(The Center Square) — Motorists in several Northeast states are increasingly picking up the tab for the cost of upgrades and maintenance to the region’s aging roadways, according to a new report.
The study by the Tax Foundation, a Washington, D.C.-based think tank, examined the percentage of roadway spending covered by motorists in 50 states and found the amount of revenue states raise through tolls, fees and other levies varies significantly across the country.
Topping the list is New Jersey, which was ranked first in the nation as one of only three states — including Delaware and Montana — that raise enough revenue to fully cover their highway spending, according to the report.
That’s up from the Tax Foundation’s 2021 report, which ranked New Jersey 7th in the nation, with the percentage of roadway spending covered by motorists averaging about 84% in the 2018 fiscal year.
New York was ranked 9th in the nation, with nearly 94% of the state’s roadway spending coming from user fees and taxes charged to motorists. That’s an increase of 23 spots from the previous report.
Massachusetts was ranked 12th in the nation, with the percentage of roadway spending covered by motorists increasing to 82.2% in fiscal year 2022, up one spot from the 2021 report.
New Hampshire increased its proportion of roadway spending furnished by road users from 62% to 79.7% in fiscal year 2022, according to the report, which ranked the Granite State 13th in the nation. In 2021, the state was ranked 21st in the nation.
Besides local taxes and user fees, states also get yearly appropriations from the Federal Highway Administration that weren’t factored into the Tax Foundation’s analysis of state-by-state spending.
At least 47 states and the District of Columbia make up the difference with tax revenues from other sources. The states that raise the lowest proportion of their highway funds from transportation-related sources are Alaska (19.4%) and North Dakota (35.1%), which rely heavily on revenue from severance taxes, according to the report’s findings.
The report’s authors pointed out that roadway expenditures are mostly covered by the people who use the roads through a combination of motor fuel taxes, motor vehicle licenses and highway revenues like toll roads.
Meanwhile, the pinch of high inflation, the cost of electric vehicles, fuel efficiency gains and eroding gas tax revenues are eating away at any benefits to motorists.
“Most states fail to collect enough in user fees to fully provide for roadway spending,” they wrote. “This necessitates transfers from general funds or other revenue sources that are unrelated to road use to pay for road construction and maintenance.”
