Ferrell began his planning career in 1995 working for the Metropolitan Transportation Commission (MTC) on intelligent transportation system (ITS) applications for traffic management. This suggests that an RUC designed to collect the same amount of revenues statewide as the current fuel tax would not place a significant financial burden on California households.ĭr. No statistically significant difference in cost was found between the two programs in any income group. The analysis found that while daily household fuel consumption and VMT both appear to increase with household income, urban and rural households show roughly the same amount of fuel consumption and VMT. This study analyzes the 2010-2011California Household Travel Survey (CHTS) to identify the potential effects this policy change would be likely to have on households across the state. Thus, there is growing interest among policy makers for replacing the state’s per-gallon fuel tax with an RUC based on VMT. ![]() Over time, improvements in vehicle fuel efficiency and the effects of inflation have reduced both the revenue from the fuel tax and its purchasing power. Since 1923, California’s motor vehicle fuel tax has provided revenue used to plan, construct, and maintain the state’s publicly funded transportation systems. ![]() This white paper presents the findings from an analysis of the fiscal implications for vehicle owners of changing from the current statewide fuel tax to a “road user charge” (RUC) based on vehicle-miles traveled (VMT).
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