$36 million in collections. Combined, NYC’s collection efforts – costing over $8 million – only achieved a 53.8% recovery rate with $106.9 million in parking tickets uncollected from 2016 to 2018.
ATRI estimates evasion and noncompliance with a national VMT system will exceed $7.87 billion annually – a loss that will reduce infrastructure investment or be borne by compliant VMT taxpayers.
Deployment Costs
Implementing a VMT would require onboard vehicle tracking technology that can identify the granular location of a vehicle. Such aftermarket devices – or dongles – can cost anywhere between $100 and $300 per unit. But even if a price tag of $50 was realized due to economies of scale, acquiring these devices across the nation’s vehicle fleet would cost approximately $13.6 billion.
Moreover, achieving the buy-in and compliance of the motoring public would require a massive public education campaign. From ATRI:
The driving public will have to be educated on the details of the new program, why it is important and necessary, and how to comply with the program. For many tech-savvy drivers, this process will be straightforward. For others it may take longer. A VMT tax system would be a significant change for U.S. drivers. Federal and state governments will have to educate drivers on why the shift from a fuel tax is important, what the funds will be used for, and how to properly comply. Likewise, those who will enforce the law will also require training. Some driver technical training will also fall on the government, unless this is built into the third-party management contracts (e.g., how to install a device into the OBD, how to set up a payment account, where to return defective devices). There are no programs similar to this that have been deployed in the U.S.
Privacy Concerns
Requiring GPS technology on every vehicle to track movements has already drawn serious objections from civil libertarians, consumer advocacy groups, government watchdogs, and other concerned citizens. Oregon’s pilot program shows how sticky privacy issues become upon implementation. One third- party contractor requires participants in the pay-per-
mile program to waive several state personal privacy protections when they sign up for an account.
The privacy policy of this CAM contractor states that “Personally Identifiable Information” and “Personal Information” as defined by the state of Oregon are categories of information collected and potentially disseminated to certain parties in order to manage each Road Usage Charge (RUC) account.
Participants are choosing to relinquish their travel pattern data, personal information, and financial information (for billing purposes) to voluntarily participate in the OReGO program.
Other Challenges
• A VMT tax program will be based on road use, not road mileage. The result is that urban systems will generate far more revenue than rural systems – although rural roadways possess far more miles and provide strategic connectivity between urban centers.
• Presently, there is no clear mechanism for ensuring and enforcing compliance. When a vehicle dongle is missing, broken or deliberately tampered with, the vehicle becomes invisible.
• Based on survey research, a federal VMT tax program concept is strongly disliked, and as road users learn the full scale and cost of a national VMT tax program, anecdotal research described herein indicates that the issues and dislikes will increase rather than decrease. An aggregate of focus groups and public opinion polls shows mean support for a VMT tax to be only 24%.
While alternatives to raising the fuel tax might have political appeal for elected officials, the reality of transitioning to a national VMT presents many practical and political hurdles that policymakers will need to navigate over the course of years. The trucking industry pledges to be a constructive partner in this process, and we’re ready to bring our logistical expertise to help Congress hammer out a workable, equitable, and sustainable solution that ensures the long-term integrity of our nation’s roads and bridges, a strong foundation for our economy, and the safety of the motoring public.
By Bill Sullivan, Executive Vice President, Advocacy, American Trucking Associations
®
57
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64
