The Fuel Tax and Alternatives for Transportation Funding

The Fuel Tax and Alternatives for Transportation Funding PDF Author: National Research Council (U.S.). Committee for the Study of the Long-Term Viability of Fuel Taxes for Transportation Finance
Publisher: Transportation Research Board National Research
ISBN:
Category : Business & Economics
Languages : en
Pages : 252

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The Fuel Tax and Alternatives for Transportation Funding

The Fuel Tax and Alternatives for Transportation Funding PDF Author: National Research Council (U.S.). Committee for the Study of the Long-Term Viability of Fuel Taxes for Transportation Finance
Publisher: Transportation Research Board National Research
ISBN:
Category : Business & Economics
Languages : en
Pages : 252

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Book Description


Long Term Outlook on Highway Trust Fund

Long Term Outlook on Highway Trust Fund PDF Author: United States. Congress. House. Committee on Transportation and Infrastructure. Subcommittee on Highways and Transit
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 160

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The Option of an Oil Tax to Fund Transportation and Infrastructure

The Option of an Oil Tax to Fund Transportation and Infrastructure PDF Author: Keith Crane
Publisher: Rand Corporation
ISBN: 0833051830
Category : Business & Economics
Languages : en
Pages : 48

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Book Description
This paper discusses using an oil tax to fund U.S. transportation infrastructure. The paper discusses the pros and cons of an oil tax to take the place of the current gasoline and diesel taxes.

Vehicle Miles Traveled (VMT) Tax

Vehicle Miles Traveled (VMT) Tax PDF Author: Misty A. Boos
Publisher:
ISBN:
Category : Motor fuels
Languages : en
Pages : 62

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Book Description
As traditional fuel taxes fail to meet revenue needs, transportation professionals explore the VMT tax as an alternative funding mechanism. Fuel taxes have been the primary means of collecting revenue to finance construction, operation and maintenance of US highways since the 1920s. With increasing use of hybrid and fuel efficient vehicles, aging transportation infrastructure, rising construction costs and inflation, transportation budgets are strained. The fuel tax alone is expected to be inadequate to meet public highway finance requirements within the next 20 years. The National Chamber Foundation, a public policy think tank affiliated with the U.S. Chamber of Commerce, estimates that between 2006-2015 Highway Trust Fund revenues will fall $23 billion short of the amount needed to maintain the present U.S. highway system and $48 billion short of the revenue needed to improve the existing system. (Innovation Briefs, March/April 2006) From 1970 to 2003, the gasoline tax revenue in Oregon had declined by half in 'cents per vehicle mile traveled' (after adjusting for inflation). "The gasoline tax is failing the purpose for which it was originally intended - funding the operation and maintenance of Oregon's road system." (Whitty, 2007). Many other states now recognize that for political and economic reasons fuel tax revenues will not keep pace with improvement in vehicle fuel efficiency, which is identified as the leading cause of declining fuel tax revenues in the future. One alternative widely proposed to the fuel tax is a "Vehicle Miles Traveled" (VMT) tax. Under this system, drivers pay a fee based on miles traveled rather than a tax on the amount of fuel used. The VMT tax concept can serve broader policy aims as well, by enabling policy makers to set variable fees in different network areas to reduce congestion during peak travel times, a critical and worsening issue in some metropolitan areas. Potential challenges to implementation of a VMT tax were addressed recently by the Oregon Department of Transportation in a pilot study of a VMT-type tax. Oregon DOT encountered issues of the efficiency and reliability of the technology required, the cost associated with fitting vehicle-monitoring equipment, public acceptance of the new system, increased burden on the private sector to collect fees, the cost of the new fee collection systems and the associated security and privacy issues involved in tracking miles traveled. The Oregon Pilot Study ultimately found, however, that the VMT tax is "workable and practical, a genuine alternative to the gasoline tax." (Whitty, 2007).

Alternatives to Fuel Tax: A State Level Perspective

Alternatives to Fuel Tax: A State Level Perspective PDF Author: Jungeun (Jen) Oh
Publisher: Purdue University Press
ISBN: 9781622601127
Category : Transportation
Languages : en
Pages : 174

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Book Description
Under the current fuel-tax-based highway financing system, the funding gap between highway needs and revenue available is expected to grow as vehicle fuel economy improves and use of alternative fuels increases. Consequently, the highway financing mechanism needs to be restructured or a different financing strategy undertaken. Previous research provided examples of successful implementation of pricing schemes in terms of design of pricing scheme, technology issues, legal and institutional issues, and public acceptability. Synthesizing this information, a methodological framework was established for evaluation of alternative user charging schemes. Based on the assessment of the current and projected highway revenue and the needs and demand of Indiana, the study developed three alternative financing schemes: (1) enhancement of the current tax system; (2) addition of new funding sources to supplement the current system; and (3) replacement of the current system with new financing schemes. Each alternative was evaluated on the basis of the established criteria and compared with the other two alternatives. The third alternative, to replace the current fuel tax system with VMT fees, was found to have the best potential in achieving revenue adequacy, system efficiency, and equity. The implementation of this alternative, however, could be cost-prohibitive and could face opposition from the public. Based on evaluation results, a stepwise modification of the current system was proposed, aiming at a long-term goal of implementing ISCURP.

