via Oregon Bicycle Transportation Alliance

If you ever hear someone say that bicyclists get a “free ride”, share this infograph below that explains why people on bikes not only pay more than their share of road costs, but save everyone money whenever they ride.

Image courtesy: btaoregon.org

Mileage-based tax expensive idea – HaroldNet ..I see that a congressional committee wants to put a mileage-based tax on cars and trucks. This would involve installation of expensive GPS devices in every …

Our view: Leave miles-traveled tax at the roadsideDuluth News Tribune – ‎Late last week in Washington, US Rep. Jim Oberstar touted spending half a trillion dollars to solve the nation’s transportation woes. …

Mileage Tax Discussion in Congress Helicopter Association International – ‎House Transportation and Infrastructure Chairman James Oberstar said he will push for a mileage-based tax on cars and trucks to pay for highway programs. …

Mileage-Based Tax Not the Answer to Our Nation’s Infrastructure Needs Americans for Tax Reform – ‎By the Numbers: WASHINGTON, DC – Today, Americans for Tax Reform (ATR) issued the following response to Rep. James Oberstar’s (D-Minn) call for a …

More Congress Critters Want To Track And Tax Your Driving Habits Techdirt – ‎For years, various state politicians have pushed the idea of a “mileage tax” for driving, and it’s never made much sense at all. Yet, just a few months ago, …

(Source: Streetsblog & WorldChanging)

The Oregon Department of Transportation (ODOT) has compiled a 100-page report on the experiment that covers a lot of ground, but basically describes the trial as a roaring success. A few interesting features of this report :

• Overhead is low. Because the mileage tax piggybacks on the existing gas tax collection system, it’s easy and cheap for the state to administer.
• Payment is simple. From the driver’s perspective, the mileage tax differs little from the gas tax, other than the fact that their gas station receipts contain interesting information on miles driven.
• Privacy is protected. The state only gets odometer information, not information about vehicle location.
• Evasion is difficult. Even if you tamper with the GPS receiver, you’re still going to pay the gas tax.
• Phased implementation is possible. Oregon doesn’t foresee a complete changeover to mileage taxes happening until 2040. This is a bit too slow for my taste (I really hope gas stations don’t exist in 2040), but the point is that gas taxes and mileage taxes can happily coexist as the vehicle fleet turns over.

Technically, the system worked. Just as importantly, public acceptance was high. 91% of [self-selected] test participants preferred the system to paying gas taxes.… Before the experiment began, media portrayals of the system were almost uniformly negative — and inaccurate. By the middle of 2006, media coverage ranged from neutral to positive, and were far more accurate. Citizen comment reflected this broader trend. ODOT concludes, “Effective communication can lead to public acceptance.”

Click here to read blogger Adam Stein’s take on this subject at WorldChanging.com.  For those interested here is the final report in PDF form. 

TransportGooru is proud to team up with David Rizzo, better known as Dr. Roadmap,  a Commute Management expert who writes about issues such as improving gas mileage (mpg), alternate routes, traffic congestion, ridesharing, commuting behavior and intelligent transportation systems on California’s Orange Country Register.  He is well known for his comprehensive guide ever written on off-freeway commuting in Southern California, published in 1990.  Two years later he became the first traffic reporter to offer daily alternate routes in real time over the air on one of the most popular morning radio shows in Los Angeles.  Starting today, he will be contributing bi-weekly columns exclusively for TransportGooru.   Here is his first column on tax breaks, just in time for the tax season as we sharpen our pencils and start crunching the numbers before the arrival of April 15:

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Perhaps October 31, Halloween, is the scariest day of the year, or even Friday the Thirteenth and its specter of 24 hours of bad luck? Maybe. But the one day most working Americans dread most is April 15, the deadline for filling our income tax returns. However, a silver lining surrounds this annual dark cloud for those who share the ride on their way to their job.

On February 17, President Obama single-handedly doubled the tax-free benefit for ridesharers with the signing of the American Recovery & Reinvestment Act of 2009. Now people who take a train, bus or a vanpool to work can receive up to $230 per month from their employer, TAX FREE. That works out to $2760 annually. Anyone treated to a W-2 form at the end of the year qualifies.

