HIGHWAY COST ALLOCATION AND USER TAX REVISION IN INDIANA

A discussion is presented of the use of the findings of a highway cost-allocation study in revising the highway financing scheme in Indiana. The cost-allocation study indicated that passenger cars and single-unit trucks as a group would continue to overpay their cost responsibilities whereas heavy combination trucks would continue to underpay if the 1983 highway user taxation structure were to remain unchanged. Several proposed taxation revision schemes were evaluated in terms of equity of revenue contribution and cost responsibilities of various user groups. These schemes involved the revision of fuel taxes and registration fees as well as the imposition of a new weight-distance tax. The adopted tax package included an increase in gasoline tax, a diesel fuel surcharge, an increase in registration fees, and a new user fee of $50 per year for commercial vehicles. Revenue/cost analyses conducted for each of the options considered indicated that no significant improvement in equity could be achieved without the imposition of a weight-distance tax. The adopted taxation scheme, although able to guarantee a funding goal, would not establish a desirable balance in equity among highway user groups. The possible reasons that the legislature did not include a third-tier tax are examined.

• Record URL:
  • http://onlinepubs.trb.org/Onlinepubs/trr/1986/1077/1077-004.pdf
• Record URL:
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• Supplemental Notes:
  • Publication of this paper sponsored by Committee on Taxation. Finance, and Pricing. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved
• Authors:
  • Sinha, Kumares C
  • Fwa, Tien F
  • Michael, Harold L
• Publication Date: 1986

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 18-27
• Monograph Title: Highway finance and management issues
• Serial:
  • Transportation Research Record
  • Issue Number: 1077
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Cost allocation; Costs; Equity; Financing; Fuels; Highway user taxation; Highways; Registration fees; Revenues; Taxation
• Uncontrolled Terms: Highway user costs; Revisions
• Geographic Terms: Indiana
• Old TRIS Terms: Weight-distance tax
• Subject Areas: Administration and Management; Energy; Finance; Highways; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 00474220
• Record Type: Publication
• ISBN: 030904071X
• Files: TRIS, TRB
• Created Date: Oct 31 1987 12:00AM