Around 3:30 AM this morning, the Legislature passed a road funding package of bills that raises an additional $1.85 billion for roads and bridges throughout the state. As previously reported, the three main components comprise the $1.85B road funding bills the House passed last night. The “sales tax swap” at the pump, a marijuana tax, and the redirection of $500 million from the corporate income tax. In an effort to inject more money into the local system without altering the entire formula, the legislation establishes the Neighborhood Road Fund, which directs corporate income tax revenue to that fund.
The cannabis tax increase was the most difficult bill to pass, receiving only the minimum 19 votes in the Senate to get approved. Dispensary owners and employees held a rally at the Capitol earlier this week to convince lawmakers to oppose the new 24% wholesale tax placed on cannabis.
The legislation now goes to the Governor for her signature. A significant portion of the revenue is distributed in non-traditional ways, including the new neighborhood road fund. The MITA staff are reviewing the numbers to gain a comprehensive understanding of where all the money is allocated.
A lot of hard work from the entire industry went into passing this monumental funding increase. MITA staff would like to thank the entire membership for their support. The MITA PAC has never been stronger, and our grassroots efforts are through the roof, exemplified by the incredible showing for the rally at the Capitol. All of these things were major components to the success of this road funding package, and everyone should be proud of our efforts and of the industry as a whole. Politics is messy these days, and in a budget where virtually every area of state government got a cut, road funding got a historic increase.
