Mileage-based fees considered as fuel taxes decline.

1 min read
Source: Fox Business
Mileage-based fees considered as fuel taxes decline.
Photo: Fox Business
TL;DR Summary

States are exploring alternative ways to fund transportation projects as gas taxes generate less revenue due to inflation, fuel efficiency, and the rise of electric cars. One proposal gaining popularity is charging drivers by the mile instead of the gallon. Other ideas include taxing electricity from public vehicle charging stations and adding charges to door-to-door package deliveries. Only three states are currently generating revenue from road usage charges, but the federal government is set to pilot its own program. There is growing support for mileage-based fees, special rates for low-income drivers, and rates tied to vehicle pollution.

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