Publication date: January 1, 2014
Capsule summary: This research investigates transportation funding systems that could serve as alternatives to fuel-based taxes.
Author(s): Anderson, J.; Thompson, E.
Publisher(s): U.S. Department of Tranportation: Research, Innovation and Technology Innovation Administration
Definition: Financial strategies and techniques for transportation planning
Digest Search Results Page: https://www.planningdigest.com/research-theme/financial-strategies/
Corresponding TRID/TRT Terms
TRID Search Results Page: https://trid.trb.org/results.aspx?tc=NN:Cf
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Definition: A federally funded transportation policy-making organization, comprised of local government representatives and transportation authorities
Digest Search Results Page: https://www.planningdigest.com/org/mpo/
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TRT Search Results Page: https://trt.trb.org/trt.asp?NN=Nggks
Definition: Governmental agency focused on transportation
Digest Search Results Page: https://www.planningdigest.com/org/dot/
Corresponding TRID/TRT Terms
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TRT Search Results Page: https://trt.trb.org/trt.asp?NN=Nggj
Definition: Report published by a governmental body or other organization (e.g. FHWA, NAS, etc.)
Digest Search Results Page: https://www.planningdigest.com/resource-type/report/
Corresponding TRID/TRT Terms
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Description: As motor fuel tax income declines, and infrastructure ages, alternative funding mechanisms for road funding must be considered. This report documents simulations of alternative funding scenarios in predominantly rural states. The research explores sustainable sources of funding as alternatives and supplements to fuel-based taxes, so as to support maintenance costs.
Objectives: The objective of this research was to identify a strategy by which predominantly rural states can generate enough income to support maintenance projects. This research explored funding solutions that are effective in areas with small populations and expansive road networks. The project investigated price and demand for gasoline, a two-part tariff with a flat fee and a variable usage charge, externalities that amount to costs for road users and road owners, and differences between urban and rural environments. The project also included a literature review of current state and local taxes, as well as a case study of the proposed two-part tariff approach implemented in Nebraska.
Findings: A two-part tariff is an effective solution because it best matches the user costs imposed on the system. Additionally, the motor fuel taxes, motor vehicle sales tax and annual registrations don’t meet the funding needs of the state of Nebraska.
Recommendations: The research team recommends a phased increase of Nebraska’s vehicle registration fees to $110, in order to provide income to put towards road network maintenance. An appropriate annual increase would be $10, potentially greater for commercial trucks to compensate for their higher impact on the road network. Additionally, the research team proposes ad valorem motor fuel tax rates.
Research Theme: Financial Strategies
Community Type: Rural
Transportation Mode:
Planning Scope:
Organization Type: DOT, MPO or RPO
Planning Subject: Analysis, Evaluation and Assessment, Facility or Land Use, Transportation Planning