• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Transportation

These Four States Want to Test a Mileage Tax

By
Michal Addady
Michal Addady
Down Arrow Button Icon
By
Michal Addady
Michal Addady
Down Arrow Button Icon
June 26, 2016, 10:44 PM ET
Record Travel Expected For Memorial Day Weekend
MIAMI, FL - MAY 27: Vehicle traffic is seen on I-95 as people prepare for the Memorial Day weekend on May 27, 2016 in Miami, Florida. AAA is predicting 34 million Americans will drive 50 miles or more for Memorial Day weekend, the most since 2005. (Photo by Joe Raedle/Getty Images)Photograph by Joe Raedle—Getty Images

Four Eastern states are working on implementing a mileage tax.

The I-95 Corridor Coalition, which represents transportation agencies, toll authorities, and related organizations, applied for a federal grant last month. The Washington Post reports that the funding would allow Delaware, Pennsylvania, Connecticut, and New Hampshire to test methods that could replace a gas tax, charging drivers a fee based on how many miles they’ve driven to fill “the gaping hole” in the country’s transportation funding.

“The idea is to get folks comfortable that mileage-based user fees are a feasible, reasonable and easy-to-use approach,” executive director of the I-95 coalition Patricia G. Hendren told the Post. The concept has been tried already in Oregon, and California will begin testing it next month.

However, a mileage tax has been very unpopular among the public. A recent survey by the Mineta Transportation Institute found that support ranged between 23% and 48%, depending on how the question was asked. It had more support when the hypothetical tax depended on the amount of pollution a driver’s car emits.

Various methods are being considered including a counting device plugged into the car, a device hooked up to gas pumps, cellphone apps, and GPS. Hendren said that any approach that’s implemented “will offer the option to simply pay an annual fee.”

Delaware’s secretary of transportation and chair of the coalition, Jennifer Cohan, explained that even though a mileage tax is unpopular, they essentially have no choice. “Reliance on the gas tax as a major contributor to funding transportation is no longer a viable option,” she told the Post. The federal gas tax hasn’t been raised in more than two decades and currently stands at 18.4 cents per gallon, and efforts to increase it have been unsuccessful.

“Whatever it ends up being, at least we’ll have data,” Cohan said about testing the mileage tax. “We’ll actually have something to show: This is what it will look like if we actually implement it.”

About the Author
By Michal Addady
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Politicsprotests
Bruce Springsteen headlines Minnesota ‘No Kings’ rally as anti-Trump protesters march across the U.S. and Europe
By Mark Vancleave, Steve Karnowski, Todd Richmond, John Hanna and The Associated PressMarch 28, 2026
6 hours ago
EnergyOil
Saudi pipeline to bypass Hormuz hits 7 million barrel goal
By Emma Ross-Thomas and BloombergMarch 28, 2026
7 hours ago
Real EstateHousing
There are now nearly 50% more home sellers than buyers as mismatch widens to a record 630,000. But it’s only a buyer’s market if you can afford it
By Jason MaMarch 28, 2026
8 hours ago
AIAnduril
Anduril founder Palmer Luckey wants to arm the U.S.’s allies. Could his insistence on deferring to Washington scare them off?
By Nicholas GordonMarch 28, 2026
9 hours ago
EuropeBanks
French authorities open terrorism probe after police thwart a suspected bombing outside a Bank of America building in Paris
By The Associated PressMarch 28, 2026
9 hours ago
EuropeFood and drink
413,793 KitKat bars stolen: ‘Whilst we appreciate the criminals’ exceptional taste, the fact remains that cargo theft is an escalating issue’
By The Associated PressMarch 28, 2026
9 hours ago

Most Popular

Success
Meetings are not work, says Southwest Airlines CEO—and he’s taking action by blocking his calendar every afternoon from Wednesday to Friday 
By Fortune EditorsMarch 27, 2026
2 days ago
Economy
U.S. debt suddenly draws weaker demand as $10 trillion must be rolled over this year amid Iran war. 'The bond market remains undefeated'
By Fortune EditorsMarch 28, 2026
13 hours ago
Economy
The stay-at-home boyfriend is now an economic trend as more women than men go to work
By Fortune EditorsMarch 28, 2026
18 hours ago
Europe
413,793 KitKat bars stolen: 'Whilst we appreciate the criminals’ exceptional taste, the fact remains that cargo theft is an escalating issue'
By Fortune EditorsMarch 28, 2026
9 hours ago
Personal Finance
Current price of gold as of March 27, 2026
By Fortune EditorsMarch 27, 2026
2 days ago
Energy
Saudi pipeline to bypass Hormuz hits 7 million barrel goal
By Fortune EditorsMarch 28, 2026
7 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.