National Evaluation of Mileage-Based Charges for Drivers

Abstract

This paper presents initial results and conclusions from the National Evaluation of a Mileage-Based Road User Charge, a 2-year field study conducted by the University of Iowa Public Policy Center. The study, which evaluates technical feasibility and user acceptance of mileage-based charging as a potential replacement for the current motor fuel tax, was authorized by the 2005 Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users, which reauthorized federal transportation funding. This study is the first to examine road user charges on a national and multijurisdictional scale. Approximately 2,650 volunteers from 12 areas throughout the country participated in the study, which concluded in July 2010. The system mileage charges were totaled and apportioned to the federal, state, and local levels with the use of onboard computers installed in participants' vehicles. The onboard computers contained Global Positioning System (GPS) receivers with an associated geographic database to identify the taxing jurisdictions in which the vehicles traveled. The average participant drove approximately 9,000 mi during the study (the study totaled more than 21 million miles). Approximately 92.5% of all driven miles were successfully measured by both the GPS and the onboard diagnostics system (OBD-II). Of the miles driven without GPS, 6.9% could be reliably assigned to jurisdictions by using straightforward interpolation techniques. Approximately 0.6% of total miles driven could not be reliably assigned to a state or local jurisdiction. Participant attitudes regarding the system and the overall concept of mileage-based charging were assessed. At the end of the study, 71% had a highly or somewhat positive view, and 17% held a highly or somewhat negative view. Participants consistently (but to varying degrees) preferred audit ability, which consisted of receiving detailed monthly invoices, over maximum privacy protection.

Comprehensive Equity Analysis of Mileage-Based User Fees: Taxation and Expenditures for Roadways and Transit

“…Several factors are key in MBUF implementation, though privacy is often the primary concern of the public. Drivers in one study almost exclusively preferred the high privacy option (Hanley and Kuhl 2011). The appropriate application of technology is a struggle between accountability, flexibility, and privacy.…”

“…The appropriate application of technology is a struggle between accountability, flexibility, and privacy. Implementation methods include odometer readings (Kavalec and Setiawan 1997;NCHRP 2009;Whittey 2007), use of cell phone technology (Battelle 2013;NCHRP 2009;Whittey 2007), and onboard units (OBUs) utilizing global positioning systems (GPS) and radio frequency (RF) technology (Forkenbrock 2005;Hanley and Kuhl 2011;Puget Sound Regional Council 2008;Whittey 2007).…”

Raising State Gas Tax Rates for Transportation Revenues: Navigating a Bumpy Road

“… 2. Improvements in vehicle fuel efficiency have been cited as a major cause for the recent decline in fuel tax revenue (Hanley and Kuhl 2011; Wachs 2003; Zhao et al 2015). However, the negative effect of higher fuel efficiency on tax revenues is partially offset by a rebound effect—people drive more as a result of more fuel-efficient vehicles (Small and Van Dender 2007).…”

Equity performance evaluation of two different pricing options: fuel tax per gallon and VMT fee

“…The participants were asked to evaluate the mileage charge; the results suggest that over time the participants became more positive towards the system (moving from 41% favorable to 70% favorable), and only 17% were negativeopinioned at the end of the study. Also, the substantial finding of this study is with regards to privacy; between the maximum privacy configuration and the user auditable configuration, users were more positive-opinioned towards an intermediate level of privacy configuration, namely "modified auditable configuration" (Hanley & Kuhl, 2011  VMT fees are less regressive than fuel taxes across income groups, higher income groups being the ones who will bear a heavier tax burden.…”

“…The University of Iowa conducted a two-year study to assess the technical feasibility and public acceptability of implementing a VMT fee. Hanley & Kuhl (2011) discuss the results of the study that consisted of 2,650 participants in 12 locations across the nation. The technological configuration required installation of an onboard unit (OBU) in each vehicle for 10 months which uses GPS technology to determine location-specific characteristics and assess localized charges.…”