Road Taxes on the Rise

Many states take a percentage of taxpayers’ dollars and use them to pay for roads, bridges, and other transportation-related costs. A large number of states, however- a whopping one-fourth of them to be exact- have recently added a special tax just for transportation expenses. These same states are also charging higher fines and fees for road-related offenses in an effort to raise money.

While many taxpayers aren’t happy about the added costs, they make sense. Federal and state fuel taxes

aren’t generating as much revenue these days, due in large part to an increase in public transportation, more fuel-efficient vehicles on the road, and tax rates that, until now, haven’t changed to reflect the current times.

There are a few states, such as Georgia and Seattle that haven’t gotten onboard with the additional taxation yet, but many are speculating all states will have to make this change eventually.

If you’re being hit by an increase in taxes, talk with your tax advisor about how to circumvent the damage to your wallet. While you can’t escape required taxes, you can do other things, such as qualifying for more exemptions or boosting your savings rate, to make the impact less hard-hitting.

Related articles

• Fuel efficiency means less tax money for roads (thesouthern.com)