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

Young Professional

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 and Environmental 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 and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

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

October 20, 2026 - Zachary Whalen

A pencil rendering of Foundry Park, which shows skyscrapers and public green spaces.

Chicago breaks ground on $3 billion megadevelopment

The new neighborhood, titled Foundry Park, will one day host 3,700 residences.

October 23, 2026 - Chicago Sun Times

A yellow, two-story building named Ferns with two American flags.

This MA town is drowning in its own sewage — and residents like it that way

Susan Murcott, a waste water expert, said if Carlisle didn't address their leaking sewage, the problem could turn “deadly.”

October 22, 2026 - Boston Globe

A square Tesla home battery on the side of a home.

Home batteries are ushering in an energy revolution

Batteries capable of storing solar energy can stabilize the grid during peaks and keep homes running on cloudy days.

October 26 - Grist

A large green space outside a tall, silver terminal.

A sneak peek at NYC’s Midtown Bus Terminal rebuild

The city will turn a deck used for storage during the construction process into a park once construction is complete.

October 26 - Gothamist

One of Archer Aviations air taxis. it has four small propellers and a sleek black build.

Air taxis to connect Texas airports to business hubs

Archer Aviation says its taxis will turn 90 minute drives into 20 minute flights.

October 26 - Fort Worth Report