STATE TRANSPORTATION FUNDING PROPOSALS
SINCE 2013
As of December 16, 2016
Dates listed below are roughly approximate periods of reported discussions.
Latest Updates
· Wisconsin released a study detailing how tolling state roads would potentially affect State coffers.
· Senators in Montana have announced a plan to fund road work using the state’s general fund.
· Indiana’s Road Funding Task Force proposed several measures to increase revenue, including an increase to the state gas tax.
· Two bills were introduced in California that would provide over $6 Billion for state transportation funding.
· A South Carolina lawmaker has prefiled a bill to ask voters in 2018 to legalize gambling, with the funds going towards road needs. Others are suggesting an increase in the gas tax.
· Nebraska will increase its gas tax by 1.5 cents, starting in 2017.
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ALABAMA (3/17/16; 5/2/16)
Proposed Revenue Tools - House
· The state gas tax is currently made up of three different levies and a pump inspection fee. A proposal would add another excise tax, based on an average of the existing state taxes in Florida, Georgia, Mississippi and Tennessee. The increase when enacted would be roughly 6 cents per gallon.
Status
· Gas tax increase rejected.
ARIZONA (2/15/13; 1/9/14)
Needs
· $63 billion gap over 25 years, which, if averaged, equals $2.52 billion annually.
Proposed Revenue Tools and Yield Potential
· Framework for a study committee to look at a vehicle miles traveled (VMT) fee.
· Advertising for food, hotel and gas service to be installed at 300 exits in Phoenix, Tucson, Yuma and Flagstaff. Will raise up to $10 million.
Status
· VMT fee under preliminary discussion.
· Advertising already underway.
ARKANSAS (3/7/13; 5/9/16; 6/1/16)
Proposed Revenue Tools and Yield Potential
· Half-cent sales tax increase (from 6 to 6.5%), with the increase dedicated to fund $1.8 billion in highway improvements over the next ten years. The sales tax increase will be rescinded after ten years when the bonds used from the proceeds have been repaid.
· 5 cent-per-gallon gas tax increase, with an additional 3 cent-per-gallon increase over the following three years.
· Money transferred from the state’s general revenue, surplus and rainy day funds.
Status
· Half-cent sales tax increase: Passed statewide ballot in November 2012, collection started July 1, 2013.
· Gas tax increase in general discussion.
· $50 million annually will be transferred for roads and bridges from the state’s general revenue, surplus and rainy day funds.
CALIFORNIA (3/5/13; 11/19/13; 4/16/15; 8/10/15; 8/17/15; 9/3/15; 1/10/16; 7/7/16)
Proposed Revenue Tools – Coalition of Transportation Leaders
· Implement a 1% surcharge on the vehicle license fee, currently 0.65% of a vehicle’s market value.
Proposed Revenue Tools – Governor 2013 Proposal
· Beginning to study a vehicle miles traveled fee to replace the per-gallon gas tax.
Proposed Revenue Tools – 2015 Legislature
· Raise state gas tax 10 cents per gallon.
· Increase vehicle registration fees $35, with a $100 surcharge for zero-emission vehicles.
· 35% vehicle license fee increase, phased in over five years.
· Would raise at least $3.5 billion/year.
Proposed Revenue Tools – Business/Labor Coalition
· Raise at least $6 billion for roads by “reasonable” increases in gas and diesel sales tax, vehicle registration and license fees and moving existing transportation dollars out of the general fund.
Proposed Revenue Tools – 2015 Senate
· Raise the state gas tax by 10 cents per gallon.
· Raise annual registration fees for all vehicles by $35 and institute a $100 fee for zero-emission vehicles.
Proposed Revenue Tools and Yield Potential – 2015 Governor Proposal
· Raise the excise tax on diesel 11 cents per gallon
· Index the gas tax to inflation
· Above tools would raise $1 billion
· $2 billion raised by instituting a $65-per-vehicle highway user fee
· Raise $500 million/year from California’s cap-and-trade system of selling emissions permits
· Raise $100 million from new “efficiencies” in the state transportation agency
· $3.6 billion total raised
Proposed Revenue Tools and Yield Potential – 2016 Governor Proposal
· Institute a $65 annual fee on all vehicles to fund $36 billion in transportation projects over 10 years.
Proposed Revenue Tools and Yield Potential – Mileage Tax
· Pilot program to study a mileage tax.
Proposed Revenue Tools and Yield Potential – 2016 Lame Duck Session
· Gov. Brown called a special session to discuss transportation, proposing a $6 Billion package. This session was scrapped.
Status
· Surcharge on vehicle license fee: In general discussion.
