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Revenue Enhancement 2013
Wayne Hammond of the AGC, and Stuart Davis of IAHD formed a Coalition.
The purpose of the Idaho Transportation Coalition is to raise awareness of the need for
long term sustainable funding for Idaho’s roads and bridges.
The Coalition’s partners are a broad base of Idaho transportation stake holders.
• Commercial Trucking
• Agriculture
• Freight
• Governmental Entities
• Natural Resources
• Citizen’s Committees
Genesis
Revenue Enhancement Legislation introduced 2013 Session• HB 337 - Imposed an additional 1% sales tax for 5 Years
- Generated $202.7 million in additional funding..
• HB 338 – Variety of fuel tax/transfer fee/registration..- Generated $236.5 million at end of five year phase in
• HB339 – Sales Tax on tires/auto related/lease and rental increase- Generated $25.4 million at end of five year phase in
• HB340 – Increases fuel and diesel fuel taxes/increase transfer fee on delivery or storage/enforcement of dyed fuel program- Generated $149.7 million at end of five year phase in
• HB341 – Registration fee increase on cars and trucks/hybrid fee/ increase overweight fees- Generated $61.4 million at end of five year phase in
Coalition Held First Meeting on July 23rd
Over 50 people attended
The Purpose and Scope of the Coalition was discussed, and stakeholder input was incorporated
into setting the agenda for the process of raising the awareness of Revenue Enhancement.
Today’s Presentation
• Revenue shown is for Idaho’s entire transportation system
• Totals are approximated
Revenue Needs
The Task Force on Modernizing Transportation Funding recommended that Idaho should increase transportation funding by $543 million annually for all system needs, or by at least $262 million annually to operate, preserve, and restore the existing system. The system is suffering from:
• Aging infrastructure: Much of Idaho’s infrastructure was built in the 1950s and 1960s.
• Growing demand: Idaho has been one of the fastest growing states in the nation for over a decade.
• Flat revenue: Idaho’s fuel tax, currently 25¢ per gallon, has not been raised since 1996.
• Inflation: In inflation-adjusted value, the 25¢ fuel tax implemented in 1996is worth only 17¢ today.
Real World Examples
In 1996, Burley Highway District paved 10 miles of new road every year.
In 2013, the Highway Districts paved just 1 mile of road.
Currently Deficient Local Bridges
Currently Deficient State Bridges
679 DeficientState and Local Bridges
395 State and Local Bridges Built Prior to
World War IILocal Bridges
State Bridges
Fuel Tax Progression
1960 1970 1980 1990 2000 2010
5¢
10¢
15¢
20¢
25¢
+ 1¢+ 1.5¢
+ 1¢+ 2¢
+ 1¢
+ 2¢
+ 3.5¢
+ 3¢
+ 4¢Fuel Tax Revenue Increases 1960 - 2013
Sources of State Transportation Revenue
— FY13 Actual Revenue Before Distribution • Dollars in millions and rounded —
PassengerVehicle
Registration$50.5
CommercialVehicle
Registration*$50.2
*Includes Permits**Includes Special Fuels
Misc. Fees $8.3
Total Revenue to HDA $346.7
Gasoline Tax$172.1
DieselTax**$65.6
Fuel Taxes$237.7
Revenue Potential: Fuel Taxes
1¢ of additional fuel tax realizes approximately $9,000,000.00
Idaho Currently assesses ¢25.0 per gallonThe Federal Government assesses ¢18.4
Total State/Federal Tax 43.4%
National Average 49.5%
Eliminate the sales tax exemption on gasoline and diesel
6% increase = $175 million
Revenue Potential: Fuel Taxes
Revenue Potential: Sales Tax
Increase the state sales and use tax from 6% to 7% Place the additional 1% sales tax directly into the Highway Distribution AccountEstimated Annual Revenue Increase: $202.7 million*
Bulk Petroleum Transfer Fee
1¢ Transfer Fee for the Petroleum Clean Water Trust Fund (PCWTF).
Applies to all bulk petroleum products brought into Idaho.
Estimated Annual Revenue Increase: $10.5 million
Sales Tax on Tires
Transfer the 6% sales tax on tires to the Highway Distribution Account
Estimated Annual Revenue Increase: $23.4 million
Based on SIC Code 553
Passenger Vehicle Registration Fees
Approximate revenue potential of passenger vehicle registration fees:
10% increase =$5 million
50% increase =$25 million
100% increase =$50 million
Value-Based Registration Fees
Charge a registration fee, based on vehicle MSRP, age or other factor
Commercial Vehicle Registration Fees
Approximate revenue potential of Commercial vehicle registration fees:
1% increase = $500,000
5% increase = $2.5 million
10% increase = $5 million
Commercial Vehicle Mileage Surcharge
Charge a cents per mile fee, based on weight, for trucks weighing 26,001 lbs. or more
Estimated Annual Revenue Increase: $50 to $60 million
Note: Elimination of Idaho’s truck weight/distance tax in 2001 caused a $9 to $10 million annual revenue shortfall.
Dyed Fuel Enforcement
Enforce the current state law that prohibits dyed fuel from being used in vehicles that are registered to operate on Idaho Highways
Estimated Annual Revenue Increase: $2.7 million
Electric / Hybrid Vehicle Fee
Implement a $140 annual fee for electric vehicles
Implement a $75 annual fee for hybrid vehicles
Estimated Annual Revenue Increase: $720,000
Rental Car Fee
Implement a 6% rental car fee
Estimated Annual Revenue Increase: $2 million
Safer Highways and Bridges
Reduced Unemployment
Improve Idaho’s Economy
Investments Today, Save Money Tomorrow
What is the return on investment?
Formed sub groups
At the first stakeholders meeting, ITC formed specialized groups to discuss pros and cons of
all issues related to revenue enhancement. • Fuels• Sales Tax • Trucks• Vehicles• Public Awareness (including Economic Impact Study)
Economic Impact Study
ITC is collaborating with a highly respected national consulting firm specializing in utilizing TREDIS software to produce a study that will demonstrate the positive effects
of passage of revenue enhancement, including:• Economic Impacts• Traffic Flows• Growth Patterns & Pace• Job Creation in all Sectors
Study will use Idaho data from ITD and Compass.
Formed sub groups
The next steps for ITC will be to• Finish subcommittee meetings• Compete economic study• Meet with Legislators, Governor’s office, and other
stakeholders to develop information to be utilized by legislature for revenue enhancement efforts
The Purpose of the Idaho Transportation Coalition is to raise awareness of the need for
long term sustainable funding for Idaho’s roads and bridges.
The coalition also provides an opportunity for all stakeholders to add input and
share ideas.