Prospects for transportation utility fees

Jason Junge and David Levinson

No 65, Working Papers from University of Minnesota: Nexus Research Group

Abstract: Transportation utility fees are a financing mechanism for transportation that treats the network as a utility and bills properties in proportion to their use, rather than their value as with the property tax. This connects the costs of maintaining the infrastructure more directly to the benefits received from mobility and access to the system. The fees are based on trips generated and vary with land use. This paper evaluates the fees as an alternative funding source in terms of economic, equity and administrative effects. The experiences of cities currently using utility fees for transportation are discussed. Calculations are included to determine the fee levels necessary for transportation maintenance budget needs in three sample cities and a county in the Twin Cities metropolitan area. Proposed fees for each property type are compared to current property tax contributions toward transportation. The regressive effects of the fees and the effect of adjusting for the length of trips generated are also quantified.

Keywords: tax; land value; locational analysis; transportation finance (search for similar items in EconPapers)
JEL-codes: H71 L91 R48 R51 R52 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-pub and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Journal of Transport and Land Use 5(1) pp. 33-47

Downloads: (external link)
http://hdl.handle.net/11299/180029 Second version, 2012 (application/pdf)

Related works:
Journal Article: Prospects for transportation utility fees (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nex:wpaper:transportationutilityfees

Access Statistics for this paper

More papers in Working Papers from University of Minnesota: Nexus Research Group Contact information at EDIRC.
Bibliographic data for series maintained by David Levinson ( this e-mail address is bad, please contact ).