TRANSPORTATION FEES IN Daniel Findley, PhD, PE Weston Head, MS - - PowerPoint PPT Presentation

PUBLIC PERCEPTION OF TRANSPORTATION FEES IN NORTH CAROLINA

Daniel Findley, PhD, PE Michael Cobb, PhD Eleni Bardaka, PhD Larry Goode, PhD, PE Weston Head, MS Nick Norboge, PhD Ravi Chittilla Paul Broussard

Study Overview

• Challenges to the long-term sustainability of revenue streams
• Public perceptions of transportation taxes and fees vary by

demographics

• Many states are exploring alternative funding mechanisms
• Survey was designed to better understand how the public perceives

transportation taxes and fees

• Support exists for increasing road funding, preference exists for the gas

tax, but support exists to diversify funding sources

Findings from Similar Studies Across the Country

* Indicates the variable was included in the model but was found to be insignificant Indicates the variable was positively correlated with the dependent variable Indicates the variable was negatively correlated with the dependent variable

Dependent Variable Support for Tolls Support for Increased Fuel Tax Support for Increased Fuel Tax Support for Variable VMT (By Vehicle Type) Support for VMT Willingness to pay for road improvements Willingness to pay Toll to be free of delays Support for Increased Fuel Tax Age (Older) (-) (+) * (-) * * * (+) Education (Higher Levels of Education = 1) (+) (+) (+) * * (+) (+) Employment (Employed = 1) * * * * Gender (Male = 1) * * (+) (-) * * * (+) Income (Higher Income) (+) * (+) (+) (+) Miles Driven (More miles driven) * * * * (+) Opinion of Government Investment in Transportation Funding (Favorable Opinion = 1) * (+) (+) (+) Party Affiliation (Democrat = 1) (-) (+) (+) (+) (+) (+) (+) General Level of Support 28% 29% 36% 19% 21% 38% 24% 40% Location of Study (Author, Year) National (Duncan, 2017) California and Michigan (Fisher/ Wassmer, 2016) Virginia (Yusuf, 2014) California (Weinstein/ Dill, 2007) Independent Variable Virginia (Yusuf, 2018) National (Nixon/ Agrawal, 2018)

2019 Public Perception Survey

Sample Size = 2,245 Response rate = 6.4% Mode = Mail & Web using address based sampling & demographic targets Weights were applied to collected data to ensure sample demographics accurately represent adult NC population (Census)

*Tasaico, July 12, 2019 NC FIRST Commission Presentation

According to the 2018 statewide customer survey, close to 75% of North Carolinians believed they are currently spending more than they actually do in transportation fees/taxes

Estimates of the Current State + Federal Gas Tax Rate per Gallon of Gas

Percentage of

• f Gr

Group Who Responded Accurately

R D

Democrats vs Republicans

R U M F

Females vs Males

<50 50+

< B B +

Indicates Statistically Significant Difference (p-value < .05) <1 2+

<30 30+

< Bachelor’s vs Bachelor’s Degree or Higher One or Less Vehicles in Household vs More than One Vehicle in Household Correct Answer

Majority Supports Increasing Transportation Spending

Females vs Males: < 50 yrs. Old vs 50 yrs. Old+ < Bachelor’s vs Bachelor’s Degree or Higher Democrats vs Republicans

Su Support Fu Fundin ing In Increase, Di Difference by y Gr Group

Indicates Statistically Significant Difference (p-value < .05)

Urban vs Rural:

R U M F

<50 50+

< B B +

D R

Less than 30 miles Driven Daily vs More than 30 miles Driven Daily One or Less Vehicles in Household vs More than One Vehicle in Household

<1 2+

<30 30+

< Bachelor’s vs Bachelor’s Degree or Higher Less than 30 miles Driven Daily vs More than 30 miles Driven Daily One or Less Vehicles in Household vs More than One Vehicle in Household

Where Should Road Funding Come From?