· Business/labor coalition proposal in general discussion.
· Gas tax increase in general discussion.
· 2016 Governor proposal in general discussion.
· Mileage tax pilot program was instituted in mid-2016, with 5,000 California drivers taking part. No money changing hands.
COLORADO (4/24/15; 4/28/16)
Proposed Revenue Tools
· Governor requesting that General Assembly change state law he says is preventing what would otherwise be annual infusions of hundreds of millions of dollars from the state’s General fund into the transportation system.
· House proposal to move funds, including a total of $650 million for transportation and new transportation projects through 2020, from under a revenue cap set by the state’s Taxpayer’s Bill of Rights, which triggers refunds to taxpayers.
· Undertaking a pilot study to look at pay-by-mile charges to replace the gas tax.
Status
· Both proposals in general discussion.
CONNECTICUT (1/7/15; 5/10/15; 5/28/15; 6/1/15; 12/9/15; 1/15/16; 2/29/16; 5/5/16)
Proposed Revenue Tools
· Governor interested in instituting a lockbox on transportation funds to ensure they are used for that purpose.
· State DOT interested in sponsorship of highway rest stops and emergency service trucks.
· Governor interested in using a portion of a sales tax toward transportation.
Proposed Revenue Tools – Governor-Appointed Panel
· Beginning in 2018, increase the state gas tax 2 cents per gallon each year for 7 years (total increase of 14 cents per gallon)
· Increase fees for motor vehicle registrations, licenses and permits.
Status
· Lockbox on transportation funds rejected.
· Sponsorship of rest stops and emergency service trucks in general discussion.
· Half a cent of the sales tax dedicated to transportation as part of approved budget deal.
· Panel proposals in general discussion.
DELAWARE (7/1/15; 2/17/16)
Proposed Revenue Tools - House
· Increase the state gas tax 10 cents per gallon. Increase would expire after one year, allowing lawmakers to assess where oil prices stand and whether to renew the tax increase.
Proposed Revenue Tools and Yield Potential – 2015 Legislature
· Raise Department of Motor Vehicles fees to bring in $23.9 million for transportation.
Status
· DMV fees increase passed House and Senate.
· Gas tax increase in general discussion.
DISTRICT OF COLUMBIA (5/22/13)
Proposed Revenue Tools
· 23.5 cents per gallon gas tax replaced with an 8.3% tax on wholesale gas and diesel purchases. This should not change what consumers pay, at least in the near term. It changes the implementation, from consumers paying the fuel tax to businesses paying (who would then presumably pass those costs onto consumers).
Status
· Approved by DC Council May 22.
FLORIDA (3/30/13; 4/24/14)
Proposed Revenue Tools
· Beginning exploration of possibly moving to a mileage-based user fee.
Status
· Mileage-based user fee under preliminary discussion.
GEORGIA (12/30/14; 1/28/15; 2/6/15; 2/18/15; 3/7/15; 3/20/15; 4/1/15)
Needs
· An additional $1-$1.5 billion/year is needed to maintain existing roadways.
Proposed Revenue Tools – Joint Study Committee on Critical Transportation Infrastructure Funding
· Devote the full state sales tax on motor fuel to transportation (1% of the 4% goes to the general fund), an additional $180-$185 million annually, unless the sales tax is switched to an excise only tax on fuel.
· Convert the 4% sales tax on motor fuel to an excise tax, with Georgia DOT receiving the full amount.
· Index the excise tax to inflation, construction costs or the price of gas.
· Implement a one-cent statewide sales tax, which would generate approximately $1.4 billion/year.
· Increase the state motor fuel tax.
· Establish an annual road usage charge/fee for alternative fuel vehicles to be paid in conjunction with existing annual registration fees.
Proposed Revenue Tools – House
· Institute a new 6-cent-per-gallon excise tax on gasoline, subject to a simple vote of the county commission, which would replace the Special Purpose Local Options Sales Tax, once those taxes expire. The general fund would no longer receive the fourth penny it currently does from the state sales tax on gas, along with the sales tax, as that money would go to transportation.
· Institute an annual fee on electric, propane and natural gas vehicles of $300 for commercial vehicles and $200 for non-commercial vehicles.
· Eliminate a $5,000 tax break for electric cars.
· Money collected by local governments from sales tax on motor fuel would have to be used for transportation purposes.
Proposed Revenue Tools – Senate
· Lowers the state gas tax to 24 cents, but adds a $25 annual impact fee for all cars and a $5 user fee to rental cars.
· Would allow local governments to receive taxes on fuel up to $3.39 per gallon with no requirements the money be used for transportation.
