Arizona voters have the opportunity this November to ban taxes based on how much they drive before a plan has even been proposed.
Advocates of Proposition 141 say the change is necessary to prevent government involvement in people’s driving habits and protect Arizonans from unnecessary taxation. But its opponents argue the measure would eliminate one of the state’s options to increase funding for road and highway maintenance.
Arizona's projected transportation plan through 2050 calls for $231 billion in funding, but estimates show revenue lags by $162 billion, according to the Arizona Department of Transportation.
Part of that funding comes from the gas tax, but as that revenue continues to decline, some other states have moved to create road usage
fees based on mileage. Proposition 141 would stop Arizona from exploring any similar system that tracks how much Arizonans drive.
The measure's sponsor, Republican Sen. Jake Hoffman, flatly rejected concerns that the measure would harm the state’s roads and highways.
“Any notion that prohibiting tracking and taxing Arizonan’s freedom to move would have any impact on the state’s finances is pure conspiracy theory and fear mongering,” Hoffman said in a text to The Arizona Republic.
“The people of Arizona want to be able to travel without the government surveilling and taxing them, Prop 141 gives them the chance to make that desire permanent.”
Ted Maxwell, chair of the Arizona State Transportation Board, has spoken out against the measure, arguing that removing the option for mileage taxes would stop Arizona from exploring more equitable ways to share the costs of repairing its roads.
"Even now, this remains mostly theoretical, and it seems that this is mostly a boogieman raised by partisan think-tanks to end any talk of addressing a status quo that simply is not working for Arizonans," Maxwell, who also serves as president of the Southern Arizona Leadership Council, wrote in the general election publicity pamphlet.
What would Proposition 141 do?
Proposition 141 is a half-page proposal to amend the state constitution. It would ban Arizona and all counties and cities from imposing a tax or fee on vehicle miles traveled by a person. It also would bar the state from monitoring or limiting vehicle mileage without a person’s consent.
There are specific carveouts in the measure for government-owned vehicles and certain commercial vehicles.
Hoffman argued taxes on vehicle mileage would allow too much government involvement in Arizonans’ travels.
“We have some of the best geography in the entire world,” Hoffman said when the measure passed the Senate in 2025. “We think that it should be fundamentally protected that Arizonans have the freedom to move about as they please without the government surveilling them and spying on them.”
If passed, Arizona would become the first state to explicitly ban taxes based on vehicle mileage.
Several taxing systems based on mileage use non-GPS tracking systems. Oregon’s opt-in system use a private business partnership and only collects a driver’s vehicle registration. The state agency never receives location data.
Sandy Bahr, director of the Sierra Club’s Grand Canyon Chapter, said the ballot measure could also limit how the state can attempt to curb emissions. She said tracking mileage could be an effective method to meet the state's air quality standards in the coming years.
"Maybe it's not the tool that we would choose but why wouldn't we want to have options on what to do," Bahr said. "Our air is bad in the Phoenix area."
Why is Arizona seeing less money from fuel taxes?
Arizona’s gas tax, which has remained at 18 cents per gallon for decades, has come up short of raising funds used to repair roads and invest in critical infrastructure.
As cars become more fuel-efficient and electric vehicles become more popular, states will receive less from traditional gas taxes. Even as Americans travel more, inflation-adjusted revenue from the gas tax is projected to shrink by more than 50% over the next 20 years, according to data from the U.S. Energy Information Administration.
Fees and taxes tied to vehicle mileage have gained traction in recent years. Utah’s road usage charge is 1.25 cents per mile, which drivers of alternative fuel vehicles can opt into instead of paying an annual fee. Hawaii also uses an opt-in model, which charges $8 per 1,000 miles and is capped at $50 annually.
While Arizona doesn’t have a tax based on mileage, the state is involved in RUC America, a consortium of state transportation agencies that collaborate on research and policy surrounding road use charges. Arizona is monitoring trends, while some other member states have adopted their own programs or are piloting programs.
Helen Rummel covers state politics and higher education for The Arizona Republic. Reach her at hrummel@azcentral.com. Follow her on X, formerly Twitter: @helenrummel.
This article originally appeared on Arizona Republic: Proposition 141 would ban mileage taxes. Would AZ roads pay the price?
