Transportation Commission Calls for Fuel Tax Increase

The bipartisan National Surface Transportation Infrastructure Financing Commission released its final report February 26, unanimously recommending the ten-year phase-out of federal motor fuel taxes to be replaced by a distance fee based on "vehicle miles traveled" (VMT). To fund transportation needs while this transition is underway, the finance commission also recommends increases of 10 centers per gallon in the federal gasoline tax and 15 cents per gallon in the diesel tax, combined with new public-private revenue streams, expanded tolling and congestion pricing. The finance commission is the second of two commissions established in SAFETEA-LU to make recommendations about the future direction of the federal surface transportation programs and how they should be funded. The finance commission evaluated a wide range of financing options and concluded that the fuel-based user fee system is no longer a viable way to pay for transportation improvements and recommended the gradual transition to a distance-based user fee system. For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org.