Governor Wolf has proposed eliminating the state’s gasoline tax, second-highest in the nation at 58.7 cents a gallon. The problem for Pennsylvania, and all other states, is that revenue from gasoline taxes is not enough to build and maintain the state’s roads and bridges.
For decades, gasoline taxes and user fees paid for more than 70 percent of the cost of highway construction and maintenance. Today, nearly half the cost of building and maintaining highways is paid for by general taxes, such as income and sales taxes. Going forward, the share of the cost covered by gasoline taxes will continue to decline due to more electric and fuel-efficient vehicles and slower growth in the number of miles driven.