House approves Bill to increase road use tax

A Bill was introduce to Delegate Horace Rafael, Delegate Rebluud Kesolei, and Delegate Alexander Merep regarding on increasing the Road Use Tax for vehicles weighing more than 4, 000lbs passed it’s third and final reading. The bill stated that vehicles that weigh more than 4,000lbs are known to enlarge potholes and worsen cracked pavements, and that it is time to increase the Road Use Tax so a Road Maintenance Fund can be established. Motor vehicles are assessed annually with $50 for vehicles that weigh 2,000lbs or less, $75 for vehicles weighing from 2,000lbs to 4,000lbs, and $300 for vehicles weighing $4,000lbs or more. Fees are payable at the time required for registration of each vehicles. Through this strategy a $150 will be deposited in the Road Maintenance Funds and will used solely for Palau roadway maintenance. The Bill will soon be transmitted to the Senate for further review and consideration.

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