State Transportation Funding Initiatives Since 2013

Since 2013, 36 states have successfully raised revenue through their state legislatures including 31 states that have increased their state gas tax. Successful initiatives are listed below. A more comprehensive list including unsuccessful initiatives and select financing initiatives can be found here.

Recent Transportation Revenue News

Updated – April 5, 2021

Arizona – Legislation was introduced in the Arizona House to tax alternative fuel vehicles. According to HB2437, EVs would face a tax of $111 the first year, increasing to $139 in year two, and finally to $166 in year three. Hybrids would also face a tax, starting at $45 and increasing to $56 and $67. The tax rates could be adjusted annually.

Bill Text – House Bill 2437

Arkansas – A bill, SB225, has been passed by both the state House and Senate and sent to the Governor. The bill aims of revise legislation passed in 2019. The state implemented additional registration and renewal fee of $100 for hybrid cars and a $200 registration fee for EVs. SB225, would lower the hybrid fee from $100 to $50.

Bill Text – Senate Bill 225

Florida – A bill is moving through the state Senate that would add licensing fees for EVs and Hybrids. The bill, SB140, would add a flat fee of $135 to license any EV under 10,000 lbs., which would increase to $150 in 2025. Any EV weighing more than 10,000 lbs. would face a flat fee of $235, rising to $250 in 2025. Hybrid vehicles would be have a $35 fee, increasing to $50 in 2025.

Bill Text – Senate Bill 140

Illinois – A Bill, SB120, is under consideration in the Illinois Senate. The bill would amend the Illinois Municipal Code to allow all municipalities to collect their own fuel tax. The Code currently limits the ability to municipalities in a county with a population of 3,000,000 or more residents. Currently Chicago collects an additional 8-cents per gallon for all gas and diesel sales.

Bill Text – Senate Bill 120

Louisiana – There has been discussion about increasing the gas tax, with several legislators saying they will be introducing legislation in the upcoming session. One of the plans would increase the tax by ten cents at first, following with two-cent increases annually every other year until 2033. The plan would bring the state gas tax total to 42 cents per gallon.

Article, no bill has been introduced yet.

Missouri – SB262 passed in the State Senate. The bill would increase the gas tax by 2.5-cents annually until 2025, leading to a total increase of 12.5-cents by 2025. Additionally, the Bill would create an Electric Vehicle Task Force to examine the impacts of EVs on transportation funding.

Bill Text – Senate Bill 262

New Mexico – The state Senate has advanced a bill out of committee, SB168, which would increase the gas and diesel tax by one-cent annually for five years. This would bring the gas tax up to 22-cents and the diesel to 26-cents.

Bill Text – Senate Bill 168

North Dakota – The North Dakota House passed a bill, HB1464, which would raise the fuel tax and increase fees for alternative fuel vehicles. The bill would increase the fuel tax on gas and diesel by three-cents, bringing both up to 26 cents per gallon. Drivers of EVs would see the annual fee increase from $120 to $200, while drivers of hybrids would see an increase from $50 to $100. Fees for electric motorcycles would also increase from $20 to $50 annually.

Bill Text – House Bill 1464

Oklahoma – A bill, HB2234, has passed out of the House and is with the Senate. The legislation aims at charging all road users equitably. To do this the bill would implement a 7-cent per kilowatt hour tax at public for-profit charging stations. In addition to the tax, the legislation would create an annual registration fee for EVs and plug-in hybrids, which would vary on the vehicle class.

Bill Text – House Bill 2234

2021

Pennsylvania – Governor Tom Wolf has committed to phasing out the gas tax and established the Transportation Revenue Options Commission.

Press Release – Executive Order creating the Commission

North Carolina – The NC First Commission issued its final report identifying potential aspects of a long-term sustainable transportation investment strategy.

Report – Final NC First Report

2020

Arkansas – In November 2020, voter supported Arkansas Issue 1, Transportation Sales Tax Continuation Amendment. This ballot measure supported continuing a 0.5% sales tax with revenue dedicated to state local highways, roads, and bridges, which would have otherwise expired in 2023.

 Text of House Joint Resolution

District of Columbia – DC Council passed a gas tax increase, which would raise the rate to 10.3 cents per gallon by October 2021. The rate can be adjusted based on the consumer price index.

