§ 54-27-19 — Highway tax distribution fund - State treasurer to make allocation to state, counties, and cities

counties, and cities.
A highway tax distribution fund is created as a special fund in the state treasury into which
must be deposited the moneys available by law from collections of motor vehicle registration
and related fees, fuels taxes, special fuels taxes, use taxes, and special fuels excise taxes. The
state treasurer shall transfer the first five million five hundred thousand dollars per biennium
from the highway tax distribution fund to the state highway fund for the purpose of providing
administrative assistance to other transferees. After the transfer of the first five million five
hundred thousand dollars, any moneys in the highway tax distribution fund must be allocated
and transferred monthly by the state treasurer, as follows:
1. Sixty percent must be transferred monthly to the state department of transportation
and placed in a state highway fund.
2. Three and four-tenths percent must be transferred monthly to the township highway
aid fund.
3. One and sixth-tenths percent must be transferred monthly to the public transportation
fund.
4. Thirty-five percent must be allocated to the counties of this state in proportion to the
number of vehicle registrations credited to each county. Each county must be credited
with the certificates of title of vehicles registered by residents of the county. The state
treasurer shall compute and distribute the counties' share monthly after deducting the
incorporated cities' share. All the moneys received by the counties from the highway
tax distribution fund must be set aside in a separate fund called the "highway tax
distribution fund" and must be appropriated and applied solely for highway purposes in

accordance with section 11 of article X of the Constitution of North Dakota. The state
treasurer shall compute and distribute monthly the sums allocated to the incorporated
cities within each county according to the formulas in this subsection using the
incorporated cities' populations as determined by the last official regular or special
federal census or the census taken in accordance with the provisions of chapter 40-02
in case of a city incorporated subsequent to the census.
a. For counties having no cities with a population of ten thousand or more, twenty-
seven percent of the total county allocation must be distributed to all of the
incorporated cities within the county on a countywide per capita basis. The
remaining county allocation amount must be transferred into the county highway
tax distribution fund.
b. For each county having a city with a population of ten thousand or more, the
amount transferred each month into the county highway tax distribution fund must
be the difference between the amount allocated to that county pursuant to this
subsection and the total amount allocated and distributed to the incorporated
cities in that county as computed according to the following formula:
(1) A statewide per capita average as determined by calculating twenty-seven
percent of the amount allocated to all of the counties under this subsection
divided by the total population of all of the incorporated cities in the state.
(2) The share distributed to each city in the county having a population of less
than one thousand must be determined by multiplying the population of that
city by the product of 1.50 times the statewide per capita average computed
under paragraph 1.
(3) The share distributed to each city in the county having a population of one
thousand to four thousand nine hundred ninety-nine, inclusive, must be
determined by multiplying the population of that city by the product of 1.25
times the statewide per capita average computed under paragraph 1.
(4) The share distributed to each city in the county having a population of five
thousand or more must be determined by multiplying the population of that
city by the statewide per capita average for all such cities, which per capita
average must be computed as follows: the total of the shares computed
under paragraphs 2 and 3 for all cities in the state having a population of
less than five thousand must be subtracted from the total incorporated cities'
share in the state as computed under paragraph 1 and the balance
remaining must then be divided by the total population of all cities of five
thousand or more in the state.
5. The moneys allocated to the incorporated cities must be distributed to them monthly
by the state treasurer and must be deposited by the cities in a separate fund and may
only be used in accordance with section 11 of article X of the Constitution of North
Dakota and an incorporated city may use the fund for the construction, reconstruction,
repair, and maintenance of public highways within or outside the city pursuant to an
agreement entered into between the city and any other political subdivision as
authorized by section 54-40-08.