Lawmakers in 19 states approved 24 measures for a combined $13.5 billion in new transportation revenue in the first five months of 2023, according to a May analysis by ARTBA’s Transportation Investment Advocacy Center. Several other states continue to consider legislation to increase investment later in the year.
One of the most significant bills to-date was signed into law by Minnesota Gov. Tim Walz (DFL) on May 24. The legislation institutes a new retail delivery fee (50 cents per delivery of $100 or more, with exceptions), raises the metro sales tax for transit funding, increases the motor vehicle sales tax, and indexes the gas tax to inflation (Minnesota Highway Construction Cost Index, offset by removing the minimum markup on gasoline). The bill also includes several one-time funding provisions. The bill is estimated to generate $1.3 billion over the next two years.
Other notable measures approved to-date include:
– A $4 billion general fund transfer for projects in Florida;
– A new road usage charge program for electric vehicles in Hawaii;
– A combined $2.8 billion in general fund revenue and bonds for the I-70 project in Missouri;
– Continuation of Indiana’s gas tax indexing (limited to 1 cent-per-year increase) for an additional three years;
– New electric vehicle registration fees in Montana and Texas;
– A tax on the sale of electricity at public electric vehicle charging stations in Georgia, Montana, and Utah; and
– Tennessee legislation to transfer $3.3 billion from the general fund to the Tennessee Department of Transportation.
One-time funding continues to represent half of all bills introduced this session (111 bills) as states utilize surplus general funds, COVID relief revenue, and bonds to meet federal matches and jumpstart projects. Legislation to implement or increase electric vehicle fees—including charging fees and registration fees—is the second most popular category being explored by state legislatures, with 35 bills (16 percent of 2023 transportation funding legislation) introduced in the first five months of year, a notable increase when compared to the eight bills tracked in the previous year.
View the ARTBA-TIAC State Legislation dashboard for live updates of transportation funding measures and follow the blog for new state and local developments.