Preferred Usa sage-Based, Di Difference by y Gr Group

0%

D R

Democrats vs Republicans

R U M F

Females vs Males

<50 50+

< 50 yrs. Old vs 50 yrs. Old+

< B B +

Indicates Statistically Significant Difference (p-value < .05) <1 2+

<30 30+

Less than 30 miles Driven Daily vs More than 30 miles Driven Daily One or Less Vehicles in Household vs More than One Vehicle in Household Urban vs Rural

General Taxes: General sales tax, property tax, vehicle property tax Usage Based Fees: Fees from gasoline, tolls, or miles driven

Preference Ranking for How Transportation Should be Funded: By Amount of Fuel Used, Miles Driven or Vehicle Weight

Sele elected Mos

• st for Fuel

el Used ed, Dif Difference by Group

D R

Democrats vs Republicans

R U M F

<50 50+

< 50 yrs. Old vs 50 yrs. Old+

< B B +

Indicates Statistically Significant Difference (p-value < .05) <1 2+

<30 30+

Democrats vs Republicans Urban vs Rural Females vs Males

Perceived fairness of paying $400 in gas tax annually to drive 15,000 miles

Con

• nsid

idered Fai air, Dif Difference by y Gr Group

D R

Democrats vs Republicans

R U M F

Females vs Males

<50 50+

< 50 yrs. Old vs 50 yrs. Old+

< B B +

< Bachelor’s vs Bachelor’s Degree or Higher

Indicates Statistically Significant Difference (p-value < .05) <1 2+

<30 30+

Females vs Males One or Less Vehicles in Household vs More than One Vehicle in Household

Preference for Transportation Funding: Gas Tax Versus Vehicle Miles Driven

Preferred Mile iles Dri Driven, Di Difference by y Gr Group

D R

Democrats vs Republicans

R U M F

<50 50+

< B B +

Indicates Statistically Significant Difference (p-value < .05) <1 2+

<30 30+

Less than 30 miles Driven Daily vs More than 30 miles Driven Daily Urban vs Rural

Cost 3% Environment 2% Fairness 78% Logistics 3% Miscellaneous 1% Tax 3% Unrelated/Unclear 10%

Reasons for Selecting Miles Driven Fee

Cost 2% Environment 10% Fairness 49% Logistics 18% Miscellaneous 2% Privacy 3% Tax 4% Unrelated/Unclear 12%

Reasons for Selecting Gas Tax

Reasons for Selecting Gas Tax or Miles Driven Fee

“That way everyone would contribute, even the electric car drivers.” “Because you cant cheat the gas pump, people will lie about their mileage.” “Gasoline purchase is the result of size and efficiency of car, and amount miles driven by that car.” “Taxing fuel usage should encourage fuel conservation which also will reduce environmental impact.” “Your tax would be built into your fuel purchase, not a separate one- time bill you pay. “A tax on miles driven is too invasive on privacy. If you don't GPS track, it would be too easy to cheat the system. I certainly don't want the State tracking me..”

Do you Support Hybrid Vehicle Drivers Paying Less in Tax Due to Higher Fuel Efficiency?

Supported Statement, Di Difference by y Gr Group

D R

Democrats vs Republicans

R U

Urban vs Rural

M F

<50 50+

< 50 yrs. Old vs 50 yrs. Old+

< B B +

< Bachelor’s vs Bachelor’s Degree or Higher

Indicates Statistically Significant Difference (p-value < .05) <1 2+

<30 30+

One or Less Vehicles in Household vs More than One Vehicle in Household Females vs Males

How much should each of these potential revenue sources contribute to NC roads?

Alternative Fuel Fee Gas Tax General Sales Tax Highway Use Tax Motor Vehicle and Drivers' License Fees Property Tax Tolls Vehicle Miles Driven User Fee

100%

Additional Information Baseline

Summary

North Carolinians, in general (Majority):

• Support increasing transportation funding
• Have a preference for the gas tax, but support diversity of funding sources
• Do not know the current gas tax rate or believe that it is lower than it

actually is

• Are split as to whether road funding should come from general taxes or

usage based fees

• Believe that $400 a year in gas tax is a fair amount of money to travel

15,000 miles

• Hold similar beliefs on these opinions despite being from urban or rural

counties