Alternatives to Motor Fuel Taxes for State DOT Funding [Technical Summary]

Dunn, Travis P

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Alternatives to Motor Fuel Taxes for State DOT Funding [Technical Summary]

2025-11-01
By Dunn, Travis P

File Language:

English

Details

Creators:

Dunn, Travis P
Corporate Creators:

Louisiana Transportation Research Center
Subject/TRT Terms:

Alternate Fuels Cost Allocation Electric Vehicles Financing Fuel Taxes Revenues State Departments Of Transportation Vehicle Miles Of Travel
Publication/ Report Number:

LTRC Report 720
Resource Type:

Brief
Geographical Coverage:

United States ; Louisiana
Edition:

Technical Summary
Corporate Publisher:

Louisiana Transportation Research Center
Abstract:

For decades, motor fuel taxes have served as the primary source of revenue for surface transportation infrastructure at both the federal and state levels in the United States. However, the reliability of this funding mechanism is challenged by declining fuel consumption, driven by advancements in vehicle engine efficiency and the growing consumer shift toward alternative fuel and electric vehicles (EVs). In response to this challenge, transportation agencies are seeking alternative sustainable funding solutions. This study conducted a comprehensive review of publicly available literature from the past 15 years in the United States about the evolving landscape of fuel tax alternatives being explored or implemented to support transportation investments. It examines 24 distinct revenue mechanisms grouped into several categories: fuel taxes, vehicle fees, direct and indirect usage fees, externality taxes, and other funding sources. Findings show that states commonly combine multiple approaches to create more resilient and adaptable revenue systems. While each mechanism presents unique challenges, layered strategies reflecting diverse funding sources appear promising for maintaining long-term financial stability in transportation funding.
Format:

PDF
Funding:

SIO No. DOTLT1000563 LTRC Project No. 25-3PF
Collection(s):

US Transportation Collection
Main Document Checksum:

urn:sha-512:53527788e9e320c91354dc79f1876e71d5fd16352f2439a68dc35b3a0668f0dfcbf55cb26d58c5acef760d5f56cd3318552bf69826213b2f61a0c5c3eac96c43
Download URL:

https://rosap.ntl.bts.gov/view/dot/88174/dot_88174_DS1.pdf
File Type:

[PDF - 158.36 KB ]

File Language:

English

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