Title: How Much Gas Tax Money States Divert Away From Roads - Reason Foundation
Headings: How Much Gas Tax Money States Divert Away From Roads
Policy Brief
How Much Gas Tax Money States Divert Away From Roads
Examining the percentage of state gas tax revenue that is allocated for expenses unrelated to roads, including money shifted to law enforcement, education, tourism, environmental programs and more.
State Gas Tax Diversion Rates
Background
Figure 1: State Gas Tax Rates 2000-2019
Gas Tax Diversions by State
Figure 2: State Gas Tax Diversion Rates
Figure 3: Average Diversion Rate of Each U.S. Region
Methodology
Colorado
Connecticut
Florida
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
New Jersey (FY18)
New York
North Carolina
North Dakota
Oklahoma
Pennsylvania
Rhode Island
South Carolina
South Dakota
Texas
Utah
Vermont
Virginia
Washington
Wisconsin
Analysis
Recommendations

Content: Yet, both components are collected as one coherent gas tax. Other states, such as Florida, break down their gas taxes into multiple components. Each component, roughly corresponding to legislation, increases the overall gas tax rate, and is governed by its own set of revenue allocation formulas. Also, to be consistent, this brief uses the term “motor fuel tax” (MFT) revenue to refer to the combination of revenue from per-gallon gasoline taxes, diesel taxes, special fuel taxes, and, in some cases, jet and aviation fuel taxes. Each state reports its MFT revenue differently. Some states collect MFT revenue from road-based and non-road vehicles (boats, trains or planes) separately. In such cases, the exact amount of revenue associated with each transport mode is known, and the allocation process occurs separately. Others collect all per-gallon MFT revenue together and distribute non-highway MFT revenue according to a preapproved formula. In other words, all fuel is subjected to the MFT, and revenue for each transportatio