Variable motor-fuel taxes: problems and prospects

Journal Article · Sat Jan 01 04:00:00 EST 1983 · Transp. Q.; (United States)

OSTI ID:6340091

Forkenbrock, D J; Hoefer, C A

The aging US highway system faces maintenance and reconstruction costs as high as $220 billion, which exceeds traditional highway user-tax revenues. The use of heavier trucks that accelerate highway wear compounds the decline in revenue from changes in travel patterns and the economic downturn. Data from Iowa are used to compare gasoline-tax schemes that replace unit motor-fuel taxes with variable fuel taxes: ad valorem taxes, sales taxes on the purchase price, and indexed fuel taxes based upon the consumer price index. A composite index which considers highway construction, maintenance, and operation prices indices with a fuel-consumption rate adjustment appears to work best. Variable rates do not reflect revenue needs, however, but they could be helpful in improving highway-project planning if they establish the fractions of the highway budget that fuel taxes and other sources will contribute. 14 references, 5 figures, 2 tables. (DCK)

• Research Organization: Univ. of Iowa, Iowa City
• OSTI ID: 6340091
• Journal Information: Transp. Q.; (United States), Journal Name: Transp. Q.; (United States) Vol. 37:1; ISSN TRQUD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320203* -- Energy Conservation
Consumption
& Utilization-- Transportation-- Land & Roadway
AUTOMOTIVE FUELS
COMPARATIVE EVALUATIONS
CONSTRUCTION
FINANCING
FUELS
MAINTENANCE
ROADS
TAXES