DOVER — Delaware could soon replace its gasoline tax with a mileage-based levy in which motorists would pay varying amounts depending on how many miles they drive.
The U.S. Department of Transportation said Tuesday that Delaware and four other states have been awarded $1.49 million in federal funds to study the impact of the new method of taxation to pay for infrastructure costs.
The grant, received by the states as part of the I-95 Corridor Coalition, requires them to test 50 vehicles to examine how replacing the state gasoline tax with a user fee — determined by an annual assessment in which motorists are charged based directly on how many miles they drive — would work.
“Finding sustainable revenue to replace stagnant fuel tax receipts is clearly a sensitive topic with the public,” Delaware Department of Transportation Secretary and I-95 Corridor Coalition Chairperson Jennifer Cohan said in a statement.
“That makes this project a fantastic opportunity to foster dialogue about how our transportation system is funded, the need for a reliable revenue source and how citizens benefit from the mobility our region provides.”