01660150

Component

The state of Indiana, similar to several other states in the United States, continues to grapple with the issue of projected shortfalls in highway revenue. In a bid to raise revenue to maintain and preserve the state and local roads and bridges, the Indiana House in 2016, introduced House Bill (HB) 1002 which included proposed increases in fuel tax rates and registration fees, and new fees for alternative-fuel vehicles. The Indiana House sought to ascertain the impacts of the proposed legislation on revenue generation and equity. In response to this need, a study was carried out to forecast the revenues that could be raised and how the changes in the taxation structure would affect the equity among various vehicle classes. This paper documents the methodology and results of that study. The results indicated that the proposed legislation will yield a 55% increase in revenue. The results of the equity analysis indicated that if there were no changes in the existing taxation schedule in FY2017 and FY2018, all vehicle classes with the exception of buses (vehicle class 4) would be underpaying their cost responsibilities. With the changes stipulated in HB 1002, the severities of overpayment and underpayment would be substantially reduced. Subsequent to the release of the study results, the bill was passed and the changes in the highway taxation became law.

This paper was sponsored by TRB committee ABE10 Standing Committee on Revenue and Finance. Alternate title: Analysis of the Impacts of a Legislative Initiative on Highway Financing: A Case Study of Indiana

18-03276

English

15p

2018

Transportation Research Board 97th Annual Meeting

Digital/other

Figures; References; Tables

Case studies; Economic impacts; Equity; Financing; Legislation; Revenues; Road construction; Social impacts; Taxation

Indiana

Finance; Highways; Policy

Transportation Research Board Annual Meeting 2018 Paper #18-03276

TRIS, TRB, ATRI

Jan 8 2018 10:48AM