Costs of Alternative Revenue-Generation Systems (2011) / Chapter Skim
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Pages 61-87
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From page 61... ...
Due to data limitations, only 1 year of cost data for the VMT fees has been gathered, while 3 to 5 years of cost data for motor fuel taxes and tolling have been collected. For cordon pricing, cost data were collected for five existing cordon pricing systems.
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From page 62... ...
4.2 Cost Estimates for Motor Fuel Taxes State motor fuel tax administration and compliance programs are regulated by state legislatures and state agencies, including state DOTs and departments of revenue (DORs)
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As motor fuel tax rates increase, profits associated with motor fuel tax evasion grow, thus requiring enhanced enforcement measures and higher administrative costs. The weighted average gasoline tax rate in the United States is 20.2 cents per gallon (FHWA, 2008)
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From page 64... ...
Further, their use is indicative of enhanced enforcement measures, which could generate additional costs while still yielding positive returns on investment through reduced evasion. Of the 15 states with automated motor-fuel tracking systems identified in NCHRP Report 623: Identifying and Quantifying Rates of State Motor Fuel Tax Evasion, three (California, Colorado, and Tennessee)
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From page 65... ...
65 2003 2004 2005 2006 2007 Average Net motor fuel tax collections 33,276,518 34,696,386 35,038,064 36,278,026 39,377,467 35,733,292 Collection expenses 326,377 494,404 309,325 373,615 405,096 381,763 Collection expense as percentage of tax collections 1.0% 1.4% 0.9% 1.0% 1.0% 1.1% Source: FHWA, Highway Statistics, 2003–2007 Table 20. Net state motor fuel tax collections and collection expenses (2003–2007)
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From page 66... ...
In 2007, net state motor fuel tax collections in the United States reached $39.4 billion while operating costs were estimated at $405.1 million, or 1.0% of total tax collections. Most state-reported values were near the mean collection cost rate of 1.0%, though reported values did reach as low as 0.1% and as high as 3.7%.
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From page 67... ...
Motor fuel tax collections and collection expense, 2007.
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State 2003 2004 2005 2006 2007 Average over years Total Operating Cost California $24,711 $26,551 $23,320 $22,530 $22,569 $23,936 Colorado 2,758 2,557 2,583 2,334 3,693 2,785 Florida 22,299 22,893 23,677 24,853 24,761 23,697 Idaho 980 2,978 3,162 3,649 3,597 2,873 Iowa 1,099 1,099 1,181 1,250 1,258 1,177 New Jersey 5,544 6,178 5,645 5,794 5,896 5,811 Tennessee 11,606 11,927 12,121 12,069 12,239 11,992 Texas 29,176 29,843 29,972 30,686 31,330 30,201 Average over sample states 12,272 13,003 12,708 12,896 13,168 12,809 Total Revenue California 3,176,019 3,531,929 3,299,559 3,258,087 3,418,725 3,336,864 Colorado 544,337 553,593 516,575 602,897 567,680 557,016 Florida 1,851,781 1,891,053 2,029,290 2,165,327 2,233,129 2,034,116 Idaho 205,772 211,337 213,646 219,360 237,411 217,505 Iowa 409,191 418,164 424,354 430,083 444,086 425,176 New Jersey 554,365 617,811 564,505 579,392 589,571 581,129 Tennessee 800,720 812,091 891,499 842,236 849,662 839,242 Texas 2,789,208 2,912,008 2,915,672 2,970,092 3,086,196 2,934,635 Average over sample states 1,291,424 1,368,498 1,356,888 1,383,434 1,428,308 1,365,710 Source: FHWA, Highway Statistics, 2003–2007 Table 23. Fuel taxes – total operating cost and revenue (in $000s)
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From page 69... ...
Administrative costs: Program administration costs, which include the overarching management of the motor fuel tax collection department, totaled $751,902 in 2007, which included $243,676 in indirect costs pertaining to program administration. Based on information gathered in the questionnaire, motor fuel tax administrative costs for 2007 totaled approximately $2.4 million, an amount which was $1.1 million less than the total reported to FHWA.
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From page 70... ...
• The collection of financial data from 2003 to 2007. Most of this data has been compiled from comprehensive annual financial reports (CAFRs)
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To accomplish this goal, the criteria for selecting the toll agencies for this analysis were • System age. This analysis includes – Mature toll-road systems: The New Jersey Turnpike Authority (NJTA)
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Moreover, agencies are moving at different rates with regard to the implementation of ETC, ORT, and video tolling systems. Among toll agencies, there may be variation in the level of implementation of ETC systems.
