Wisconsin Transportation Builders Association

Funding in Other States

Funding in Other States

States that are moving forward in building 21st century transportation systems are doing so with a diversity of revenues.Not only do they realize that traditional highway user fees (fuel taxes and vehicle registration fees) would have to be raised to politically unacceptable levels to improve and maintain all modes, they understand that transportation investment results in job growth, higher incomes, improved productivity and enhanced competitiveness.

Hence, many states have expanded user fees and provide general tax support for transportation, including such common methods as:

n††††† Tolls;

n††††† Dedicating the state sales tax on vehicle purchases to transportation;

n††††† Dedicating the state sales tax on fuel and automotive parts and services to transportation;

n††††† Using General Funds to pay debt service on bonds issued for non-highway investments, such as harbors and rail;

n††††† Allowing local governments to impose a sales tax dedicated to transit and/or roads (in fact, Milwaukee County is the largest transit system in the country that relies solely on the property tax for its local source of funding);

Following is a comparison of Wisconsinís supplemental transportation funding sources with those of other Midwestern states: