Per-Mile Tolling: Good or Bad Idea?

Sep 30, 2013

Resource dumped by HtmlRenderer

Resource path: /content/fleetcardsusa/en/blog/per-mile-tolling-good-or-bad-idea/jcr:content/par/backgroundimagesecti/backgroundImageSection/responsive_columns

Resource metadata: {sling.modificationTime=1529680621482, sling.characterEncoding=null, sling.parameterMap={}, sling.contentType=null, sling.creationTime=-1, sling.contentLength=-1, sling.resolutionPath=/content/fleetcardsusa/en/blog/per-mile-tolling-good-or-bad-idea/jcr:content/par/backgroundimagesecti/backgroundImageSection/responsive_columns}

Resource type: fleetcoronline/components/content/responsive-columns

Resource super type: -

Resource properties

jcr:primaryType: nt:unstructured
jcr:createdBy: dan.rawdon
jcr:lastModifiedBy: dan.rawdon
tableRow: false
jcr:created: java.util.GregorianCalendar[time=1529680592175,areFieldsSet=true,areAllFieldsSet=true,lenient=false,zone=sun.util.calendar.ZoneInfo[id="GMT-04:00",offset=-14400000,dstSavings=0,useDaylight=false,transitions=0,lastRule=null],firstDayOfWeek=1,minimalDaysInFirstWeek=1,ERA=1,YEAR=2018,MONTH=5,WEEK_OF_YEAR=25,WEEK_OF_MONTH=4,DAY_OF_MONTH=22,DAY_OF_YEAR=173,DAY_OF_WEEK=6,DAY_OF_WEEK_IN_MONTH=4,AM_PM=0,HOUR=11,HOUR_OF_DAY=11,MINUTE=16,SECOND=32,MILLISECOND=175,ZONE_OFFSET=-14400000,DST_OFFSET=0]
columns: [col-xs-12 col-sm-8, col-xs-12 col-sm-4]
jcr:lastModified: java.util.GregorianCalendar[time=1529680621482,areFieldsSet=true,areAllFieldsSet=true,lenient=false,zone=sun.util.calendar.ZoneInfo[id="GMT-04:00",offset=-14400000,dstSavings=0,useDaylight=false,transitions=0,lastRule=null],firstDayOfWeek=1,minimalDaysInFirstWeek=1,ERA=1,YEAR=2018,MONTH=5,WEEK_OF_YEAR=25,WEEK_OF_MONTH=4,DAY_OF_MONTH=22,DAY_OF_YEAR=173,DAY_OF_WEEK=6,DAY_OF_WEEK_IN_MONTH=4,AM_PM=0,HOUR=11,HOUR_OF_DAY=11,MINUTE=17,SECOND=1,MILLISECOND=482,ZONE_OFFSET=-14400000,DST_OFFSET=0]
sling:resourceType: fleetcoronline/components/content/responsive-columns

Value-Added Tolling

Recognizing that regular interstate users would be more than perturbed at the concept of being tolled on a surface that was already paid for with fuel taxes, Poole has proposed that the practice of per-mile tolling "be implemented on the principle of 'value-added tolling." This principle means that tolling would only begin after a corridor has been brought up to 'Interstate 2.0' standards. In addition to quelling the population's nerves, this will effectively limit the risk of redundant taxation that has the possibility to occur if states are slow to remove the gas tax currently in place. However, if there is an event of double taxation, the system permits "rebates of fuel taxes generated by the miles driven on the tolled Interstates".

Advantages of Per-Mile Tolling

Since the current system of fuel taxes supports the funding of all roadways at an average rate, light passenger vehicles and long-haul tractor trailers all pay the same average price to utilize the entire nationwide transportation surface. In this outdated system of taxation, a fleet that operates primarily on inexpensive local streets pays the same fuel tax as the fleet of long-haul tractor trailers that spend a majority of its miles on multi-billion dollar bridges, interchanges and expressways. However, with the per-mile based AET proposed for Interstate 2.0, toll rates will be "tailored to the cost of each highway."

Cost dependent toll rates is just one of the advantages of per-mile tolling, in addition to this, Poole describes six other reasons for per-mile tolling creating greater benefit than per-gallon taxation:

Per-mile tolling reflects greater fairness, since those who drive mostly on Interstates will pay higher rates than those who drive mostly on local streets.

