The Nevada Department of Transportation is conducting the Vehicle Miles Traveled Fee Study to explore and evaluate a replacement source of revenue for the current fuel taxes to continue to efficiently and effectively operate, maintain and improve the roads and highways in Nevada.

A VMT fee is not in addition to existing fuel taxes. It could simply replace existing fuel taxes, meaning that drivers would not be paying the tax when they purchase the fuel at the pump, instead they would be charged a fee based on the miles traveled. For example, if you pay $2.50 per gallon today at the gas station, in a VMT fee program, you would pay about $1.96 per gallon plus any applicable VMT fee. This is because you would not be paying the up to 58 cents per gallon fuel tax. Instead, you would pay in the form of a VMT fee.

State and federal highway revenues are declining and will continue to decline in the future, due to these and other major factors:

• State and federal fuel taxes have not been increased since 1992/1993. Since that time, inflation has reduced the purchasing power of those taxes by approximately 50%.
• Fuel tax revenue per gallon has remained the same regardless of price per gallon (approximately 54 cents per gallon in 1993 and approximately the same per gallon in 2010).
• The use of alternative fuel vehicles is increasing and will accelerate in the future, leading to less fuel tax revenue for roads.
• Vehicle fuel efficiency will increase to an average 37 miles per gallon by 2016, leading to less road funding collected from fuel taxes per gallon.

These other factors are also important to consider:

• Highway financing is necessary to sustain economic activity.
• Environmental concerns are affecting energy policies.
• Other states and the federal government are also considering VMT fee systems.

The VMT study will study a vehicle miles traveled fee as one potential alternative to allow Nevada to fund public roads amid these considerations.

Our transportation system is the backbone of our national and state economy, and is essential for the sustainable economic growth and movement of goods and people across Nevada. If we fail to generate enough funds to operate, maintain and expand existing roads, the consequences of inaction will be multifold: Roads and highways will deteriorate, resulting in unsafe driving, increased vehicle wear and tear and maintenance costs, increased accidents, increased congestion, increased delay and driver frustration, loss of productivity, longer commute times, increased pollution and degraded air quality, reduction in economic activity, and potential loss and migration of jobs and industries, as well as loss in tourism and visitors.