Updated resource! The “2013 – 2017 State Motor Fuel Tax Increases” Roundup provides a summary of all state legislation to increase taxes on motor fuel for transportation investment since 2013. The report provides an overview of the 23 states that voted to increase motor fuel taxes, as well as a description of the five states that adjusted their variable-rate state gas tax formulas to preserve or increase revenue for roads, bridges, transit, and more. Read the report.
State senators in Wisconsin introduced a new proposal for a state budget on July 18, a tactic intended to get discussions back on track after a month-long stalemate. The plan contains measures from Gov. Scott Walker’s (R) original proposal and includes extensive borrowing for road funding, a policy the Assembly has repeatedly rejected in favor of raising taxes or fees. Read More>>
Wisconsin is also contending with a state department of transportation audit released in January, which revealed that highway project costs have been consistently underestimated. Nineteen recent projects cost the state $1.5 billion, about double their estimated cost. Proposals to correct the issue include altering contractor policies, eliminating wage laws, and prohibiting overspending. Read More>>
North Carolina’s State Transportation Improvement Program (STIP) was updated on June 28 to include 144 additional projects and accelerate 350 existing projects. New revenue projections allowed officials to increase spending by $2.5 billion. Read More>>
A recent budget package approved on July 6 in Illinois included an elimination of ethanol wholesalers’ tax credits. This change will likely increase per-gallon costs by 3 to 5 cents as distributers pass the cost onto consumers. These additional dollars will be deposited as a sales tax in the state’s general fund. Read More>>
House member Jim Hanson (R-Frankford) of Missouri stated on July 9 that transportation will be a priority for the upcoming legislative session. He believes a gas tax increase will be necessary, but any tax raising more than $80 million would require voter approval. Formal recommendations on this and other policies will come from a newly formed state “transportation task force” in January 2018. Read More>>
Indiana’s Next Level Roads project was kicked off by Gov. Eric Holcomb (R) and Indiana Department of Transportation Commissioner Joe McGuinness last week. The plan includes about $4.7 billion in project investments over the next five years, and an additional $342 million annually until 2024. Read More>>
Alabama Speaker Mac McCutcheon (R-Monrovia) predicts that the state will likely wait two years until making a serious attempt to increase the state gas tax. Read More>>
Katherine Jones, ARTBA Economics Intern, contributed to this report.