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States Boost Taxes to Pay to Enhance Infrastructure

Several states around the country decided in 2013 to use a variety of tax and fee increases to fund infrastructure improvements.

This month Pennsylvania lifted the cap on taxes on the price of gasoline at a wholesale level and raised the fees associated with driver’s licenses and traffic violations. Earlier this year, Virginia scrapped their 17.5 cent per gallon gasoline tax and replaced it with a 3.5-percent wholesale tax, increased vehicle registration fees, and established a special registration fee for hybrid vehicles which use less gas.

Maryland, Wyoming, Massachusetts and Vermont all increased the taxes on gasoline as well. While infrastructure spending has faced continual challenges at the federal level, voters at the state level have indicated that they are willing to pay for infrastructure improvements. This fall, 86 percent of ballot measures for transportation funding were approved by voters.


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