So far this year, lawmakers in 28 states approved 36 measures for $23 billion combined in new transportation revenue, according to a September analysis by ARTBA’s Transportation Investment Advocacy Center.

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. It is estimated to generate $1.3 billion over the next two years.

Other notable measures approved to-date include:

– Wisconsin transportation funding appropriation, increased electric vehicle (EV) fees, and dedicates EV sales taxes into the Transportation Fund;
– Dedication of 40 percent of sales taxes on vehicle purchases and 40 percent of sales and use taxes collected by the Maine Bureau of Motor Vehicles to the highway fund;
– A new road usage charge program for EVs in Hawaii;
– Continuation of Indiana’s variable-rate gas tax formula (limited to 1 cent-per-year increase) for an additional three years;
– New EV registration fees in Montana, New Hampshire, and Texas;
– A tax on the sale of electricity at public charging stations in Georgia, Montana, and Utah; and
– Continuation of voter-approved revenue (previously scheduled to sunset) for transportation in Texas.

One-time funding continues to represent half of all bills introduced this session (120 bills) as states use surplus general funds, COVID relief revenue, and bonds to meet federal matches and jumpstart projects. Legislation to implement or increase EV fees—including charging fees and registration fees—is the second most popular category being explored by state legislatures, with 37 bills (15 percent of 2023 transportation funding legislation) introduced in the first eight months of year, a notable increase when compared to the eight bills tracked in the previous year.

One-time funding measures were approved in 15 states, including:

– A $4 billion general fund transfer for projects in Florida;
– A combined $2.8 billion in general fund revenue and bonds for the I-70 project in Missouri; and
– $3.3 billion general fund transfer to the Tennessee Department of Transportation, as well as an increase in EV registration fees.

View the ARTBA-TIAC State Legislation dashboard for live updates of transportation funding measures and follow the blog for new state and local developments.

Read the report: www.transportationinvestment.org