Gas tax revenue expected to increase downward trajectory in the 2030s as we move toward a greener, zero-emissions future. States are look at the ways to make up for the lost revenue and one way could be to tax the constant flow of delivery trucks.
As Americans buy more fuel-efficient and electric vehicles, gas tax revenue to pay for roads will begin to dry up. But thousands of heavy-duty delivery vehicles ply the country’s roads every day, eventually damaging roads and bridges. Taxing each delivery these trucks make could replenish the coffers. Colorado, a state that has been aggressive in promoting electric vehicle adoption, was one of the first in the country to levy a retail delivery tax, because Boundary explain:
“If you’re going to put wear and tear on our roads, you should help pay for their maintenance,” said Colorado state Rep. Cathy Kipp, a Democrat who chairs the Energy and Environment Committee.
In July 2022, Colorado became the first state to adopt a retail delivery fee, a fee on all vehicle deliveries to consumers in the state. The fee, currently 29 cents per delivery, funds highways, bridges, tunnels, electric vehicle charging stations, and projects to reduce air pollution and electrify the vehicle fleet and public transportation system. The fee has raised more than $160 million.
Colorado officials say the law has been successful so far, and other states are following suit. Minnesota passed a similar law in 2013. Lawmakers in Illinois and New York have introduced similar bills, with Stateline reporting that other states have begun studying the impact of implementing similar laws.
Of course, there has been pushback. Republican lawmakers in Colorado have spoken out against the law, oddly saying it would hurt consumers:
“A 27-cent delivery fee is not small, its impact is not unnoticeable, and it disproportionately affects our citizens — especially those who are struggling to pay their bills and provide for their families,” Republican Rep. Rose Pugliese, the House minority leader, wrote in a guest editorial in the Colorado Springs Gazette a few months after the law was enacted.
As Illinois State Senator Rachel Ventura explained to Stateline, if nothing is done, the responsibility falls on local officials. “We have a lot of traffic coming in and out, and the environmental burden, the road repair burden, the tax burden falls on the local government.”
Online ordering, already popular, has exploded during the COVID-19 outbreak and continues to grow, according to Economist. Delivery vehicles also put pressure on local infrastructure and neighborhood streets. Large online retailers such as Amazon is pretty good at tax evasion, So let’s see if any states can actually make their money back.
