Infrastructure Watch previously posted about the dwindling Highway
Trust Fund. One of the reasons this
fund has shrunk is that it is supported by taxes on gasoline. Improvements in fuel efficiency and changes
in driving habits have reduced revenues from gas taxes.
This is issue for states as
well as the federal
government. Like the Highway Trust Fund,
most state highway
revenues come from gas taxes. At all
levels of government, people are looking for alternative sources of revenue. Some of the proposals include increasing gas
taxes, sales taxes, miles-traveled
taxes, increasing fees, and new or increased tolls.
Increased Gas Tax
One approach is to simply increase the tax on gas. In 13 states, it has been 20 years or more
since the gas tax has changed.
Sales Tax
Some states are looking at supplementing highway funding with a sales
tax. Virginia Governor Bob McDonnell has gone so
far as to propose eliminating his states gas tax and replacing it with a sales
tax to support transportation. Though no other state has considered going so
far, many have looked at increased or new sales taxes to supplement funds for
highways.
Miles-Traveled Tax
The gas tax has some relation to road use because the more you drive
the more gas you use. Several states
have looked at the possibility of directly taxing for roads based on
use. The difficulty of such a tax is
that there needs to be a mechanism of tracking and reporting miles traveled.
Fees
Most states have fees for motor vehicle registration. Some are considering increasing these fees
and dedicating them completely to transportation. It seems unlikely that these fees alone could
replace losses in gas tax revenue.
Tolls
Tolls are a longstanding method of road funding. One suggestion for raising road revenues is
to increase toll and institute tolls on free roads.
Related posts and articles
No comments:
Post a Comment