May 19, 2010 Chart of the Day — Motor Fuel Tax
Utah’s motor fuel tax is currently 24.5 cents per gallon. This tax has not changed since 1997 and is an important revenue source for state and local government to fund transportation. However, is the tax adequate? This issue will be discussed this summer during the Transportation Interim Committee, which meets today. There are a few different ways to measure the revenue adequacy of the gas tax (gas tax revenue per capita, revenue adjusted for inflation, revenue per vehicle mile traveled). The chart below reviews the gas tax revenue per vehicle mile traveled. For 2008 the motor fuel tax generated around 9 cents per vehicle mile traveled, which is down 35% from 1980 and at its lowest point in 30 years.
The League will be presenting this morning, providing a quick review of the funding adequacy of Class C revenue (motor fuel tax) for Utah’s cities. You can access a PDF of our handout here: Class C Funding (Transportation Interim handout)