Costs of Alternative Revenue-Generation Systems (2011) / Chapter Skim
Currently Skimming:
Pages 7-43
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 7... ...
These systems can be organized into the following categories based on the basis of taxation: • Vehicle ownership – Registration fees – Licensing fees – Personal property taxes • Highway user fees – Toll roads – Congestion/cordon pricing – High occupancy toll lanes – VMT fees • Energy consumption – Motor fuel taxes – Sales taxes on motor fuels – Utility fees • Beneficiary and local option fees – Beneficiary charges/value capture – Transportation impact fee – Local option sales taxes – Local option property taxes The alternative revenue-generation systems examined in this chapter move beyond the traditional methods of raising revenue based on motor vehicle ownership and fuel consumption toward systems that tie tax payments more directly to system usage. Movement in this direction would enhance the efficiency, equity, and long-term stability of the nation's transportation revenue system.
|
From page 8... ...
. In 1994, the first year the law took effect, federal diesel fuel tax collections grew by $1 billion, leading the FHWA to attribute $600 to $700 million of that amount to the administration and enforcement provisions contained within the 1993 OBRA (GAO, 1996)
|
From page 9... ...
The costs associated with enhanced motor fuel tax auditing and enforcement operations can serve to discourage states addressing budget shortfalls and uncertain financial outlooks. In an analysis of a proposed replacement of the Oregon weightdistance tax with a motor fuels tax, the Oregon Department of Transportation (ODOT)
|
From page 10... ...
In 1994, NCHRP Report 377: Alternatives to Motor Fuel Taxes for Financing Surface Transportation Improvements estimated motor fuel administrative costs at $200 million for all states (Reno and Stowers, 1994)
|
From page 11... ...
Buffalo and Fort Erie Public Bridge Authority Cameron County Regional Mobility Authority (CCRMA)
|
From page 12... ...
This has resulted in the establishment of new governance structures for tolling systems, such as • Multi-jurisdictional agencies, which have been granted toll authority as well as the responsibility to develop new toll roads: An example of this governance structure is the Central Texas Regional Mobility Authority (CTRMA) , which is developing toll roads in two counties in the Austin metropolitan area in Texas.
|
From page 13... ...
when all vehicles entering and exiting the system are monitored and tolls are calculated on the basis of vehicle class and distance traveled. In a controlled ticket system, both mainline toll barriers and ramp toll plazas are situated such that no toll-free traffic movements are permitted.
|
From page 14... ...
Patrons with trips originating from point B traveling to the right would pay at the toll barrier located between interchanges B and C The toll is a fixed-rate toll based on vehicle class only; trip length may vary depending on the entry and exit points.
|
From page 15... ...
Electronic tolls are charged based on both vehicle class and distance traveled. Cash customers, on the other hand, pay a fixed-rate toll based on vehicle class at a designated mainline toll-barrier location regardless of their point of entry or exit between toll plazas.
|
From page 16... ...
Toll rates are set according to a predetermined algorithm. Tolls on existing facilities can change as often as every 3 to 6 minutes.
|
From page 17... ...
Because of the different disclosure requirements, system configurations, technologies employed, and metrics used, it is relatively difficult to provide a direct comparison of toll agencies with respect to toll leakage. While some agencies will disclose debt that has been written off and/or disclose the amount of revenues that may not be collected, the manner in which these numbers are derived and the factors that influence these 17 Toll System Option Closed Toll Collection Open Toll Collection Hybrid Description and payment method Drivers pay at manned tollbooths or at automated coin machines (ACMs)
|
From page 18... ...
toll systems with mostly longdistance roads versus bridge systems. • Technology used for enforcement: The estimation of leakage rates will also be affected by the extent to which the system uses cash rather than electronic toll collection.
|
From page 19... ...
From a cost perspective, a toll agency would need to determine if the costs of the desired enforcement mechanism are reasonable given the projected return in revenues and fees. Examples of toll agencies that use criminal enforcement are the Delaware River Joint Toll Bridge Commission in Pennsylvania and New Jersey and the Harris County Toll Road Authority in Texas.
|
From page 20... ...
The WSDOT report used annual financial reports as its primary data sources. In addition, each agency was contacted to collect information at a level that would be useful for comparison to the estimated operational costs for the TNB.
|
From page 21... ...
Under fuel taxes, the state tax on gasoline is collected based on the location of the service station. This works reasonably well for people on long trips since they are likely to purchase gas in some proportion to the miles driven in each state.
|
From page 22... ...
This system has not been tested, and no cost estimates were provided. There is interest in odometerbased or self-reported VMT systems, but Sorenson et al.
|
From page 23... ...
In general, the state would regularly have to audit the service stations only with respect to the net difference between the mileage fee collected and the gas tax included in the wholesale purchase of fuel. The system shows promise as a method to transition from the fuel tax to a mileage-based fee, and it could support congestion pricing at some point.
|
From page 24... ...
