Is a Vehicle Mileage Tax on the Horizon?

Lawmakers in Washington have debated in great length about how to pay for the Infrastructure Investment and Jobs Act (IIJA) as well as making sure the Highway Trust Fund (HTF) remains solvent. Currently, some funding for the HTF comes from a 18.4 cents per gallon on gasoline and 24.3 cents per gallon on diesel fuel, which has not been raised since 1993 and President Biden has said no to an increase. Other modes of funding, like a national vehicle miles traveled (VMT) tax are critical because inconsistencies between tax revenues and highway expenditures will get worse as fuel efficiency improves and EV adoption grows. One program officials are planning to pilot, is a national motor vehicle per-mile user fee, which is laid out in the current bipartisan bill that passed in the Senate. READ FULL ARTICLE >>