PROPOSAL: Motorboat Fuel Tax.  

Be it enacted by the Senate and House of Representatives in General Assembly convened: 

Section 1. Section 12-460a (Deposit of certain tax revenues into the Conservation Fund) of the general statutes is repealed and the following is substituted in lieu thereof: 

Sec. 12-460a. Notwithstanding the provisions of section 13b-61, the Commissioner of Revenue Services shall deposit into the Conservation Fund established under section 22a-27h any unredeemed [three million dollars of the amount of the] funds received by the state from the tax imposed under this chapter attributable to sales of fuel from distributors to any boat yard, public or private marina or other entity renting or leasing slips, dry storage, mooring or other space for marine vessels provided one-half of the funds [ two hundred fifty thousand dollars] shall be credited to the boating account and one-half of the funds [two million fifty thousand dollars] shall be credited to the fisheries account. [Amounts in the fisheries account shall be allocated as follows: Not less than seventy-five thousand dollars shall be allocated to The University of Connecticut for the Long Island Sound Councils, not less than seventy-five thousand dollars shall be allocated to the Department of Economic and Community Development for an economic impact study of the lobster industry in Long Island Sound and not less than eight hundred fifty thousand dollars shall be allocated to the Department of Environmental Protection for use as an additional expenditure, in excess of any other state or federal funds made available, for enhancement of recreational fishing in accordance with an allocation which shall be submitted, on or before October 1, 2000, to the joint standing committee of the General Assembly having cognizance of matters relating to the environment.] 

• Purpose: Deposit into the Conservation Fund fuel taxes attributable to sales of motorboat fuel at boat yards, marinas, and other on-the-water fuel distribution points. To provide proper distribution and application of motorboat fuel taxes to the benefit of the users.
• History: P.A. 98-225 increased funds deposited into Conservation Fund from $250,000 to $500,000, eff. July 1, 1998; P.A. 99-173 increased the transfer of revenue from the Transportation Fund to the Conservation Fund from $500,000 to $2,000,000, eff. July 1, 1999; June Sp. Sess. P.A. 99-1 reduced amount credited to fisheries account from $1,750,000 to $1,050,000, eff. July 1, 1999; P.A. 00-170 increased the amount of funds transferred to the Conservation Fund to $3,000,000, increased the amount of funds credited to the fisheries account to $2,050,000, and provided specific allocation of the fisheries account moneys credited under this section, effective July 1, 2000. More manipulation of the fund and revenue reductions has since transpired.
• Proper DEP management requires a consistent revenue basis for planning and implementation. Special interests or issues (University of Connecticut for the Long Island Sound Councils; Department of Economic and Community Development for an economic impact study of the lobster industry) which should be funded by the General Fund, reduce planning ability and have little relevance to the recreational fishing and boating users.