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How to Fund Transportation

How to Fix Congestion How to Engage People

Texas has experienced over 40 years of strong economic growth, resulting in demands on the state’s transportation network.

There are a number of strategies that could be used to help the state meet its growing mobility demands. Some of these are finance strategies that are best implemented at the regional and local level, while others may be best implemented statewide. No matter which strategy you choose, this tool allows you to take an objective look at the benefits, limitations, and implementation experiences in other states.

Use the tools below to filter and sort each finance strategy by cost, longevity, reliability, and implementation. Hover over a strategy for details or click to get more information.

Filter Solutions ^{(Click to hide/show filters)}

WhoThis is who is generally responsible for implementing a successful strategy.

Cost to CollectThis refers to the amount of administrative cost required to collect the tax or fee per total amount collected. A low $ means that there’s little cost per dollar of revenue collected; a high $ value means the ratio of administrative cost per dollar of revenue collected is high.

LongevityThis refers to the extent this revenue strategy can fund improvements over a long-term basis. In other words, “will this guarantee revenue over the long-term?” Some strategies might provide lots of revenue now but could decline in the future. A “low” score means that the potential for this strategy to provide revenue in the future is small, while a “high” score means that the revenue is likely to grow steadily in the future.

ReliabilityThis refers to the extent this strategy could be relied on for a consistent, regular revenue stream. Some revenue streams are relatively stable regardless of economic cycles while others are variable. A “low” score on this slider means the revenue could vary widely by year, while a “high” score means that revenue from this strategy remains relatively constant each year.

ImplementationThis represents the state legislative changes required to implement this strategy. An “easy” score means few legislative changes would be required. A “complex” score means that several legislative changes in the state transportation or tax code would be required.

State Sales Tax Increase Finance Strategy

State Sales Tax Increase

Proposition Bonds Finance Strategy

Proposition Bonds

Statewide Motor Fuels Tax Finance Strategy

Statewide Motor Fuels Tax

Comprehensive Development Agreements (CDA) Finance Strategy

Comprehensive Development Agreements (CDA)

Vehicle Miles Traveled (VMT) Fee Finance Strategy

Vehicle Miles Traveled (VMT) Fee

Motor Vehicle Sales Tax Finance Strategy

Motor Vehicle Sales Tax

State Vehicle Registration Fees Finance Strategy

State Vehicle Registration Fees

Local Option Vehicle Registration Fees Finance Strategy

Local Option Vehicle Registration Fees

Transportation Impact Fees Finance Strategy

Transportation Impact Fees

Tax Increment Financing Finance Strategy

Tax Increment Financing

Private Activity Bonds Finance Strategy

Private Activity Bonds

Pass-Through Financing Finance Strategy

Pass-Through Financing

State Sales Tax on Motor Fuel Finance Strategy

State Sales Tax on Motor Fuel

Local Option Motor Fuels Tax Finance Strategy

Local Option Motor Fuels Tax

Carbon Tax Finance Strategy

Adding New Toll Roads Finance Strategy

Adding New Toll Roads

Public-Private Partnerships Finance Strategy

Public-Private Partnerships

Indexed Motor Fuels Tax Finance Strategy

Indexed Motor Fuels Tax

Drivers License Surcharge Finance Strategy

Drivers License Surcharge