STATE HIGHWAY FINANCE AND USER TAXATION IN INDIANA

This research was designed to examine the alternatives available for increasing highway user revenue in Indiana, as well as how other states are handling these revenue problems. A questionnaire survey regarding current financing and taxation policies sent to the states, showed a definite need for increased highway revenues to meet escalating costs in most states. Many states indicated they are seriously studying a motor fuel tax which would, in some way, be indexed to inflation. A promising method of increasing revenues appears to be the adoption of an ad valorem tax, similar in nature to a sales tax, on motor fuel consumption. As a consequence of this research, three major alternative examples for increasing highway user revenue were examined. The first example included reproportioning of Indiana's registration and motor vehicle fees upward to compare with national averages. The second example involved increasing motor fuel revenues by a one-cent per gallon tax increase or adoption of a 20 percent ad valorem tax in lieu of the present motor fuel taxation structure. The final example combined an ad valorem tax with a reproportionment of user fees to national averages. Under conservative assumptions, this last example generated an additional 92 million dollars for highways or over twice the additional revenues generated by any of the other examples. Using the criterion of revenue generating capabilities and compatibility with methods an procedures presently utilized for collection of fuel taxes, a proposal including an appropriate ad valorem tax appears to be most beneficial.

  • Availability:
  • Supplemental Notes:
    • Prepared as part of an investigation conducted by the Joint Highway Research Project, Engineering Experiment Station, Purdue University, in cooperation with the Indiana State Highway Commission.
  • Corporate Authors:

    Purdue University/Indiana Department of Transportation JHRP

    Purdue University, School of Civil Engineering
    West Lafayette, IN  USA  47907-1284
  • Authors:
    • McCarthy, J R
  • Publication Date: 1976-10-5

Media Info

  • Features: Appendices; Figures; References; Tables;
  • Pagination: 153 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00163631
  • Record Type: Publication
  • ISBN: Project No. C-36-73E
  • Report/Paper Numbers: JHRP-76-26 Final Rpt.
  • Files: TRIS
  • Created Date: Oct 29 1977 12:00AM