Legislative Watch 
LEGISLATIVE
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6/8/06-Gov. Dave Heineman has signed a bill into law that directs funds to local governments for new road construction and maintenance.
The new law, previously LB904, sends all sales and use tax collected on motor vehicle, trailer and semi-trailer sales to the state’s highway fund.
It also reroutes the half-cent in the 5.5-cent sales tax that is diverted to the state’s general fund for local road projects. The revised allocations will amount to an estimated $15 million a year to be distributed equally between counties and cities.
Local governments could opt to use those revenues to pay off bond obligations.
The new law takes effect Oct. 1, 2006.
