The National Academies Press

Currently Skimming:

Pages 88-105

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.

From page 88... ... As observed from the cost data presented in Chapters 2 and 4, the costs vary by year from 2003 to 2007, except for the VMT fee systems that have only 1 year of reported data. In addition, the costs differ from one state to another for motor fuel taxes, from one facility to another for tolling and cordon pricing, or from one provider to another for the VMT fee systems. Read the entire page →
From page 89... ... Note that in all cases, motor fuel tax collection costs included those associated with both gasoline and special fuels. Annual operating costs averaged 0.9% of total motor fuel tax collections (see Table 32) Read the entire page →
From page 90... ... Also, the revenue collected in the Netherlands is on the order of four or five times the amount of fuel tax per vehicle that is collected in the United States. As discussed in Chapter 4, the total initial setup costs across the three systems are similar in magnitude. Read the entire page →
From page 91... ... 91 Cost Item Average overProviders Siemens T-Systems Vodafone Per Unit of Total Operating Cost $ per lane mile $4,042 $2,533 $5,894 $ 3,699 $ per centerline mile 8,245 5,167 12,023 7,546 $ per 1,000 VMT 6.26 4.72 10.99 6.90 $ per vehicle 75.16 51.33 114.66 61.05 $ per transaction 6.95 4.36 10.14 6.36 % of total revenue 6.6% 4.1% 9.6% 6.0% Per Unit of Administrative Cost $ per lane mile 2,075 673 3,090 2,463 $ per centerline mile 4,234 1,373 6,304 5,025 $ per 1,000 VMT 3.22 1.25 5.76 2.85 $ per vehicle 38.59 13.64 60.12 40.65 $ per transaction 3.57 1.16 5.32 4.24 % of total revenue 3.4% 1.1% 5.0% 4.0% Per Unit of Collection Cos t $ per lane mile 810 672 1,400 357 $ per centerline mile 1,652 1,371 2,857 728 $ per 1,000 VMT 1.25 1.25 2.61 0.41 $ per vehicle 15.06 13.62 27.24 5.89 $ per transaction 1.39 1.16 2.41 0.61 % of total revenue 1.3% 1.1% 2.3% 0.6% Per Unit of Enforcement Cost $ per lane mile 297 72 489 331 $ per centerline mile 606 147 997 675 $ per 1,000 VMT 0.46 0.13 0.91 0.38 $ per vehicle 5.53 1.46 9.51 5.46 $ per transaction 0.51 0.12 0.84 0.57 % of total revenue 0.5% 0.1% 0.8% 0.5% Per Unit of OBU Cost $ per lane mile 666 1,005 768 226 $ per centerline mile 1,360 2,050 1,567 462 $ per 1,000 VMT 1.03 1.87 1.43 0.42 $ per vehicle 12.39 20.36 14.95 3.73 $ per transaction 1.15 1.73 1.32 0.39 % of total revenue 1.1% 1.6% 1.3% 0.4% Per Unit of Miscellaneous Cost $ per lane mile 193 112 146 322 $ per centerline mile 394 228 297 657 $ per 1,000 VMT 0.30 0.21 0.27 0.60 $ per vehicle 3.59 2.26 2.84 5.31 $ per transaction 0.33 0.19 0.25 0.55 % of total revenue 0.3% 0.2% 0.2% 0.5% Per Unit of Initial Setup Cost $ per lane mile 13,653 13,944 13,561 13,456 $ per centerline mile 27,852 28,443 27,663 27,449 $ per 1,000 VMT 21.15 25.99 25.28 25.08 $ per vehicle 253.87 282.57 263.81 222.08 $ per transaction 23.49 23.99 23.33 23.15 % of total revenue 22.2% 22.7% 22.1% 21.9% Table 34. Cost comparison between VMT fee systems. Read the entire page →
From page 92... ... for which data are available for all three systems. Using the average costs calculated over states for fuel taxes, tolling agencies, and providers of VMT fees for 2007 in the cost comparison analysis avoids the potential pitfalls caused by missing cost data and differing time series data, thereby enhancing accuracy and ensuring data comparability for revenue-generation systems. Read the entire page →
From page 93... ... The evidence from the tolling agencies indicates that around or above 20% of revenue may be spent on collecting tolls. 5.4 Sensitivity Analysis Motor fuel taxes and the alternative revenue-generation systems considered in this study face both internal and external uncertainties. Read the entire page →
From page 94... ... . Revenue A number of factors could have an impact on the demand for transportation, mode split, and, ultimately, motor fuel tax collections. Read the entire page →
From page 95... ... . In 1992, FHWA estimated motor fuel tax evasion at $1.0 billion annually, which translates into evasion rates of 3% to 7% for gasoline taxes and 15% to 25% for diesel taxes (FHWA, 1992) Read the entire page →