During the upload, updated fee files could also be sent to the vehicle. The fee structure could be specific to vehicle classes, with characteristics such as fuel efficiency and emissions affecting the rate charged.
|
From page 25... ...
The charge is levied in lieu of the diesel fuel tax; Oregon does not levy a diesel fuel tax on fuel purchased for use in a vehicle paying the weight-mile tax. The mileage reports are based on owner fleet records, and the system is well established (Rufolo, Bronfman, and Kuhner, 2000)
|
From page 26... ...
One possibility would be to refund an estimate of the gas tax based on miles driven and EPA mileage estimates. Other equity concerns relate to equity between vehicle classes, geographic equity, and equity relative to income.
|
From page 27... ...
Drivers 27 Location Date Adopted Coverage Area Status Singapore 1975 Central business district, 66 gantries Operational Hong Kong 1983 Toll tunnels linking Hong Kong and Kowloon Pensinsula Demonstration project cancelled in 1985 Bergen, Norway 1986 Urban ring road, eight toll stations Operational Oslo 1990 Urban ring road, 19 toll stations Operational Trondheim, Norway 1991 Urban ring road, 22 toll stations Operational Kristiansand, Norway 1 992 Partial ring road, five toll stations Operational Rome 1998 6 km 2 area Operational Stavanger, Norway 2001 Urban ring road, 21 stations Operational Durham , U.K. 2002 Single streets Operational Na ms os, Norway 2003 Urban toll road, three toll stations Operational London 2003 Central business district, expanded in 2007 Operational Tønsberg, Norway 2004 Urban ring road, six toll stations Operational Stockholm 2005 Two zones Pilot project adopted Valetta, Malta 2007 Urban cordon Operational Milan 2008 Urban 8.2 km 2 cordon area, 43 gates Operational Edinburgh, U.K.
|
From page 28... ...
In the first year that the congestion charge was implemented, the average daily traffic decreased from 378,000 to 324,000, or 14% (Transport for London, 2007)
|
From page 29... ...
London congestion charge zone.
|
From page 30... ...
Average daily traffic in the congestion zone during charging hours decreased by 14%. 8% decrease in congestion in the original zone com pared to 2002 levels.
|
From page 31... ...
Oslo and its surrounding suburbs, with a total population of 1.1 million, have nearly 23% of Norway's population. To manage congestion, a cordon pricing system was adopted in 1990, with 19 toll stations composing the Oslo toll ring, which demarcates the toll cordon around Oslo.
|
From page 32... ...
In addition to staffing costs, additional costs that 32 Source: Fjellinjen AS Figure 10. Map of Oslo toll ring and Bærum toll stations.
|
From page 33... ...
reduce the number of vehicles passing into and out of the congestion zone during peak periods by 10% to 15%, (2) improve traffic flow along the busiest streets, (3)
|
From page 34... ...
. The following were some of the key findings from this 2006 study: • VKT declined by 2.8%; • Fuel tax revenues decreased by SEK 53 million ($7.7 million)
|
From page 35... ...
The program was subsequently extended and remains in force. The Ecopass area is demarcated by 43 toll stations with a number of major landmarks included within the restricted zone (Figure 12)
|
From page 36... ...
The design of each system will be discussed along with technology employed, impacts on the city, and costs of the systems. 2.5.1 Westminster City Council's Parking Program Overview of the Westminster City Parking System The City of Westminster, which is contained within London, has slowly grown its citywide parking pricing program into a larger and more efficient revenue-generation system.
|
From page 37... ...
As the parking system in Westminster has evolved, the city council has been able to adjust to factors that could present significant complications to a new parking system, such as • Security, • Visitor parking, • Disability parking, • Construction and dumpster allowances, • Resident parking, • Event parking, and • Loading and unloading zones. Operations and Enforcement of the Westminster City Parking Program Several factors set the Westminster parking system apart from other parking management systems.
|
From page 38... ...
Overall, nearly 58% of parking revenue for the 2008/2009 year went toward expenditures, netting roughly 42% of gross revenue (Westminster City Council, 2009b)
|
From page 39... ...
Sensors will need to be installed that can detect the presence of a vehicle in each on-street parking space included in the parking program. Parking meters and sensors will be wirelessly networked to a central database to provide real-time information to motorists.
|
From page 40... ...
. Financial Performance of the SFpark System Prior to the implementation of the new parking program, SFMTA reported that parking revenues were $177 million during FY 2006/07.
|
From page 41... ...
. 2.5.3 Chicago Parking System: Chicago Parking Meters, LLC Overview of the Chicago Parking System Beginning in February 2009, the operations and maintenance of roughly 36,000 metered parking spaces in Chicago were transferred to a private investment company, Chicago Parking Meters, LLC (CPM)
|
From page 42... ...
Map of Chicago parking zones.
|
From page 43... ...
Financial Performance of the Chicago Parking System Records show that the 36,000 metered parking spaces generated roughly $19 million in 2007. Although the city had added roughly 5,000 meters in the previous 5 years, many meters are outdated (Mihalopoulos and Dardick, 2009)
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.