Skip to main content

Florida ‘should consider mileage tax’

The concept of road users in Florida paying a mileage tax can no longer be considered a far fetched one. The statewide transportation advisory group Florida Metropolitan Planning Organisation Advisory Council (MPO) has asked the state legislature to start considering a system that requires individuals to pay for each mile driven. An earlier two-year MPO study to find a way to pay for the state’s future transportation needs found that, for the long-term, the state could no longer rely on a fuel tax, which c
April 22, 2013 Read time: 2 mins
The concept of road users in Florida paying a mileage tax can no longer be considered a far fetched one.  The statewide transportation advisory group Florida Metropolitan Planning Organisation Advisory Council (MPO) has asked the state legislature to start considering a system that requires individuals to pay for each mile driven.

An earlier two-year MPO study to find a way to pay for the state’s future transportation needs found that, for the long-term, the state could no longer rely on a fuel tax, which currently pays for transportation projects in Florida, such as maintaining roads and subsidising public transportation.

The influx of high-mileage cars has meant a decline in the tax revenue received via the tax and there is an estimated US$74 billion shortfall to pay for needed transportation projects.  The Florida MPO says the state should be seriously considering mileage-based user fees. If implemented, the fuel tax could be eliminated completely.

"In the next ten years, they will eventually do it," said Lauderhill Mayor Richard Kaplan, Florida MPO board chairman. "Otherwise, we won't be able to maintain our roads or transportation system. This is going to happen."

While Florida is clearly heading that direction, the advent of express toll lanes in the south of the state, as well as all-electronic tolling on Florida turnpikes are seen as stepping stones for the mileage-based system, according to Robert Poole, director of transportation at the Reason Foundation, a public policy think tank. "It's a good start," he said. "It's a way to pay for widening projects. It gets SunPass in more vehicles. And it's getting people used to the idea."

Related Content

  • Canadian authorities convinced of enforcement safety benefits
    November 28, 2012
    Cost-benefit analysis invariably finds highly in favour of speed and red light enforcement, particularly so in Edmonton in the Alberta province of Canada, where authorities need no convincing of the merits of road safety engineering. Justification of enforcement efforts on economic grounds has been reinforced this year, by a study of the costs and benefits of red light enforcement. New York-based economic research firm John Dunham & Associates carried out this latest analysis for American Traffic Solutions
  • Hyperloop: from sci-fi to transport policy
    April 16, 2020
    The future is here. While it has long looked like something from a sci-fi movie, Graham Anderson investigates a technology whose time might have come.
  • Poll: Americans would pay more gas taxes to fund road projects
    June 12, 2014
    Two-thirds of Americans (68 per cent) believe the federal government should invest more than it does now on roads, bridges and mass transit systems, according to a new American Automobile Association (AAA) omnibus survey of 2,013 adults. Only five per cent of respondents believe the federal government should spend less on transportation. These results come as AAA urges members of Congress to increase the fuel tax, which will address significant transportation safety and congestion issues nationwide. The
  • Moody’s more bullish on prospects for US toll roads
    December 6, 2013
    Moody’s Investor Services have up-rated the outlook for US toll roads from negative to stable. They think traffic should grow 1.5 per cent on a median basis in 2014, which they describe as a “sustainable comeback” from the three per cent decline since 2009. They think toll revenues should grow to a “mid-single digit percentage range” in 2013 and 2014 which we guess means 4 per cent to 6 per cent. They note such an increase in toll revenues is a slowdown from 2012 when big toll rate increases boosted r