A BILL TO BE ENTITLED
AN ACT to direct the environmental review commission to study whether the highway use tax should be based on fuel efficiency, whether the vehicle registration renewal fee should be based on vehicle miles TRAVELED, and whether funds generated from these sources of revenue should be used to support air quality and transportation efficiency initiatives.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  The Environmental Review Commission shall study both of the following:
(1)	Whether the State should modify the current highway use tax so that all or a portion of the highway use tax paid on a private passenger vehicle is based on the fuel efficiency rating of the vehicle.
(2)	Whether the State should modify the current vehicle registration fee so that all or a portion of the annual vehicle registration renewal fee for a passenger vehicle is based on the vehicle miles traveled by the vehicle.
SECTION 1.(b)  In its conduct of these studies, the Environmental Review Commission shall consider whether the modifications studied under subsection (a) of this section should be made on a revenue‑neutral basis or should be made so as to generate additional revenue to be used to fund initiatives designed to improve air quality and the efficiency of the transportation system in the State.
SECTION 1.(c)  The Commission shall report its findings and recommendations, including any legislative proposals, to the 2005 General Assembly.
SECTION 2.  This act becomes effective July 1, 2004.