To Avoid Losing Millions, States Tweak Gas Tax Laws

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The price of gas has risen and fallen multiple times in the past decade, leading to large fluctuations in transportation funding in states that tax gasoline based on price rather than volume. States like Virginia, North Carolina, and Kentucky expected gas prices to increase and budgeted for the increased fuel tax revenue. The three states have set a minimum floor on gas tax but this has made it harder to budget and more expensive to bond for projects. Virginia has shifted funding of transportation away from gas tax toward general sales taxes as a result.

For more information about states tweaking gas tax laws, read the article from the Governing Institute.