Research Reports

  

Road Finance Alternatives: An Analysis of Metro Area Road Taxes

Principal Investigator:

Barry Ryan, Thomas Stinson

March 2002

Report no. CTS 02-04

Projects: Transportation Financing Alternatives

Topics: Economics, Planning

The average Twin Cities household paid about $500 in state and local taxes for roads in 1996. The total tax burden for the region was nearly $1 billion, with two-thirds coming from revenues that are fixed or hidden from the traveler's perspective. Tax alternatives that favor use-related charges can send travelers a clear price signal, ultimately encouraging more efficient travel behavior. Tax policy might have an effect on housing location decisions at the rural-urban fringe, where farmland development premiums are still small. Road tax policy will need to change in order to keep pace with higher construction costs.

Download or Order

Download PDF (512 KB)
For print version, view order form or contact CTS Library