities seeking infrastructure funding.