01623356

Component

This paper explores the use of transportation-dedicated property and sales taxes to fund the surface transportation system, and evaluates each policy’s distributional effects for the Washington D.C. - Baltimore area. A synthetic dataset is created via statistical matching, using the Gower distance hot deck matching technique, and is used to assess each policy’s economic stress on the HHs. Shifting from state fuel taxes to property taxes will decrease the taxpaying population for most income groups, while the tax-to-income ratios for all income groups will increase. Approximately 8.6% of the generated revenue would come from HHs that do not drive any vehicle. On the other hand, shifting to sales taxes will increase the taxpaying population across all income groups, with 7.1% of the generated revenue coming from HHs that do not drive any vehicle. As a result of the increase in the taxpaying population, all income groups will experience a decrease in their tax-to-income ratios. For both policies, Montgomery, Prince George’s, and Baltimore counties will be the top 3 jurisdictions in terms of revenue generation. However, D.C., and Baltimore City will experience the highest tax-to-income ratios, compared to their bottom 3 ranking under the state fuel taxes policy.

This paper was sponsored by TRB committee ABE10 Standing Committee on Revenue and Finance.

01618707

17-05661

English

22p

2017

Transportation Research Board 96th Annual Meeting

Digital/other

Figures; References

Economic impacts; Financing; Ground transportation; Property taxes; Sales tax; Stress (Psychology)

Baltimore (Maryland); Washington (District of Columbia)

Economics; Finance; Planning and Forecasting; Transportation (General)

Transportation Research Board Annual Meeting 2017 Paper #17-05661

TRIS, TRB, ATRI

Dec 8 2016 12:16PM