From fuel taxes to mileage-based user fees : rationale, technology, and transitional issues.

752195316PDFTech ReportCTS 11-16Vehicle miles of travelFuel taxesUser chargesTaxationFinancingGlobal Positioning SystemMinnesotaUniversity of Minnesota. Intelligent Transportation Systems InstituteCoyle, David D.Robinson, Ferrol O.Zhao, Zhirong (Jerry)Munnich, Lee W.Lari, Adeel Z.Hubert H. Humphrey Institute of Public AffairsNTL-ECONOMICS AND FINANCE-ECONOMICS AND FINANCENTL-LAWS AND REGULATIONS-Federal LawsNTL-LAWS AND REGULATIONS-State Laws and RegulationsNTL-GEOGRAPHIC INFORMATION SYSTEMS-GEOGRAPHIC INFORMATION SYSTEMSNTL-ENERGY AND ENVIRONMENT-ENERGY AND ENVIRONMENTUS Transportation CollectionTwo national commissions established by the U.S. Congress recommend replacing the current system of fundingtransportation based on fuel taxes with a new distance-based system of user fees. The State of Oregon has done apilot project demonstrating a system for transitioning to mileage-based fees by paying the fees at the gas pump. TheUniversity of Iowa has conducted pilot tests around the country to determine how drivers respond to a mileagebasedfee approach using GPS-based technology. The Puget Sound Regional Council has conducted a test ofcongestion tolling. Finally, the Minnesota Department of Transportation is testing an approach for collectingmileage-based user charges using commercially available smartphones with built-in GPS devices, in which thecharge element is just one of the applications.While there have been discussions among many transportation leaders regarding why fuel taxes are no longer agood way of funding the transportation system, there is by no means a public understanding of why this is so. Thepublic assumes that the taxes they pay at the pump are paying for the system, and that if funding problems exist,they are due to waste and inefficiency. This examination\ue2\u20ac\u201cof the rationale, technology, and transitional issues inshifting from a financing system for surface transportation based on fuel taxes to one that is based on a mileagebaseduser fee (MBUF) traveled or vehicle-miles traveled (VMT) fee\ue2\u20ac\u201csets the stage for a policy discussion ontransportation-related user fees and lays the groundwork for an extensive public outreach effort