Road Use Tax Law and Legal Definition

Road use tax law is governed by state laws, which vary by state. These funds are primarily used for the construction and maintenance of highways. Road taxes may be used for numerous purposes, such as engineering and right-of-way acquisition that are a part of street construction; street signage; the purchase and maintenance of vehicles used for street maintenance; storm sewers that drain water from the street; street lighting; and cost of buildings, administrative salaries and office expenses that apply to street maintenance or supervision.

The following is an example of a state law dealing with road taxes:

"All motor vehicle registration fees and all licenses and excise taxes on motor vehicle fuel, except cost of administration, shall be used exclusively for the construction, maintenance and supervision of the public highways exclusively within the state or for the payment of bonds issued or to be issued for the construction of such public highways and the payment of interest on such bonds.