Replacing State Gas Taxes With Alternative Funding Measures

With gas taxes not keeping pace with inflation, state politicians are looking to eliminate gas taxes in favor of alternatives such as sales taxes, vehicles-miles-traveled fees, and new forms of road tolls.

1 minute read

November 21, 2006, 8:00 AM PST

By Irvin Dawid


"According to the National Conference of State Legislatures, gas taxes in the following three states are the only ones to have kept pace with inflation: Missouri, Utah, and Wyoming. Voters and legislatures in other states have been reluctant to raise gas taxes, according to commuting expert Alan Pisarski."

"Oregon is charging some motorists a road-user fee based on miles traveled instead of the state gas tax. Georgia is considering replacing its state gas tax with a 1% statewide sales tax dedicated to road and transit projects. New Jersey is looking at converting more freeways into toll roads."

Indiana received almost $4 billion for privatizing its toll road, resulting in drastically higher tolls being charged to motorists.

"New Jersey and Washington are among several states considering new forms of tolls. One is "congestion pricing," which charges motorists more for using highways during rush hour."

State leaders know they can't look to Washington for salvation.

"The 18.4-cent-per-gallon federal gas tax -- which has funded major road projects since 1956 and transit projects since 1983 -- was last raised in 1993 and has not kept pace with inflation."

Sunday, November 19, 2006 in USA Today

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