What’s happening: Several states began the year by moving quickly on transportation investment issues, including:

  • Mississippi House lawmakers passed House Bill 1 on Jan. 16. If approved by the Senate and governor the legislation would gradually eliminate the state income tax and enact a five percent sales tax on gasoline, generating $400 million annually for the state department of transportation.
  • Massachusetts Gov. Maura Healey (D) on Jan. 14 announced a plan to use a greater share of the state’s “millionaire tax” to invest $8 billion over the next 10 years in roads, bridges and regional transportation system.
  • A lawsuit against a ballot measure approved by voters in Nashville, Tenn. last November was rejected by a judge in Davidson County Jan. 15, permitting the $3.1 billion transportation funding initiative to take effect. Opponents of the measure may seek to appeal the decision. Another lawsuit to block the enactment of a Maricopa County, Ariz. sales tax extension, also approved by voters in November, was dismissed in December.
  • South Dakota Transportation Secretary Joel Jundt on Jan. 16 warned members of the House Transportation Committee that nearly 30 percent of state-maintained roads are expected to be in fair or poor condition by 2034, exceeding the state’s goal of keeping that number at 20 percent or less.
  • Michigan House Speaker Matt Hall (R) on Jan. 15 announced a plan to invest $3.1 billion into transportation infrastructure, primarily by allocating $2.2 billion from the state’s Corporate Income Tax. The proposal also eliminates the general sales tax on gasoline at the pump and replaces it with a revenue-neutral motor fuel tax increase, which would go entirely to transportation improvements.
  • Maryland Gov. Wes Moore (D) on Jan. 15 proposed a $420 million annual increase for the state’s Transportation Trust Fund, primarily funded through a 75-cent fee on retail deliveries.
  • Rhode Island Gov. Dan McKee (D) on Jan. 16 included a $150 annual electric vehicle registration fee in his proposed state budget.

Dig Deeper: Follow the ARTBA-TIAC legislative dashboard to see which states are introducing and approving new revenue, sort legislation by type, and read bill details.