Last week the state Department of Transportation released $468 million in 2025 liquid fuels payments to all municipalities that timely filed required paperwork. For 2025, the final population factor is $17.9967 per person, up slightly (3 cents) from $17.9662 in 2024, and the mileage factor is $3,191.0159 per mile, up slightly (3 dollars) from $3,188.0077 in 2024. Total projected funds are $800,000 higher than the 2024 total and come from about 14.5% of the state gas tax, which is levied on fuel purchased in Pennsylvania. Click here to see how much each municipality will receive. 

“With township and local governments responsible for two-thirds of Pennsylvania’s road miles, we recognize the critical role of liquid fuels funding in maintaining our roadways. However, as vehicles are more fuel-efficient, these funds are diminishing, so we are optimistic for the EV fee implementation to be successful and the additional revenue they will bring to our local governments,” said PSATS Executive Director David Sanko. “We appreciate PennDOT’s recognition of local governments as essential partners in the Commonwealth’s transportation network and look forward to continuing our collaboration with PennDOT and the General Assembly to find innovative solutions, ensuring our roads remain smooth, safe, and ready for future journeys.” 

Act 85 of 2024 will take effect April 1 and will require non-commercial electric vehicles to pay an annual fee starting at $200/year, which will increase up to $250 in 2026 and is indexed to inflation for future years. The new fee is expected to raise $15 million during 2025. About 14.5% of the revenues from this fee will be distributed to municipalities through the liquid fuels formula, which is expected to include $2.1 million for the 2026 liquid fuels distributions.  

Act 85 clarified that vehicles charging at public charging stations must pay Pennsylvania’s existing alternative fuel tax when charging in the commonwealth. The tax is collected and turned over by the owner of the charging stations. 14.5% of this tax is also distributed to municipalities through the liquid fuels formula, which is distributed 50% based on total road miles and 50% based on population.