New report outlines alternatives to gas tax

MONTPELIER, Vt. (WCAX) – What will Vermont lawmakers do to shore up how the state funds road repairs?

Vermont’s Transportation Fund is made up of a variety of taxes and fees, including a surcharge Vermonters pay when they fill up their cars.

Gas sales have been strong recently, but as more electric vehicles hit the road, Vermont and other states are expected to collect less gas tax revenue. In the next decade, VTrans is expecting a $600 million gap.

In a new report to lawmakers, VTrans says the state could consider a mileage-based fee for drivers, a fee on package delivery, or a fee on ride-hailing services.

“Structurally, the affordability for Vermonters is a big concern that we have to take a look at,” said VTrans’ Michele Boomhower

She also says the gas tax shortfall could mean Vermont misses out on federal infrastructure projects.