Speed Trap Hunter Forum: Best Radar Detectors, Laser Jammers, Laser Detectors, Speed Cameras Forum  

Go Back   Speed Trap Hunter Forum: Best Radar Detectors, Laser Jammers, Laser Detectors, Speed Cameras Forum > Speed Trap & Traffic Enforcement > Economics & Politics
Radar Detectors Forum Logon:

Economics & Politics Discussion of the economic and political market driving factors of automated enforcement technology.

LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 2008-06-26
NMA Reporter NMA Reporter is offline
Senior Member
Join Date: 2008 Feb
Posts: 125
NMA Reporter is on a distinguished road
Exclamation Toll Roads Mean Billions in Extra Costs for Motorists

Article: Toll Roads Mean Billions in Extra Costs for Motorists

With the promise of federal taxpayer subsidies, many states are rushing to embrace public-private toll road partnership deals as a means of boosting existing state transportation budgets. Our analysis shows, however, that when tolls are used to replace traditional funding sources like the gas tax, the out-of-pocket costs for motorists jumps by a factor of twenty-five.

Last year, the Washington State Department of Transportation (WSDOT) conducted a survey to determine precisely how much it costs to collect a toll from drivers (view report, 120k PDF). The agency examined the budgets of the most high-tech toll roads in the country -- those roads that rely upon Electronic Toll Collection (ETC) for at least two-thirds of their transactions. Electronic transponders minimize the expense of hiring employees to handle cash transactions and ensure costs are kept at a minimum. WSDOT documented only the direct expenses for the operation and maintenance of the transponder reading equipment and automated coin machines, salaries for human toll collectors and customer service staff, and the cost of toll violation processing. It did not include any costs that would have applied had the roads been open to free use by the public. On average, the roads selected for comparison by WSDOT spent $22 in collection costs for every $100 in toll revenue generated.

Denver, Colorado
47 miles
67% ETC
183-A (estimated)
Austin, Texas
4.5 miles$11,599,000$6,650,29557%
73, 133, 241, 261
Orange County, CA
51 miles
70% ETC
SR91 HOT Lanes
Orange County, CA
10 miles
100% ETC
Total112.5 miles$296,473,471$65,380,02122%

This compares unfavorably with existing methods of collecting revenue for roads such as the motor vehicle fuel excise tax. Each state levies this tax, which averages 19 cents per gallon, at the wholesale level tax. Although a few states like California also impose an additional sales tax at the gasoline station pump, collecting the tax from the fuel distribution point simplifies the administrative burden of the tax. According to figures maintained by the Federal Highway Administration, state governments, on average, spent just 88 cents in collection costs for every $100 in revenue generated from the gasoline excise tax last year. (View data, 28k PDF)

Tax Rate
22 cents
20 cents
18 cents
All 50 States
19 cents

As the price of gasoline continues to rise, toll road proponents have suggested that user fees based on tolls should eventually replace gasoline taxes entirely. If Colorado were to raise the $600 million currently generated by the gasoline tax with tolls, for example, motorists would have to spend an additional $100 million in administrative costs every year just to maintain the current level of revenue. Likewise, to replace California's gas tax, motorists would have to toss an extra $730 million in the collection basket before generating any new revenue for high-priority projects. On a nationwide basis, the added cost of toll collection would amount to $8 billion.

As gas prices continue to skyrocket, toll road proponents have suggested taxation of gasoline is no longer sustainable. Data from the state of Indiana show that sticker shock at the pump has actually had more of a negative impact on toll roads than it has had on gas tax revenue (view data). Source
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On

Similar Threads
Thread Thread Starter Forum Replies Last Post
Fitch Goes Negative on California Toll Roads NMA Reporter Economics & Politics 0 2009-02-14 14:07
Grim Financial Outlook for Toll Roads NMA Reporter Economics & Politics 0 2008-08-24 22:19
New Jersey to Double Toll Existing Toll Roads NMA Reporter Economics & Politics 0 2008-07-04 22:35
Study: Toll Transponders Hide Cost of Tolling NMA Reporter Economics & Politics 0 2008-07-03 10:54
Court Slams Florida Toll Roads Over Bogus Ticketing NMA Reporter Economics & Politics 0 2008-04-25 02:56

All times are GMT -4. The time now is 23:17.

©2019 SpeedTrapHunter