Dedicated Revenue Mechanisms for Freight Transportation Investment (2012) / Chapter Skim
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Pages 34-60
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From page 34... ...
34 Concept A VMT fee system would charge vehicle owners based on the number of miles traveled on public roads and highways. VMT is a direct measure of vehicle activity.
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35 location, or route might be determined include GPS, automatic vehicle location (AVL) , DSRC, and other technologies.
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36 consistent fee collection. The major beneficiaries would be municipal parking authorities.
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37 While published findings are not yet available, the NCFRP Project 29 study team was able to interview the project manager. The New York study, conducted by Delcan Corporation, is the only pilot project concerned with trucks.
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38 Dedicated On-Board Units Most analysis of VMT options to date assume or conclude that vehicles would be equipped with some kind of device (generically an OBU) to automatically track, record, and report mileage for distance/vehicle VMT systems.
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39 could greatly facilitate implementation of a VMT fee system for trucks. The generic term "telematics" covers a wide range of commercial or in-firm systems installed in trucks to communicate with central dispatchers and information systems.
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40 automate the Oregon weight-distance tax. The Oregon Department of Transportation's (ODOT's)
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41 so already have VMT records that could be used as a basis for fee calculation and auditing, although precision may be lacking. There is a legitimate concern over accuracy and completeness in self-reporting options.
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42 Bulk Fuel The proposed collection of VMT fees at gas stations or with fuel cards raises the question of vehicles that do not frequent gas stations. These vehicles include fleets whose fuel is purchased in bulk and dispensed at operating terminals.
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43 access and record usage (Easy Fuel and Fleet Control are two commercial systems)
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44 routinely enroll the whole fleet in IFTA even though some of the trucks usually remain within one state. If a VMT system took only mileage into account, the IFTA system could be used largely as is, simply by calculating the VMT fee.
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45 Time/Location Collection Requirements Time/location VMT fees that can vary by location, route, or time create the option for congestion pricing, tolling, road pricing, and other TDM measures that are ordinarily absent in distance/vehicle VMT proposals. The means by which time, location, or route might be determined include GPS, AVL, DSRC, and other technologies.
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46 cargo security and other purposes has found that such seals can be readily defeated (Johnston, 2003)
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47 record. It should be a straightforward process to link the VIN to a record of VMT fee payments and flag anomalies for audit.
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48 lation with a fleet-based report option to 936.7 million for biweekly reporting by individual OBU-equipped vehicles in the broadest coverage. Relatively frequent reporting and payment may be desirable to maintain steady federal cash flow and to avoid single large annual payments that could threaten truck owner finances.
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49 diesel tractor running 80,000 miles annually in long-haul service would pay about $1,759 in VMT fees in addition to $3,425 in estimated fuel taxes. Vehicle Weight Adjustments To account for vehicle weight, a VMT system would have to vary by weight class or operating weight.
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50 Oregon's "weight-mile" tax replaces the state fuel tax for vehicles over 26,000 lb (nominally GVW Classes 7 and 8)
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51 Source: New York State Department of Taxation and Finance, November 2009. Table 21.
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52 Passenger-Car Equivalents Ideally, VMT fees for trucks or other vehicles would be based on passenger car equivalents (PCEs)
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53 Time/Location Congestion Fee Structure The research team did not investigate or analyze possible time/location fee amounts above those involved in distance/ vehicle fees. The additional fees for TDM measures would almost certainly be set by local, regional, or state toll authorities.
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54 or could not pay VMT fees would be charged fuel taxes as a default, so the incentive for evading VMT fees would be small. The research team was unable to locate any estimates of enforcement costs for VMT fees, in part because enforcement costs are usually included in administrative cost estimates.
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Table 28. VMT fee implementation cost estimates.
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56 ($5 billion plus annualized implementation and compliance costs) and shows these costs broken down to net annual revenue per vehicle and annual cost per vehicle.
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Table 30. VMT fee net revenue and efficiency.
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58 impose any standards beyond what is required by the Fourth Amendment. There are also some state laws prohibiting the use of tracking devices.
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Revenue Option Years to First Revenue Federal Implementation Cost Phase-In Years Tax Burden Passed to Customers First Year Tax Burden Passed to Customers Second Year VMT Distance/ Vehicle Fee - OBU/Options Class 7&8 freight 5 5 33% 66% Class 7&8 all types 5 5 33% 66% Class 4-8 freight 5 5 33% 66% Class 4-8 all types 5 5 33% 66% VMT Distance/ Vehicle Fee - OBU Only Class 7&8 freight 5 5 33% 66% Class 7&8 all types 5 5 33% 66% Class 4-8 freight 5 5 33% 66% Class 4-8 all types 5 5 33% 66% Tax Burden Passed to Customers Third Year Implementation and Compliance Cost Passed to Implementation and Compliance Cost Passed to Customers Second Year Implementation and Compliance Cost Passed to 100% 33% 66% 100% 100% 33% 66% 100% 100% 33% 66% 100% 100% 33% 66% 100% 100% 33% 66% 100% 100% 33% 66% 100% 100% 33% 66% 100% 100% 33% 66% 100% Third Year Customers First Year Customers Table 31. VMT fee implementation phase-in schedule.
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60 of tax burden and compliance costs for VMT fee options. The implementation period is assumed to be 5 years due to the need to develop a system for fee collection, auditing, and enforcement and to develop and deploy the necessary technology.
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