A PRELIMINARY EVALUATION OF POTENTIAL SOURCES OF REVENUE FOR HIGHWAY FINANCE

There is a wide array of potential revenue sources for highway finance, including both governmental and private ones. User fees are the primary source of revenue at the state and federal levels, while general revenue forms the basis of finance at the county and municipal levels. Trends in the varying revenue sources are examined, and it is shown how user fees have declined as a share of total highway revenue from 80 percent in 1965 to 65 percent in 1985. The various types of revenue sources are examined individually. User fees include motor fuel taxes, registration fees, special motor carrier fees, tolls, and parking charges. Nonuser sources include sales and property taxes, income taxes, and severance taxes. Private involvement in financing is increasing, and options include donations, joint development, and private ownership. Criteria are suggested for evaluating each of the sources of revenue. Broad evaluations are made using the criteria of equity, economic efficiency, administrative ease, revenue potential, political and public acceptability, and applicability. Trade-offs must be made among the varying criteria for each of the potential revenue sources. Continued research and effort are needed to better quantify the various evaluation criteria, to develop implementable user fees in urban areas, and to better integrate land use and transportation control and financing.