In the past three years, most states have increased or introduced new taxes in order to boost transportation funding. These policy changes are largely in response to the declining purchasing power of traditional transportation funds stemming from gasoline and diesel taxes. This report provides a brief update and overview of roadway funding in Tennessee, with an emphasis on the gasoline tax. The primary goal is to discuss roadway funding in other states, paying attention to the tax policies and alternative revenue sources that states are using in response to ongoing funding challenges. Lastly, we briefly discuss the strengths and weaknesses of these revenue mechanisms.
