FOR IMMEDIATE RELEASE
July 7, 2020
CONTACT: Logan Elizabeth Padgett
JMI Releases New Report Examining Gas Taxes in Florida
Florida’s road network depends heavily on per-gallon taxes on gasoline and diesel fuel. Unfortunately, this funding system is threatened with a long-term decline in revenue. The reason is that long-standing federal policies are focused on reducing the use of petroleum-based fuels over time. In response, auto companies continually increase new-vehicle fuel economy, and are now making major investments in electric vehicles, which use no petroleum. A new policy study by Robert Poole establishes that a transition from per-gallon taxes to per-mile charges will be necessary over the next several decades.
The report from JMI’s Center for Economic Prosperity, “The Road Ahead: Why Florida Should Shift from Per-Gallon Gas Taxes to Per-Mile Charges- and How to Do It” (published by JMI in partnership with the Reason Foundation) finds that by 2035, today’s 36.7 cent per gallon gas tax would have to be increased to between 67 and 77 cents per gallon to offset the projected decline in gas-tax revenue.
“User fees are by nature a better form of taxation than most others. For decades, gas taxes served that function. As we continue to innovate transportation in the 21st Century, revenue mechanisms must also innovate. We continue to focus on ways to modernize government and serve Floridians in the 21st Century – this is one small component of that dynamic model.” –Sal Nuzzo, Vice President of Policy, The James Madison Institute
“Florida is behind other states in not yet embarking on a pilot project to test various ways of charging per milt. But we are fortunate to have the statewide SunPass system, which could become the starting point for charging per mile, electronically. – Robert Poole, Director of Transportation Policy and Searle Freedom Trust Transportation Fellow, The Reason Foundation; JMI Research Advisory Council Member
To read “The Road Ahead: Why Florida Should Shift from Per-Gallon Gas Taxes to Per-Mile Charges- and How to Do It” click here.
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