· Institute an annual $200 fee on alternative-fuel vehicles and eliminate tax breaks for electric cars and jet fuel.
Status
· Final version raises state gas tax for the average driver by roughly 6 cents per gallon starting July 1, 2016. Semis would be required to pay an impact fee of $50 to $100 based on weight. It institutes a $5-per-night fee on hotel stays to be used for transportation and a $200 annual fee on noncommercial electric vehicles ($300 for commercial), and eliminates tax breaks for Delta Air Lines and electric vehicle owners. Will raise about $945 million/year. The bill also allows counties-either alone or in groups-to ask voters to approve up to a 1% sales tax to fund local transportation projects.
HAWAII (3/23/16; 5/5/16; 9/15/16)
Proposed Revenue Tools
· Increase gas tax 3 cents per gallon, as well as increase vehicle registration fees and weight taxes.
· Movement of $37 million from the general treasury into the state Highway Fund.
· The Highways Division of the Hawaii Department of Transportation is planning to initiate a demonstration with a statewide mileage based user fee.
Status
· Gas tax and fee increases rejected.
· General treasury transfer occurred in May 2016.
· For the statewide mileage based user fee demonstration, they were awarded a grant from FHWA.
IDAHO (3/27/13, 3/19/14; 12/9/14; 3/13/15; 3/26/15; 4/9/15; 4/11/15; 4/21/15)
Needs
· An additional $260 million/year is needed to maintain the state’s infrastructure.
Proposed Revenue Tools
· Increasing the sales tax to 7%.
· Registration fee increase.
· Increasing taxes on rental cars.
· Increasing Idaho’s existing 25-cpg gasoline tax.
· Cigarette tax receipts currently going to pay off bonds on the state Capitol renovation will instead go to road work and water projects in 2015, once the bonds are paid off.
Proposed Revenue Tools – 2015 Legislature Proposals
· Raise $84 million additional each year for transportation by increasing the state gas tax by 5 cents beginning in FY 2016, and require higher registration fees for vehicles, farm equipment and commercial trucks.
· Remove $120 million from the general fund and designate it as dedicated transportation funding.
· Use a combination of new tax revenue and a temporary fuel tax increase for roughly $70 million in revenue.
· Raise the state gas tax by 7 cents per gallon combined with offsetting sales and income tax cuts.
· Move $16 million in fuel tax revenue currently given to the Idaho State Police to transportation expenditures.
· Increase vehicle registration fees by $15.
Status
· 2015 passed bill increases the state gas tax 7 cents per gallon and increases vehicle registration fees (including motorcycles, hybrid and electric vehicles). Also allocates future budget surplus to road maintenance. Signed by Governor April 21, 2015.
· Cigarette tax receipts bill signed by Governor March 18, 2014.
ILLINOIS (4/2/14; 4/13/16; 5/6/16)
Needs
· Metropolitan Planning Council estimates Illinois must spent an extra $43 billion over the next 10 years to bring roads, bridges and highways into good condition.
Proposed Revenue Tools
· Transportation for Illinois Coalition proposal to raise the state gas tax and vehicle registration fees, as well as adding a sales tax on oil changes and auto repairs.
· Senate proposal to institute a vehicle miles traveled fee in lieu of the gas tax.
· Proposal to institute a lockbox on all money raised through various transportation-related levies such as the gas tax, tolls, license fees and vehicle registration costs, requiring that those funds be spent on transportation.
Status
· First two proposals in general discussion. Transportation lockbox on November 2016 voter ballot approved by voters.
INDIANA (1/30/13; 5/9/13; 1/13/16; 1/21/16; 2/03; 2/11/16; 2/25/16; 3/2/16; 3/11/16)
Needs
· $1 billion annually to maintain state roads and bridges.
Proposed Revenue Tools – HB 1011
· Would establish a metropolitan transit district in Indianapolis and nine surrounding counties, with the adoption by the participating counties of a local income tax of 0.3% dedicated to funding the new regional transit system.
Proposed Revenue Tools – HB 1001
· Institute a $100 fee on electric vehicles.
· Institute a $50 fee on hybrid vehicles.
· Direct money from the existing wheel tax to go to transportation.
Proposed Revenue Tools – 2016 House
· Increase the gas tax by 4.5 cents per gallon.
· Increase the cigarette tax by $1 per pack with the funds going to transportation.
· Gives roughly 44 cities the ability to impose or increase wheel or excise taxes based on population.
Proposed Revenue Tools – 2016 Senate
· Put $417 million from an early release of local income tax receipts already collected by the state toward transportation. Amounts received by area would be tied to the amount of local income taxes in those areas (with more income taxes equaling more transportation funds).