A Consequence of Gas Tax Increases

Some legislators are proposing a statewide gas tax increase to fund transportation. Besides the prospect of reaching a point of diminishing returns as gas prices spike and Virginians eventually begin to drive less, a gas tax increase is also poor policy because it serves to perpetuate Virginia’s donor status when it comes to federal distribution of transportation dollars.

Currently Virginia only gets back 92 cents for every dollar sent to the federal government. The higher our state gas tax, the lower the likelihood the federal government will equalize what Virginia gets back versus what we already send to Washington.

While some legislators may want to subsidize transportation projects in recipient states, the vast majority of Virginians might not.

Below are the rate of return figues for all 50 states.

Alabama

106.91%

Alaska

526.85%

Arizona

92.00%

Arkansas

105.44%

California

92.00%

Colorado

92.00%

Connecticut

128.69%

Delaware

163.92%

Dist. of Col.

423.03%

Florida

92.00%

Georgia

92.00%

Hawaii

175.54%

Idaho

143.78%

Illinois

92.00%

Indiana

92.00%

Iowa

92.00%

Kansas

95.01%

Kentucky

96.14%

Louisiana

95.48%

Maine

95.62%

Maryland

92.00%

Massachusetts

92.00%

Michigan

92.00%

Minnesota

92.00%

Mississippi

95.80%

Missouri

97.80%

Montana

227.10%

Nebraska

99.12%

Nevada

93.53%

New Hampshire

100.47%

New Jersey

92.00%

New Mexico

114.22%

New York

109.79%

North Carolina

92.00%

North Dakota

207.44%

Ohio

92.00%

Oklahoma

92.00%

Oregon

101.87%

Pennsylvania

113.33%

Rhode Island

217.23%

South Carolina

92.00%

South Dakota

197.75%

Tennessee

92.00%

Texas

92.00%

Utah

92.30%

Vermont

204.85%

Virginia

92.00%

Washington

92.00%

West Virginia

169.31%

Wisconsin

102.95%
Wyoming

151.89%