The share of infrastructure expenditures funded by tolls, user feeA user fee is a charge imposed by the government for the primary purpose of covering the cost of providing a service, directly raising funds from the people who benefit from the particular public good or service being provided. A user fee is not a tax, though some taxes may be labeled as user fees or closely resemble them. s, and user taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. es ranges from 14.3 percent in Alaska to 79.8 percent in Hawaii. Within the continental United States, Florida relies the most on dedicated transportation revenues (72.1 percent), while Wyoming (25.8 percent) relies on them the least.
States that substantially export their taxes (like Alaska and Wyoming, where severance taxes account for a considerable share of state revenue) keep transportation taxes low in the same way they keep all taxes on state residents low, by—in significant part—generating revenue through the states’ extractive industries. Beyond that, however, states run the gamut. As Joe Henchman Gasoline taxes are often politically unpopular, but actually pass the benefits test quite well compared to most taxes. States should seek to fund infrastructure from user taxes and fees to the greatest degree possible, internalizing the costs associated with the utilization of states’ transportation grids.
For a map of state gasoline tax rates, click here.
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