Overview
- Court of Claims Judge Sima G. Patel denied a preliminary injunction after finding the plaintiffs were unlikely to prevail and had not shown irreparable harm.
- The 24% wholesale tax was enacted in October within the 2025–26 road-funding budget and is scheduled to take effect Jan. 1, 2026.
- Patel concluded the MRTMA’s 10% retail excise tax is “in addition to all other taxes,” allowing a separate wholesale levy without amending the voter initiative.
- The lawsuit proceeds to discovery on whether the tax frustrates MRTMA’s purposes, with an evidentiary hearing set for Jan. 13 at 10 a.m.
- Industry filings, including from MRTMA co-drafter Robin Schneider, warn the combined taxes could drive buyers to the illicit market as the state projects about $420 million for road repairs.