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I-78 Bridge Easton-Phillipsburg Bridge Portland-Columbia Bridge Delaware Water Gap Bridge Milford-Montague Bridge Pennsylvania and New Jersey Delaware River Joint Toll Bridge Commission E-470 Denver, Colorado E-470 Public Highway Authority (E-470) N/A Turnpike Mainline Toll 589 Toll 417 Beachline Expressway Polk Parkway Sawgrass Expressway Western Beltway Florida Florida's Turnpike Enterprise Transfers funds S
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From page 74... ...
In particular, NTTA and OOCEA recorded an average cost per transaction of $0.16 and $0.17, respectively. In comparison, single facility toll agencies had a higher cost per transaction.
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For the 13 agencies for which data were available, administrative costs averaged approximately 7.7% of toll revenues and $0.14 per transaction in 2007. OOCEA had the lowest administrative costs per transaction with $0.02, and the Dulles Greenway had the highest estimated administrative costs per transaction at $0.34.
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From page 76... ...
Video billing involves taking an image of all vehicle license plates and mailing drivers without a valid transponder or with insufficient balances in their accounts a bill of toll activity. These systems involve capital expenditures related to video-billing equipment as well as account review by customer representatives to ensure accuracy of the bill statements that are mailed to toll-road users.
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From page 77... ...
. Since some of the toll authorities are involved in other transportation and non-transportation activities, this definition has been refined slightly to include only net income from toll operations over toll revenues.
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From page 78... ...
Table 27 provides a sample of capital costs associated with toll collections incurred by seven toll agencies during the 2003 through 2007 time period. 4.4 Cost Estimates for VMT Fees This section presents cost estimates for VMT fees based on the proposed Dutch VMT systems and also discusses the types of VMT fees in practice today.
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From page 79... ...
They take fairly different approaches, although all are based on some form of GPS location device to determine how mileage charges should be allocated. Unfortunately, cost data based on experiments have very limited usefulness.
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Toll- Road Agency Improvement Total CapitalCosts Cost/Year Cost/Per Centerline Mile CTRMA Design and installation of an ITS system Dulles Greenway Toll-collection equipment FTE Intelligent Transportation System and Fiber Optic Improvements, Mainline Intelligent Transportation System and Fiber Optic Improvements, Polk and Suncoast Addition of Sun Pass Lanes Open Road Tolling Plaza and Express Lane Conversion, Sawgrass Open Road Tolling Plaza and Express Lane Conversion, Mainline Toll System Technology Upgrades on the Mainline NTTA Toll equipment for Lewisville Lake Bridge and the NTTA system OTC Conversion to ETC OOCEA Toll equipment and buildings Toronto 407 Toll equipment, transponders, operations center, office equipment, and computer equipment $20,010,000 56,137,545 166,200,000 5,742,321 9,703,412 156,978,000 182,856,744 $10,005,000 11,227,509 41,550,000 N/A 9,703,412 31,395,600 20,317,416 $1,725,000 4,009,825 $618,369 N/A N/A 1,569,780 2,728,788 Sources: CTRMA (2005) , Florida's Turnpike System (2007, 2008)
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From page 81... ...
This relatively crude system is VMT based, but it does not provide a good basis for cost comparisons. First, the majority of the revenue is collected as fuel taxes so the system is directed more toward redistributing that revenue among the states and preventing strategic purchases of fuel to avoid state fuel taxes than toward actually collecting revenue.
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From page 82... ...
. Siemens and Vodafone chose to use the thin client approach, while T-Systems opted for the thick client approach.
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In addition, temporary or infrequent 83 Component Siemens T-Systems Vodafone OBU Thin Thick Thin Communication Cellular & DSRC Cellular & DSRC Cellular Calculation of charges Back office OBU Back office Visitors Fixed tolls or temporary units Fixed tolls or temporary units Temporary units Enforcement Fixed, movable, and mobile Fixed, movable, and mobile Cellular & fixed, movable, and mobile Source: Ministry of Transport, Public Works, and Water Management, 2006 Table 28. Summary of three Dutch VMT fee systems.
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The key parameters included lane miles, centerline miles, VMT generated, number of vehicles, total revenue, average VMT fee rates (or tax rates) , and number of staff.
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4.4.4 Costs of Other Mileage-Based Systems As noted earlier, some mileage fee systems are in use for heavy vehicles. Both IFTA and the Oregon weight-mile charge rely on self-reported mileage data.
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55.4% 10.6% 53.9% 28.8% 38.7% 33.5% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% London Oslo Milan Stockholm Congestion Zone Average US Tolling Agencies Average (2007) Figure 43.
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From page 87... ...
In this manner, San Francisco is going one step further since parking rates for on-street spaces are set at lower rates than off-street parking spaces. San Francisco also expects to have a broader range of rates than either Westminster or Chicago.
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