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House Bill 133 — Transportation funding

House Bill 133 — Transportation funding

by
Parrish Miller
February 15, 2021

Bill Description: House Bill 133 triples vehicle title fees, allocates more sales tax revenue to transportation, and increases local government access to bonding.

Rating: -3

Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?

House Bill 133 amends Section 49-202, Idaho Code to increase the fee for "issuing every Idaho certificate of title" for a motor vehicle from $14 to $42. This is a 200% increase.

(-1)

House Bill 133 amends Section 63-3638, Idaho Code, to triple — from 1% to 3% — the amount of state sales tax revenue "continuously appropriated" to the transportation expansion and congestion mitigation fund. The bill also triples the minimum appropriation to the fund from $15 million to $45 million. 

Increasing the share of tax revenue going to transportation would be a neutral shift if it were offset by other reductions in state spending. Without any stipulated reductions, this increase in spending requires a corresponding increase in revenue, which ultimately comes from taxes. 

(-1)

Does it increase government spending (for objectionable purposes) or debt? Conversely, does it decrease government spending or debt?

House Bill 133 amends Section 40-720, Idaho Code, to grant local governments access to the transportation expansion and congestion mitigation fund. The purpose of this fund is for the Idaho housing and finance association to issue bonds, secured by otherwise unobligated moneys in the fund. According to language added by this bill, "40% of such moneys disbursed will be available to local units of government." Additionally, the $28 per title fee increase addressed above is "continuously appropriated and shall be allocated to local units of government." Increasing government bonding authority leads to increased government debt. 

(-1)

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