Road Users Tax

The Eastern Transportation Coalition (TETC), formerly the I-95 Corridor Coalition, is a 17-state and District of Columbia partnership focused on connecting public facilities between modes of transportation to increase safety and efficiency. TETC accounts for 40% of the U.S. population and gross domestic product (GDP). It includes Alabama, Connecticut, Delaware, Florida, Georgia, Kentucky, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Tennessee, Vermont, and Virginia, and the District of Columbia. In 2018, Road User Charge (RUC) legislation, sometimes referred to as the Mileage Based User Charge (MBUF), is being considered by nine TETC member states – Connecticut, Maine, Maryland, Massachusetts, New York, South Carolina, Tennessee, Virginia and Vermont. Three of these states – Connecticut, Maine and Virginia – have passed laws related to the RUC. The Hawaii Department of Transportation (HDOT) has received two grants totaling approximately $4.25 million from the Federal Surface Transportation System Funding Alternatives (STSFA) program. HDOT seeks to better understand how a road user charge (RUC) is collected through manual odometer readings at inspection stations and the use of other automated technologies to collect mileage data. HDOT recently received a second STSFA grant in April 2021 to study the accuracy of digital road mapping data in Hawaii and identify public and private roads. In 2020, the RUFTF considered numerous policy changes to modify and expand the operations of the state RUC. For example, one proposal would require all passenger cars to start with the 2027 model year and pay at least 30 mpg for road usage per mile. Another proposal would require the ODOT to structure its RUC program to support future pricing mechanisms that charge based on time of day and distance travelled. Clearinghouse Demonstration & DOT Management Interface Several East Coast states have significant out-of-state mileage on their highway systems.

In addition to analyzing how best to accommodate these cross-border trips in an MBUF system, TETC demonstrates a multi-state clearing-house mechanism that integrates data from the TETC pilot programs to identify the actual transfer of MBUF between states. Efforts also examine harmonization concepts in several countries as well as possible governance frameworks. Bruce Starr immediately recognized the problem: The hydrogen cars that General Motors displayed on the grounds of the Oregon Capitol did not need gasoline. And if they didn`t need gasoline, drivers wouldn`t pay the gas taxes that fund the state`s roads. « There is no asphalt fairy sprinkling asphalt on our roads at night, » he said recently. History: The California Department of Transportation (Caltrans) has received four grants totaling $6.68 million from the Surface Transportation System Funding Alternatives (STSFA) program. STSFA grants have been used to expand outreach and education efforts, explore other ways to generate revenue at the pump, explore new technologies, and investigate the feasibility of current Global Positioning System (GPS) technology to determine which roads are public and can be submitted to RUC. OReGO participants reported (96%) that they were « generally satisfied with their experience. » In addition, OReGO participants supported the RUC and felt it was fair, although they were concerned that rural drivers were paying too much and out-of-state drivers were not paying enough. In fact, respondents to the OReGO participant survey and the statewide public perception survey agreed that the two biggest drawbacks of the RUC were « penalizing rural drivers who travel longer distances and driving drivers out of state using Oregon roads. » OReGO participants also expressed concern about the criminalization of fuel-efficient vehicles, while the Public Perception Survey showed that « RUC is just another way to tax people more. » OReGO respondents were also less concerned about privacy issues than public survey respondents who did not participate in OReGO. The results of all outreach work were used to address communication challenges and raise public awareness. In the Netherlands, a tax is levied on the vehicle depending on its weight and fuel type, as well as the region.

[18] Electric vehicles and vintage cars over forty years old are exempt from vehicle tax. HDOT is running a three-year Hawaii Road Usage Charge (HiRUC) demonstration project that began in late 2018. Hawaii defines an « RUC » as a per-mileage charge that drivers pay to fund road maintenance, rather than paying a gas tax. HDOT notes that an RUC ensures that each driver pays for the amount of lane they use. The intersection of transportation and energy is a major political issue in Hawaii, as the state aims to get 100 percent clean energy by 2045. The legislation introduced in 2021, HF 523, would require owners of a fully electric vehicle to pay a road user fee (RUC) from July 2022. The RUC would be calculated on the basis of kilometres travelled multiplied by the rate of excise duty on gasoline divided by the vehicle`s fuel consumption. The bill also includes a proposed surtax for implementation costs, which would be set annually or less frequently. The bill would require the state to enter into an agreement with one or more account providers to conduct the administration of the RUC. Account providers would have to provide certain data about the owner of a registered vehicle. The New Hampshire Department of Transportation (NHDOT) received a $250,000 grant under the Federal Surface Transportation System Funding Alternatives (STSFA) program.

NHDOT used the grant to study a road user charge (RUF) plan based on the Environmental Protection Agency`s (EPA) assessment of a vehicle`s combined fuel economy. The RUF would seek to counter the decline in fuel tax revenues due to the increasing number of fuel-efficient vehicles by establishing an RUF in conjunction with the national vehicle registration system. The study also examined equity dimensions related to the establishment of RUFs, such as the collection of travel data using location-based services, extra-state, rural and urban drivers, and the relative burdens of fuel taxes and RUF by income. But existing programs operate on a small scale, and a national system would involve tracking millions of vehicles. Supporters are pushing for swift passage of proposals to keep funding for the country`s crumbling infrastructure, while opponents, including environmentalists, argue that change is premature at a time when electric vehicles make up only a fraction of the cars on the road. New fees would also slow their adoption, they say. Once the four main tasks are completed, Forward Drive will develop a detailed plan to integrate progress into a test plan, followed by « sub-tests » of smaller RUC prototypes. These include small tests of new mileage reporting methods, fairness policy, UCR registration of ride-hailing vehicles such as Uber and Lyft, and cost-cutting techniques. Finally, it will include a detailed roadmap from the RUC on how Washington and other states can properly size an RUC policy and system. A concrete outcome will also provide a framework for the review of transport policy and financing decisions in the light of increased revenues from the RUC. The motor vehicle tax (so-called road tax) is calculated on the basis of various factors such as engine capacity, number of seats, curb weight and cost price.

Each state has different rules and regulations for vehicle tax collection. In India, road tax is levied by the respective state governments (for life and also annually for commercial vehicles), and there could also be tolls for specific road use (fees depending on distance, type, etc.). At the time of purchase of the vehicle, the government charges GST (Goods and Services Tax) at the rate of 28% and an additional levy is levied depending on the cylinder capacity of the vehicle engine (1% for small cars with CC< 1200 CC, 3% for CC between 1200 and 1500 CC, 15% for more than 1500 CC). Electric cars are subject to a 5% lower tax. RUC America, formerly RUC West, is a consortium of states pooling their resources to study the feasibility of loading vehicles per kilometre. In 2022, the organization was renamed from RUC West to RUC America to reflect the transition to a national entity rather than a regional consortium. RUC America has funded more than 24 research projects on the feasibility of road pricing. The Washington State Transportation Commission (WSTC), in partnership with the Washington State Department of Transportation (WSDOT), has received three grants totaling approximately $14 million over three years under the federal Surface Transportation System Funding Alternatives (STSFA) program. The WSTC is a body of seven citizens appointed by the governor for a six-year term and convened the Road Fees Discussions (RUC). One of the tasks of the CSTAT is to conduct studies and projects for the Washington Legislature.