Will COVID eliminate the gas tax?

To be fair, the gas tax wasn’t performing to meet infrastructure needs before COVID either.

What is the American Association of State and Highway Transportation Officials advising?

• The believe in a user-pay principle where the amount you drive determines what you’re paying, but COVID shows the weakness in this plan too
• A solution: Federal COVID funding relief package

How is COVID impacting transportation revenues?

• Maryland is cutting $3 Billion form its transportation plan
• California estimates a revenue hit of $1.2 Billion that will hit primarily transportation projects
• This fall, New Jersey law required an automatic rise in the gas tax by 9cents because of low revenues
• National League of Cities survey of its members say 65% are delaying or canceling capital expenditures and infrastructure projects
• Pennsylvania Department of Transportation estimates $550 million in losses
• Oregon has a diversified transportation funding system with 35% coming from a tax on trucks and has fared better

Smart Cities Dive | The gas tax was already broken. The pandemic could end it.