Bill Text – 23-760 (See: SUBTITLE K. MOTOR VEHICLE FUEL TAX)

Virginia – A 10-cent gas tax increase phased in over two years, up to 26.2-cents by 2021, and adjusted annually to inflation. The bill also reduced vehicle registration fee. A new fee added in this bill is a highway use fee, which charges fuel-efficient vehicles for the lost gas tax revenue to that state; 80% of the lost revenue, as compared to an average (24 MPG) vehicle, is charged to the fuel efficient vehicle annually (if a average car would have paid $100 in gas taxes and a fuel efficient vehicle only pays $80, the fee would be 80$ of the $20 difference ($16)). This new revenue will generate roughly $250 Million in new revenue per year.

Bill Text – House Bill 1414/Senate Bill 890

2019

Alabama – A 10-cent gas tax increase phased in over three years, beginning with a 6-cent increase in 2019. When the bill was passed, the state gas tax was 18.2-cents. Once fully phased in, this will generate $380 Million annually. The package, dubbed “Rebuild Alabama”, also includes a $200 fee for electric vehicles and a $100 fee for plug-in hybrid electric vehicles.

Bill Text – House Bill 2

Arkansas – A 3-cent gas tax and 6-cent diesel tax increase, up to 28-cents for gas and 29-cents for diesel. In addition to the increase, the gas tax is supplemented by a 1.6% tax on the wholesale price of gas and a 2.9% tax on the wholesale price of diesel. The package also includes a $200 electric vehicle fee and a $100 fee for hybrid vehicles, along with a $35 Million annual transfer from casino revenue. All together this will generate $108 Million annually for state and local transportation projects.

Bill Text – Senate Bill 336

Illinois – A 19-cent gas tax increase, from 19- to 38-cents, along with an increase in vehicle registration fees to $48 (from $98). The gas tax will be indexed with inflation. This package also includes a $100 electric vehicle registration fee. This will generate $1.2 Billion in additional revenue annually, shared between state and local governments.

Bill Text – House Bill 3233

Iowa – A $130 EV registration fee by 2022, with an intermediate fee of $65 beginning in 2020. Plug-in hybrid electric vehicles will face $65 fees in 2022, $48.75 in 2020. There will also be a .0026-cent tax per kWh of electricity purchased for electric vehicles at a non-residential location. This will raise $1.3 Million by 2022.

Bill Text – House File 767

North Dakota – This introduced fees for electric and plug-in hybrid vehicles ($120 and $50 respectively), along with a $20 fee for electric motorcycles.

Bill Text – Senate Bill 2061

Ohio – An increase in the gas tax by 10.5-cents, to 38.5-cents, and the diesel tax by 19-cents, to 47-cents. This is less than the original 18-cent gas tax increase originally proposed by the Governor. The revenue package will bring in $865 Million per year. This also adds a $100 fee for hybrid vehicles and a $200 fee for electric vehicles and plug-in hybrids.

Bill Text – House Bill 62

2018

Arizona – An annual fee ranging from $17-$19, and would raise $149 Million for road construction and repair. The funds will go directly to highway-patrol operations, which currently are diverting funds from road construction and repair.

Bill Text – House Bill 2166

Utah – This bill adds a $120 registration charge for electric vehicles, a $50 fee for plug-in hybrids, and a $20 fee for other hybrids, all phased in over 3 years.

Bill Text – Senate Bill 136

2017

California – An increase in the gas tax by 12-cents (up to 30-cents) and an increase in the diesel tax by 20-cents (to 36-cents), along with a new annual registration fee ranging from $25-$175 depending on the value of the car. In addition to the hike in the diesel excise tax, the diesel sales tax will rise from 5.75% to 9.75%. The bill also included a $100 annual fee for electric vehicles (starting in 2020). This package will raise $5.2 Billion annually. The new revenue will mostly be used for repairing roads, bridges, highways, and culverts, split evenly between state and local projects. $7 Billion will be spent on mass transit, and the remainder will be spend on active transportation, trade corridor improvements, and congestion.

A repeal effort was balloted in November 2018, and defeated with 55.62% voting no (Proposition 6).

Bill Text – Senate Bill 1

Idaho – This authorizes the state to issue $300 Million in bonds, repaid using federal transportation funding. Additionally, the bill extends a provision that dedicates a portion of the general fund surplus to transportation projects, and dedicates 1% of the state sales tax (roughly $15 Million) to transportation as well.

