States consider charging residents taxes by the mile instead of the gallon

Owning a vehicle could come at a hefty cost for Americans as states consider charging motorists taxes by the mile rather than by gallons of purchased gas in order to keep revenue coming in. 

While states throughout the nation predominately rely on gas taxes to maintain the nation's roads, some have seen a decrease in revenue due to residents driving electric vehicles, high inflation, and fuel efficiency, which is impacting state transportation budgets, according to the Associated Press.



States are now experimenting with how to make up for the lessened cash intake and are weighing options to start charging motorists by the mile. The Biden administration is set to launch a similar pilot program which will be funded through the $125 million federal infrastructure package that President Biden signed in 2021.

A few states have already begun to generate tax revenue from road usage, including Oregon, Virginia, and Utah, with the state of Hawaii set to become the fourth, AP reports. According to Boston-based CDM Smith, there could be a $67 billion tax deficiency for transportation by 2050 if states fail to figure out how to increase revenue.

States have already enacted additional stopgap measures, which include increasing taxes on vehicle registration fees. Motorists that own electric vehicles have also seen an increase in costs as states add electricity taxes to public charging stations, according to the outlet.

Some states are also considering adding taxes to package deliveries, Fox Business reports. Colorado added a 27-cent tax to home deliveries from Amazon and other online retailers last year to add revenue to the state's transportation budget.
 

Electronic toll systems are also being tested in multiple states.

This comes as the Biden administration looks to achieve "net zero" carbon emissions by the year 2030 by eliminating fossil fuels.