Policy Tracker

Pricing: Tolling, Road, User Taxes/Fees

Overview:

The rise of electric vehicles, hybrids, and more fuel-efficient vehicles inherently means less gas is used and a steady and continuous decline in gas tax revenue for the state. But the revenue from gas tax is one of the primary funding sources we use to pay for transportation infrastructure. So how do get to a more sustainable revenue source that will also help support our shared climate, air quality, environmental and equity goals? In partnership with the state, regions are exploring two primary “pricing” concepts:

  • User-focused pricing: Focused on the transition from fuel tax to a “pay-as-you-go” fee, sometime referred to as a mileage fee or tax or VMT tax
  • Facility-focused pricing: Focused on roadway pricing models including toll roads, congestion pricing, managed lanes, priced express lanes, zone pricing
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