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: State Annual Budget, Transportation Budget and Transportation Fund Statements Data; more detail provided in this brief’s appendix. The regions used in Figure 3 correspond with the classification used by the United States Census Bureau. Methodology
Although the definition, collection, and allocation of gas tax revenue vary widely in each state, this brief uses the following methodology. Gas taxes can generally be broken down into two components: a gasoline excise tax and additional fees, both of which are charged at per-gallon rates. Most often, a vast majority of the gas tax rate is composed of a per-gallon excise tax, which is the common label for a gas tax. Additional per-gallon fees are often used to cover the costs of petroleum-tank inspections or specifically designated funds, be they agricultural, environmental, or transportation-related. In other states, the label of excise tax merely reflects one, a usually older but indistinguishable, component of the gas tax. In the case of New Jersey, the traditional gasoline excise tax is only $0.105 per gallon, while the other fees total $0.309 per gallon.