MDT headquarters building

Motor fuel taxes and GVW fees are the primary revenue source for MDT state transportation funding. Over time, however, the amount of user-fee funding for highways has dropped due to rising fuel efficiency, shifting federal-state cost share on infrastructure investments, and inflation. The increasing popularity of electric vehicles (EVs) and alternative fuels adds to worries about future transportation funding. In response to this concern, more than half of states have introduced an annual registration fee on EVs. States continue to explore various methods to best reflect the user pays principle. These include: increasing existing motor fuel tax rates; indexing motor fuel taxes to inflation; implementing mileage-based user fees; and studying fuel-neutral fees, based on energy consumption. Multiple research projects have explored a variety of funding methods and identified best practices from around the country. This research topic would explore the same ideas, but be specific to Montana in order to help MDT plan for future transportation revenue.

Scope of Work
Project Overview

For more information, contact Vaneza Callejas, 802-546-0217.