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DIGEST OF INTRODUCED BILL
Taxes on motor fuel; mass transit funding. Provides that sales of gasoline are exempt from sales tax. Provides for an increase in the sales tax rate from 6% to 6.4%. Provides for an increase in the gasoline tax rate from $0.18 per gallon to $0.25 per gallon. Provides that the additional revenue derived from the increase in the gasoline tax rate is deposited in the local road and street account. Allows a county, city, or town to adopt an ordinance to spend 10% of the increased local road and street account distribution on local or regional mass transit. Repeals provisions requiring distributors of gasoline to prepay sales tax when transferring gasoline to a retailer.