LOCAL GOVERNMENT AND TAXATION 



85 



These joint funds are expended for the purpose of improving 

 rural post roads under supervision of, and in locations approved by, 

 the highway commissioner. The maximum expenditure is $1,500 per 

 mile of road except by special permission. Highways thus improved 

 are maintained by the town. 



The state highway commissioner may designate a section of any 

 main town highway for maintenance under the state patrol system, 

 providing such a highway has not been improved under the state-aid 

 laws. 



In the month of July of each year the highway commissioner is 

 required to allot to each town a sum sufficient, when added to the 

 amount which might be derived by a tax of 50 cents on each $100 of 

 assessed valuation of the preceding year, to ecjual $90 for each mile 

 of Class V highway in the town. ^'^ Thus, those towns in which a tax 

 of 50 cents on each $100 of assessed valuation is greater than $90 per 

 mile of Class V roads are not eligible to receive state aid for the 

 maintenance of their rural post roads. This is the only form of state 

 aid for maintenance of Class V roads. Only 48 towns received this 

 type of state aid in 1940. 



The state treasurer collects a four-cent tax on gasoline, three 

 cents of which is expended on highways. This revenue amounted 

 to nearly 2.7 millions for 1940, and accounted for 39.0 percent of the 

 total revenue of the department in 1940 (Table 22). The remaining 

 one-cent gas tax is used for paying interest and retiring bonds is- 

 sued for remedying damages caused by recent floods and the hurri- 

 cane of 1938. Through the motor vehicle department the state ob- 

 tains revenue from motor vehicle operators, including registrations, 



Table 22. Income of the State Highway Department by Sources, February 

 1, 1940 to January 31, 1941* 



Source of income 



Amount 

 of income 



Percent 

 of total 



3-cent gas tax 

 Motor vehicle fees 

 Federal aid: Regular 



Other 

 Garage income 

 All othert 



Total 



$699,912.63 

 .,216,595.32 



$2,680,186.64 

 2,879,534.90 



916,507.95 



348,527.09 



38,652.74 



39.0 

 41.9 



13.4 

 5.1 

 0.6 



$6,863,409.32 



lOO.O 



* Annual report of the State Highway Department, 1940. 



t Excludes $2,000,000 from bonds. The unexpended balance at the end of the fiscal year 

 amounted to more than 80 percent of the bond principal. 



fees, and fines. Any balance in excess of the expenses of the motor 

 vehicle department and $150,000 for highway patrol by the state police 

 is used for highway purposes. The revenue which accrues to the 

 highway department from this source slightly exceeds that from the 

 gas tax and in 1940 amounted to 41.9 percent of the total income for 



5< Chapter 220, Session Laws of 1941. 



