Oil, Gas, and Transportation Taxes

Gas taxes are typically used to fund infrastructure maintenance and new projects, but the share of state and local road spending that is covered by tolls, user fees, and taxes varies drastically. While politically unpopular, gas taxes, fees, and tolls are all relatively good applications of the benefit principle, the idea that taxpayers should benefit from the taxes and fees they pay. One of the primary issues, however, with both the federal and state gas tax is that they’re not indexed for inflation. As time goes on and inflation increases, the nominal value of the gas tax decreases, leaving states with budget shortfalls and unfunded infrastructure. States should attempt to fund infrastructure through user taxes and fees as much as possible, internalizing the costs associated with using the state’s transportation systems.


Featured Research

Tax Trends at the Dawn of 2020

January 6, 2020

State Tax Changes as of January 1, 2020

December 20, 2019

Kansas Tax Modernization: A Framework for Stable, Fair, Pro-Growth Reform

December 10, 2019

State Gasoline Tax Rates as of July 2019

July 31, 2019

State Tax Changes as of July 1, 2019

July 11, 2019

America’s Gas Tax Falls Further Behind OECD Peers When Controlling for Exchange Rates

May 24, 2019


Related Articles

Gas Tax Revenue to Decline as Traffic Drops 38 Percent

March 31, 2020

What Happens with State Excise Tax Revenues During a Pandemic?

March 25, 2020

Key Tax Provisions from the UK’s 2020 Budget

March 11, 2020

Navigating Alaska’s Fiscal Crisis

January 30, 2020

Austria’s New Government Revamps Tax Plans

January 8, 2020

Tax Trends at the Dawn of 2020

January 6, 2020

Virginia Governor Looks to Excise Taxes

December 23, 2019

State Tax Changes as of January 1, 2020

December 20, 2019

Kansas Tax Modernization: A Framework for Stable, Fair, Pro-Growth Reform

December 10, 2019

Washington Voters to Weigh in on 12 Tax Questions This November

October 15, 2019

How Are Your State’s Roads Funded?

September 11, 2019

Gas Taxes in Europe

August 15, 2019

The Proper Role of Excise Taxes

July 31, 2019

State Gasoline Tax Rates as of July 2019

July 31, 2019

State Tax Changes as of July 1, 2019

July 11, 2019

Wisconsin Legislature Sends Budget, Marketplace Provider Bill to Governor

June 28, 2019

America’s Gas Tax Falls Further Behind OECD Peers When Controlling for Exchange Rates

May 24, 2019

Minnesota House and Senate at Odds Over Gas Tax Increase

May 6, 2019

How High are Other Nations’ Gas Taxes?

May 2, 2019

Why State-for-Local Tax Swaps Are So Hard to Do

April 18, 2019