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

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 11, 2025 - Diana Ionescu

Rendering of Shirley Chisholm Village four-story housing development with person biking in front.

San Francisco's School District Spent $105M To Build Affordable Housing for Teachers — And That's Just the Beginning

SFUSD joins a growing list of school districts using their land holdings to address housing affordability challenges faced by their own employees.

June 8, 2025 - Fast Company

Yellow single-seat Japanese electric vehicle drivign down road.

The Tiny, Adorable $7,000 Car Turning Japan Onto EVs

The single seat Mibot charges from a regular plug as quickly as an iPad, and is about half the price of an average EV.

June 6, 2025 - PC Magazine

White Waymo autonomous car driving fast down city street with blurred background at night.

Seattle's Plan for Adopting Driverless Cars

Equity, safety, accessibility and affordability are front of mind as the city prepares for robotaxis and other autonomous vehicles.

4 hours ago - Smart Cities Dive

Two small wooden one-story homes in Florida with floodwaters at their doors.

As Trump Phases Out FEMA, Is It Time to Flee the Floodplains?

With less federal funding available for disaster relief efforts, the need to relocate at-risk communities is more urgent than ever.

6 hours ago - Governing

People riding bicycles on separated bike trail.

With Protected Lanes, 460% More People Commute by Bike

For those needing more ammo, more data proving what we already knew is here.

June 16 - UNM News