Road Fund moving forward, new plates, road tax by vehicle weight

GREAT BAY--Minister of Finance Marinka Gumbs on Monday said government will move forward with a dedicated Road Fund, while also preparing improvements to road tax compliance that could include introducing new license plates because the current sticker system cannot yet deliver the level of enforcement it was intended to support.

The Minister pointed to declining collections as a key pressure point, noting that road tax revenue reached roughly 11 million in 2023, and fell to about 9 million in 2025. And this, presumably, is with more vehicles on the road. She linked the drop to ongoing compliance challenges, stressing that strengthening collection is necessary if government is to sustainably finance road maintenance and related infrastructure priorities.

The Minister made the comments during Breakfast Lounge with Lady Grace, responding to concerns that road tax revenue can lose its intended impact when it flows into a single central account and is then used alongside other government spending. The issue has also been highlighted in audit work focused on the allocation of motor vehicle tax revenues and the policy implications of earmarking those revenues toward road infrastructure.

The Minister explained that the sticker approach was tied to a broader enforcement concept that would reduce reliance on manual checks, but St. Maarten is not yet in a position to fully apply that system as envisioned. In that context, she indicated that a return to new plates is being considered as part of next-year planning, so that compliance can be verified more easily at a glance and enforcement can be more consistent.

St. Maarten’s motor vehicle tax framework provides for the Minister to set requirements for number plates and control stickers by tax year, and those specifications are formally established through published regulations. Government notices in recent years have also reflected a mixed compliance approach that relies on visible identifiers, including number plates for prior years alongside QR code stickers for the current tax year, coordinated with enforcement controls.

The Minister confirmed that she and Minister of VROMI Patrice Gumbs have agreed to proceed with establishing the Road Fund. The goal is to strengthen the link between motor vehicle tax revenue and road infrastructure outcomes, an approach that has been repeatedly discussed in public finance oversight, including follow-up reporting on how motor vehicle tax revenues are allocated.

Looking ahead, the Minister said government is examining road tax reforms for 2027, including a weight-based structure where heavier vehicles would pay more. She framed the approach as a fairness measure, aligning payment more closely with road impact, and addressing the perception that high-end or heavier vehicles should not face the same road tax burden as smaller vehicles.

Although the Minister did not provide a firm projection for road tax revenue this year, she emphasized that motorists must remain compliant and pay what is due. She also acknowledged the concern of motorists who did not pay for 2025 moving into 2026 without settling, while noting there may be enforcement or legal questions that need to be clarified at the Receiver’s Office.

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