Bill Text – Senate Bill 1206

Indiana — An increase the gas tax by 10-cents, index special fuel and motor carrier surcharge taxes each year for the next seven years (capped at 1% per year), and shift the 4.5-cent gas sales tax to the state highway fund over 5 years, starting in 2020. This also implements a new $15 annual fee on all vehicles, a $150 fee on EV, and a $50 for hybrids. Altogether, this package will generate $1.2 Billion in additional revenue annually. The bill also includes a provision for the DOT to study tolling potential in the state.

Bill Text – House Bill 1002

Montana – This raised the gas by 4.5-cents and the diesel tax by 1.5-cents, beginning on July 1, 2017. The original bill would have increased them by 8-cents and 7-cents, respectively. The bill also includes a 3% fee increase on vehicle registrations a new tax on cars and recreational vehicles worth more than $150,000.  This would raise $37 Million in the first year and $49 Million in 2023.

Bill Text – House Bill 473

Ohio – This increased registration fees by $5, in lieu of a gas tax increase.

Bill Text – House Bill 26

Oklahoma – This increased the gas tax from 7-cents (from 17-cents) and the diesel tax by 10-cents (from 14-cents). It also includes a $100 annual fee for electric vehicles and a $50 fee for hybrids. This is revenue neutral for the DOT, replacing funds currently taken from income tax receipts.

Bill Text – House Bill 1426

Oregon – This raised the gas tax by 10-cents over 8 years, introduced a tiered system for vehicle registration fees where fuel-efficient vehicles will pay more, a 0.1% payroll tax, and a 0.5% tax on new vehicles. This also includes a $15 tax on new bicycles. This will raise $5.3 Billion over 10 years.

Bill Text – House Bill 2017

South Carolina – This raised the gas tax 2-cents per year for 6 years, netting a 12-cent increase by 2022. Other fee increase include a new $250 fee to register vehicles in South Carolina that were bought in another state, a $16 increase in annual vehicle registration fees, a $60 biennial fee for hybrids, and a $120 biennial fee for electric vehicles. Once fully implemented, this will raise over $600 Million annually.

Bill Text – House Bill 3516

Tennessee – This increased the gas tax by 6-cents (from 21.4-cents) and the diesel tax by 10-cents (from 18.4-cents) over a 3-year span. It also includes a $5 increase on annual vehicle registration fees. This will generate $350 annually, offset by tax cuts in other areas including a reduction in the state grocery tax.

Bill Text – House Bill 534

2016

New Jersey – This increased the gas tax by 23-cents, generating $1.23 Billion annually. The gas tax will be adjusted annually based on receipts (i.e. if the gas tax generates less revenue than anticipated, it will rise, and vice versa).The revenue gained by this program will be cancelled out by other, non-transportation based tax cuts.

Bill Text – Assembly Bill 12

2015

Delaware – A slew of DMV fee increases, totaling $25 Million annually in additional revenue. Half of this revenue comes from a 0.50% increase (from 3.75% to 4.25%) in the vehicle document fee.

Bill Text – House Bill 10

Georgia – The state sales tax on motor fuel transitioned to a per-gallon tax of 26-cents for gasoline and 29-cents for diesel. Beginning in 2019, the motor fuel taxes will be indexed to the fuel efficiency of all cars registered in Georgia. In addition to this change in motor fuel taxes, semis will pay an impact fee of $50-$100 based on weight, a hotel room fee of $5/night that goes towards transportation, and a $200 fee for noncommercial electric vehicles ($300 for commercial). Together, these will generate $945 Million per year.

Bill Text – House Bill 170

Idaho – This plan raises the fuel tax by 7-cents and registration fees by $21. This will eventually raise $126.6 Million annually.

Bill Text – House Bill 312

Iowa – This raises the gas and diesel taxes by 10-cents, generating $200 Million annually.

Bill Text – Senate Bill 257

Michigan – This bill raises the gas tax by 7.5-cents from 19-cents, and applies a 6% sales tax on top of it. The diesel tax is now tied to the gas tax. These will be indexed with the rate of inflation, with a maximum of 5% per year. Vehicle registration fees also will increase, from $100 to $120 per year. By 2021, this will generate $1.2 Billion per year for transportation.

Bill Text – House Bill 4738

Nebraska – This increased the gas tax by 1.5-cents for 4 years, beginning in 2016 through 2019, for a net 6-cent increase (from 25.6-cents per gallon). This will generate $75 Million per year once fully phased in.

Bill Text – Legislative Bill 610

North Carolina – This actually lowers the gas tax from 37.5-cents to 34-cents by July 2016. However, since the gas tax was tied to the price of gasoline before this bill, $400 Million will be saved. Beginning in 2017, the gas tax will be adjusted according to population change and the CPI for energy costs.

