The state of Pennsylvania may be making significant changes to transportation funding, which could include getting rid of the gasoline tax while simultaneously increasing several other fees.
The Pittsburgh Post-Gazette reports the Transportation Revenue Options Commission reviewed potential changes included in a draft of a report on Wednesday (July 14), with the final version set to go to Governor Tom Wolf by the end of July.
The proposal includes changes made in three phases: the first two years, the next two years and five years or longer, with increased charges at various times as approved by the General Assembly in an effort to fund transportation needs.
The increases would include vehicle registration and rental fees, as well as the addition of new taxes such as package delivery, miles driven and Uber and Lyft rides.
The three phases are projected to generate the following revenue: $3.5 billion during the first phase, $6.6 billion in the second phase and $11.5 billion in the third phase.
The state projects its largest revenue growth -- $8.9 billion annually -- will come from setting a tax of 8.1 cents per mile for each mile a vehicle is driven, which wouldn't begin until the third phase and require legislative approval and a pilot period to test a collection method.
Highlights from the Transportation Revenue Options Commission's recommendation draft includes the following:
- A miles-driven fee of 8.1 cents per mile
- A $1.11 fee added to all rides by shared networks like Uber and Lyft
- A $1 fee for each package delivered by services like Amazon, UPS and local groceries and restaurants
- Increasing the state car rental tax by $3 to $5
- Doubling vehicle registration fees, which currently are $38 for a passenger car
- Establishing a fee for electric vehicles, which don't pay a gasoline tax, until the miles-driven fee is established.
You can read more on the report from the Post-Gazette's website here.