Trends

Consumption-based dynamic taxes

Transportation revenues are tied to today’s reality of individually owned and operated vehicles—for instance, the need for parking diminishes with the rise of autonomous-drive shared mobility. Agencies may need to evaluate alternatives—e.g., taxing “movement” versus ownership. For instance, to protect their revenue base, governments might consider introducing innovations such as mileage-based user fees (MBUFs), charges based on how much one drives rather than how much gasoline is purchased.

Monetization for road usage in the future may be based on time of day, market demand, routes traveled, distance, and even vehicle form, aligning the use of public assets more directly to usage than today’s system.

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