Structure of the Federal Fuel Tax and the Long-term Viability of the Highway Trust Fund

Structure of the Federal Fuel Tax and the Long-term Viability of the Highway Trust Fund PDF Author: United States. Congress. House. Committee on Transportation and Infrastructure. Subcommittee on Highways and Transit
Publisher:
ISBN:
Category : Technology & Engineering
Languages : en
Pages : 94

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Alternatives to the Motor Fuel Tax for Financing Texas Transportation

Alternatives to the Motor Fuel Tax for Financing Texas Transportation PDF Author: Patricia Franco
Publisher:
ISBN:
Category :
Languages : en
Pages : 258

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Book Description
Our nation is faced with a shortfall in funding desired transportation improvement programs. Texas is one of many states currently at crisis level as it is faced with an estimated annual funding shortfall of about $7 billion dollars between projected needs and transportation fund availability. This is a result of increased vehicle miles traveled and significant population growth that has outpaced the state's transportation fund availability. Not only is the Texas transportation system declining in quality, but it is rapidly falling behind in the quantity needed to maintain current quality of life. As the Texas Mobility Fund balance approaches zero, the state needs to look toward non-traditional financing mechanisms to address its revenue shortfall. This report examines the problems associated with increased transportation demands in Texas and financing the expansion and maintenance of the state's transportation system.

Long Term Outlook on Highway Trust Fund

Long Term Outlook on Highway Trust Fund PDF Author: United States. Congress. House. Committee on Transportation and Infrastructure. Subcommittee on Highways and Transit
Publisher:
ISBN:
Category :
Languages : en
Pages : 156

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Alternatives to Motor Fuel Taxes for Financing Surface Transportation Improvements

Alternatives to Motor Fuel Taxes for Financing Surface Transportation Improvements PDF Author: Arlee T. Reno
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 168

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Evaluation of Surface Transportation Funding Alternatives Using Criteria System Established Through a Delphi Survey of Texas Transportation Experts

Evaluation of Surface Transportation Funding Alternatives Using Criteria System Established Through a Delphi Survey of Texas Transportation Experts PDF Author: Sasanka Bhushan Pulipati
Publisher:
ISBN:
Category : Motor fuels
Languages : en
Pages : 469

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Book Description
For more than a decade, transportation officials have been concerned that, at current levels, the fuel tax, the primary funding source of surface transportation in the United States, would not provide enough revenue to satisfy the ever rising transportation needs. Recent studies have evaluated alternative funding strategies at the national and state levels. In this dissertation, the author improves this evaluation procedure by developing a multi-criteria evaluation of different funding options for implementation in Texas using a technique called PROMETHEE. This evaluation uses a new criteria system established through his Delphi survey of Texas-based experts who are experienced in transportation financing and/or participate in transportation funding policy decisions. With a well-organized survey process, the author tries to develop a consensus among the officials from metropolitan planning organizations in Texas, various districts of the Texas Department of Transportation and the staff of the Texas Legislative Transportation Committee members regarding the criteria and their weights. The resultant criteria weights seem to indicate that the expert panel members recognize the importance of public opinion and its impact on reaching a legislative solution. They appear to be less concerned about criteria that may be addressed through research and modifications to the funding alternatives. This research shows that the funding policy is not seen as a tool for improving user efficiency; this result differs from the common view in the literature that encourages the fuel tax's replacement with VMT charges, which have high implementation and operating costs. Since the criteria system is based on a Texas based panel opinion, it likely strengthens the credibility of the resultant recommendations among the public. Based on his evaluation, the author recommends increasing the fuel tax and tolling all new freeway capacity, while gradually moving towards congestion based tolls on all toll roads as the set of future funding options. Through a scenario analysis, he shows that his recommendations are not affected by the differences in opinion regarding the criteria weights or any uncertainties in the scoring. Complex, high-cost methods that require advanced technology such as VMT charges and tolling of all existing urban highways are not preferred. Previous researchers' attempts to identify new alternatives have mainly concentrated on improving the revenue sustainability and promoting efficient travel behavior. With this research, the author tries to bring back the focus to public acceptance and any factors that influence it. Effort to improve the public awareness of transportation funding needs and to improve the public acceptance of increasing the fuel tax and other user charges appear critical for future success. The author also analyzes the choice of implementing local funding solutions in place of statewide funding solutions. In the expert survey, the panel members suggest a balance between the two types of funding while the statewide funding should remain primary. Based on the literature review and Delphi survey responses, the author proposes the integration of both methods such that statewide funding remains primary, local funding is coordinated by regional planning and the user-pay principle continues to govern transportation funding.