Photo Courtesy: Paul Keleher@Flickr

Previously, this amount was limited to just $120 per month, or $1440 per year, as outlined in the Internal Revenue Code, Section 9010.

This fringe benefit encourages commuters to abandon their cars in favor of transit and vanpools, which feature a lower carbon footprint per passenger mile.

Referred to as the Commuter Choice program, it even benefits employers who provide these transportation fringe benefit funds in addition to, or in lieu of, existing compensation paid to their workers. What this means for those of us who haven’t earned a CPA credential lately, is employers realize a savings of at least 7.65% on the amount set aside, since payroll taxes do not apply.

Of course, you know there has to be a “gotcha” or two, but they’re not too bad.

The main catch is that your employer must pay for your commuting expenses by way of a bus pass, rail pass or Transit Check — which is a universal voucher produced by Commuter Check Services Corporation that acts like a gift certificate to purchase transit passes. Most transit agencies honor these.

An employer can also pay money to a vanpool provider, be it a company-sponsored vanpool or otherwise, just as long as the van seats seven adults (including the driver), and at least 80 percent of the mileage is for transporting employees from home to work and back again.

However, an employee cannot receive any cash directly. Otherwise, the IRS will seek a piece of the action.

Additionally, these benefits do not accrue to commuters who carpool. A possible reason behind this exclusion includes the fact that a van, bus, or train can remove far more vehicles off the road than a normal passenger car. Additionally, keeping track of what qualifies as a bona fide carpooling arrangement for commuting purposes only, could prove contentious and time consuming for any employer.

For the first time, though, anyone who pedals to work gets a break. Called the Qualified Bicycle Commuting Reimbursement, a biker can receive up to $20 per month from his or her employer, tax free, for reasonable expenses which include the purchase of a bike, bike improvements, repairs or storage.

President Obama also raised the tax-free parking allowance to $230 per month. And, yes, an employee can take advantage of BOTH benefits. Such would be the case for an employee who drives to a transit station that lacks free parking, then hops on a train for the rest of the trip to work. The potential tax-free income here adds up to a significant $5,520 per year.

While each state clings to its own interpretation of how employers can reimburse their employees for ridesharing, at least the feds have taken some of the sting out of tax time.

We need no longer lie panic stricken when April 15 rolls around.

©2009, Dr. Roadmap®

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Note: This is copyright-protected content.  Please contact Transportgooru if you like to use this article or portions of this article.  Thank you.

(via Editorial – A Smart Way to Help Commuters – NYTimes.com)

It’s been clear for months that only Albany could really rescue New York City commuters from the drastic service cuts and major increases in tolls and fares threatened by the deficit-ridden Metropolitan Transportation Authority.

That seemed a hopeless prospect — until this week, when Assembly Speaker Sheldon Silver, Albany’s most powerful Democrat, announced a compromise plan that could help both the authority and its riders. What is even more encouraging, Mr. Silver is probably the only one in Albany with enough clout to sell such a compromise.

The Silver plan is adapted in part from an excellent proposal outlined last year by Richard Ravitch, the authority’s former chairman. Mr. Ravitch and a commission established to find new ways to finance mass transit proposed two changes: a modest payroll tax for employers in a 12-county area and new tolls on bridges to Manhattan along the Harlem and East Rivers.

Click here to read the entire article.

(Source: etrucker.com)

The American Trucking Associations this week opposed a federal recommendation for a vehicle miles traveled tax, saying it presents privacy concerns.

ATA’s comments come in response to the National Surface Transportation Infrastructure Financing Commission’s report on highway funding challenges. The commission anticipates increasing problems with relying on fuel taxes to support infrastructure improvements because of increasing strides in fuel efficiency.

The commission’s solution – to migrate to a vehicle miles traveled tax – presents privacy concerns that not only are intrusive, but also could lead to new forms of fraud and identity theft, ATA argues. Also, the costs to implement and maintain the program would reduce the amount of funds available for infrastructure, ATA says.

Click here to read the entire article.