If per-mile tolling is implemented as a true user fee, it will be self-limiting, dedicated solely to the purpose for which it was implemented (and enforceable via bond covenants with those who buy toll revenue bonds).

Per-mile tolling will guarantee proper ongoing maintenance of the tolled corridors, since bond-buyers and other investors legally require this as a condition of providing the funds.Per-mile tolling also provides a ready source of funding for future improvements to the tolled corridor.

Toll financing means needed projects, such as reconstruction and widening, can be done when they are needed, and paid for over several decades as highway users enjoy the benefits of the improved facilities.

Finally, a per-mile tolling system using AET can easily implement variable pricing on urban expressways to reduce and manage traffic congestion.

Resource dumped by HtmlRenderer

Resource path: /content/fleetcardsusa/en/blog/per-mile-tolling-good-or-bad-idea/jcr:content/par/backgroundimagesecti/backgroundImageSection/responsive_columns_1513512758

Resource metadata: {sling.modificationTime=1529680956267, sling.characterEncoding=null, sling.parameterMap={}, sling.contentType=null, sling.creationTime=-1, sling.contentLength=-1, sling.resolutionPath=/content/fleetcardsusa/en/blog/per-mile-tolling-good-or-bad-idea/jcr:content/par/backgroundimagesecti/backgroundImageSection/responsive_columns_1513512758}

Resource type: fleetcoronline/components/content/responsive-columns

Resource super type: -

Resource properties

jcr:primaryType: nt:unstructured
jcr:createdBy: dan.rawdon
jcr:lastModifiedBy: dan.rawdon
tableRow: false
jcr:created: java.util.GregorianCalendar[time=1529680939135,areFieldsSet=true,areAllFieldsSet=true,lenient=false,zone=sun.util.calendar.ZoneInfo[id="GMT-04:00",offset=-14400000,dstSavings=0,useDaylight=false,transitions=0,lastRule=null],firstDayOfWeek=1,minimalDaysInFirstWeek=1,ERA=1,YEAR=2018,MONTH=5,WEEK_OF_YEAR=25,WEEK_OF_MONTH=4,DAY_OF_MONTH=22,DAY_OF_YEAR=173,DAY_OF_WEEK=6,DAY_OF_WEEK_IN_MONTH=4,AM_PM=0,HOUR=11,HOUR_OF_DAY=11,MINUTE=22,SECOND=19,MILLISECOND=135,ZONE_OFFSET=-14400000,DST_OFFSET=0]
columns: [col-xs-12 col-sm-8, col-xs-12 col-sm-4]
jcr:lastModified: java.util.GregorianCalendar[time=1529680956267,areFieldsSet=true,areAllFieldsSet=true,lenient=false,zone=sun.util.calendar.ZoneInfo[id="GMT-04:00",offset=-14400000,dstSavings=0,useDaylight=false,transitions=0,lastRule=null],firstDayOfWeek=1,minimalDaysInFirstWeek=1,ERA=1,YEAR=2018,MONTH=5,WEEK_OF_YEAR=25,WEEK_OF_MONTH=4,DAY_OF_MONTH=22,DAY_OF_YEAR=173,DAY_OF_WEEK=6,DAY_OF_WEEK_IN_MONTH=4,AM_PM=0,HOUR=11,HOUR_OF_DAY=11,MINUTE=22,SECOND=36,MILLISECOND=267,ZONE_OFFSET=-14400000,DST_OFFSET=0]
sling:resourceType: fleetcoronline/components/content/responsive-columns

Impact for Fleet Owners

Like all political decisions, Interstate 2.0 will have a ripple effect throughout the transportation industry. Whether this will be a positive reaction from small fleets or large has yet to be evaluated. Fleetcards USA has reason to believe that fleet owners and fleet managers will look upon this favorably after open-mindedly reviewing the study. With fuel taxes being removed, the cost of fuel will be reduced while the tailoring of toll rates will create an ecosystem of fairness for fleets that travel hundreds of thousands of miles annually. Fleet Owners should approach the study with objectivity rather than stubborn bias for the long-standing system of per-gallon fuel taxes.