In Absence of Gas Tax Increases, States Look to Tolls

States are increasingly looking to alternative transportation revenue sources due to the failure of state and federal gas taxes to keep up with inflation and transportation needs. More states are turning toward tolling to make up the gap.

2 minute read

November 13, 2013, 7:00 AM PST

By Irvin Dawid


To a tax-averse public, what's worse, increasing gas taxes or tolling?

Susan Milligan of the Pew Charitable Trusts writes that "(n)obody likes to pay tolls, but raising the gas tax is even less popular", according to Patrick Sabol, an infrastructure analyst with the Brookings Metropolitan Policy Program. "At least with tolls, Sabol said, people feel they are paying directly for roads they travel, instead of paying taxes to build and maintain roads they may never use." 

Road tolls are becoming more common, not just restricted to older, East Coast turnpikes. "According to the National Conference of State Legislatures, 42 states and the District of Columbia now have some sort of tolling authority or facility," writes Milligan. There are reasons why states are resorting to tolls.

“There’s a fairness argument,” added Leonard Gilroy, director of government relations at the Reason Foundation, a libertarian think tank in Los Angeles. “If you use the roadway, you pay. If you don’t, you don’t.” [See "How Interstate Tolling Could Work"].

And don't think that once the road or bridge is paid for, the toll should go away.

Roads need constant maintenance and at some point, they just need to be rebuilt, Gilroy said. “People believe that because they poured asphalt into the ground, they’ve paid for it, and that is never true. A road is never, ever paid for,” Gilroy said. “What tolling does is take the hidden costs and make them transparent.”

Tolling becomes more politically feasible for states if "they don’t have to float an unpopular public bond issue", by delegating financing to
public-private partnerships which are growing in popularity, according to NCSL’s Jaime Rall. However, tolling and P3s, are not infallible, as the underperforming Transportation Corridor Agencies in Orange County, Calif. illustrate.

And then there was the landmark leasing of the Indiana Toll Road in 2006 that brought $3.8 billion to Indiana, touted by former Gov. Mitch Daniels as one of his greatest achievements. According to Milligan, revenues have not lived up to expectations, which could lead to Indiana taking ownership of the road.

In a related article on federal transportation funding, Mike Hancock, secretary of the Kentucky Transportation Cabinet and newly elected president of the American Association of State Highway and Transportation Officials (AASHTO), issued this proclamation:

“We’ve got to make sure Congress and the American people understand that the highway trust fund is not able to sustain itself and will not provide the funds we so desperately need to maintain and expand our transportation networks in this country,” he explained in a telephone interview with Fleet Owner.

Monday, November 11, 2013 in Stateline

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Red 1972 Ford Pinto with black racing stripes on display with man sitting in driver's seat.

Analysis: Cybertruck Fatality Rate Far Exceeds That of Ford Pinto

The Tesla Cybertruck was recalled seven times last year.

July 2, 2025 - Mother Jones

Close-up of park ranger in green jacket and khaki hat looking out at Bryce Canyon National Park red rock formations.

National Parks Layoffs Will Cause Communities to Lose Billions

Thousands of essential park workers were laid off this week, just before the busy spring break season.

February 18, 2025 - National Parks Traveler

Paved walking path next to canal in The Woodlands, Texas with office buildings in background.

Retro-silient?: America’s First “Eco-burb,” The Woodlands Turns 50

A master-planned community north of Houston offers lessons on green infrastructure and resilient design, but falls short of its founder’s lofty affordability and walkability goals.

February 19, 2025 - Greg Flisram

Screenshot of shade map of Buffalo, New York with legend.

Test News Post 1

This is a summary

0 seconds ago - 2TheAdvocate.com

Red 1972 Ford Pinto with black racing stripes on display with man sitting in driver's seat.

Analysis: Cybertruck Fatality Rate Far Exceeds That of Ford Pinto

The Tesla Cybertruck was recalled seven times last year.

18 minutes ago - Mother Jones

test alt text

Test News Headline 46

Test for the image on the front page.

March 5 - Cleantech blog