From page 96... ... annually Econometric method, audit review method, inspections data analysis Eger 2001 Wisconsin gasoline taxes due to falsified agricultural refund requests Upwards of $4 million annually Econometric method, comparison of predicted and actual agricultural refund requests KPMG 2001 Federal diesel taxed due to jet fuel diversion $1.7–$9.2 billion over 10 years Comparison of fuel supplied to taxed gallons Denison and Hackbart 1996 Kentucky fuel taxes $26–$34 million Survey of tax administrators, econometric analysis Council of State Governments, Council of Governors' Policy Advisors 1996 All state fuel taxes $952 million–$1.5 billion Literature review, survey of state tax administrators, econometric analysis WSLTC 1996 Washington fuel taxes $15–$30 million Literature review, border interdiction, random audits Revenue Canada 1996 Canadian fuel taxes $55–$110 million Comparison of monthly motor fuel sales volumes with gallons taxed Mingo et al. 1996 All state diesel taxes 21% Comparison of fuel consumption to taxed gallons Federal Highway Administration 1994a Federal and state fuel taxes $1 billion (fed. Read the entire page →
From page 97... ... This section will discuss these factors in greater detail. Toll revenues are a function of toll rates, economic conditions, facility length, and the roadway network. Read the entire page →
From page 98... ... Improvements to feeder roads can make the toll facility a more attractive route for motorists, whereas improvements to competing facilities will likely have the opposite effect. While long-range transportation plans that estimate future transportation infrastructure for a 30-year period are available in most areas, there is always a possibility of future widening, expansions, and the development of competing roadways that can affect toll revenue. Read the entire page →
From page 99... ... – Extension of an existing facility necessitating the construction of additional toll gantries, the purchase and installation of toll equipment, and additional signage – Expansion of customer base – Additional information storage hardware and software to manage customer accounts – Additional customer service center staff – Additional rent and utilities related to a new or expanded customer service center – Purchase of additional transponders The intent of this sensitivity analysis is to measure the potential cost impact of these proposed changes in general terms. The sensitivity analysis is not intended to evaluate the potential impact of each of these improvements in isolation. Read the entire page →
From page 100... ... Transponder holders are then charged against their respective account balances, while nontransponder holders receive a bill by mail for toll charges incurred. Enforcement strategies relating to the placement and coverage area of this equipment as well as the ability and eagerness to prosecute identified violations will affect enforcement costs. Read the entire page →
From page 101... ... Profitability The main finding from these analyses is that the various strategies available for toll agencies with respect to the setting and increasing of toll rates, the implementation of tollcollection systems, the administration of customer accounts, and the introduction of measures for reducing evasion can result in higher revenues as well as higher costs. The magnitude of the potential increase in revenues and costs will differ for each toll agency. Read the entire page →
From page 102... ... This would be less of a problem with a system that replaces fuel taxes than for a new system that is intended to generate additional revenue. The London system generated far less revenue than forecast, with net revenue about half the amount originally predicted (Leape, 2006) Read the entire page →
From page 103... ... As noted previously, privacy is maintained by only sending an OBU number with the location data. The charge along with the OBU number is then sent to another office where the number is matched to an account for billing purposes. Read the entire page →
From page 104... ... 5.4.4 Cordon Pricing The general principles for undertaking a sensitivity analysis for tolling can also be applied to cordon pricing systems, especially since these systems use similar methods for collecting tolls, accepting payments, administering customer accounts, and reducing evasion. This section will examine the sensitivity of cordon pricing schemes with respect to demand elasticity, scale, implementation costs, and enforcement costs to the extent that these factors differ markedly from tolling systems. Read the entire page →
From page 105... ... Year 2005/06 2006/07 2007/08 2008/09 Enforcement Costs Revenues 0.9% -9.4% 2.8% 13.5% 13.0% 14.1% -5.8% -3.5% Source: Annual Parking Report 2009, Westminster City Council Table 45. Enforcement costs and revenues for the Westminster parking system. Read the entire page →

From page 88...

... As observed from the cost data presented in Chapters 2 and 4, the costs vary by year from 2003 to 2007, except for the VMT fee systems that have only 1 year of reported data. In addition, the costs differ from one state to another for motor fuel taxes, from one facility to another for tolling and cordon pricing, or from one provider to another for the VMT fee systems.