DEVELOPMENT OF TRIP COSTS FOR AN "IMPACT FEE" BASED EXCISE TAX

Traditional impact fees have stringent requirements for substantiating the basis of the fee and are frequently challenged in court. The use of an excise tax patterned after an impact fee allows the implementation of a similar trip-based financing mechanism without the potential legal uncertainties. As the City of Liberty, Missouri--a suburb in the Kansas City metropolitan area--continues to grow, the roadway system will need to be expanded. In order to finance future street improvement needs, the city is developing a two-pronged approach: a transportation sales tax for increased capacity necessitated by nondevelopment generated growth--traffic from outside the city or existing deficiencies--and an excise tax for additional traffic generated by new development within the city. The city desired to come up with an equitable excise tax rate that reflects the true cost of new trips generated by future development. The development of the excise tax rate was conducted in two phases. The first phase was to determine what future road improvements would be required to support transportation needs within the city limits and to assign responsibility for those improvements between new development and the city at-large. The second phase was to evaluate revenue alternatives to pay for the needed improvements.

• Supplemental Notes:
  • Conference proceedings available only on CD-ROM.
• Corporate Authors:

  Institute of Transportation Engineers (ITE)

  Washington, DC  United States 
• Authors:
  • Wahlstedt, M R
• Conference:
  • Transportation Frontiers for the Next Millennium: 69th Annual Meeting of the Institute of Transportation Engineers
  • Location: Las Vegas, Nevada
  • Date: 1999-8-1 to 1999-8-4
• Publication Date: 1999

Language

• English

Media Info

• Pagination: 10p

Subject/Index Terms

• TRT Terms: Costs; Financing; Highway maintenance; Highway user taxation; Impact fees; Improvements; Metropolitan areas; Sales tax; Taxation; Taxes; Travel demand
• Candidate Terms: Excise tax
• Geographic Terms: Kansas City (Missouri); Liberty (Missouri)
• Subject Areas: Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 00770305
• Record Type: Publication
• Report/Paper Numbers: Publication No. CD-006
• Files: TRIS
• Created Date: Oct 24 1999 12:00AM