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

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

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.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Washington

Washington State’s Parking Reform Law Could Unlock ‘Countless’ Acres for New Housing

A law that limits how much parking cities can require for residential amd commercial developments could lead to a construction boom.

May 1 - Streetsblog USA

Bluebird sitting on branch of green bush.

Wildlife Rebounds After the Eaton Fire

Following the devastation of the Eaton Fire, the return of wildlife and the regrowth of native plants are offering powerful signs of resilience and renewal.

May 1 - AP News

1984 Olympics

LA to Replace Inglewood Light Rail Project With Bus Shuttles

LA Metro says the change is in response to community engagement and that the new design will be ready before the 2028 Olympic Games.

May 1 - Newsweek

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.