Study Says Best Long Term Highway Funding Mechanism is Mileage Charge

Posted byadmin

The researchers: School of Public and Environmental Affairs at Indiana University-Purdue University Indianapolis & IndyGo

The study:“State and federal fuel taxes: The road ahead for U.S. infrastructure funding” published in January 2017 Journal of Transport Policy 

The reasons why a vehicle mileage tax is the best long term transportation funding source:

  • fuel tax revenues decline with no adjustment for inflation
  • taxing vehicle mileage avoids long term revenue declines

Indiana University- Perdue University Indianapolis | Study: Vehicle mileage tax is best option for long-term highway funding