A HIGHWAY TAXATION COST-BENEFIT ANALYSIS

THE PROBLEMS ARE REVIEWED OF HIGHWAY TAX ALLOCATION AND A HIGHWAY TAXATION COST-BENEFIT ANALYSIS IS PROPOSED. THE METHOD OF ANALYSIS PROPOSED IS ONE WHICH: (1) IS INTEGRATED WITH THE HIGHWAY IMPROVEMENT PROGRAM DEVELOPED FROM A STATE- WIDE ENGINEERING STUDY OF HIGHWAY NEEDS, (2) IS BASED ON THE LEGAL DEFINITIONS OF GENERAL PURPOSE AND SPECIAL PURPOSE TAXES, (3) IS BASED ON ECONOMIC PRINCIPLES FOR THE ALLOCATION OF OVERHEAD OR JOINT COSTS, IN ACCORDANCE WITH COSTS CAUSED AND BENEFITS ANTICIPATED, AND (4) IS BASED ON THE ENGINEER-ECONOMIST'S BENEFIT-COST RATIO FOR THE JUSTIFICATION OF PROPOSED EXPENDITURES. THE COST-BENEFIT ANALYSIS IS DESIGNED AS THE BASIS FOR A STATE HIGHWAY FINANCING PROGRAM, BUT CAN JUST AS EFFECTIVELY SERVE AS THE BASIS FOR THE NEW FEDERAL HIGHWAY FINANCING PROGRAM. THE METHOD CAN BE USED BY: (1) THE ECONOMIST TO DEVELOP A HIGHWAY FINANCING PLAN RESOLVING WHO SHALL PAY FOR HOW MUCH FOR HIGHWAYS, AND HOW MUCH HIGHWAY REVENUE SHOULD BE DISTRIBUTED TO EACH GOVERNMENTAL ADMINISTRATIVE UNIT, (2) THE LEGISLATURE TO DETERMINE THE EFFECT OF THE ECONOMIST'S PROPOSED HIGHWAY TAX LEVIES AND REVENUE DISTRIBUTION PLAN OF CONTEMPLATED CHANGES OR MODIFICATIONS IN THE FINANCING PROGRAM OR IN THE ENGINEERING PROGRAM, AND (3) THE ADMINISTRATOR TO ESTABLISH THE RELATIVE PRIORITY OF PROJECTS TO BE INCORPORATED INTO THE ANNUAL HIGHWAY IMPROVEMENT PROGRAM. THE METHOD WAS DEVELOPED IN RESPONSE TO DEMANDS FOR A MORE EFFECTIVE APPROACH TO THE FINANCING OF STATE HIGHWAY NEEDS PROGRAMS. HOWEVER, IT IS APPLICABLE TO THE COMPARABLE, ALTHOUGH MORE EXTENSIVE AND COMPLEX, PROBLEM OF FINANCING THE NEW FEDERAL HIGHWAY NEEDS PROGRAM AND THE NATIONAL SYSTEM OF INTERSTATE AND DEFENSE HIGHWAYS.

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  • Supplemental Notes:
    • 25 PP, 18 REF 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:
    • Lindman, Bertram H
  • Publication Date: 1958

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  • Accession Number: 00200976
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Jul 28 1994 12:00AM