Mileage-Based User Fee: A Financial Evaluation Case Study for the State of Florida

Abstract

Fuel taxes, assessed on a per-gallon basis nationally, have been the major source of transportation funding for the past century. Despite increasing travel demand, aging infrastructure, and soaring construction, operation, and maintenance costs, federal tax rates have remained unchanged since 1993. This article assesses the financial impacts of the current per-gallon taxing regime and a variety of travel demand management strategies, utilizing mileage-based user fees (MBUFs) for the state of Florida. The results indicate that combining MBUFs with congestion pricing (CPMBUFs) can be a viable pricing and demand management strategy for enhancing Florida's transportation funding.

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