I can drive for miles and miles … can states tax me on it? States look at miles traveled formulas to counter revenue decline from motor fuels taxes 2 621 6 minutes read We could be taxed for miles and miles and miles ... (Photo: Jim Allen/FreightWaves) On March 13, Pennsylvania Gov. Tom Wolf announced that the state would phase out its motor fuels tax, making it the first state to propose eliminating the historic levy that has been the primary source of transportation funding. Wolf, a Democrat, said the tax could no longer be relied upon to replenish Pennsylvania’s coffers amid radical changes in freight and passenger mobility.