Bill Text – Senate Bill 20

Puerto Rico – This raised the crude oil tariff from $9.25 to $15.50, generating $178 Million per year.

Bill Text – House Bill 1277

South Dakota – This raised the gas tax by 6-cents, increase the motor vehicle excise tax by 1%, and increase license plate fees by 20%. This will raise $85 Million per year.

Bill Text – Senate Bill 1

Texas – This dedicated portions of the state’s general sales and use tax, as well as from the motor vehicle sales and rental tax to the State Highway Fund. For fiscal years 2018 and 2019, the first $2.5 Billion of sales tax revenue beyond $28 Billion will go to the State Highway Fund. Beyond 2020, 35% of state motor vehicle sales and rental tax revenue over $5 Billion will go to the State Highway Fund.

Bill Text – Proposition 7

Utah – The flat rate gas tax changed from 24.5-cents to 12% of the statewide average wholesale price gasoline. When drafted, this would raise the gas tax by 5.9-cents. Once in place, the gas tax will have a floor of 29-cents and a ceiling of 40-cents. The special fuels tax would track with the gasoline tax.

Bill Text – House Bill 362

Washington – This increased the gas and diesel taxes by 11.9-cents over two years (from 33.5-cents). The electric vehicle fee would also increase, from $50 to $150. Vehicle registration fees will increase from $30 by $15-$35, depending on vehicle weight.

Bill Text – Senate Bill 5987

2014

Idaho – This redirects receipts from the cigarette tax to road projects, along with water infrastructure.

Bill Text – House Bill 547

New Hampshire – This increased the gas tax 4-cents (from 18-cents). This would raise $30 Million annually.

Bill Text – Senate Bill 367:

Rhode Island – This removed tolls from the Sakonnet River Bridge, and replaced the lost revenue with increased funds statewide. This included an increase in the vehicle registration fee from $39 to $55 and the good-driving fee from $25 to $50. The gas tax will go up by 1-cent in 2015, and will be indexed to inflation beginning in 2015 and updated biennially.

Bill Text – House Bill 7133

2013

DC – The District’s 23.5-cent gas tax would be replaced by an 8.3% tax on wholesale gas and diesel purchases. When this measure was passed, this had no effect on the gas tax amount.

DC Bill 199

Maryland – The gas tax will be indexed to the CPI (it’s currently 23.5-cents), with increases capped at 8% annually. The flat rate will be increase to 27.3-cents in July 2013. The bill also applies 1% of the state sales tax on gasoline to transportation, increasing to 3% by 2015.This legislation would yield $4.4 Billion over 6 years.

Bill Text – House Bill 1515

Massachusetts – This bill raised the gas tax by 3-cents (from 21-cents). The bill planned to index the gas tax for inflation beginning in 2015, however this was repealed by voters in 2014. This increase will generate $110 Million annually.

Bill Text – House Bill 3535

Pennsylvania – This increased the gas tax by 28-cents over 5 years. It also increased vehicle registration fees from $36 to $38 by 2017, and index the fee beginning in 2018. All other fees, including specialty registration fees, driver license fees, and emission inspection fees will be indexed to inflation beginning in 2018 as well. Once fully phased in this would generate $2.3 Billion per year.

Bill Text – House Bill 1598

Vermont – This raised the gas tax by 5.9-cents (from 19-cents) by lowering the flat rate tax to 18.2-cents and adding a 2% assessment on the price of gas. The diesel tax will also increase by 3-cents. This will generate $32 Million in additional revenue.

Bill Text – House Bill 510

Virginia – This replaced the 17.5-cent flat tax on gasoline to a 3.5% wholesale tax on motor fuels that will be indexed to inflation. The state sales tax went up from 5% to 5.3%, with additional funds going to transportation. Sales taxes on cars rose from 3% to 4.3% by 2016, and the license fee for electric vehicles will rise from $50 to $100. A $64 tax on hybrid vehicles was included in the passed bill, however it was repealed a year later.

Bill Text – House Bill 2313

2012

Arkansas – A temporary 0.5% sales tax, raising the state sales tax from 6.0% to 6.5%. The sales tax increase will be rescinded after 10 years when the bonds created from the proceeds have been repaid. This was introduced in 2011, and it passed as a constitutional amendment in 2013. This will create $1.8 Billion for highway improvements over 10 years.

Bill Text – Issue 1