Why will transportation revenues decline?
As North Carolinians pay less at the pump yet use the transportation systems more, there is less funding available and greater demand for our aging transportation network.
Every time you fill up at the pump, you pay a tax that is based on how many gallons of fuel you buy – the gas tax. Revenue from the gas tax is critical to maintaining North Carolina’s extensive multimodal network. In fact, gas tax revenues are the state’s largest transportation funding source.
While the gas tax system has worked for years, vehicles are getting better gas mileage, and an increasing number of vehicles do not require any gas at all.
The number of registered hybrid, plug-in hybrid, and electric vehicles in our state grew by 50% over the last two years. Greater fuel efficiency reduces harmful emissions. However, as drivers pay less at the pump, there is less funding available for our aging transportation network. On top of this, North Carolina’s population continues to grow which puts additional pressure on the transportation system.
The gap between what you pay in gas taxes and the number of miles you drive will continue to widen.
Data Source: US EIA, Monthly Energy Review. Special thanks to Jeff Davis at Eno Center for Transportation for concept.
Data Source: Gallons – FHWA, Highway Statistics, MF-202; VMT – FHWA Traffic Volume Trends. Special thanks to Jeff Davis and Eno Center for Transportation for concept.
Additionally, the cost of everything
is increasing…
…not just your day-to-day expenditures, but also what it takes to build and maintain our transportation network. We have to think about having sufficient funding to cover today's costs, but also those costs in the future.
If we don’t address these challenges now, we’ll have to make tough decisions in the future about how to maintain and build our roads and support all transportation methods.
What does it cost to build and maintain our roads?
Most drivers support a “user pay” system via the gas tax, but the system is broken, and we need your help to find sustainable solutions.
The amount you pay depends more on the car you drive than the number of miles you travel. Drivers of newer vehicles are paying less than those with older vehicles.
You pay based on your vehicle’s fuel efficiency.
